0SEPTEMBER 2019

TOILET PAPER

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Trend Watch

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Toilet paper accounts for the largest segment in household paper products, and due to its intimate usage, it is also the segment where consumers are least

likely to trade performance for cost. Consumers increasingly believe that store

brands are as good as name brands and that in most cases, premium innovations are not worth the extra cost. Despite these trends, there are

growth opportunities over time that will require brands to innovate their

products.

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F RA GRA N C E

2 3TRE N D SM A RK E T

O V E RV I E W

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TABLE OF CONTENTS

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MARKET OVERVIEW

1Ø c a t e g o r y o v e r v i e w

Ø f a c t s & f i g u r e s

Ø p r o d u c t s h o w c a s e

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Market Size for Paper Products(Current Year & Forecast Projection, North America)

Source: Mintel, Market Sizes

• Household paper represents one of the most inert CPG (consumer packaged goods) categories.

• The market is projected to grow 3.3%, which amounts to market worth of $18.9 billion by 2022.

* # of launches

MARKET OVERVIEW - category overview

$17.56$17.76 $17.79

$18.00$18.17 $18.20

$18.40$18.49

$18.64$18.77

$18.92

$16.50

$17.00

$17.50

$18.00

$18.50

$19.00

$19.50

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Valu

e (b

n US

D)

247 212 229 291 331

Toilet paper and paper towels

account for 82% of household paper

category sales

Source: Mintel

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• Toilet Paper (Wet/Dry) [$9.73] dominates the household paper product market, with 54% of products being paper and moist toilet paper/tissues.

• Kitchen [$6.43] products include kitchen towels, napkins, and serviettes.

• Facial Tissues [$2.05] includes handkerchiefs. This category along with napkins are being cannibalized by toilet paper and paper towels, as consumers substitute products across segments.• 30% of US adults use toilet paper as a substitute for facial tissue

MARKET OVERVIEW - category overviewMarket Segmentation for Household Paper Products

(Value $bn USD, North America, 2017)

Source: Mintel, Market Sizes

Toilet Paper (Wet/Dry)

54%Kitchen35%

Facial Tissues11%

Toilet Paper(Wet/Dry)Kitchen

6Source: Mintel, Market Sizes

Top Companies for Household Paper ProductsCompany Retail Market Share by %

(Value %, United States, 2017)

MARKET OVERVIEW - facts & figures

The Procter & Gamble Company

32%

Kimberly-Clark Corporation

21%

Koch Industries Inc.18%

Own Label26%

Others3%

The Procter & GambleCompanyKimberly-Clark Corporation

Koch Industries Inc.

Own Label

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Top Product Claims for Toilet Paper(% by Variants, North America, 2016-2018)

Source: Mintel GNPD

• Environmentally Friendly Product claims lead as a main concern for consumers who are making “green” purchases.

• Still in line with Environmentally Friendly Product is Ethical-Sustainable (Habitat/Resources) claim which accounts for products that don’t participate in agricultural waste, are responsibly sourced, and use alternative fibers versus the common virgin wood pulp.

MARKET OVERVIEW - facts & figures

Environmentally Friendly Product

28%

Ethical - Sustainable (Habitat/Resources)

25%

Fragrance Free18%

Ethical - Recycling15%

Environmentally Friendly Package

14%

0 10 20 30 40 50 60 70

2016

2017

2018

Units

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ANDREX - UKClassic Clean Washlets

‘Cotton Fresh’ Toilet Tissue Wipes1 MAY FLOWER - CHINA

Zhen Mai Xian Rou Toilet Tissue2

CARESS - ITALYArgantherapy Scented

Toilet Paper3

INFIORE - ITALYSelection Soave Compact Toilet Paper5

MARKET OVERVIEW - product showcase

GLADOdorShield Small

Trash Bags - Febreze Beachside Breeze4

CLEAN SCENTS® Paper Towels6

1. SKINCARE INGREDIENTS INFUSEDAndrex Classic Clean Washlets have been relaunchedin the UK and now contain micellar water. Theflushable and biodegradable wipes are lightlymoistened with micellar water and feature a cotton-fresh fragrance.2. ENZYMED POWERED PAPERMay Flower Zhen Mai Xian Rou Toilet Tissue isformulated with Npulp, claimed to be the first strawpaper process which doesn't use harsh chemicals,instead relying on the power of enzymes.

3. AROMATHERAPY CLAIMSCaress Argantherapy toilet paper is said to "transformyour bathroom into a comfortable wellness center tomake you enjoy the beneficial effects ofaromatherapy every day". Providing aromatherapeuticqualities in paper products explores how consumersare looking for homecare products that providemental and physical wellbeing.4. SCENTED SOLUTIONSA trend toward scentless and unscented householdproducts has been driven by chemical and ingredientconcerns as well as scent sensitivity. Glad’sOdorshield touts a OdorShield technology thatguarantees protection against the strongest trashodor.5. QUICK DISSOLVINGInfiore Selection Soave Compact Toilet Paper isdescribed as a soft two-ply toilet paper made from100% pure cellulose. According to AFNOR accreditedtests, it dissolves in nine seconds.

