Among the most readily available materials for small pet bedding and litter are cedar and pine wood shavings. However, concerns over potential adverse health effects of the volatile compounds released from these wood shavings has sent small animal owners searching for alternatives. Here are some of the choices.
A paper based product, but this one is somehow formed through a process of cutting and folding strips of recycled paper. I haven't tried this one, but it is said to be soft and great for burrowing and nesting. I've seen mixed reviews on how absorbent the product it however. It might be a better option if used over one of the more absorbent pelleted products.
A paper based pelleted product - similar to Yesterday's News. Comes in a pelleted form ("Original Texture" - good for litter boxes) and a looser fiber form ("Soft Texture" - perhaps better as bedding). Depending where you are it can be harder to find.
This is a white softwood based product, but the manufacturer states that the processing removes 100% of the dangerous aromatic hydrocarbons (along with resins, oils, tars, acids and water). It comes in a granular form, which expands as it absorbs moisture and is said to be very absorbent.