The Oral Care Industry
Due to rising consumer awareness about dental health across emerging nations, the importance of toothpaste and oral care products has increased significantly in recent years. The essence of oral-care products derives from the fact that the majority of oral health problems can be prevented and/or treated using commercially available products. World Health Organization (WHO) states that oral diseases affect almost 45% of the world population, posing a great health challenge for many countries, where the affected people deal with lifelong severe dental infections resulting in pain, disfigurement, and even death. Despite the life-threatening implications an oral disease can trigger, dental treatments are costly and are not covered by medical insurance companies. They only cover 5% for dentist visits and treatments in high-income countries, while in most low- to middle-income countries there is little policy to cover this type of medical expenditure.
Considering the number of oral diseases, the dental care industry serves both consumers and dental practitioners. Goods and oral care solutions are nuanced, and the level of skill and infrastructure required to manufacture these products vary substantially. However, due to the volume of customers worldwide, generic products that appeal to consumers outperform those that cater toward more specialized sectors in terms of value. As a result, the market’s main sales and distribution channels comprise supermarkets and convenience stores, drugstores and pharmacies, specialty stores, and, more recently, the online retail marketplace.
Toothpaste sales vs Covid-19
Since toothpaste falls under the category of commodities, the export of such products across borders was allowed with little to no restriction.
The COVID-19 pandemic seemed to have a minor effect on the global toothpaste sector. The demand for toothpaste was generally unaffected throughout the year. Nevertheless, the consumers around the world were more likely to favor brands that offered discounts on additional purchases, as well as products that were high in volume yet low in price due to the overall financial hardships. Lately, the rising number of dental conditions among children and adults as a result of bad dietary habits, as well as the increasing interest in herbal oral care products, are the key factors driving the toothpaste sector. Furthermore, the escalating trend of premium brands and consumers demanding more specialized solutions are propelling the market’s growth.
The top oral care brands have taken advantage of the increasing customer awareness, expanding their product categories with more specialized options such as teeth-whitening toothpastes and other innovative oral care products. The technological advances allowed brands to implement more competitive marketing strategies revolving around sustainability and the addition of natural ingredients such as herbs.
What About Statistics in the Oral Care Sector?
According to surveys, the international toothpaste market is expected to increase at a CAGR of 3.4 percent from 2019 to 2027. Specifically, the global market share was 17.75 Billion US Dollars and it is estimated to reach almost 22 Billion during the forecast period.
The Asia-Pacific region holds the largest market share, mainly because of the high number of customers, the lifestyle shifts, and the rise in household expenses. Hence, the shift towards sustainable policies is utterly essential. In fact, industry leaders are putting an emphasis on environmentally friendly packaging. A lot of the top producers like Colgate are adopting waste-minimization techniques and developing entirely recyclable toothpaste tubes. Due to the single-use packaging, 300 million toothpaste tubes are dumped at landfills around the world to address the problem.
As for the product categories, the herbal toothpaste segment will present the highest CAGR of 5.6% by 2027. There are various factors driving this growth, such as the global movement towards natural and eco-friendly personal care products and the consumers’ preference to eliminate chemicals in essential goods. Yet, the dominant product will still be the conventional toothpaste, as it is perceived to guarantee fresh breath, gum and teeth infections, and bacterial overgrowth. (Source: www.alliedmarketresearch.com/toothpaste-market-A11278)
Regarding the segmentation by region, the Asia- Pacific will hold the leading position, as it accounts for 60% of the global population. Domestic brands such as Dabur and Lion Corporation are gaining ground in the regional markets and they form partnerships with leading distribution companies to test their products on the global market.
It is worth noting that Europe and North America are projected to accelerate considerably due to lifestyle and dietary choices such as smoking and consuming coffee, acidic soda drinks, and meat, as it’s part of their culture. Thanks to the high levels of income and the citizens’ priority to proper dental hygiene habits, they turn towards the premiumization of dental care and sustainable practices.
The Top 5 Brands in the World
The top brand names in the toothpaste sector are:
- Procter & Gamble
- Colgate-Palmolive
- Lion Corporation
- Unilever
- GlaxoSmithKline PLC
The majority of the shares are held by the above-mentioned companies, except Lion Corporation, which is based in Japan. The market is highly competitive with a lot of small regional brands, but these five hold the leading positions. This offers them the competitive advantage to expand their product portfolio and provide niche products, addressing more issues such as sensitivity and pain relief. In fact, GlaxoSmithKline PLC launched a mint toothpaste in 2018, specifically for customers with sensitive teeth and gums across significant markets. Plus, a year prior, Unilever Ghana Limited introduced a similar product to the market, but in three variants, whose unique formula offered holistic protection and treatment for sensitive teeth.
Sources
www.alliedmarketresearch.com/toothpaste-market-A11278
https://www.who.int/news-room/fact-sheets/detail/oral-health
https://www.gdpuk.com/news/latest-news/3869-toothpaste-tubes-an-environmental-hazard
https://www.fortunebusinessinsights.com/toothpaste-market-104484
https://www.mordorintelligence.com/industry-reports/global-toothpaste-market
