Why the price of toilet paper could rise quickly

The paper industry has been benefiting from a continuous increase in production costs for several months now. This should soon be reflected in the sales price on the shelves.

The price of toilet paperwill increase significantly“, as well as that of paper towels and tissues, warned Sunday on BFMTV the chairman of the strategic committee for E.Leclerc stores, Michel-Édouard Leclerc. This increase in the sales price of paper hygiene products is explained by the impact of the increase in production costs. For several months, the context of inflation has led to an increase in the costs of energy, transport and paper pulp, three commodities on which the paper industry is nevertheless heavily dependent. †We have a 40% increase in the price of paper pulp. And this increase continues“says Valérie Pouillet, general representative of Group’Hygiène, the professional association of single-use paper manufacturers.

Also, some paper manufacturers have to reduce their margins, sometimes to the point that their financial health is at risk. †We have been in the red for several monthsFor example, reveals Christophe Dorin, general manager of the French branch of Wepa, a manufacturer of paper hygiene products for mass distribution. The president of this company, which employs 800 people in France, says that his company’s variable costs – for transport, packaging, energy, etc. – have increased by 30 to 40% in recent months. †We saw a rise in prices long before the war in Ukraine, which came to layerby further raising the price of hydrocarbons and exacerbating inflation.

A showdown with distributors

The leader of Wepa France confirms that his industry has so far had to absorb the rise in costs completely as the retail sector refuses to see its purchase price from paper manufacturers increase. †All our suppliers announced increases. At the end of the day, mass distribution stood like a wallsays Christophe Dorin. †We had to knock on the distributors’ doors and warn them by talking about shortages, because we can’t sell indefinitely at a loss.“, he adds. “This is an absolutely unprecedented crisis situation, which is very hard on companies“, Valerie Pouillet confirms. †For some companies, this may lead to renegotiation of prices with distributors‘ she also explains. Indeed, Michel-Édouard Leclerc’s statement brings the sign that the distribution groups have heard this message. For the time being, no distribution group has specified the level of the price increase for paper hygiene products. TF1 still reports the figure of 30% increase. †It is the distributors who control the price on the shelf, not the manufacturersrecalls Valerie Pouillet.