Rising Costs and Market Shortages Affect Toilet Paper Industry
Marketing | Brussels Times | October 27, 2022
Makers of toilet paper throughout Europe are dealing with supply shortages and rising costs due to soaring energy prices and paper costs. At the beginning of September, German company and market leader Hakle wound up its business after struggling with those dual rising costs. Several companies active in Belgium and elsewhere across the continent are facing similar pressures. Among the biggest are Sofidel, Kimberly Clark, and Essity. The problem is indeed two-fold: one, the cost of paper pulp has climbed by half in the last year; and, two, the high cost of energy in the paper industry. The latter normally accounts for 10 percent to 15 percent of the cost of production. In recent times, it has shot up to 50 percent. Nevertheless, the outlook is not bleak. "Hoarding is not necessary," said Thomas Davreux, general manager of the umbrella federation Indufed. "Our members confirm that there will be no shortage of toilet paper in the coming months."
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