When I was in China this summer, I was a bit disturbed by the bathroom facilities in the rural areas—the communal poo rag had not yet been replaced by toilet paper. Even in tourist locations like the Great Wall, the restrooms had a rag attached to the wall to be used for wiping your ###. I had to ask our tour guide for confirmation that I wasn’t just imagining this—unfortunately I wasn’t. At the time, I just shrugged my shoulders and thought about it as little as possible. That was until I was alerted to the investment implications of this. Put simply, the average westerner uses over 25 lbs of tissue and toilet paper a year (hereafter simply called tissue). In most of the undeveloped world, the usage is a tiny fraction of that number, but it is growing rapidly.Worldwide tissue consumption in 2009 was 28.2 million tons. Production capacity will increase by 4 million tons by 2012 with 2.6 million tons of that coming online in China. As people reach a certain standard of wealth, they decide that they can afford toilet paper and all the sanitary benefits that go along with it. Per capita tissue consumption in the West has stagnated. Get ready for huge growth from the other 4 billion people who don’t yet use tissue.Tissue comes from specialized pulp known as Northern-Bleached Softwood Kraft (NBSK). This is a fiber made only from softwood conifers. It is produced primarily in the US, Canada, Chile, Germany, Russia and the Nordic Countries by turning woodchips into pulp using the Kraft process. Because of the specific strength and fiber length of NBSK, you cannot make tissue out of hardwood pulp, though many tissue manufacturers substitute some of the NBSK content with cheaper hardwood pulp. If you have ever been to a truck-stop, you can probably tell the difference between blended pulp and the pure stuff in Charmin...................