Tissue Paper Manufacturing Plant Setup Cost

Report Overview:

IMARC Group’s report, titled “Tissue Paper Manufacturing Plant Project Report 2025: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue,” provides a complete roadmap for setting up a tissue paper manufacturing plant. It 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 project report provides detailed insights into project economics, including capital investments, project funding, operating expenses, 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.

What is Tissue Paper?

Tissue paper is a light, soft, and absorbent cellulose fiber-based paper product usually made from wood pulp or recycled paper. It is creped specially to make it more flexible and softer. Tissue paper is developed for hygiene and cleaning applications and is designed to disintegrate rapidly in water, making it safe to dispose of and biodegradable.

Tissue Paper Manufacturing Plant: Key Highlights

• End-use Industries: Hotels and Hospitality, Households, and Industrial Use
• Applications: Used in hygiene and personal care, where it is used for cleaning, drying, and wiping purposes.

A tissue paper manufacturing plant is a production unit optimized to make soft, lightweight paper products from virgin or recycled pulp by processes such as pulping, bleaching, refining, forming, drying, and converting. Key equipment consists of pulp refiners, Yankee dryers, creping blades, and converting machinery such as rewinders and embossers. Creping and drying steps are important to realize the desired softness and absorbency. Environmental factors such as wastewater management and energy efficiency are critical owing to high energy and water usage. Tissue paper manufacturing plant serve different industries such as hygiene (toilet tissues and facial tissues), hospitality (towels and napkins), and healthcare (medical tissues and sanitary wipes).

Tissue Paper Industry Outlook 2025:

Global tissue paper demand is gradually increasing due to growing awareness of hygiene, urbanization, and lifestyle changes. Products like facial tissues, toilet paper, paper towels, and napkins have grown to become indispensable in both household and business segments, especially in healthcare, hospitality, and food service markets. The trend is also backed by the increase in e-commerce websites and private label brands that provide low-cost tissue paper. Moreover, sustainability has become a major market driver, with producers investing in recycled fiber, chlorine-free bleaching, and environmentally friendly packaging to address consumers' demand for more sustainable products. Advances in high-speed converting equipment and energy-efficient manufacturing processes are also improving manufacturing efficiency and product quality. For instance, top manufacturers are implementing water-saving technologies and closed-loop systems to reduce environmental footprint. The Asia-Pacific region, together with China and India, is experiencing tremendous growth as a result of population increase, enhanced lifestyles, and high per capita use of paper.

Tissue Paper Market Trends and Growth Drivers:

Enhanced Hygiene Perceptions and Sanitary Lifestyle Changes

There has been increased stress on individual sanitation and personal cleanliness, particularly since the rise in global health worries like the spread of COVID-19. Consumers are increasingly focusing on hygiene, which is driving demand for toilet paper, facial tissues, and wet wipes. This is also driven by government-initiated hygiene campaigns and awareness programs in developing economies. For instance, India's "Swachh Bharat Abhiyan" (Clean India Mission) has driven demand for disposable hygiene products in both urban and rural India. Moreover, the expanding middle class and growing healthcare and hospitality industries are also driving consumption in emerging markets.

Sustainability and Technological Innovations in the Manufacturing Sector

Another key trend is the move toward sustainable and eco-friendly tissue products. Consumers and regulators are both driving the use of recycled fibers, biodegradable packaging, and chlorine-free bleaching processes to reduce environmental footprint. Producers are countering by investing in high-tech production lines and water- and energy-saving technologies. For example, Kimberly-Clark and Essity have both introduced programs to cut carbon emissions and improve circular economy practices in tissue production. Moreover, the use of AI and automation in converting and packaging operations is aiding operational efficiency and minimizing waste, making sustainability a major competitive strength in the tissue paper market.

Latest Industry Developments:

• December 2024: Sofidel (USA) launched a $200 million expansion of its U.S. business, which will see it construct an integrated production factory with state-of-the-art converting lines and automated warehouse, spanning almost 600,000 square feet.
• November 2024: Sofidel America closed one of the biggest transactions in the paper and packaging sector with the $1.1 billion purchase of Clearwater Paper.
• November 2024: Irving Tissue (Georgia, USA) announced a $600 million expansion of its Macon plant, adding a third ThruAir Dry paper machine, new converting lines, and an automated warehouse. This will boost annual production by 50% to 248,000 tons and add 100 new jobs.
• August 2024: First Quality Tissue revealed yet another major expansion initiative. The expansion includes a pledge to install two advanced Thru-Air-Dried (TAD) paper machines along with associated converting facilities at a yet-to-be-disclosed location soon. The company anticipates that the first paper machine will be operational in 2027, with the second machine becoming operational approximately eighteen months afterward.
• March 2024: Grigeo AB Group (Lithuania) established its presence in Central Europe by acquiring one of the mills from Głuchołaskie Zakłady Papiernicze sp. z o.o., a Polish producer of paperboard and tissue paper.

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

• Kimberly-Clark Corporation
• Georgia-Pacific LLC
• Procter & Gamble Co.
• Essity AB
• Sofidel Group.
• Asia Pulp and Paper Group

all of which operate large-scale facilities and serve end-use sectors such as toilet tissue, paper towels, facial tissue, napkins and industrial tissue.

Tissue Paper Plant Setup Requirements

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

Key Considerations for Establishing 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:

• Site Selection: The location must offer easy access to key raw materials such as pulp (cellulose fibers), softening agents, strengthening agents, binding agents, colorants and dyes, fragrances or lotions and water. 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, quality control, production, 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 refiner, mixing tanks, screening equipment, centrifugal cleaners, dryer, jumbo roll rewinder, air compressors, vacuum pumps and boilers. 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 (cellulose fibers), softening agents, strengthening agents, binding agents, colorants and dyes, fragrances or lotions and water 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 established to be followed throughout the manufacturing process of tissue paper. Advanced monitoring systems should be installed to detect irregularities 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 refiner, mixing tanks, screening equipment, centrifugal cleaners, dryer, jumbo roll rewinder, air compressors, vacuum pumps and boilers, 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 (cellulose fibers), softening agents, strengthening agents, binding agents, colorants and dyes, fragrances or lotions and water, 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:

Operational Expenditure Breakdown:

Profitability Analysis: 

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.