How To Start A Toilet Paper Business In South Africa

What is a Toilet Paper?
Toilet paper is a tissue paper product primarily used to clean the anus and surrounding anal region of feces after defecation, and to clean the perineal area and external genitalia of urine after urination or other bodily fluid releases. It also acts as a layer of protection for the hands during these processes.

How To Start A Toilet Paper Business In South Africa

1. Understand the industry

Experts expected the global tissue paper market to enjoy substantial growth over the next 5 years on account of its multiple applications in the growing markets. The drivers of the tissue paper industry are expected to be the changing lifestyle of consumers, rising healthcare expenditures, growing population and low penetration of substitutes for paper tissues.

Also, the tissue paper industry is expected to dominate the market owing to the growing awareness of cleanliness. The production of tissue paper is done by a paper machine which is fitted to a single large steam heated drying cylinder with hot air hood on it.

2. Conduct market research and feasibility studies

Demographics and Psychographics

With the world understanding the need for proper hygiene, the demand and use of tissue papers are also increasing. The products of this industry are widely used in hotels, restaurants, clubs, hospitals, beauty salons and even in homes.

You can easily start a small scale tissue paper making business and make a good profit in short term. It is very important to state that you can grow your business from small scale to medium or large with ease. The tissue paper business also has great potentiality in the international market if you can produce quality products.

3. Decide what niche to concentrate On

Doing a thorough research for your business is pertinent if you plan to run a successful business. It’s your duty as an entrepreneur to gather adequate information on manufacturing process, working capital, cost of the required machinery, how to fund the business and the niches in the industry.

Before starting your business, choose the type of product you want to produce. If you have a large scale business, you can include two or more types of products in your manufacturing list. There are different types of tissue papers available in the market. They may include.

Toilet Tissue Paper
Facial Tissues
Tissue Napkins
Paper Towels

4. Know the major competitors in the industry

Georgia-Pacific LLC
Kimberly-Clark Corp.
Svenska Cellulosa Aktiebolaget SCA (publ)
The Procter and Gamble Co.
Asia Pulp & Paper (subsidiary of SINAR MAS Group)
Cascades Inc.
Clearwater Paper Corp.
Empresas CMPC
Corolex
Hengan International
Industrie Cartarie Tronchetti S.p.A. (ICT)
Metsä Tissue
SOFIDEL
WEPA

5. Decide whether to buy a franchise or start from scratch

You need to understand that tissue paper manufacturing franchises gives a new entrant into the industry an amazing opportunity of moulding your creativity into a profitable business more than what you can achieve if you start from the scratch.

Indeed franchise opportunities come with their own pros and cons, but if you have a creative streak coupled with an entrepreneurial spirit, then starting and running a tissue paper manufacturing franchise may be an option worth considering. Note that there are a lot of franchising opportunities available, and with so many options available, chances are you can find something that fits perfectly with your favorite business.

6. Know the possible threats and challenges you will face

Running a tissue paper manufacturing business can be a very interesting venture. People are now giving much attention to their health and survival, which creates a huge demand in this business. Here are few threats you might face when starting your tissue paper manufacturing business…

Registering your business
Choosing a price model
Simplifying your marketing plans
Learning how to make tissue papers
Deciding on the type of tissue paper you would be making
Doing your feasibility research
Choosing your work area

7. Choose the most suitable legal entity (LLC, C Corp, S Corp)

At this particular stage you have two key options to choose from- sole proprietorship and the LLC. But then for you to understand the tax liabilities for each, you have to understand the definition of the terms. First and foremost, the sole proprietor business structure is, as the name suggests, a company with a single owner.

This structure is used by three-quarters of all businesses. It keeps the owner in control of the company and has the simplest initial setup. The limited liability corporation, or LLC, is often formed for partnerships when the business has grown significantly. The advantage of an LLC is more options for growth and tax advantages.

8. Choose a catchy business name from the ideas below

Paper Candy
Tissue Unlimited
Zionsville tissue
NYC Purses
Smooth papers
Scented paper
Acura tissues
Savvy Tissue papers
Tommy Tissue papers

9. Discuss with an agent to know the best insurance policies for you

You have to understand that insurance is very important for your business as it can provide protection for a variety of risks. Some of the most common areas of coverage for manufacturers include Commercial Auto Insurance, Workers Compensation, and General Liability. The idea behind having insurance is to protect the business from things like lawsuits, loss of personal and commercial property, and even damage to buildings. Things you will need may include;

Public and Products Liability
Stock and Contents for Fire, Burglary and Business Interruption.
Professional Indemnity (if advice is given for a fee)

10. Protect your intellectual property with trademark, copyrights, patents

In this new age and with the growing awareness, Intellectual Property in the United States has become increasingly crucial. With the arrival of the digital age, it has become much harder to remain in control of one’s intellectual property.

