Suzano

1.The global pulp and paper sector has undergone significant transformation over the past decade. From your perspective, what structural shifts are most impacting the tissue segment specifically?

One of the most important shifts we’re seeing is the ongoing trend towards consolidation. Mergers, acquisitions and vertical integration are strengthening the position of major players in the market and reshaping the dynamics of international competition. This has accelerated the modernization of infrastructure and production facilities, as well as the digitalization of processes and equipment.

Another important structural shift is the evolution of consumer hygiene habits, which have been influenced by the pandemic and broader global demographic trends. Notably, a growing middle class in emerging markets has led to higher demand, driving increased purchases of hygiene products. 

2. Tissue consumption patterns vary significantly across regions. How are hygiene awareness, urbanization, and private-label growth influencing demand in emerging vs. mature markets?

The pandemic really intensified awareness of hygiene and this resulted in an increase in tissue paper use, even in countries where cloth had traditionally been preferred. In emerging markets, this shift has been reinforced by rapid urbanization and the expansion of private-label brands, which can offer better affordability and broaden access across different social groups. In mature markets where urban lifestyles and the use of tissue-based hygiene products has been the norm for some time, demand has evolved towards premium, high-quality and sustainable products. 

Market maturity really shapes growth prospects and expectations. In emerging markets this is being driven by democratization of access and convenience at affordable price points. But in mature markets, the focus is more on product differentiation and innovation. In both contexts, hygiene, practicality and accessibility remain the central pillars that support tissue consumption.

3. With increasing volatility in pulp pricing and fiber availability, how should tissue manufacturers rethink their raw material sourcing strategy to ensure resilience and cost control?

We’re seeing tissue manufacturers increasingly substituting more expensive softwood fibers with lower-cost hardwood alternatives, which can also result in reduced environmental impact. 
In Brazil, the production of toilet paper using 100% eucalyptus short fiber has been common practice for decades, thanks to its competitiveness and quality. Now, with pressure on manufacturers globally to enhance profitability, this trend is expanding to other regions.

Anticipating this shift, Suzano has established a dedicated division within the company to support our customers in their transition. We’ve developed a tried and tested approach alongside a team of technical experts that can provide support for manufacturers, ensuring that changes can be implemented without compromising product quality and performance, or operational efficiency.

4. In tissue production, what are the operational, quality, and sustainability trade-offs between virgin fiber and recycled fiber? How do you see this balance evolving?

As is the case with a lot of sustainability issues, the answer is never as simple as it might seem. Of course, recycled fiber contributes to the circular economy and reduces pressure on natural resources. But there are also environmental impacts from the processing of recycled fibers, as well as the fact these typically come with higher costs for a manufacturer.

Recycled fibers demand higher consumption of chemicals and energy, because of the need for extra equipment and systems for cleaning and treatment. Then the fiber yield typically ranges between 60% and 70%, leaving waste product that must be properly managed to avoid environmental harm.

Beyond this, there are impacts on product quality and operational performance. Recycled fiber often creates challenges with consistency and requires more operational adjustments. Tissue produced with virgin fiber generally delivers superior softness, more consistent coloration and better physical properties, which are especially valued in premium segments. Similarly, virgin fiber offers greater stability in operations, resulting in better machine runnability and more predictable production processes. 

5. Energy is a major cost component in tissue manufacturing. What advanced technologies or process optimizations are delivering measurable efficiency gains today?

Energy comes second to pulp in terms of overall costs for tissue manufacturers, so a lot of focus is put on innovation to improve energy efficiency and optimize processes. One of the more interesting supplier solutions currently being applied in paper machines is advanced press technologies, such as Shoepress and Visconip, which enable a higher percentage of dry content levels.

We’re also seeing more efficient hoods, designed to optimize thermal energy use, and Yankee cylinders with improved heat transfer, enhancing drying performance. Beyond this, there are innovative clothing designs, improving the balance between sheet formation and drainage, and refiner disk design improvements that allow reduced refining intensity and therefore lower energy input to achieve required tensile properties.

