Market for Consumer tissue - SCA - SCA Svenska Cellulosa Aktiebolaget

The global market for consumer tissue is valued at approximately SEK 300bn and grows by about 4% annually. Europe accounts for some 25% and North America for just less than 30% of the overall market, with growth rates of 3% and 2%, respectively. Eastern Europe has a higher growth rate than the more mature markets in the West as a result of rising disposable incomes and greater use of tissue products.

Table

Brand categories, SCA Tissue, European market 2011, percent
Manufacturer's brands	47
Retailers's brands	53

Graph

SCA consumer tissue brand categories Europe 2011, percent

SCA is the largest supplier in Europe for consumer tissue with a market share of 25% and the thirdlargest supplier globally with a market share of 8%. SCA markets consumer tissue in about 60 countries and the company is currently the largest supplier in Europe and the rapidly growing market in Russia.

SCA’s brand portfolio comprises seven major global and regional brands and a number of local brands. Tempo, Plenty and Zewa are market leaders in large areas of Europe, while Cushelle, Velvet and Edet are strong in the UK and the Nordic region. In Hong Kong, Tempo is the market leader in handkerchiefs with about 70% market share. In South America, SCA markets products through joint ventures under the Familia and Favorita brands, and holds strong positions in emerging markets including Colombia, Ecuador and Chile. In the Mexican market, SCA occupies a strong position with the Regio brand and, in Australia, SCA is the second-largest supplier of tissue.

SCA - Tissue - Tempo For consumer tissue, a new brand platform was developed in Europe to improve the performance in meeting consumer requirements and build stronger brands over time. The aim is to enhance the efficiency of the brand portfolio and also differentiate the brands for products intended for personal hygiene and products intended for homes and households. A smaller number of strong brands enables increased focus on innovation and also leads to more efficient market investments. Implementation of the brand platform is progressing according to plan.

About 60% of products in Europe are marketed under SCA’s brands, while the remainder are sold under retailers’ brands. The aim is to further strengthen brand positions in the mature European markets while retaining the important market with retailers’ brands. Therefore, for a number of years, SCA has been working with a full-service offering that includes production and delivery, as well as a service partnership for product development, product range, design, marketing and logistics in collaboration with some of the leading European retail chains.