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Global Toilet Paper Market – U.S. ($375M), Germany ($320M), and the Netherlands ($164M) Are the Biggest Importers

toilet paper

Global Toilet Paper Market – U.S. ($375M), Germany ($320M), and the Netherlands ($164M) Are the Biggest Importers

IndexBox has just published a new report: ‘World – Toilet Paper – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

The global toilet paper market revenue amounted to $60.4B in 2018, going up by 6.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).

The market value increased at an average annual rate of +2.9% over the period from 2007 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being observed throughout the analyzed period. The growth pace was the most rapid in 2008 with an increase of 12% year-to-year. The global toilet paper consumption peaked in 2018 and is expected to retain its growth in the immediate term.

Exports 2007-2018

In 2018, approx. 2.1M tonnes of toilet paper were exported worldwide; going up by 4.9% against the previous year. Over the period under review, toilet paper exports continue to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2010 when exports increased by 5.3% against the previous year. Over the period under review, global toilet paper exports reached their peak figure in 2018 and are expected to retain its growth in the near future.

In value terms, toilet paper exports totaled $3.7B (IndexBox estimates) in 2018.

Exports by Country

China (229K tonnes) and Germany (222K tonnes) represented the main exporters of toilet paper in 2018, finishing at approx. 11% and 11% of total exports, respectively. It was followed by Italy (127K tonnes), France (113K tonnes), Poland (109K tonnes) and Sweden (104K tonnes), together comprising a 21% share of total exports. Canada (84K tonnes), El Salvador (80K tonnes), Mexico (73K tonnes), Slovakia (73K tonnes), the U.S. (71K tonnes) and Austria (70K tonnes) followed a long way behind the leaders.

From 2007 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by Mexico, while exports for the other global leaders experienced more modest paces of growth.

Export Prices by Country

In 2018, the average toilet paper export price amounted to $1,735 per tonne, increasing by 5.9% against the previous year. Over the period under review, the toilet paper export price continues to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2008 when the average export price increased by 15% y-o-y. Over the period under review, the average export prices for toilet paper attained their maximum at $1,903 per tonne in 2011; however, from 2012 to 2018, export prices stood at a somewhat lower figure.

Prices varied noticeably by the country of origin; the country with the highest price was the U.S. ($2,648 per tonne), while Slovakia ($1,346 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by the U.S., while the other global leaders experienced more modest paces of growth.

Imports 2007-2018

In 2018, the global toilet paper imports amounted to 2.1M tonnes, growing by 5.1% against the previous year. The total import volume increased at an average annual rate of +1.4% over the period from 2007 to 2018; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being observed throughout the analyzed period. The most prominent rate of growth was recorded in 2010 when imports increased by 7.9% year-to-year. Over the period under review, global toilet paper imports attained their peak figure in 2018 and are likely to continue its growth in the immediate term.

In value terms, toilet paper imports amounted to $3.6B (IndexBox estimates) in 2018.

Imports by Country

The U.S. (208K tonnes) and Germany (199K tonnes) represented roughly 20% of total imports of toilet paper in 2018. It was followed by the Netherlands (100K tonnes), achieving a 4.9% share of total imports. The following importers – France (87K tonnes), China, Hong Kong SAR (83K tonnes), Denmark (72K tonnes), Saudi Arabia (66K tonnes), Canada (66K tonnes), Belgium (64K tonnes), the Czech Republic (60K tonnes), Norway (52K tonnes) and Austria (48K tonnes) – together made up 29% of total imports.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Saudi Arabia, while imports for the other global leaders experienced more modest paces of growth.

In value terms, the U.S. ($375M), Germany ($320M) and the Netherlands ($164M) were the countries with the highest levels of imports in 2018, with a combined 24% share of global imports.

Import Prices by Country

In 2018, the average toilet paper import price amounted to $1,747 per tonne, jumping by 3.1% against the previous year. Overall, the toilet paper import price continues to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2008 when the average import price increased by 9.5% against the previous year. Over the period under review, the average import prices for toilet paper attained their maximum at $1,937 per tonne in 2011; however, from 2012 to 2018, import prices remained at a lower figure.

Prices varied noticeably by the country of destination; the country with the highest price was Norway ($2,473 per tonne), while Saudi Arabia ($1,460 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by China, Hong Kong SAR, while the other global leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

toys

BORN TO TRADE

The stork brings more than babies

My husband and I welcomed our first child, a baby boy, in January. As we prepared for his arrival, we quickly learned that as first-time parents, we will be acquiring an enormous amount of baby stuff, in complete disproportion to the expected size of our newborn. Our apartment was rapidly inundated with a car seat, stroller, swing and Pack ‘n Play, playmats, toys, onesies, hats, pajamas, burp cloths, swaddles, bibs, a crib, a changing table, and of course, mounds of diapers and wipes.

The baby product industry is booming. Sales reached an estimated $10.9 billion in 2017 and are expected to reach $16.8 billion by 2025. And with the pressures placed on first-time moms to be the perfect parent, it’s no wonder we shell out thousands of dollars in the baby’s first year to keep them warm and safe, hoping to avoid the 3am cries as much as possible.

