b'GLOBAL INDUSTRY TRENDSFigure 2. Commercial hand towel production.Figure 3. HOW WILL POST-PANDEMIC TOWELproduced with TAD or some other formsignificant changes in utilisation of PRODUCTION RESPOND? of advanced tissue technology to createfacilities and toweling in the future, Figure 2 shows the global commercialimproved softness and absorbency.a 30 percent increase in demand hand towel production capacity for theThis is a trend that has grown as(requiring nearly six new tissue top four producing countries. Going intobuilding owners/managers try to offerTissuemachines) is realistic.1Q2020, the United States produced 57upgraded service for clients, and itmakers percent of all commercial hand towels.includes most truck stop chains acrossshould beThis kind of impact on the tissue This provides the opportunity to use thethe US Interstate Highway System. proud ofbusiness would be significant, but US as a test case for modeling potentialthe roleAmerican tissue producers have demand changes after the pandemicAmerican hand towel capacity grewthey play inlargely remained quiet on the issue in passes. at a CAGR (compound annual growthmaintainingthe past, unlike European producers. The American hand towel market coversrate) of 6.5 percent from 2007-2019.publicBased on the sea change in consumer a wide range of quality. Slightly lessThe capacity additions shown in Figurehealth, andbehaviour we are facing as a result of than a quarter of all towels are still the3 include grade changes, rebuilds, andthey shouldthe pandemic, maybe this time will plain unbleached, brown, wet-crepednew machines over that period. pay closebe different. Tissue makers should sheets that have long been the low-priceA small consumer behaviour changeattentionbe proud of the role they play in product, and roughly 85 percent of thein response to the pandemic couldto newmaintaining public health, and they total volume is made from recoveredbe a step change in demand of 10opportunitiesshould pay close attention to new paper. Almost 25 percent of handpercent, requiring two new largeon theopportunities on the horizon as we inch towels used in the United States aretissue machines. If consumers makehorizon closer to a post-pandemic future.12 WORLD PULP&PAPER'