Private vs. Public: How US Tissue Capacity Is Shifting

For decades, the US tissue and towel industry was dominated by large, publicly traded corporations. Names like Kimberly-Clark, Procter & Gamble, and Georgia-Pacific were practically synonymous with household paper products.  

But over the past two decades, something notable has been happening beneath the surface. There has been a quiet shift in who controls production capacity.  

The graph below, tracking both actual and announced US tissue and towel capacity from 2007 to 2027, reveals a compelling trend. Private companies have steadily grown their share of the market, eventually rivaling and even surpassing their public counterparts. 

The Story in the Chart 

For the first 11 years in the chart, public companies held a slight, yet nearly consistent, lead in US tissue capacity. However, over the last seven years, the story begins to evolve. 

In 2018, we begin to see the share of capacity held by private companies inch upward. What starts as a subtle increase turns into a pronounced shift. By the time we reach 2024, private companies have a clear dominance in the capacity produced in the US with a nearly 6% increase from 2023 to 2024. Based on announced capacity, we expect slight growth in private capacity from 2025-2027.  

What’s Driving This Shift? 

Several forces are likely at play when it comes to factors contributing to this shift:

1. Divestitures and Strategic Refocusing

Public companies have, in many cases, restructured their portfolios to focus on higher-margin or globally scalable operations. That means divesting regional assets or less strategic mills—many of which were snapped up by private companies or private equity firms eager to enter or expand in the sector.  

For example, in 2024, Clearwater Paper announced the sale of its tissue business to Sofidel America Corporation for $1.06 billion. The move was part of Clearwater’s strategy to concentrate on its paperboard operations. Meanwhile, Sofidel—a privately held global tissue producer—capitalized on the opportunity to expand its North American footprint. This transaction highlights how private players are seizing growth opportunities as public companies streamline their focus. 

2. Private Investment Surge

Tissue remains an attractive market: stable demand, relatively recession-resistant, and increasingly open to innovation in both sustainability and premium products. Private equity and family-owned firms have capitalized on these trends. They have invested significant capital in new mill builds or acquiring existing facilities. 

This wave of primate investment also aligns with the growing strength of private label brands in North America. While the US has led the way in private label adoption, Canada is also now catching up. Store brands are gaining more shelf space and improved customer trust.  

This shift presents a strategic opportunity for privately held tissue producers. These companies are often well-positioned to support the needs of large retailers looking to expand or preimmunize their own branded tissue lines.

3. Agility and Specialization

Private companies often enjoy more flexibility and speed when adapting to changing market conditions. They can specialize in niche products, regional strengths, or faster supply chains. Doing so enables them to compete effectively with much larger corporations. 

Private firms often operate at lower costs. With leaner structures, less corporate overhead, and greater flexibility, they can focus on efficiency and long-term gains. These advantages make them ideal partners for retailers expanding private label programs, especially as store-brand demand rises. 

What Could This Mean for the Industry?  

This shift in ownership structure has important implications, including: 

• More Diverse Competitive Landscape: As more players enter or expand within the private space, we can expect increased competition—not just in price, but in innovation, service, and sustainability practices. 

• Changing Supply Chain Dynamics: With a broader array of producers, buyers (retailers, wholesalers, and institutional clients) have more sourcing options, potentially reducing reliance on a few dominant names. 

• M&A Activity Ahead: With the growing number of strong private firms, we could see further mergers, acquisitions, or IPOs, especially as private equity looks to cash in on investments or scale operations even further. 

• Challenges for Public Giants: While public companies retain significant scale, they may find themselves challenged by more nimble competitors that can undercut prices or offer tailored solutions. 

• Transition to Store and Club Brands: Consumers are shifting more from traditional national brands to store-brand and club-brand tissue products, drawn by improved quality and better pricing. This trend puts pressure on national brand producers while creating major opportunities for private manufacturers who can deliver on cost and customization. 

A Market in Transformation 

The US tissue and towel industry is no longer just a game for the biggest publicly traded players. As we’ve seen from FisherSolve’s historical data, private ownership over the last several years has played a central role in meeting national tissue demand.  

To dive deeper into the dynamics shaping the global tissue industry, don’t miss our upcoming webinar on Wednesday, May 14, 2025, at 9:00am EST with TAPPI Fellow Bruce Janda.  

During the webinar, Bruce will explore: 

• How tissue products have evolved across regions 

• Uncover key demand drivers 

• Examine differences in product types across Consumer, Commercial, and Specialty markets.  

From machine configurations and materials to energy use and carbon emissions, this session will provide a comprehensive look at the forces shaping tissue today. Register now to gain the insights that matter most to your tissue strategy.