Intellectual property has grown from the need to protect one’s new invention such as tissues, to the need to protect a slogan or a colour. It simply means that intellectual property rights no longer protect just a trade secret; it is now to preserve one’s monetary gain. We can all agree that designing a product is hard work and as such it must be protected at all cost.

In the creative world, imitation is not the most sincere form of flattery; it’s a potential drain on your gross income and your ability to support yourself. Get the help of a lawyer who is experienced in this field to help you understand the necessary ways to protect yourself.

11. Get the necessary professional certification

Getting professional certification isn’t a requirement for manufacturers, but it does help professionals stay up to date on industry trends. Professional certification though not mandated, but it shows your peers how serious you are about your standards. Even though this industry lacks concrete professional certifications, you can still acquire general manufacturers’ professional certifications to set yourself apart in this industry.

Certified production technician
Certified Manufacturing Engineering Certification
Quality Engineer certification
Certified automation personnel

12. Get the necessary legal documents You need to operate

Before you can start your tissue paper manufacturing business in the United States, you have to get the needed permits and licenses from both your state and local government. This is because you wouldn’t want the government closing you down for illegal business operations.

We strongly advice that before you start your tissue paper manufacturing business, speak to an attorney or an accountant. You need to get advice on tax structures and insurance. To legally start a Tissue paper Manufacturing Business in the United States, you will need business documentation; exactly what permits and licenses you need will vary depending on where you live.

For instance, in Harris County you can start a manufacturing business with an assumed name certificate (DBA), sales tax permit and a tax resale certificate, if you want to purchase tissue paper manufacturing supplies or wholesale tissue papers without paying taxes.

13. Raise the needed startup capital

We believe two types of finance are generally needed in the tissue paper manufacturing business. It is important to prepare a project report or business plan before initiating this business. Note that you can apply for a loan from any bank and financial institution. In that case, owners credibility and at least 25% investment as owners allocation on total project cost is required. Other ways of getting funding may include..

Personal savings
Pitching
Bank overdraft
Crowdfunding
Angel investor
Partnership

14. Choose a suitable location for your business

Choosing a suitable location for the plant is a crucial factor in this business. Your plant location should have easy availability of skilled labour, transportation, commercial electricity and water resources. It is advisable to have space in the industrial zone.

You will need to arrange specific space for manufacturing operation, raw material storage, finished goods and admin section. Tissue papers can be sold in a variety of different places, and the venue you choose would depend on how much money you have to start your company.

Note that cheap tissue paper selling venues include markets, e-commerce stores, online websites, and online marketplaces. We believe that a lot of tissue paper manufacturing companies start with a smaller venue, wait until their company is established and then branch out into a more organized business location. It is a good idea to sell your tissue papers though different venues to make sure that you are generating steady income.

15. Hire employees for your technical and manpower needs

Before jumping into any manufacturing business, you have to make sure that you possess thorough knowledge about the product you hope to manufacture. If it is required, take the necessary training to gain experience in the business. You also need to have some managerial skills.

16. Write a marketing plan packed with ideas & strategies

A well drafted marketing plan is simply a document that gives a clear vision of what you want to achieve in your business, at a given time and with the financial resources necessary to achieve the objectives and strategies of the business.

It examines the current situation of the business, performs its analysis, studies the competition; create strategies and action programs to be implemented. Your promotional strategies can determine the success or failure of your business. Ways to market your tissue paper manufacturing business may include;

Leveraging social media platforms and traditional advertising strategies
Using marketing materials
Using satisfied customer testimonies
Creating an attractive website
Business networking and partnership
Referrals

17. Develop strategies to boost brand awareness and create a corporate identity

The first step in branding your tissue paper manufacturing business is to make a name for yourself. What would you like your business or your tissue papers to be called and known for?

Let your name and logo be creative
Print out business cards
Gain industry expertise
Patronize local papers
Sell online
Use keywords and hashtags to your advantage
Join tissue paper manufacturing Associations

Frequently Asked Question (FAQs)

Who manufactures toilet paper in South Africa?