According to the U.S. Department of Agriculture, the annual spending on a child under two was $12,680 in 2015 (for a married couple with two children). While most of that spending was allocated to housing and child care, an average family still spent over $1,000 a year on baby products, excluding food.

No surprise, the three big components of baby-related expenditure – diapers, car seats and toys — are global industries.

Dry and clean derrieres

A first-time parent might be surprised by the number of diapers they will change in their child’s first year. At two and a half months, my son goes through 6-8 diapers a day, not including the occasional mishap affectionately known as a “poop explosion”. And while I applaud families that choose to use cloth reusable diapers, by necessity or out of eco-consciousness, we opted for disposable diapers in my family.

The global disposable diaper market is dominated by two brands – Pampers made by Procter & Gamble (P&G) and Huggies made by Kimberly-Clark. Together, the two companies control roughly 80 percent of the global disposable diaper market. The disposable diaper industry has been undergoing significant changes in recent decades, driven by a decline in birth rates in the West and increased demand in China and other emerging markets. Both P&G and Kimberly-Clark have complex supply chains that span dozens of facilities around the world to meet parental needs.

China only recently became a significant market for disposable diapers, with Pampers leading the way. In the 1990s, P&G launched a low-cost diaper brand in China that failed to make inroads locally. Recognizing that Chinese consumers valued the diaper’s softness and ability to absorb over price, the company reentered the market in 2010 with higher-end products targeted at China’s middle class, and sales have been growing strongly since. In 2018, diaper sale revenues in China reached $7.6 billion. American diaper producers are working to convince Chinese parents to ditch kaidangku, Chinese back split-pants, which allow young toddlers to squat anywhere. While kaidangku are still popular among China’s rural population, China’s middle class is rapidly adopting the disposable diaper lifestyle.

Strapped in for safety

Car seats are often one of the most expensive purchases new parents will make in the baby’s first year. Given the stringent safety requirements for baby car seats, large international brands generally do not face significant competition from low-cost, lower-quality brands.

The global car seat market was estimated at $7 billion in 2018, with infant seats representing 32 percent of global sales. Leading companies are headquartered around the world: Dorel, Quinny and Cosco are brands based in Canada; Artsana Group’s Chicco brand and Kiwi Baby are Italian; UPPAbaby and Newell Brands, which make Graco and Baby Jogger are based in the United States; Goodbaby, the maker of Cybex and Evenflo, is based in Hong Kong; Renolux is based in France, Mothercare in the U.K., and InfaSecure is headquartered in Australia – to name a few.

While the companies above are headquartered around the world, many of their brands are manufactured in China (a few high-end brands are also made in the United States). Over the last several years, the U.S. trade war with China placed significant pressure on the car seat industry. While the Office of the U.S. Trade Representative (USTR) provided exemptions from Chinese tariffs to some safety products, including finished car seats, the components and materials used to manufacture the car seats did not receive the same treatment, placing increasing costs on U.S.-based car seat manufacturers. Advocating for an exemption for all baby safety products, the Juvenile Products Manufacturers Association argued that an increase in the costs of these products could put children, especially those in low-income families, at risk. And while the conclusion of the phase one trade negotiation with China suspended the tariffs, the risk to the industry remains.

Play time

You may be surprised to learn, much like my husband was, that toys play an important role in a baby’s development from their first weeks of life. Toys not only entertain, but they help develop key skills such as creativity, innovative thinking, and other important developmental milestones.

The global toy market dwarfs all other products for children, reaching $90.4 billion in 2018. The top seven toy companies in the world account for 55 percent of global toy sales. These include Mattel (with brands such as Barbie and Fisher-Price), Hasbro (making the Disney toys), Lego, and others. It’s estimated that 80 percent of all toys produced worldwide are manufactured in China and 85 percent of U.S. toy imports are from China. It’s no wonder that the trade war between the U.S. and China had a significant impact on the toy industry.

While the toy industry managed to avoid the 15 percent tariffs that were planned for December 2019 on Chinese-made toys, the tariff threats resulted in a turbulent environment for two large U.S. toy makers Hasbro and Mattel. Shares of both companies fell in late 2019, driven in part by the tariff uncertainty. As toy manufacturers generally operate with low margins in a highly volatile market driven by consumer preferences, most manufacturers are hoping for a long-term resolution of the trade tensions with China to ease their pressures ahead of the next holiday season.

A bottomless pit

As my son approaches three months, I am amazed at how quickly my purchasing habits have changed. I’m already thinking of our next car seat that can transition with him as he gets older, looking into the weight recommendations for different diaper sizes, and researching new toys to keep him (and myself) interested. And while we may slow down our purchasing to prevent a total baby takeover of our apartment, one thing is absolutely clear – we will always need to buy more diapers.

