Transformation of Consumer Tissue Paper Demand in the German Market

For a long time, environmental protection has been a core issue of concern to German consumers. In 2024, Germany's economy rebounded after experiencing the COVID-19 pandemic and three consecutive years of high inflation, with the consumer price increase dropping to about 2%. Despite the economic recovery, German consumers remained cautious about their annual spending. Even so, many new development opportunities emerged in different market segments.

In 2024, Germany's inflation rate decreased significantly compared with the previous three years, gradually returning to the moderate level before the pandemic. In 2022, Germany's average annual inflation rate soared to a historical high of nearly 7%, and remained at a high level of nearly 6% in 2023. The market fluctuations over the past three years have reshaped consumers' behavior patterns, which not only reflects the impact of the post-pandemic era, but also indicates a profound shift in consumption trends towards cost-effectiveness and sustainability. These factors remain the core elements for brands to achieve differentiated competition.

Although the overall market performance in 2023 was relatively positive, the impact of high inflation throughout the year continued to affect consumers' decisions in 2024. Between 2022 and 2023, affected by multiple factors such as soaring raw material costs, the impact of the Russia-Ukraine conflict on the supply chain, and global supply chain disruptions, the prices of household paper in Germany continued to rise, and this trend continued into 2024.

Consumers are generally cautious about non-essential expenditures, which has created market space for low-cost alternatives, retailers' own brand products, and discounted group purchase goods. It is worth noting that consumers' preference for durable or multi-functional products has increased, even if such products are relatively expensive. Although the high-end household paper market maintains a growth momentum, the demand for cost-effective products has also risen significantly. Consumers are constantly looking for products with innovative functions, such as those with skin care effects or environmental attributes (such as using biodegradable materials and packaging) and at affordable prices.

Retail giants such as Aldi, dm, Edeka, Rewe and Rossman continue to expand their own-brand household paper product lines, covering more categories to consolidate their competitive positions. By launching new products that meet consumers' preferences for quality, sustainability and cost-effectiveness, these enterprises have further transformed their extensive channel advantages into market competitiveness.

Seeking a Balance Between Sustainability and Cost-Effectiveness

In 2024, German consumers' awareness of sustainable products and their impact on the environment increased significantly. With the popularization of environmental protection concepts, brands that focus on sustainable innovation and convey value through certifications and declarations have gradually gained consumers' favor.

According to Euromonitor International's 2024 "Consumer Lifestyle Survey", more than 45% of consumers believe that household paper products using recycled materials or recyclable/biodegradable packaging are more sustainable and environmentally friendly, and tend to choose such products even if their prices are slightly higher.

However, in times of economic pressure, consumers are generally unwilling to pay excessive premiums for sustainability, and they expect brands to make sustainability a standard feature of products. Enterprises providing greener alternatives (such as washable and reusable products, compostable or biodegradable products) have become the key to achieving differentiated competition. For example, solutions such as replacing paper products with reusable napkins and tablecloths, and replacing paper towels with hand dryers are emerging in the market due to their smaller environmental footprint.

Nevertheless, consumers are still concerned about the waste disposal of reusable products and the energy-saving efficiency in the process of reuse. Given that sustainability will be a common value pursuit of German society for a long time, the demand for relevant innovative solutions will remain urgent in the next few years.

German Household Paper Consumers Accelerate Their Embrace of Online Shopping

German consumers, once known for their resistance to digitalization, have quickly ranked among the top in Europe in terms of e-commerce penetration after adapting to online shopping. According to Euromonitor International's 2024 survey, the core factors attracting German household paper consumers to e-commerce include price advantages, convenience of ordering, fast delivery, rich brand choices and automatic replenishment and ordering services.

In the economic austerity cycle, e-commerce attracts consumers by continuously carrying out promotional activities and introducing preferential mechanisms, while enhancing customer stickiness through membership systems. The proficiency of the younger generation in digital tools has further promoted this trend. In this context, transparency and reliability have become the core elements for industry participants to maintain competitiveness.