China is the second largest consumer market of household paper in the world. In recent years, household paper has become the fast moving consumer goods that are the most closely connected with consumers. At present, the total trade volume of sanitary articles and materials in the world exceeds US$200 billion annually and the per capita consumption of household paper in the world is 15 kg.
However, the per capita consumption of household paper is only 9 kg in China that is a big consumer country with a population of 1.3 billion. In 2007, China's sales volume of disposable sanitary articles was about US$19 billion, less than 10% of the global total.
Comparison between the World and China in sales volume of sanitary articles and per capital consumption of household paper
Source: ResearchInChina
According to the forecast, in the next three years starting from 2008, China's annual growth rate of paper diaper market will reach 20%—30% and that of household paper market will reach 14%—20%, while that of sanitary napkin market will reach 10% in the same period, indicating that China's household paper industry has a bright future.
Although China's household paper industry has improved greatly, there still exist some problems, such as imperfect consumption structure, unbalanced regional consumption, week ability to build brand and to do R&D, which restrict the development of China's household paper industry and the improvement of local producers' competitive edge.
At present, China's per capita consumption of household paper is still very low. However, China will become the household paper market with the fastest growth and the greatest development potential in the world, following China's rapid economic growth, improvement of people's living standard and changes of people's consumption habits, which will provide a huge space for the development of China's household paper industry and household paper producers.
However, China's great development potential will attract more and more attention of transnational giants. With increasing buildup in foreign investment, China's household paper enterprises will meet sever competition in the market.