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Ayelet Haran is a contributor to TradeVistas. She is a government affairs and policy executive in the life sciences industry. She holds a Master’s of Public Administration degree in International Economic Policy from Columbia University.

This article originally appeared on TradeVistas.org. Republished with permission.
Dubai

Dubai’s Latest Report Confirms Non-Oil Foreign Trade Increased 6 Percent in 2019

In the latest report by the Government of Dubai, the region was confirmed its efforts to achieve its 2025 trade target of AED2 trillion helped spur growth in trade last year. The report also confirmed that non-oil external trade saw an increase of 19 percent in volume from 91 million tons in 2018 to reach 109 million tons in 2019. Re-exports rose by a record 48 percent to reach 17 million tons, while exports rose by 45 percent to 19 million tons and imports grew by 9 percent to 72 million tons. These figures capped a prosperous decade for Dubai from 2010-2020, during which external trade grew by 70 percent.

Dubai achieved exceptional external trade growth in 2019 despite the headwinds from an intensified global economic downturn. In terms of value, Dubai’s external trade surged 6 percent to AED1.371 trillion from AED 1.299 trillion in 2018. Exports skyrocketed 22 percent to AED155 billion, re-exports grew by 4 percent to AED420 billion and imports rose by 3 percent to AED796 billion. Over the decade (2010-2019), the value of Dubai’s external trade went up by 52 percent thanks to the agility, versatility and flexibility of the external trade sector in the emirate, which discovered alternative markets and trade paths to make up for sluggish growth in some markets.

“Dubai’s external trade has contributed significantly to the emirate’s economic achievements, further raising its status as a global hub for trade, business, and tourism, giving it a solid platform for growth in the next 50 years and creating the optimal conditions for more sustainable development across sectors,” said Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of The Executive Council. “Inspired by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, Dubai’s external trade sector is progressing steadily towards the 2025 trade target of AED2 trillion set by His Highness.

“All government entities are working seamlessly together to provide the best services, facilitate trade and foreign investments, and further develop infrastructure across the emirate, especially at airports and free zones, to galvanize its journey of excellence and enhance its role as a commercial bridge between the east and west. Furthermore, hosting mega-events such as EXPO 2020 will provide opportunities for the international trade sector to explore new possibilities and expand growth.”

Dubai’s foreign trade out of free zones in 2019 was a major contributor to the overall increase, accounting for AED592 billion, an 11 percent increase year-on-year. Direct trade saw a 2 percent growth to reach AED770 billion. Customs warehouse trade hit AED9 billion.

Land trade grew by 11 percent contributing to AED228 billion, air trade rose by 5 percent to AED641 billion and sea trade increased by 4 percent to AED502 billion.

Sultan bin Sulayem, DP World Group Chairman & CEO and Chairman of Ports, Customs and Free Zone Corporation, said: “Growth in Dubai’s external trade is the fruit of dedicated and well-planned work over the last few years, which helped us establish global leadership in different sectors. The future is promising and there are no limits when it comes to our expectations. We will keep growing and developing based on the latest and most advanced innovations and breakthroughs in AI smart applications following the vision and directives of our leadership.

“Hosting major international events will give our organizations a greater voice on the world stage, backed by our presence and strong network out of the 80 terminals that DP World operates worldwide, and our bold economic initiatives including the Dubai Silk Road.”

Bin Sulayem added: “Free zones in Dubai are a key factor behind the emirate’s trade success. The sophisticated infrastructure of our free zones, especially Jebel Ali Free Zone (JAFZA), has helped businesses benefit from different incentives and facilities, and attracted more foreign investments over the years.”

Bin Sulayem said Dubai Customs is continuously evolving to facilitate greater trade and provide more exceptional service to its customers. The number of customs transactions completed by Dubai Customs grew by a record 34 percent in 2019 to 13 million from 9.7 million in 2018. As part of the Dubai Silk Road strategy, Dubai Customs launched the World Logistics Passport, which links Customs World, DP World, and Emirates Group to enhance connectivity through Dubai and, through sharing of expertise and process development directly between partner countries. Dubai Customs also launched the second phase of the productivity engine, an initiative developed in-house and approved by The Executive Council with the aim of boosting productivity by 8 – 10 percent.

China remained Dubai’s largest trading partner, contributing AED150 billion. India was the second-biggest trading partner, contributing AED135 billion, followed by the USA with AED77.7 billion, and Switzerland with AED60 billion.

Saudi Arabia maintained its position as Dubai’s largest Arab trade partner. The country was the emirate’s fifth-biggest partner globally, contributing AED56 billion.

The highest traded commodity by value in 2019 was gold, jewelry, and diamonds which contributed AED370 billion, a growth of 7 percent from 2018. Gold took the lion’s share of trade with AED169.5 billion, followed by phones with AED164 billion, an increase of 9 percent from the previous year. The third-highest traded commodity was jewelry at AED116.6 billion, followed by petroleum oils which contributed AED85.4 billion in 2019, a growth of 55 percent, and diamonds which accounted for AED83.9 billion.

*Republished with permission