Tissue Paper Manufacturing Plant

Tissue Paper Manufacturing Plant Project Report (DPR) Summary:

IMARC Group's comprehensive DPR report, titled "Tissue Paper Manufacturing Plant Project Report 2026: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue," provides a complete roadmap for setting up a tissue paper manufacturing unit. The tissue paper market is driven by rising hygiene awareness, increasing urbanization, growing demand from hospitality and healthcare sectors, and the shift toward disposable and single-use paper products. The expanding population base and changing consumer lifestyles have further strengthened demand across residential and commercial segments. The global tissue paper market size was valued at USD 81.27 Billion in 2025. According to IMARC Group estimates, the market is expected to reach USD 126.08 Billion by 2034, exhibiting a CAGR of 5.0% from 2026 to 2034.

This feasibility report covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements, utility requirements, infrastructure requirements, machinery and technology requirements, manpower requirements, packaging requirements, transportation requirements, etc.

The tissue paper manufacturing plant setup cost is provided in detail, covering project economics, capital investments (CapEx), project funding, operating expenses (OpEx), income and expenditure projections, fixed costs vs. variable costs, direct and indirect costs, expected ROI, and net present value (NPV), profit and loss account, financial analysis, etc.

Access the Detailed Feasibility Analysis, Request Sample

What is Tissue Paper?

Tissue paper is a soft, light, and absorbent paper product basically produced from either virgin pulp, recycled paper, or a mix of both. It is a product intended for one-time use which has the main features of sanitary, neatness, and ease of use. The tissue paper products are toilet paper, paper towels, paper napkins, kitchen towels, and wiping rags. All these products are soft, absorbent, strong, and biodegradable quickly. At present, the use of tissue paper is common in many places, like homes, offices, restaurants, hotels, hospitals, and factories. Through the advancement of pulp processing and paper-making technologies, the manufacturers can provide better quality products while consuming less fiber and water. Because of the increased environmental consciousness, the manufacturers are now using more recyclable and sustainably sourced raw materials, further making paper a crucial part of the hygiene and sanitation practices of the modern world.

Key Investment Highlights

• Process Used: Pulping, stock dilution, sheet making, pressing and drying, creping, rewinding and cutting, quality checking, and packing.
• End-use Industries: Household and residential sector, hospitality and HoReCa sector, healthcare and pharmaceutical facilities, commercial offices, and industrial cleaning applications.
• Applications: Used for toilet tissue, facial tissue, napkins, kitchen towels, medical wipes, and industrial wiping solutions.

Tissue Paper Plant Capacity:

The proposed manufacturing facility is designed with an annual production capacity ranging between 30,000 - 60,000 MT, enabling economies of scale while maintaining operational flexibility.

Tissue Paper Plant Profit Margins:

The project demonstrates healthy profitability potential under normal operating conditions. Gross profit margins typically range between 25-35%, supported by stable demand and value-added applications.

• Gross Profit: 25-35%
• Net Profit: 10-15%

Tissue Paper Plant Cost Analysis:

The operating cost structure of a tissue paper manufacturing plant is primarily driven by raw material consumption, particularly pulp/recycled paper, which accounts for approximately 55-65% of total operating expenses (OpEx).

• Raw Materials: 55-65% of OpEx
• Utilities: 20-25% of OpEx

Financial Projection:

The financial projections for the proposed project have been developed based on realistic assumptions related to capital investment, operating costs, production capacity utilization, pricing trends, and demand outlook. These projections provide a comprehensive view of the project’s financial viability, ROI, profitability, and long-term sustainability.

Major Applications:

• Household and Residential Use: Tissue paper is widely used for daily hygiene needs, offering convenience, softness, and disposable functionality for consumers.
• Hospitality and HoReCa Sector: The tissue products are a major factor in the hotel, restaurant, and catering services industries as they not only help in upholding the hygiene standards but also in the satisfaction of the customers.
• Healthcare and Medical Facilities: Sanitation, patient care, and infection control are the main areas where tissue paper is used in hospitals and clinics.
• Commercial and Industrial Use: Tissues for wiping and cleaning are offered to the offices and industrial units for maintenance and hygiene of the workplaces.

Why Tissue Paper Manufacturing?

✓ Rising Hygiene Awareness: Increased focus on cleanliness and sanitation continues to drive demand for disposable tissue paper products globally.