6. How is Industry 4.0 transforming tissue production lines? Are digital twins, predictive maintenance, and AI-driven quality monitoring becoming standard practice?

Manufacturers are increasingly embedding automation, advanced monitoring and data-driven intelligence into their daily operations. Machines and converting lines are now increasingly being run with far less need for manual intervention, and operator decision-making has been accelerated thanks to real-time visibility of parameters that previously were not accessible. This automation is lowering operational risks and exposures, shifting the workforce towards more specialized and higher value roles focused on data interpretation and digital systems.  

At the same time, the promises of predictive maintenance are becoming a reality thanks to continuous monitoring of equipment health, for example with vibration and temperature sensors, which allow maintenance teams to intervene proactively before things go wrong. This makes processes more predictable and efficient. Artificial intelligence is also being applied to quality monitoring, analyzing production data in real time to detect deviations, optimize fiber usage and maintain consistent product quality.

7. Modern tissue machines are achieving higher speeds and better product softness. What technological advancements in machine design are redefining productivity benchmarks?

A combination of mechanical and digital innovations are increasing speeds and enhancing softness. Advances in headbox and forming design allow more uniform fiber distribution, while improved press sections and high efficiency Yankee dryers enhance water removal and creping control, enabling faster production without sacrificing quality. Then better automation and intelligent control systems give operators real time visibility of parameters, reducing the need for manual intervention and stabilizing production processes.

8. Water consumption remains a critical issue in tissue processing. What best practices or breakthrough solutions are helping mills reduce water intensity while maintaining quality?

A combination of process optimization and breakthrough technologies is now allowing mills to close the loop on water use, without compromising quality. Maintaining strict process controls is essential to minimize freshwater intake. This includes optimizing chemical dosing to avoid system saturation, monitoring conductivity to ensure stability, and investing in advanced fiber recovery systems. 

Modern recovery technologies can deliver water with solid content as low as 10 parts per million (PPM) when properly operated, making it suitable for reuse in showers and pulping processes. By reintroducing this clarified water into the system, mills reduce the need for fresh water while maintaining operational productivity and product quality.

9. In a highly commoditized tissue market, what innovation areas - such as premium softness, strength, embossing technology, or sustainable packaging - are creating competitive advantage?

Successful product differentiation comes from understanding and focusing on what consumers value most in each region. In some countries, strength is prioritized, while in others, softness or absorption is more important. Understanding these local preferences is the first step towards achieving a competitive advantage through innovation.

We already see paper-based packaging gaining traction in markets where sustainability is a priority, along with the use of unbleached fibers, which offer reduced environmental impact. Other regions are advancing bulk and absorption through increasingly sophisticated embossing technologies. In Brazil, we are seeing a preference for compacted products designed to take up less volume, therefore requiring less packaging and being optimized for logistical processes. 
 
Altogether, these innovation areas – premium softness, strength, embossing technology and sustainable packaging – are becoming sources of competitive advantage and allowing manufacturers to stand out in a sector where products can often appear similar.

10. The pandemic exposed vulnerabilities in global supply chains. What structural changes have tissue producers implemented to mitigate future disruptions?

Beyond optimizing logistics processes, there has been a focus on building resilience into supply chains, through the qualification of multiple suppliers for the same raw materials and applications. This diversification reduces dependency on a single source and allows producers to adapt more quickly when disruptions occur. By broadening their supplier base, mills gain flexibility to maintain production continuity even in periods of global instability.

11. Looking ahead to 2030, what will define a “best-in-class” tissue manufacturer - technologically, operationally, and environmentally?

I believe the most successful manufacturers in the coming years will be ones that can translate consumer trends into tangible innovation, developing products that truly deliver value. This will be the companies that can balance efficiency and excellence, pursuing cost optimization without compromising product quality.

This will require a combination of full digital integration across operations, with robust circular sustainability practices and advanced automation, minimizing the use of natural resources. It also requires consistent investment in the development and retention of talent – an increasingly scarce asset in the tissue market – ensuring not only technological innovation but also continuity, resilience and operational excellence.