One of the major challenges faced by the tissue producer is the scarcity of raw fundamental components, such as pulpwood. Pulpwood, which is the primary raw required component used in the production of tissue product, is becoming increasingly scarce in certain regions. This scarcity is primarily due to destruction of forests, climate change. As a result, paper manufacturers are forced to discover alternative sources of raw resources, such as recycled fibers, waste, or bamboo forest.

Another challenge facing the tissue industry sector is the increased environmental policies, especially related to carbon footprint, and waste disposal. With growing public knowledge of climate change and its impact on the environment worldwide, governments and authorities have imposed regulations to reduce their carbon footprint, minimize waste. Many companies are now required to install sustainable equipment, implement sustainable forest management and adhere to guidelines for waste management.

The Tissue napkin manufacturer in Mumbai industry is struggling with fluctuations in raw material prices. The cost of pulpwood, in particular, is instable, this can have a dire impact on the industry's profit earnings. This volatility is primarily due to factors such as weather conditions, pests control and market surplus, which can cause a supply of pulpwood.

To these challenges, the tissue paper is also facing stiff competition from low cost producers technologies in countries like China, who offer lower rate. At the same time the emergence of 3D printing is disrupting the traditional manufacturing processes, product range. To stay competitive, tissue paper manufacturers must invest research and development, innovate by adopting new technologies, and expand product portfolios.

The tissue industry is also grappling with challenges including issues of supply management. Paper manufacturers rely on a web of suppliers, distributors, and retailers, for delivery services to consumers. Any disruption can cause significant impact on the industry's operations profitability. For problems a shortage of pulp wood, or a employees strike can impact production delays, lead inventory shortages, and negative effect for profit margins.