WSJ.com The US paper towel market is in a financial emergency, according to a report from Goldman Sachs, which has estimated that the supply of paper towels in the US could drop to about 1.5 million tons this year from 1.8 million tons last year.
That is roughly the same as the 1.7 million tons of paper used to make paper towels that the company estimated would be used in the United Kingdom in 2020.
The US, however, is the largest paper towel consumer, accounting for over half of global supply.
The report, “Paper Towels Supply: The Global Paper Towel Supply Crisis and What It Means for Consumers,” notes that the global market for paper towels is expected to fall by more than 1.6 million tons in 2020 from about 1 million tons a year ago.
“The United States has the most severe shortage of paper towel products, and the largest supply,” the report states.
“This is due to a lack of sufficient capacity in the domestic market.
If the domestic supply of the paper towels and towels is not replenished quickly, we will see the supply decrease by about 1,600 tons annually.”
A number of factors are expected to lead to the shortage of towels in 2020, including a global warming that will make it difficult to keep the climate warmer, which will make the global economy less efficient, and a shortage of cheap, environmentally friendly alternatives to paper towels.