Paper Products Are Cleaning Up

How can center store sales become stronger and more absorbent? Increase the merchandising, promotion and floor space devoted to consumer paper products.

According to industry observers, the paper goods category remains a pillar of strength, with shoppers’ carts overflowing with club packs, mega rolls, single packs, jumbo sizes and just about every other size and shape of paper towels, bathroom tissue, facial tissue and disposable tableware imaginable. 

“Consumers are ‘going big’ regardless of household size,” says Brian Goldstein, intimate care general manager for Kimberly-Clark North America, based in Dallas. “The trend toward the mega roll is continuing, and one- and two-person households recognize the value of big packs even if their smaller household size means the purchase cycle for such packs will be longer.”

According to IRI, a Chicago-based market research firm, consumer paper goods is a multi-billion dollar category. For the 52 week period ended September 4, toilet tissue had sales of more than $8.58 billion, up 0.7 percent, while paper towels sales were $5.12 billion, up 1.3 percent.

During the same period paper napkin category sales were $716.2 million, down 0.7 percent, while facial tissue sales were $1.54 billion, down 1.8 percent.  

“Paper towel category growth is driven by households spending more per trip as a result of club channel growth and consumer preference toward super large case packs and longer lasting rolls,” says Santiago Arboleda, brand building leader, towel category, at Georgia-Pacific, based in Atlanta. “Purchase behavior is proving that roll size growth has shifted from regular rolls to double rolls by 20 percent since 2012.”   

Recycled “earth friendly” paper products are also on an upswing.

“Environmentally friendly lines, like Earth First, continue to grow, but have been slower to catch on with the average consumer,” says Steve Saraf, vice president of sales at U.S. Alliance Paper, the Edgewood, N.Y.-based manufacturer of the Earth First brand. “Nonetheless, demand is building for retailers to carry an environmentally-friendly alternative as people are slowly becoming more aware of the environmental issues facing our planet. This is carrying into the paper aisle.”  

Retailers can boost sales and profits of paper goods by focusing on driving engagement with bundling and cross-category promotions, say manufacturers.

Paper towel sales can increase if merchandised as a tool for planned house cleaning rather than just to wipe up spills, says Elizabeth Metz, senior director of shopper engagement at Kimberly-Clark North America.  “Make it easy for consumers to think of paper towels for proactive cleaning by associating it with complementary cleaning products. Often, such products aren’t shelved near the paper towels, so bundling/cross-promotions are a real convenience to shoppers and spur added usage occasions, like cleaning patio furniture,” she says.

The majority of paper towel purchases—a whopping 70 percent among “quick trip” shoppers—are bought off of secondary displays, Metz notes. “Scott Brand does particularly well on display: Scott 1000 sells more incremental units when on feature/display than any other toilet paper brand, and Scott Brand Towels promotional events deliver the highest lifts among ‘value’ brands,” she says.

Sean Nobui, senior brand manager for Household Care at Kimberly-Clark North America says Scott Towels and sister brand Viva are re-defining the paper towel category. “We are looking to mega trends that are going to reshape the trajectory of the business,” he says. “We are driving increased usage of towels based on core occasions, and driving behavior changes that keep the family healthy and able to continue with their daily lives.”

Georgia-Pacific’s Brawny brand now features larger sheet sizes and more sheets per roll, on comparable rolls, compared to other national brands, says Arboleda. “Brawny is rolling out new, simpler roll sizes for easier comparison and shop-ability in L, XL and XXL sizes,” he says. “This not only meets consumers’ preferences for an easier shopping experience but also provides efficiencies for retailers. Brawny XL rolls had a great launch in 2016 with 45 percent of its sales being incremental to the towel category.”

Manufacturers are also broadening the use of facial tissues.

“Kleenex Tissues are changing the way people think about facial tissue, transforming it from a wiping tool for runny noses to an everyday gesture of care,” says Victoria Tylinski, Kleenex senior brand manager, Kimberly-Clark North America. “In 2017, we’ll be making such gestures even easier with innovations that ensure you can always have a tissue readily at hand.”

Metz adds that retailers can boost impulse sales by merchandising facial tissues in other areas of the store. “Contextual placements where Kleenex Tissues can be an add-on to a ‘care’ occasion, such as in the greeting card section, can drive incremental sales, and displays highlighting Kleenex Tissues use in less expected places, like the car or baby’s nursery, serve as reminders to stock up for everyday care,” she says.     

Products made from recycled paper are being absorbed by increasing numbers of carbon footprint-conscious consumers, according to manufacturers of the lines.

“Earth First paper towels, bath tissue and napkins are made with 100 percent recycled paper, with 80 percent post-consumer content, and whitened without any chlorine or chlorine derivatives,” says Saraf.

As quality improves, Saraf expects more consumers to make the switch. “Early entries were unfortunately focused on the ‘green’ aspect and did not perform well on attributes like softness and durability,” Saraf says. “When the product did not measure up, it was a challenge to get consumers back, but today, technological and manufacturing advances up and down the supply chain imbue environmentally friendly products with the same quality attributes as traditional and nationally branded paper products.”

Cascades Tissues Group, based in Quebec, Canada, one of the largest tissue producers in North America does so with tissue composed mainly of recycled fibers. “Thirty-five million people use our products each day,” says company spokesperson Myléne Boucher. “At retail, we manufacture various private labels answering consumers’ demand with products ranging from entry level to high-end quality, and from 100 percent recycled to 100 percent virgin content.”

Manufacturers continue to improve the quality of their bathroom tissue. Georgia-Pacific makes Quilted Northern Ultra Soft & Strong and Quilted Northern Ultra Plush. This year the company introduced Mega rolls, equal to four regular rolls in one.

“The longer lasting Mega rolls meet consumers’ desire to change the roll less often and benefit retailers by taking up decreased shelf space and providing transportation and distribution, warehouse and labor efficiencies as a result of better cube utilization,” says Lauren Freedman, senior associate brand manager – Quilted Northern. 

Kimberly-Clark’s Cottonelle with Clean Ripple Texture is designed to provide a better wipe. “It’s not a pattern but it’s our texture that makes a difference,” says Goldstein. “Our Scott Family of Brands—Scott Tube-Free, Scott Extra Soft and Scott 1000—is looking to increase household penetration through strong commercial programs that focus on benefits and value. As America’s longest-lasting roll, Scott 1000 highlights just how far 1,000 sheets can go, while Scott Tube-Free encourages shoppers to toss that wasteful cardboard tube for good while still getting the cushiony softness they expect in their toilet paper.”

Disposable tableware is also merchandised in the paper aisle, and in August market leader Dixie unveiled a new look with an updated logo and refined product packaging.

“The iconic four-petal ‘X’ design on the Dixie name now corresponds to bold color sweeps on the exterior packaging for each product line—aqua blue for the ‘Everyday’ line of bath cups and plates; red for the ‘Ultra’ line of plates focused on durability; magenta for ‘Ultra Moments’ featuring style and strength; and green for ‘To Go’ hot cups,” says Gary Berger, senior brand manager – Dixie at Georgia-Pacific.    

“The new Dixie plate packaging also features branded side panels for better product recognition no matter how it’s displayed on the shelf,” Berger adds.