Market size and structure

Great potential on fragmented market

The European market for single-use table top products is worth approximately EUR 4 billion. Duni is the leader within the premium segment.

The European market for single-use table top products is divided into napkins (30%), tablecoverings (6%), candles (33%), serving products such as plastic cutlery and plastic glasses (10%), and meal packaging solutions (21%). Some two-thirds of the European market for table top products relates to the Professional customer market. However, more than 80% of all tablecoverings for restaurant in Northern Europe still comprise textile and linen covers. Many players are seeking alternatives to linen in order to avoid all of the work which the handling of linen involves.

Underlying growth

During 2012, uncertainty increased concerning global economic trends. GNP forecasts were revised downwards during the second half of the year, both in Europe and globally. Growth prospects for the HoReCa markets and domestic consumption in Europe were also revised downwards in the second half of the year. Despite this, in total demand remained firm on the HoReCa markets in Europe in 2012. Regionally, the highest growth was recorded in Northern and Eastern Europe, including Russia. Duni's important sales area of Central Europe demonstrated stability. Southern Europe was the sales area which most clearly showed signs of a slowdown during the second half of the year.

Premium products

Single-use napkins and tablecoverings can be divided into standard and premium products, with the latter being produced in at least three-ply tissue or airlaid. Standard products account for approximately 45% of the total estimated sales on the European market for napkins and tablecoverings, while premium products account for around 55%. The ratio between standard and premium products varies, however, between different regions in Europe.

Italy is the single largest market in Europe for standard paper napkins and tablecoverings. In addition, Southern Europe (Italy, France, Spain, Portugal and Greece) is the largest market region. The market’s size is explained by the large consumer sector, a high percentage of meals eaten outside the home, and tourism in the region, which also generates large volumes within standard products. In Southern Europe, premium products account for approximately one-third of the total market, while simpler, standard paper products are used for the high percentage of breakfasts and lunches eaten outside the home. Thus, as regards the evening meal, it is a challenge for Duni to convert users of linen to its premium products.

In Eastern Europe, too, premium products are estimated to account for approximately one-third of the total market.

In the Nordic region and Central Europe, premium products account for a higher share of the market for napkins and tablecoverings than in Southern and Eastern Europe. Germany, Austria and Switzerland together comprise the second largest market region in Europe for single-use napkins and tablecoverings, with premium products accounting for roughly two-thirds of the market. The premium products’ high market share is largely due to the manufacturers’ dedicated sales work and historically strong economic growth.

The UK and the Benelux countries together constitute the third largest market region in Europe for paper napkins and tablecoverings. As in Germany, Austria and Switzerland, premium products account for approximately two-thirds of the total market in the Benelux countries, which is also the case in the Nordic region. In the UK, premium products are believed to account for a smaller share of the total market.

Duni is the clear market leader in Central Europe, Northern Europe and the Benelux countries, which are the markets where the premium segment is dominant. Therefore, Duni perceives great growth potential in Southern and Eastern Europe, where simpler paper products dominate.

Duni's estimated position on each market

Major competitors

The European market for single-use table top products is very fragmented. Duni is the largest European company on this market. Duni's market share in Europe as regards its main products, napkins and tablecoverings, is just over 20%, while Duni's sales are more than twice those of its competitors in the single-use napkin and tablecovering segment. No major changes occurred in 2011 as regards Duni's major competitors and Duni retained its strong position in Europe, with a focus on the premium segment.

At the end of the year, SCA announced its acquisition of Georgia-Pacific's European tissue business (the Lotus brand). Assuming that the acquisition goes through, SCA will thereby strengthen its leading position within tissue in Europe. Within table top products, Duni estimates that the combined business will have sales of approx. SEK 2 billion, which will make it number two in Europe. 

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Napkins and table covers can be divided into standard and premium products. Duni is the market leader within the premium segment.