Hand Towel Market Report 2026

The hand towel market size has grown steadily in recent years. It will grow from $3.14 billion in 2025 to $3.29 billion in 2026 at a compound annual growth rate (CAGR) of 4.9%. The growth in the historic period can be attributed to increasing commercial cleaning requirements, rising usage in foodservice and hospitality sectors, expansion of retail distribution networks, growing urbanization trends, increased consumer preference for disposable hygiene products.

The hand towel market size is expected to see strong growth in the next few years. It will grow to $4.1 billion in 2030 at a compound annual growth rate (CAGR) of 5.6%. The growth in the forecast period can be attributed to rising focus on sustainable packaging solutions, increasing penetration of institutional hygiene products, growing adoption of smart dispensers in public spaces, expansion of e-commerce sales channels, increasing regulatory emphasis on hygiene compliance. Major trends in the forecast period include increasing use of recycled and eco-friendly paper materials, rising demand for high-absorbency paper towels, growing adoption of touchless dispensing systems, expansion of premium and multi-fold towel formats, enhanced focus on hygiene and safety standards.

The growing awareness about hygiene in countries worldwide is a major factor contributing to the expansion of the hand towel market. Maintaining hygiene and sanitation is crucial for preventing and controlling the spread of numerous serious human diseases, including cholera, diarrhea, ebola, and the recent coronavirus. This rise in hygiene awareness is primarily driven by greater public focus on health protection, prompting individuals to adopt cleaner practices to minimize the risk of illness. Hand towels support hygiene by enabling effective hand drying, reducing moisture that can harbor germs, and lowering the transmission of bacteria. For example, in August 2025, according to the United Nations International Children's Emergency Fund (UNICEF), a US-based humanitarian aid organization, in 2024, 1.7 billion people still lacked basic hygiene services, including 611 million without any handwashing facilities, while four countries had already achieved universal access (>99%) to basic hygiene services and another nine were on track to reach it by 2030. Hence, the increasing awareness about hygiene across countries is anticipated to drive the growth of the hand towel market.

Major companies in the hand towel market are concentrating on innovations such as single-use, hygienic towel designs for hand and face applications to enhance user convenience, minimize contamination risks, and ensure fast and efficient drying. A single-use hand and face towel is designed to be dispensed from a sanitary box one sheet at a time, offering a clean, disposable alternative to traditional reusable cotton towels, while preserving softness and absorbency. For example, in September 2024, Selpak, a Turkey-based hygiene products company, introduced the Next-Generation Hand and Face Towel. The product offers a hygienic, single-use design that promotes personal hygiene, provides practical usability in both public and home environments, and lowers the risk of cross-contamination compared to conventional hand towels.

In May 2024, Asia Pacific Resources International Limited (APRIL), a Singapore-based producer of fibre, pulp, and paper, acquired Origami Cellulo Private Limited for an undisclosed amount. Through this acquisition, APRIL Group intends to enhance its presence in the Indian tissue and hygiene paper market by utilizing Origami’s integrated manufacturing and converting capabilities for products such as hand towels, kitchen towels, facial tissues, toilet tissue rolls, paper napkins, and wet wipes. Origami Cellulo Private Limited is an India-based company offering consumer tissue products, including hand towels and other hygiene paper items.

Major companies operating in the hand towel market are Kimberly-Clark Corporation, The Procter & Gamble Company, Svenska Cellulosa Aktiebolaget SCA, Essity AB, Sofidel S.p.A., WEPA Group, Cascades Inc., Asia Pulp & Paper Group, Asaleo Care Limited, Hengan International Group Company Limited, Clearwater Paper Corporation, Irving Consumer Products Limited, Kruger Products Inc., Lucart Group, Renova Group, Oji Holdings Corporation, Nippon Paper Industries Co. Ltd., Domtar Corporation, Suzano S.A., APRIL Group, Nine Dragons Paper Holdings Limited.

Asia-Pacific was the largest region in the hand towel market in 2025. North America was the second largest region in the hand towel market. The regions covered in the hand towel market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hand towel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The hand towel market consists of sales cotton, lyocell, linen, and synthetic microfibers. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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