✓ Consistent and Repeat Demand: A frequent high consumption pattern across residential and commercial sectors guarantees stable and recurring demand.

✓ Growth in Hospitality and Healthcare: The increasing number of hotels, restaurants, hospitals, and clinics opens the door to the market growth for a long time to come.

✓ Sustainability and Recycling Opportunities: Recycled paper usage, along with eco-friendly production methods, helps to gain environmental compliance and brand value.

✓ Scalable Production Model: The tissue paper manufacturing model permits gradual capacity expansion with effective cost control.

Transforming Vision into Reality:

This report provides the comprehensive blueprint needed to transform your tissue paper manufacturing vision into a technologically advanced and highly profitable reality.

Tissue Paper Industry Outlook 2026:

The tissue paper industry is witnessing a consistent increase in demand owing to consumers becoming more hygiene-conscious, demographic growth in cities, and paper products disposal rise. For instance, the World Health Organization (WHO)’s latest monitoring predicted that coverage of basic hygiene services were estimated to reach approximately 88.8% in 2025 due to the global expansion of safely managed services. This growing emphasis on hygiene is expected to boost demand for tissue paper as households and institutions prioritize cleanliness. The demand for products and services in hospitality, healthcare, and commercial sectors is not only driving the market but also securing the fundamentals of the industry. The traditional retail and online shops have made the products more available, and the premium and eco-friendly tissue types are becoming more widely used. Manufacturers are working hard on recycled fiber utilization, energy consumption, and water usage reduction to reach their sustainability goals. There has been a significant improvement in the quality of the product as well as in the production efficiency due to the technological innovation of paper machines and converting equipment.

Leading Tissue Paper Manufacturers:

Leading manufacturers in the global tissue paper industry include several multinational companies with extensive production capacities and diverse application portfolios. Key players include:

• Asia Pulp and Paper Group (APP)
• Georgia-Pacific LLC
• Kimberly-Clark Corporation
• Procter & Gamble Company
• Hengan International Group Company Limited

all of which serve end-use sectors such as household, hospitality, healthcare, and commercial segments.

How to Setup a Tissue Paper Manufacturing Plant?

Setting up a tissue paper manufacturing plant requires evaluating several key factors, including technological requirements and quality assurance.

Some of the critical considerations include:

• Detailed Process Flow: The manufacturing process is a multi-step operation that involves several unit operations, material handling, and quality checks. Below are the main stages involved in the tissue paper manufacturing process flow:
  • Unit Operations Involved
  • Mass Balance and Raw Material Requirements
  • Quality Assurance Criteria
  • Technical Tests
     
• Site Selection: The location must offer easy access to key raw materials, including pulp/recycled paper. Proximity to target markets will help minimize distribution costs. The site must have robust infrastructure, including reliable transportation, utilities, and waste management systems. Compliance with local zoning laws and environmental regulations must also be ensured.​
   
• Plant Layout Optimization: The layout should be optimized to enhance workflow efficiency, safety, and minimize material handling. Separate areas for raw material storage, production, quality control, and finished goods storage must be designated. Space for future expansion should be incorporated to accommodate business growth.​
   
• Equipment Selection: High-quality, corrosion-resistant machinery tailored for tissue paper production must be selected. Essential equipment includes paper machines, pulpers, refiners, drying systems, rewinding machines, and cutting and packaging equipment. All machinery must comply with industry standards for safety, efficiency, and reliability.​
   
• Raw Material Sourcing: Reliable suppliers must be secured for raw materials like pulp/recycled paper to ensure consistent production quality. Minimizing transportation costs by selecting nearby suppliers is essential. Sustainability and supply chain risks must be assessed, and long-term contracts should be negotiated to stabilize pricing and ensure a steady supply.
   
• Safety and Environmental Compliance: Safety protocols must be implemented throughout the manufacturing process of tissue paper. Advanced monitoring systems should be installed to detect leaks or deviations in the process. Effluent treatment systems are necessary to minimize environmental impact and ensure compliance with emission standards.​
   
• Quality Assurance Systems: A comprehensive quality control system should be established throughout production. Analytical instruments must be used to monitor product concentration, purity, and stability. Documentation for traceability and regulatory compliance must be maintained.

Project Economics:

​Establishing and operating a tissue paper manufacturing plant involves various cost components, including:​

• Capital Investment: The total capital investment depends on plant capacity, technology, and location. This investment covers land acquisition, site preparation, and necessary infrastructure.
   