6. INFUSED SCENTSNEW CLEAN SCENTS® Paper Towels are unique andinnovative with fruit scents. The scented towelsprovide a fresh scent for the kitchen through theirscented cores.

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TRENDS

2Ø f o r m u l a t i o n

i n n o v a t i o n s

Ø p a c k a g i n g i n n o v a t i o n s

Ø n e w t e r r i t o r y

Ø f o r m a t i n n o v a t i o n s

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TRENDS - formulation innovations PERSONAL CARE INGREDIENTS

Emphasizing ingredient efficacy

SAXON - UKSoftest Toilet

Tissue

Coconut oil isn’t just used for cooking anymore, Saxon’s toilet paper is enriched with extracts of coconut oil, following popular trends found in food and beauty markets. Mintel research shows that when buying toilet paper, 57% of buyers consider softness to be a key factor when purchasing, with the inclusion of coconut oil potentially boosting associations with this aspect.

Furthermore, the moisturizing properties of coconut oil also seem well placed to entice users in that market.

SAXON - UKSoftest Toilet

Tissue

COCONUT SHEA BUTTER

CLEAN INGREDIENTS

Value-added benefits are a staple in tissue innovation to drive category value growth. The industry has seen a wide range of

value-added benefits – from ingredients in the products to functional benefits. Examples of added benefits through additional ingredients include scents, disinfectants, and

lotions/oils for gentleness on skin.

Sorbent Thick & Large Hypo-Allergenic Toilet Tissue is dermatologically tested Ph neutral, suitable for

sensitive skin and free from ink, dyes and fragrance.

Healthy properties in toilet paper

SORBENT - NEW ZEALANDThick & Large Hypo-Allergenic

Toilet Tissue

LIVINGCRAFTS - SOUTH KOREAFlushable Moist Wipes

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TRENDS - packaging innovations PLASTIC-FREE

Reducing plastic packaging In light of the growing awareness of plastic waste in the environment, there is opportunity for brands to embrace paper packaging and reduce the category’s plastic footprint. De La Mark Toilet Paper is a two-ply product made from carefully bleached recycled paper. The packaging is plastic-free and the paper is said to be gentle for skin. Who Gives A Crap Toilet Paper is made from 100% recycled paper with no dyes, inks or scents.

RECYCLED FIBERS

Appealing to eco consumers

DE LA MARK - UKRAINEToilet Paper

WHO GIVES A CRAP - AUSTRALIAToilet Paper

SMOOTH PANDA - GERMANY100% Bamboo Toilet Paper

EARTH SMART - NEW ZEALANDRecycled Double Length

2 Ply Toilet Paper

Brands can bolster their eco credentials by reducing the carbon footprint of production. Examples include using

renewable energy and increasing their use of recycled fibersand locally grown sustainable fibers.

Smooth Panda 100% Bamboo Toilet Paper is unbleached and features a natural bamboo fragrance. According to the manufacturer, bamboo needs fewer fertilizers or pesticides

than trees and also grows quickly.

IN THE US

45%of adults say a

'made from recycled products' claim would encourage them to

buy a product

Source: Mintel

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TRENDS - new territoryBETWEEN THE “V”

Finding new paths towards “femcare” The natural feminine care sector is small, but is growing faster than the broader market. While many of these brands are sold exclusively online, some are migrating onto the shelfs of major retailers, suggesting a transition from niche to mainstream. Unilever’s 2017 acquisition of Seventh Generation brings up the idea that the feminine care category also needs to prepare for global powerhouses becoming green niche rivals. Natural material innovation from outside the category shows potential to have a disruptive influence on established brands.

SHIFTING THE ECO-FRIENDLY PATH

Wellness that leads into niche hygiene

SEVENTH GENERATION - USAFree & Clear Pads

THE HONEY POT - USAOvernight Herbal Pads

The natural sanitary protection niche is growing. The past three years have seen the launch of numerous green brands with similar materials and messaging. Organic cotton, social

responsibility and health- and wellness-based marketing define these brands. The segment is smartly positioned on

alternative materials and convenient distribution methods.

It will become more important for eco-friendly brands to trial new designs to be greener, but also improve performance. RAEL - USA

Organic Cotton PadsCORA - USA

Organic Cotton Pads

MASS NICHE

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TRENDS - format innovations FLUSHABLE WIPES

Increasing popularity for Wet Wipes

Flushable moist wipes and moist towelettes are becoming favored by younger consumers. It is a small category, but can be linked to water conservation, which is a growing

priority among US and global consumers.

Flushable moist wipes are slightly more preferred by consumers aged 18-34 compared to the general

population, but have growth potential among older consumers.

