Market analysis and concentration level of the tissue paper industry in Brazil

Abstract

The study evaluates the level of concentration of the Brazilian tissue paper market and analyzes its reflexes in terms of relative performance by product line. Tissue papers, or sanitary papers, comprise a segment that covers the production of a very varied line of products, from toilet paper, towel paper to diapers and baby wipes, whose most apparent characteristics are softness and velvety texture, constituting a niche. Tissue segment participation in total paper production in Brazil has been growing steadily in recent years and prospective studies indicate that domestic production of this segment should remain above 4% per year by 2020, despite recent macroeconomic difficulties in the country. The research was exploratory and descriptive, with a mixed approach, being part qualitative, with the approach of the interpretive method Structure-Conduct-Performance (SCP), and quantitative part, in which it calculated the market concentration indices, with the stratification of the product line. Overall, the results showed that the segment has an industrial structure with a low market concentration, a tendency that has consolidated in recent years. In summary, the results allowed concluding that due to the strong competition with the differentiation of items by product line, the mix of process technologies and the focus on operational efficiency and cost reduction; condition the conduct patterns and the production strategy, which allowed the introduction of new and better quality products without significant price increases. This configuration of factors is the most important characteristic to sustain the growth trend of this industrial segment.