Twinsaver is the no. 1 tissue paper company in South Africa with innovation and consumers’ needs at the center of the Group’s growth strategies.

Is tissue paper business profitable in South Africa?

Financial Performance. A typical paper napkin manufacturing unit with an investment of about 10 lakhs can generate about Rs. 1 crore in annual sales turnover and a profit of about 5-8 lakhs after all expenditures.

What is needed to manufacture Toilet paper?

Raw Materials

Hardwood trees like gum, maple and oak have shorter fibers that make a softer paper. Toilet paper is generally a combination of approximately 70% hardwood and 30% softwood. Other materials used in manufacture include water, chemicals for breaking down the trees into usable fiber, and bleaches.

How much does toilet paper cost monthly in South Africa?

The average American uses nearly R10 worth of toilet paper every month. Daily, we use 8-9 sheets of toilet paper every time we go to the bathroom — that’s 57 sheets every day! An average roll costs about R0.84 and contains 150 sheets, so you’re using 11 rolls per month.

How much do toilet paper companies make in South Africa?

In the United States today, the toilet paper industry is dominated by three manufacturers: Georgia-Pacific, Procter & Gamble and Kimberly Clark, with the latter generating approximately 2.14 billion U.S. dollars worth of sales in 2016. These three manufacturers made up almost 80 percent of the U.S. toilet paper market.

Is tissue paper business profitable in South Africa?

Tissue paper achieved a yearly turnover of R2. 5 billion in 2014 which is a yearly growth of 2.7% since 2009. This industry has large growth potential and is a great business opportunity.

How much do toilet paper companies make in South Africa?

Is manufacturing toilet paper profitable in South Africa?

Is Tissue Paper Business Profitable or not? For the Napkin Papers manufacturing unit will need an investment of about Rs.10, 00,000 which will generate an annual sales turnover of about Rs.1Crore.

Does South Africa export paper?

South Africa exports of Paper; toilet paper was R33,310.03K and quantity 17,297,500Kg. South Africa exported Paper; toilet paper to Botswana (R9,794.96K , 5,362,810 Kg), Namibia (R9,125.04K , 4,602,380 Kg), Eswatini (R3,612.56K , 1,967,680 Kg), Zambia (R2,741.79K , 1,541,540 Kg), Lesotho (R2,525.42K , 1,075,120 Kg).

Why is toilet paper in high demand in South Africa?

With people staying at home because of business closings and shelter-in-place orders, the demand for consumer toilet paper has skyrocketed while the demand for commercial toilet paper has decreased.

Can I make my own toilet paper in South Africa?

Here’s how to make your own toilet paper, according to those anecdotal reports: Gather paper around your home, such as printer paper, non-glossy magazine sheets, or newsprint. Crumple it up. Soften the paper even further by soaking it in a water-filled bucket

How much does it cost to produce a single roll of toilet paper in South Africa?

For the purpose of costing, use a price for paper of R6 000 excl. VAT per ton (recycled paper, 19 gsm). Cores should be priced at approximately 3c per roll. If you were to have your own core machine, you should be able to save in the region of 1c per roll on your cost.

How much does toilet paper cost monthly in South Africa?

Is toilet paper shortage again in South Africa?

The U.S. will experience another “massive shortage” of toilet paper soon as supply chains continue to suffer due to pandemic-related issues, one retail expert warned. “Product shortages as bad as they were in the beginning of COVID are coming back,” Burt Flickinger said on FOX Business’ “Mornings with Maria.”

Is toilet paper going up in price in South Africa?

CLEVELAND (WJW)

When the pandemic upended our lives two years ago, toilet paper, and the lack of it, made headlines. Now toilet paper is back in the news, this time due to the fact that prices are reportedly going up, while product sizes are shrinking.

Why is paper so expensive in South Africa?

This is due to increased operating costs, such as rising input costs and higher-quality environmental standards. An additional factor driving the current price increase is supply not being able to keep up with the growing demand for paper-packaged products.

Is paper more expensive now in South Africa?

Budgets – There has been relatively little change in paper pricing in over 30 years. So far, in 2021 there have been multiple rounds of pricing increases on all paper grades. Each increase has been from 4-9% resulting in an estimated 3-5% increase on the total of most printing orders.