There are many sub-products of paper towels, including toilet paper, handkerchief paper, napkins, paper towels, kitchen paper and facial tissues. From the perspective of demand level, toilet paper and kitchen paper belong to the physiological demand level products; Handkerchiefs and napkins belong to the level of safety demand products; Facial tissues belong to the social demand level products; Paper towels belong to the product of respecting the level of demand.

With the continuous improvement of China's economic level, the level of social demand will gradually move upward, especially the young people of "Generation Z", who use paper towels and facial tissues more often, so the demand growth rate of paper towels and facial tissues in recent years is significantly ahead of other tissue products.

Household paper refers to all kinds of sanitary wiping paper used to take care of personal home and go out, including toilet rolls, extractable toilet paper, boxed facial tissue, pocket facial tissue, handkerchief paper, napkins, kitchen paper, wet wipes, shoe towels, paper towels, etc. In 2021, China's household paper output was 11.076 million tons, a year-on-year increase of 9.1%. In 2021, China's household paper consumption will be about 10.46 million tons, a year-on-year increase of 5.1%. The high price of international tissue paper has had a subtle impact on the domestic paper industry. According to China Customs data, China's household paper imports in 2021 will be 23,900 tons, a year-on-year increase of 81.1%; The export volume of household paper was 639,400 tons, a year-on-year decrease of 25.5%.

The slowdown in the growth rate of the tissue market, the reshuffle of the market pattern, the transfer of consumer group attention, and the change of commonly used consumption places have prompted China's tissue industry to change the traditional marketing methods in order to adapt to the changes in the market.

According to the "2022-2027 China Paper Towel Industry Supply and Demand Trend and Investment Risk Research Report" released by the China Research Institute of Puhua Industry Research Institute, it shows:

There are thousands of tissue manufacturers in China, mainly distributed in Zhejiang, Guangdong, Jiangsu, Shanghai, Fujian, Shandong, Liaoning, Beijing, Hubei, Anhui and other places.

According to the data, the consumer groups of China's paper towel market have also changed very significantly, and the downstream consumer groups of traditional paper towels are mainly the post-60s, post-70s and post-80s groups, who pay more attention to the cost-effectiveness of paper towels, and pay less attention to the packaging, appearance, brand and other factors of paper towels. However, in recent years, as the main market consumer groups have gradually changed to the post-90s, post-00s and even post-10s, their consumption characteristics have been significantly different, such as young people's sensitivity to the price of paper towels has decreased, but more attention has been paid to the portability, convenience, beauty and practicality of paper towels.

In recent years, with the rise of e-commerce and the emergence of popular sales models such as live streaming, young consumers are more keen on online shopping and watching anchors with goods shopping, and the sales share of online sales has increased year by year.

With the increase of residents' income, the improvement of health awareness, the improvement of consumers' quality of life and the formation of hygiene habits, people's requirements for disposable hygiene products are getting higher and higher. Paper towels have long become a necessity in people's daily life. In addition, China's wet towels are imported, although the penetration rate of wet towels in the domestic market is relatively low, but the domestic wet towel industry shows a trend of rapid development. In the future, with the development of urbanization and the increase in per capita domestic paper consumption, the domestic paper industry will continue to grow, but the decline in industrial growth is the trend, and the future industrial growth rate is expected to be between 5% and 10%.