Australia Tissue Paper Market Size and Outlook 2030 (2025)

Market Overview

Australia Tissue Paper market was valuedat USD 2.13 billion in 2024 and is anticipated to grow USD 2.90 billionby 2030 with a CAGR of 5.33% during the forecast period. The Australiantissue paper market is undergoing significant transformation, driven byheightened hygiene awareness, environmental concerns, and evolving consumerpreferences. The COVID-19 pandemic amplified the demand for disposable hygieneproducts across households, healthcare, and hospitality sectors. Consumersincreasingly prioritize sustainable options, leading to a surge in eco-friendlyproducts like recycled and bamboo-based tissues. Manufacturers are respondingby adopting sustainable practices, such as using alternative fibers andreducing water and energy consumption. The Australian government hascommitted USD 0.64 billion to the Recycling Modernisation Fund (RMF) to enhancedomestic recycling capabilities. This initiative aims to reduce the export ofrecyclables and promote the use of recycled materials in manufacturing,supporting the production of eco-friendly tissue paper products

Key Market Drivers

RisingHygiene Awareness

One of the primary drivers of the Australian tissuepaper market is the growing awareness around personal hygiene and sanitation.This trend was particularly accelerated during the COVID-19 pandemic, whichdramatically increased the consumption of tissue products across homes,offices, and public spaces. Australians have become more conscientious aboutcleanliness, resulting in heightened demand for facial tissues, toilet paper,paper towels, and wet wipes. The cultural shift toward routine use of tissue paperproducts is now deeply ingrained, especially in urban centers where fast-pacedlifestyles support the use of disposable hygiene products.

Moreover, public institutions and businesses haveenhanced hygiene protocols, further boosting commercial demand. Hospitals,educational institutions, restaurants, and retail spaces have scaled up theirusage of tissue paper to meet safety standards. As Australia continues to focuson improving public health outcomes, the use of tissue products is expected toremain a staple across both residential and commercial sectors.In 2023-24, as per the report, estimates that Australia used 335.1 kilotonnes of tissue stock for producing toilet paper, facial tissues, hand towels, and various other tissue products.

Sustainabilityand Environmental Consciousness

Australia is witnessing a growing movement towardsustainable living, and this trend is significantly shaping the tissue papermarket. Consumers are increasingly favoring products made from recycledmaterials, bamboo pulp, or responsibly sourced fibers certified by bodies suchas FSC (Forest Stewardship Council). Environmental concerns over deforestation,landfill waste, and carbon emissions are leading customers to chooseeco-friendly alternatives, even at premium prices. A Monash Universitysurvey indicates that 46% of Australian consumers consider sustainability asignificant factor in their purchasing decisions. This shift towardseco-conscious consumer behavior is driving the demand for tissue paper productsmade from recycled materials and sustainable sources

Manufacturers have responded by adopting sustainablepractices, including the use of chlorine-free bleaching, renewable energy inmanufacturing, water conservation methods, and recyclable packaging. Brandsthat actively promote environmental responsibility and transparency in sourcingand production are gaining a competitive edge. Local companies and retailersare also investing in in-store recycling programs and refill models to reducewaste.

TechnologicalAdvancements in Manufacturing

Innovation in production technology is a key driverthat is enhancing both the quality and efficiency of tissue paper manufacturingin Australia. Advanced techniques like Through-Air Drying (TAD) and eTAD arebeing adopted to produce stronger, softer, and more absorbent tissues withlower environmental impact. These technologies allow manufacturers to reduceenergy and water usage while meeting the evolving demands of consumers whoexpect comfort and performance from their tissue products.

Automation and AI-driven monitoring systems are alsobeing integrated into production lines to reduce human error, improveconsistency, and streamline logistics. Smart packaging solutions with QR codesor eco-labels are gaining traction, allowing consumers to trace product originsand verify eco-credentials. These improvements not only help in costoptimization but also support the development of differentiated products thatcater to specific consumer segments, such as hypoallergenic tissues or multi-layertoilet rolls.

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Key Market Challenges

RisingCompetition from Low-Cost Imports

One of the most pressing challenges facing domestictissue paper manufacturers in Australia is the influx of low-cost imports,particularly from countries with cheaper labor and lenient environmentalregulations. Countries such as China, Indonesia, and Malaysia export largevolumes of tissue products to the Australian market at prices significantlylower than those of local producers. These imported products often benefit fromeconomies of scale and less stringent regulatory requirements, allowing them toundercut local prices.

This has placed considerable pressure on Australianmanufacturers, who must contend with higher production costs, stricterenvironmental compliance standards, and rising input expenses, including labor,energy, and raw materials. As a result, local producers find it increasinglydifficult to maintain competitiveness without compromising on product qualityor sustainability. The continued penetration of imported products couldthreaten the viability of domestic manufacturing unless the government interveneswith supportive trade policies, tariffs, or subsidies to level the playingfield.

SustainabilityPressures and Compliance Costs

Although sustainability is a major driver of marketgrowth, it also poses significant operational and financial challenges. Asconsumers and regulatory authorities demand more environmentally friendlyproducts, tissue paper manufacturers are under pressure to reduce their carbonfootprint, minimize water and energy consumption, and source sustainable rawmaterials. Meeting these expectations often requires substantial investment innew technology, machinery upgrades, staff training, and sustainable packagingsolutions.

For small and medium-sized enterprises (SMEs) in thetissue industry, these costs can be prohibitive. Transitioning to practicessuch as using FSC-certified fibers, chlorine-free bleaching, and biodegradablepackaging can drive up production costs and affect profit margins. Moreover,non-compliance with environmental standards could result in penalties,reputational damage, or loss of consumer trust.

