Tissue paper market in Africa

 850,000 tons of tissue paper are produced annually in Africa. With new tissue mills starting up, this number is expected to rise by 220,000 tons in 2017 alone. By early 2018, Africa stands to produce more than 1 million tons of tissue paper per year. Tissue production is heavily concentrated in Algeria, Egypt, Kenya, Morocco, Nigeria, Tunisia, Tanzania, and South Africa. On a smaller scale, Ghana, Madagascar, Uganda, Zambia and Zimbabwe are beginning to pick up the pace in local tissue mills, a challenging endeavor to wean off importing paper based products, with hopes to have a larger role in their own domestic markets. Strictly from a quantitative stand-point, South Africa currently dominates tissue production in the continent. In South Africa, there are 18 different mills with 22 machines, and it is currently exporting tissue products to neighboring countries like Botswana, Zimbabwe, Namibia, Mozambique, Zambia and Swaziland. In North Africa, Egypt holds the highest number of tissue mills and machines, and is currently operating 8 mills with a total of 14 machines. The past decade has shown a considerable growth in consumption of tissue paper, which was spearheaded by end-user consumption in North Africa, followed by South Africa. East and West Africa are picking up the pace as well, with smaller to mid-tier mills controlling the domestic markets and exporting to nearby countries. Governments such as Nigeria’s have banned the importation of finished toilet rolls, serviettes and facial tissues since 2004, opening up a lucrative market for domestic competition, where demand for tissue surpasses supply.

The government of Ethiopia will pump an equivalent of 2.6 billion ETB or 130 million USD into the pulp and paper industry in the next five years. As the demand for paper products will rise from 200,000 tons per year to 400,000 tons per year within the next five years. In this respect, Yekatit Pulp and Paper is investing in a new pulp and paper mill, which will produce 15,000 tons of tissue paper annually. The mill will be the first privately owned company to produce jumbo tissue rolls locally. The project is expected to start operation by mid-2019. Since January 2017, three new tissue machines have been installed and commissioned in South Africa, along with two second hand machines to follow through by mid-2017. Algeria and Egypt are also expanding their presence in the North African tissue export market. Both countries planning to install a new tissue machine each by the end of 2017, with an intention of exporting to nearby Mediterranean countries.

In the late 1980s, Egypt's tissue paper industry was primarily reliant on converting imported jumbo rolls, most of which came from Athens Paper Mill in Greece. At that time, Egypt's total annual consumption was less than 12,000 tons, with a population of approximately 40 million.

Early Pioneers in Tissue Paper Production

Carmen was the first company to begin tissue paper converting activities in Egypt. Shortly after, Flora became the first company to produce tissue paper jumbo rolls locally. Flora’s Tissue Mill (Pyramids Paper Mill) faced financial difficulties and went bankrupt in 2015. Interestingly, Overmeccanica, the Italian company that supplied the tissue machines to Flora, also declared bankruptcy in the same year.

The Growth of Local Raw Material Production

Handy-Alex Converta was the second company to enter Egypt's tissue paper production scene, using a second-hand machine supplied by RECARD, an Italian manufacturer of tissue paper machinery. RECARD also went bankrupt in 2020.

The Expansion of Fine Hygienic Holding

The third company to enter the tissue paper production market in Egypt was Fine Hygienic Holding. In 1989, Fine Hygienic became the first to establish an integrated production line, handling both raw material production and converting. Their plant, which began with a production capacity of 20,000 tons per year, used a tissue machine supplied by Valmet.

The Rise of the Egyptian Tissue Paper Industry

By the early 1990s, Egypt’s tissue paper manufacturing and converting industry began to grow steadily. The country’s success in this sector can be attributed to several key factors, including a promising market size, the availability of energy and water for production, a strategic location for exports, a skilled workforce, and investment-friendly laws and regulations.

The Tissue Paper Production Capacity

Today, the tissue paper industry in Egypt has reached a stage of maturity, with a total production capacity of approximately 300,000 tons annually. The actual converting capacity in the local market stands at 185,000 tons, producing fully converted finished products.

Currently, seven companies operate 11 production lines in the tissue paper sector.

There are 15 major tissue paper converting companies, along with more than 30 smaller ones spread across Upper and Lower Egypt. Many of these smaller companies use medium-sized Chinese production lines with small-scale production capacities. These businesses are often family-owned and operate in limited areas close to their production sites. Despite their limitations, these small companies account for at least 20% of the total tissue converting market.

As in many countries across Africa, the number of these companies grew rapidly over the past decade due to several factors, including continuous improvements in Chinese production lines, lower equipment costs, and the availability of raw tissue paper from multiple local suppliers. This enabled small businesses to purchase raw materials easily and at competitive prices.

Based on the information and figures provided, the current per capita consumption of tissue paper in Egypt has risen to approximately 1.25 kg per year, marking a significant increase compared to previous years. This consumption rate is expected to continue growing, driven primarily by population growth, improving living standards, and higher income levels. However, it remains uncertain whether the market's annual growth rate will maintain its current pace in the coming years.

As a summary, the tissue paper industry in Egypt has undergone a remarkable transformation since its inception in the late 1980s. From a reliance on imported jumbo rolls to a thriving, self-sufficient sector with substantial production capacity, Egypt's industry has evolved into a key player in the regional market. The pioneering efforts of companies like Carmen, Flora, and Fine Hygienic Holding, alongside the development of local raw material production, have laid the foundation for this growth. Today, Egypt boasts a robust industry with a total production capacity nearing 300,000 tons annually, supported by both large companies and a significant number of smaller, family-owned businesses.

With the current per capita consumption at 1.25 kg per year and continued growth driven by population expansion, higher incomes, and improved living standards, Egypt's tissue paper market is poised for further development. However, challenges remain, including the uncertainty about sustaining the market’s growth rate in the coming years. Nevertheless, the strong foundation of the industry, backed by a skilled workforce and investment-friendly policies, positions Egypt to remain a key player in the global tissue paper sector for years to come.

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