NEVE - BRAZILWipes with Dermacare

FESS’NETT - UK Wet Toilet Paper Wipes

“Flushable” wipes have been in the spotlight as the leading cause of sewer blockages. In 2019, Water UK

announced a new standard for wipes, “Fine to Flush”, a logo which will inform consumers that the “wipe doesn’t contain plastic and will break down in the sewer system.”

In late 2018 Charmin changed the name of its flagship flushable moist wipe from Charmin Fresh Mates to

Charmin Flushable Wipes. This move may be influenced by calls for the industry to create a clearer distinction

between flushable and non-flushable wipes to help reduce clogs from consumers who flush baby and household

cleaning wipes down the toilet.

Concerns over its use

NATRACARE - Safe to Flush - UKMoist Wipes

CHARMIN - US Flushable Wipes

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FRAGRANCE

3Ø t r e n d s

Ø S o z i o s u bm i s s i o n s

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Floral Rose · Bouquet · Cherry

Blossom · Jasmine · Lilac · Orchid · Hibiscus · Marigold ·

Peony · Violet · Lotus

FRAGRANCE - trends NORTH AMERICA

GLOBAL

FreshCotton · Linen ·

Breeze

FruityStrawberry · Apple ·

Peach

LocationalHillside · Forest · Ocean

Floral Rose · Blossoms

FreshCotton · Linen · Baby

Powder

GourmandHoney · Vanilla · Shea

Almond Milk

Green/AromaticAloe Vera · Bamboo · Lavender Chamomile · Cucumber · Green

Tea Source: Mintel GNPD

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FRAGRANCE - Sozio submissions Low Allergen

TOPCucumber, Mandarin, Melon, Dewy Greens

MIDDLECyclamen, Violet,

Jasmine, Rose

BASEFresh Musk,Sheer Vanilla

CUCUMBER ALOE

TOPPeach Nectar,

Green Apple, Sweet Pineapple

MIDDLERose, Jasmine,

Cyclamen, Leafy Greens

BASECoconut,Almond

PEACH BLOSSOM

TOPFruity,

Aromatic Green

MIDDLEChamomile, Iris,

Anise, Mint, Camphor

BASEWoody,Dry Hay

CHAMOMILE SZUSM000129SZUSM000127 SZUSM000128

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FRAGRANCE - Sozio submissions Low Allergen

TOPWild Rose

MIDDLEIris,

Heliotrope, Violet

BASEAmbrette, Vanilla,Sandalwood, Musks

ROSE PETALS

TOPGreen Apple,

Rhubarb, Watery Greens

MIDDLEWaterlily, Muguet, Cyclamen,Rosewater, Peony, Magnolia

BASESheer Musks

APPLE RAIN

TOPFresh Lavender,

Herbal, Fir Needles

MIDDLELavandin, Heliotrope,

Violet, Almond Blossom

BASEVanilla,

Coconut, Musks

LAVENDER FIELDSSZUSM000132SZUSM000130 SZUSM000131

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FRAGRANCE - Sozio submissions Low Allergen

TOPAquatic,

Coconut Water, Airy Breeze

MIDDLEWild Flower, Jasmine,

Lilac, Heliotrope

BASEVanilla Sugar,

Woody, Clean Musks

SUNFLOWER

TOPFresh Cotton,

Aldehydes, Leafy Greens

MIDDLERose, Violet,

Lavender, Jasmine, Neroli

BASEPowdery Musks, Vanilla, Woody

COTTON FLOWER

TOPAldehydic,

Fresh

MIDDLERose, Jasmine,

Heliotrope, Iris, Lilac

BASEVanilla, Honey,

Cinnamon, Anise

BABY POWDERSZUSM000135SZUSM000133 SZUSM000134

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FRAGRANCE - Sozio submissions Low Allergen

TOPHoney Nectar

MIDDLEMagnolia,

Almond Milk

BASESweet Vanilla,Sheer Musk

VANILLA HONEY

TOPPeach Nectar,Shea Butter

MIDDLEWhite Floral,

Lavender, Anise

BASEWoody,

Amber, Musks

ARGAN SHEASZUSM000136 SZUSM000137

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Latin & North AmericaSozio Inc

51 Ethel Road West Piscataway, NJ 08854 USAPhone: (+1) 732 572 5600Fax: (+1) 732 572 0944

AsiaJ&E Sozio Asia Ltd

Unit C6, 15/F, TML TowerNo.3 Hoi Shing Road - Tsuen Wan,

N.T. Hong KongPhone: (852) 2111 0842Fax: (852) 2111 0942

Europe, Africa and Middle East

Sozio SAS

6, Rue Barbès - CS8005092532 Levallois-Paris cedex - France

Phone: +33 (0) 1 81 93 00 60Fax: + 33 (0) 1 81 93 00 98

∙ Perfume your world ∙

www.jesozio.com