Price Increases in Tissue Paper Industry
Wood pulp is the main raw material while making tissue paper products. However, due to the demand for tissue paper products and the shortage, this main ingredient has been facing price increases. Because of this, many experts declare that wood pulp-based products will get more expensive.
CNN’s retail reporter states that pulp cost $606 per metric ton in September 2020, yet in only six months, in April, it cost over $907 per metric ton. Reporters add, these increases have not been seen in the tissue paper industry before and are quite unusual.
The cost of wood pulp, a key part of the paper in bathroom tissue and other tissue paper products, spiked in February, as speculators in China drove up spot prices by nearly 50 per cent.
Pulp producers in North America have begun to divert local supplies to the East to take advantage of the price increases, further decreasing supplies for makers like Kimberly-Clark.
Finished Tissue Paper Products are Getting More Expensive
Two of the biggest companies of the U.S. and the world, Protector & Gamble and Kimberly-Clark have warned that they will be raising prices on many of their U.S. products. In addition to the price increases in raw materials of tissue papers, companies are paying more for shipping as fuel costs rise and ports face longer delay because of congestion.
Kimberly-Clark’s announcement stated that their new pricing will affect the tissue paper market as of June.
Toilet Papers are Highly Affected
Consumer Brands Association shared in a post that rising wood pulp prices in the tissue paper industry are having an impact on toilet paper production costs. The hikes will affect baby and childcare products, adult care products and Scott bathroom tissue.
Toilet paper prices have already been increased during the pandemic and it will see another rise. Toilet paper prices increased 15.6% during the 52 weeks ending May 1 compared to the year prior, according to the latest numbers from NielsenIQ, which tracks point of sale data from retailers.