• Equipment Costs: Equipment costs, such as those for paper machines, pulpers, refiners, drying systems, rewinding machines, and cutting and packaging equipment, represent a significant portion of capital expenditure. The scale of production and automation level will determine the total cost of machinery.​
   
• Raw Material Expenses: Raw materials, including pulp/recycled paper, are a major part of operating costs. Long-term contracts with reliable suppliers will help mitigate price volatility and ensure a consistent supply of materials.​
   
• Infrastructure and Utilities: Costs associated with land acquisition, construction, and utilities (electricity, water, steam) must be considered in the financial plan.
   
• Operational Costs: Ongoing expenses for labor, maintenance, quality control, and environmental compliance must be accounted for. Optimizing processes and providing staff training can help control these operational costs.​
   
• Financial Planning: A detailed financial analysis, including income projections, expenditures, and break-even points, must be conducted. This analysis aids in securing funding and formulating a clear financial strategy. 

Capital Expenditure (CapEx) and Operational Expenditure (OpEx) Analysis:

Capital Investment (CapEx): Machinery costs account for the largest portion of the total capital expenditure. The cost of land and site development, including charges for land registration, boundary development, and other related expenses, forms a substantial part of the overall investment. This allocation ensures a solid foundation for safe and efficient plant operations.

Operating Expenditure (OpEx): In the first year of operations, the operating cost for the tissue paper manufacturing plant is projected to be significant, covering raw materials, utilities, depreciation, taxes, packing, transportation, and repairs and maintenance. By the fifth year, the total operational cost is expected to increase substantially due to factors such as inflation, market fluctuations, and potential rises in the cost of key materials. Additional factors, including supply chain disruptions, rising consumer demand, and shifts in the global economy, are expected to contribute to this increase.

Capital Expenditure Breakdown:

To access CapEx Details, Request Sample

Operational Expenditure Breakdown:

To access OpEx Details, Request Sample

Profitability Analysis: 

To access Financial Analysis, Request Sample

Latest Industry Developments:

• August 2025: Jani Sales finalized the deal for its 80 TPD PM 3 Tissue Paper Machine, set to start production in 2026. With PM 3, total annual tissue paper output will reach 82,000 tons across PM 1 MG Machine, PM 2, and PM 3. The expansion underscores the commitment to quality, technology, and global growth, recognizing customers, suppliers, and the value chain for their support in driving the company’s success.
   
• March 2025: Metsä Group’s tissue business focused on producing high-quality hygiene papers locally, using fresh fibers from Northern forests. The company continued investments in fresh fiber tissue production, modernizing water circulation systems for two tissue machines. Ongoing projects include a new hand towel line at Mänttä mill under the EUR 100 million Future Mill program, expected to start in 2026, aiming to cut water use by 75-80% and improve energy efficiency in tissue paper production by 25%.

Report Coverage:

Report Customization

While we have aimed to create an all-encompassing tissue paper manufacturing plant project report, we acknowledge that individual stakeholders may have unique demands. Thus, we offer customized report options that cater to your specific requirements. Our consultants are available to discuss your business requirements, and we can tailor the report's scope accordingly. Some of the common customizations that we are frequently requested to make by our clients include:

• The report can be customized based on the location (country/region) of your plant.
• The plant’s capacity can be customized based on your requirements.
• Plant machinery and costs can be customized based on your requirements.
• Any additions to the current scope can also be provided based on your requirements.

Why Buy IMARC Reports?

• The insights provided in our reports enable stakeholders to make informed business decisions by assessing the feasibility of a business venture.
• Our extensive network of consultants, raw material suppliers, machinery suppliers and subject matter experts spans over 100+ countries across North America, Europe, Asia Pacific, South America, Africa, and the Middle East.
• Our cost modeling team can assist you in understanding the most complex materials. With domain experts across numerous categories, we can assist you in determining how sensitive each component of the cost model is and how it can affect the final cost and prices.
• We keep a constant track of land costs, construction costs, utility costs, and labor costs across 100+ countries and update them regularly.
• Our client base consists of over 3000 organizations, including prominent corporations, governments, and institutions, who rely on us as their trusted business partners. Our clientele varies from small and start-up businesses to Fortune 500 companies.
• Our strong in-house team of engineers, statisticians, modeling experts, chartered accountants, architects, etc. has played a crucial role in constructing, expanding, and optimizing sustainable manufacturing plants worldwide.