Europe Tissue And Hygiene Paper Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Europe Tissue And Hygiene Paper Market Trends and Insights

Aging Population Boosting Adult-Incontinence Demand

Europe’s demographic shift is translating directly into higher consumption of absorbent hygiene products for adults. The European Association of Urology estimated that 55–60 million residents lived with incontinence in 2023, costing EUR 69.1 billion (USD 77.9 billion) with a forecast jump to EUR 87 billion (USD 98.1 billion) by 2030.^{[1]Source: European Association of Urology, “Economic Burden of Urinary Incontinence in Europe,” uroweb.org} German and Italian long-term-care facilities are upgrading to premium briefs that promise longer wear intervals, a change that cuts nursing labor and lifts average selling prices. Multinationals have responded by dedicating new converting lines to high-absorbency SKUs and bundling product-plus-service contracts with healthcare procurement agencies. The resulting 7.80% CAGR for incontinence products materially outpaces the broader Europe tissue and hygiene paper market.

Heightened Hygiene Awareness

Post-pandemic behaviors have locked in structurally higher tissue usage per capita. European consumption stabilized at 14.3 kilograms in 2024, helped by sustained preference for single-use towels in foodservice and clinical environments. Compliance with ISO 22000 and ISO 13485 has moved from voluntary to baseline procurement criteria, especially in hospitals that replaced cotton cloths with disposable alternatives. Urban households continue to stockpile facial tissues and paper towels as remote-work norms persist. Collectively, these factors lift unit demand in both retail and professional hygiene segments, supporting a +0.8% contribution to forecast CAGR.

EU Deforestation Rules Accelerating Recycled Tissue Uptake

The European Union Deforestation Regulation, effective December 2024, obliges operators to submit granular due-diligence statements for wood-based inputs, steering mills toward recovered fiber to cut compliance friction.^{[2]Source: European Commission, “EU Deforestation Regulation Implementation Timeline,” environment.ec.europa.eu} Large producers that locked in recycled feedstock ahead of the December 2025 deadline have carved short-term cost advantages, while small and medium plants face a June 2026 cutoff. Recycled fiber already holds 46.80% share and is advancing at 5.40% CAGR, aided by investments in de-inking and quality-control technology. The rule also spurs mill ownership stakes in waste-paper collection to guarantee chain-of-custody integrity.

Surge in E-Commerce and D2C Retail Channels

Digital retail penetration for fast-moving consumer goods crossed double-digit thresholds in the United Kingdom, Germany, and the Netherlands by 2025. Brands now push subscription packs of toilet paper and diapers that trim fulfillment costs and enhance consumer loyalty, a model that lifted Procter and Gamble’s Baby, Feminine and Family Care organic sales by 3% in fiscal Q1 2025. Smaller challengers exploit social-commerce algorithms and recyclable shipping formats to sidestep shelf-space battles, supporting a +0.6% CAGR tailwind for the Europe tissue and hygiene paper market.

Volatile Pulp and Energy Prices Squeezing Margins

Wholesale electricity in Europe peaked near EUR 400 per MWh in August 2022 before easing to 70–120 EUR per MWh in early 2023, while northern bleached softwood kraft pulp mirrored that turbulence. AFRY Consulting calculated that tissue production costs jumped 43% for virgin grades during 2020-2021. Although hedging contracts and cogeneration projects soften shocks, the lag in retail price passthrough compresses EBITDA and deters discretionary capital spend, subtracting a full percentage-point from forecast CAGR.

Decarbonization CAPEX Pressure under EU-ETS Phase IV

Carbon allowances averaged EUR 63.85 per tonne in December 2023 and could touch EUR 90-100 per tonne by 2030. Tissue mills, which rely on steam drying and large thermal loads, must invest in biomass boilers, heat-recovery systems, and renewable electricity procurement.^{[3]CEPI, “Pulp and Paper Industry Resilience in 2023,” cepi.org} Essity’s SEK 3.3 billion (USD 316 million) program illustrates the magnitude of mandatory spend. Although these projects cut long-run emissions charges, their near-term cash drain curtails growth and trims CAGR by 0.8% over the outlook horizon.

