Tieto’s Tissue Market Study 2025 highlights important changes in the industry

Three years ago, companies were scrambling to deal with energy shortages, raw material availability, and crisis-level uncertainty. Today, while volatility hasn’t disappeared, the industry mindset has clearly matured.

The biggest shift? Customer satisfaction is now king.

Since the previous study, customer focus has jumped dramatically and has overtaken both profitability and sustainability as the top strategic priority. Profit hasn’t vanished from the agenda, but leaders now see it as a result of great customer experience and efficient operations, not the starting point. This represents a significant shift in mindset compared with 2022, when decision-making was dominated by the need to cope with high pulp and energy prices.

Another big change: efficiency has replaced availability as the core operational concern. In 2022, executives were deeply worried about access to energy and raw materials. In 2025, those fears have eased significantly. Market pulp is easier to source as Covid-driven demand has eased, and energy supply shocks have stabilized. What hasn’t stabilized are costs, which is why companies are doubling down on structural efficiency instead. Investments in Overall Equipment Effectiveness (OEE), advanced process control, and IT/OT integration have surged in comparison with the last study.

Digitalization and AI are now everyday tools but lacking in strategy

Digitalization and AI have also moved from “interesting pilots” to real operational tools. Back in 2022, digital initiatives often sat on the sidelines. Now, AI is being used daily in production for predictive maintenance, quality control, and process optimization. Commercial and supply-chain use cases are growing too.

That said, the study is blunt about one thing: AI strategy is still a major weak spot. Many companies are using AI tactically but lack clear leadership alignment or governance—an issue that barely surfaced in the previous study and now stands out as a warning sign.

A related issue is that planning now takes a long-term view. One of the clearest developments since 2022 is the rise of long-term business and demand planning as the top priority in Sales & Operations Planning (S&OP). Companies are actively trying to move away from reactive firefighting towards data-driven orchestration. This shift reflects a broader industry ambition to build foresight and resilience, rather than just managing the next disruption.

Sustainability has changed character

In the earlier study, it was often a differentiator. In 2025, it’s simply the baseline. ESG compliance and reporting are now seen as “hygiene factors.” Investment has shifted toward practical, regulation-driven initiatives like packaging reduction, carbon labelling, plant-level emission retrofits, and compliance with the EU Deforestation Regulation (EUDR). The new challenge isn’t whether to act on sustainability, but how consistently companies can execute across regions.

Finally, leadership alignment is stronger than it was in 2022. CEOs and operations leaders are now much more aligned on priorities like digital execution, people development, and selective, high‑ROI investments. Instead of heavy spending on new machinery, companies are favouring ERP upgrades, MES platforms, and data infrastructure that support smarter decision-making.

Bottom line: the tissue industry has shifted from Covid crisis mode to reinvention mode. The winners aren’t just cutting costs. They’re building digital backbones, planning for the long term, and putting customers at the centre of everything they do.

They will be those who align people, processes and platforms to operate smarter, respond faster and serve better.

To dive deeper into the tissue industry’s hottest challenges today, download the Global Tissue Market Study 2025.

For more information, don’t hesitate to contact Arto Huuhilo or Jarmo Ropponen.