Key Market Trends

Premiumizationand Product Innovation

Australian consumers are increasingly seekinghigher-quality tissue products that offer superior softness, strength, and skinsensitivity benefits. This demand for premium tissue paper has led to a wave ofinnovation across product segments, particularly toilet paper, facial tissues,and paper towels. Multi-ply options, quilted textures, and hypoallergenicvarieties are now widely available to meet the growing expectations ofdiscerning customers.

The market is also seeing innovation in productformats and functionalities. For example, flushable wet wipes, antibacterialtissues, and scented options are gaining popularity. These enhancements caterto niche preferences and add perceived value, allowing manufacturers to justifypremium pricing.

Localizationand Regional Manufacturing Resilience

In response to supply chain disruptions and increasingreliance on imports, there is a growing trend toward local sourcing andmanufacturing resilience in the Australian tissue paper industry. Events suchas the COVID-19 pandemic and global shipping crises exposed vulnerabilities inoverseas supply chains, pushing businesses to consider reshoring or expandingdomestic production capacity.

Investments in local manufacturing offer multiplebenefits: faster response to market demand, reduced environmental impact fromtransportation, and enhanced control over product quality. Some companies arealso exploring partnerships with regional suppliers for pulp and packagingmaterials to strengthen supply security.

Localization not only enhances operational resiliencebut also aligns with consumer preferences for Australian-made products, whichare often associated with better quality and environmental compliance.Government incentives, such as grants for sustainable manufacturing andinfrastructure development, further support this trend.

Segmental Insights

ProductType Insights

Napkins represent the dominating segment in theAustralia tissue paper market due to their widespread use across both householdand commercial settings. Their demand is particularly strong in the foodserviceand hospitality industries, where hygiene and convenience are critical.Australian consumers also favor disposable napkins for everyday use,celebrations, and events, driving consistent sales. The availability of varioustypes—ranging from standard paper napkins to premium, eco-friendly options—catersto diverse consumer preferences. Additionally, increased emphasis on hygieneand the rise of quick-service restaurants have further bolstered napkinconsumption, solidifying their leading position within the tissue paper productcategory.

Sales ChannelInsights

Supermarkets/hypermarkets dominated the distributionsegment of the Australia tissue paper market due to their extensive reach, wideproduct variety, and consumer preference for one-stop shopping. These retailformats offer convenience, competitive pricing, and regular promotions, makingthem the primary choice for purchasing tissue paper products. Major chains likeWoolworths and Coles ensure consistent availability of both private-label andbranded tissue paper, catering to various budgets and preferences. Their strongsupply chains and in-store visibility further enhance product accessibility. Asa result, supermarkets and hypermarkets continue to lead in sales volume,driving the dominance of this segment in the market.

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Regional Insights

Australia Capital Territory (ACT) and New South Wales(NSW) dominated the Australia tissue paper market due to their high populationdensity, urbanization, and strong consumer purchasing power. These regionshouse major metropolitan areas, including Sydney and Canberra, where demand fortissue products is consistently high across residential, commercial, andinstitutional sectors. The presence of leading retail chains, hospitalityvenues, and healthcare facilities further drives tissue paper consumption. Additionally,advanced infrastructure and efficient distribution networks ensure steadyproduct availability. The combination of economic development, consumerawareness, and retail penetration solidifies ACT and NSW as the leading regionsin the tissue paper market.

Recent Development

• In March 2025, Yarn’n, an Indigenous-owned Australiancompany, has launched its 100% recycled toilet paper, Deadly Dunny Paper, intoWoolworths supermarkets nationwide and online. Each roll is FSC-certified,produced using 50% less water and 90% less energy than traditional methods.

• In May 2025, Foodbank Australia has partnered withEncore Tissue to launch an Australian-made toilet paper brand, sold exclusivelythrough Woolworths stores nationwide. Each 20-roll pack contributes directly toFoodbank’s food relief efforts, addressing the rising demand for assistanceamid increasing housing and grocery costs.

• In July 2023, Sybron has introduced SySoft LuxuryBamboo Toilet Tissue, crafted entirely from bamboo and packaged withoutplastic, in collaboration with UniGreen. This initiative aims to replace woodpulp paper and plastic consumables with bamboo-based products.

Key Market Players

• Kimberly-Clark Corporation
• Essity Aktiebolag
• Vinda International Holdings Limited
• The Procter & Gamble Company
• Hengan International Group Company Ltd.
• Clearwater Paper Corporation
• Unicharm Corporation
• Sofidel Group
• Kruger Inc.
• MPI Papermills Inc.

Report Scope:

In this report, the Australia Tissue Paper Market hasbeen segmented into the following categories, in addition to the industrytrends which have also been detailed below:

• Australia Tissue Paper Market, By Product Type:

o Toilet Paper

o Facial Tissues

o Napkins

o Wrapping Tissue

o Others

• Australia Tissue Paper Market, By End User:

o Residential

o Commercial

• Australia Tissue Paper Market, By Sales Channel:

o Hypermarket/Supermarket,

o Departmental Stores

o Online

o Others

• Australia Tissue Paper Market, By Region:

o Australia Capital Territory & New South Wales

o Northern Territory & Southern Australia

o Western Australia

o Queensland

o Victoria & Tasmania

Competitive Landscape

Company Profiles:Detailed analysis of the major companies presentsin the Australia Tissue Paper Market.

Available Customizations:

Australia Tissue Paper Market report with the givenmarket data, TechSci Research offers customizations according to a company'sspecific needs. The following customization options are available for thereport:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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