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Surprisingly, the facial tissues market in India is worth considerably more than the toilet paper market, US$15 million versus US$9 million. Sales have been boosted because as people spend more time commuting and travelling, they have started keeping boxed facial tissues in their cars as a more hygienic alternative to cloth handkerchiefs. Indeed the majority usage of tissues occurs outside the home, so when designing new packaging manufacturers need to take this into consideration. The cube or oval type packaging available in Western Europe and North America would probably prove to be unpopular with consumers as it could not easily be stored in the door space of cars.
Wide display areas dedicated to tissue products in the growing number of supermarkets/hypermarkets have also helped to create increased levels of awareness, whilst promotions have heightened the number of consumers who are willing to trial the product, unlike in the toilet paper market.
The kitchen towels segment suffers from the same problem as toilet paper – that it is seen as a luxury. In 2007, total revenue generated was only US$5 million.
Sales are further restricted by the wide availability of cheap substitute products such as washable cloths and towels.
Because of these factors, sales of kitchen towels are restricted to only the most affluent consumers.
Recent product development has focused on providing improved functionality in relation to absorption. However, over the course of the forecast period (2007-2012), it is expected that aesthetic improvements will also come to the fore with coloured and embossed papers becoming more fashionable. Unit prices are expected to decline over the forecast period as the market is very nascent and the current high price of kitchen towels makes them out of reach for the masses. Thus, manufacturers will be forced to lower prices in order to further increase the penetration and usage frequency of kitchen towels among consumers.
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