Euromonitor: A strong tissue culture, regionally stable Mexico well placed to react to economic uncertainties ahead

Although Brazil remains the epicentre of the Latin American tissue market, replacing Mexico as the largest contributor to regional volume sales back in 2007, the comparison belies the stronger tissue culture that exists in Mexico. Population and income levels are critical factors, Mexico with 129 million inhabitants (almost 100 million fewer than Brazil) has a mean household disposable income of close to $20,000 in 2021, compared to roughly half that figure in Brazil.

This Mexican market accounted for 25% of Latin American regional volume sales in 2021, a figure that has crept downwards over the last decade as other markets have seen tissue uptake expand through a combination of availability and income increases. The battle over share of regional value is potentially a more interesting story, relatively more stable Mexico taking a 23% share in (USD MSP value sales) and was once again the region`s largest value contributor as economics, relatively more stable Mexico, continued to underpin changing consumer lifestyles, in which tissue products play an important role, which was especially the case during this pandemic period.

International comparisons

By a more international comparison, the tissue market (retail tissue in this comparison) in per household expenditure terms is positive with USD49 is well ahead of the global average ($40) and respectable when compared to developed markets such as Japan ($67). The Mexican tissue market, like others, faces uncertain and changing times, the spectre of price inflation likely hampering [real" premiumisation, but there is still much to be positive about the market with annual volume growth of 2% forecast over the medium term.