Segment Analysis

By Product Type: Incontinence Products Accelerate Amid Aging Demographics

In 2025, toilet paper generated the highest revenue, yet incontinence products exhibit the steepest trajectory at 7.80% CAGR through 2031. Europe tissue and hygiene paper market size for incontinence products is projected to rise sharply as care homes adopt premium, high-absorbency designs. The demographic shift places sustained pressure on supply chains for superabsorbent polymers and breathable films. 

Manufacturers now bundle sensor-enabled briefs and digital ordering portals to deepen procurement contracts with healthcare institutions. Conversely, baby diapers weaken due to falling fertility in Western Europe, prompting SKU premiumization to protect value. Tissue converters on the continent thus manage a two-speed portfolio, defending commoditized toilet paper volumes while chasing margin in adult-care lines.

Note: Segment shares of all individual segments available upon report purchase

By Raw Material: Recycled Fiber Gains Ground on Regulatory Tailwinds

Recycled fiber accounted for 46.80% of Europe tissue and hygiene paper market share in 2025, and its share is widening on the back of EU forest-risk commodity rules. Europe tissue and hygiene paper market size linked to recycled fiber is set for 5.40% CAGR, overshadowing kraft and sulfite pulp grades. 

Quality improvements emerge from better sorting: the HolyGrail 2.0 digital watermark pilots in Germany and the Netherlands demonstrated near-infrared detection accuracy above 95%. Nordic mills still deploy virgin fiber for strength-critical formats, yet even these producers integrate de-inked pulp into mid-tier SKUs to lower carbon intensity and reduce ETS liabilities.

By Usage Type: Away-From-Home Segment Outperforms

At-home channels captured 64.32% of Europe tissue and hygiene paper market size in 2025 thanks to pandemic-era stocking, but away-from-home demand recovers at 5.90% CAGR as tourism and office occupancy rebound. Hotels in Spain and Italy shifted from linen to disposable napkins to accelerate table turns, expanding jumbo-roll sales to distributors. 

Hospitals tightened infection-control norms, prompting a switch to single-use towels under ISO 13485 frameworks. Producers respond with high-capacity dispensers and dispenser-as-a-service models that cut refilling labor, thereby boosting stickiness with facility managers.

By End-Use Industry: Healthcare and Aged-Care Facilities Lead Value Growth

Residential households still represent 58.20% of Europe tissue and hygiene paper market size, but their growth plateaus as penetration saturates in Western Europe. Healthcare and aged-care sites climb at 6.50% CAGR through 2031, absorbing premium wipes and underpads aligned with reimbursement schemes. 

Hospital procurement increasingly specifies traceable, PFAS-free substrates to future-proof against regulatory action, creating product differentiation levers for compliant suppliers. Hospitality and foodservice follow closely, underpinned by international tourist arrivals surpassing 200 million in 2024, which translated into higher napkin and towel turnover in hotels and quick-service restaurants.

Geography Analysis

Germany remains the anchor of the Europe tissue and hygiene paper market, contributing 24.78% of revenue in 2025 and benefiting from 1.5 million tonnes of annual tissue capacity. Its mature retail mix balances branded loyalty and aggressive private-label pricing, while its recovered-paper infrastructure underpins recycled-fiber growth.

Poland is the fastest-expanding geography at 6.90% CAGR, driven by rising disposable incomes, retail modern-trade penetration, and fresh capacity investments such as Sofidel’s recent 60,000-tonne mill extension. The country’s central location within the customs union enables efficient distribution to both Western and Eastern customers.

Southern Europe gains momentum from tourism. Spain, Italy, and France together absorb significant away-from-home volumes as hotels update hygiene protocols. Nordic nations post the highest per-capita usage thanks to cultural cleanliness norms and premium positioning of eco-certified products. Eastern European markets beyond Poland, including the Czech Republic and Romania, represent medium-term upside once logistics and waste-paper collection networks mature.