Future trends in the oral care sector
Еven though the oral care market of consumer goods is one of the most conservative ones, there’s evidence of its progression. In fact, as a rule of thumb, industries that don’t adapt to technological development or new trends, are doomed to perish.
GIVE WAY TO INNOVATION
The first thing worth mentioning is that more “out-of-the-box” products are making their way to top positions on the retailer’s shelves. This wasn’t always the case. In fact, you could only find a non-fluoride toothpaste, or a mint-free one, in strictly specialized stores. In our opinion, this wasn’t solely led by the consumer trends but also by the manufacturer’s unwillingness for niche investment. That was the situation for several decades.
However, things are starting to change. The growth projection of the global oral care market is of a CAGR of 6.32% for the period 2020 - 2025, reported by Research and Markets. That growth is impacted mainly by big brand’s innovative products. Of course, heavy promotional actions have always been typical for this sector, and they will continue being a growth driver.
In value, the oral care market is estimated to reach USD 53.3 billion by 2025 staying at USD 45.8 billion in 2020, according to Markets and Markets. The sector is so traditional that even the COVID19 pandemic couldn’t jolt it.
Brands should help clients pick up trends like clean formulas, alternative anti-caries or whitening ingredients, natural flavors, innovative packaging, or formats of products (ex. zero-waste toothpaste tablets or dental floss). Trendy products with poor distribution or compromise in quality (not quite bio, not quite zero-waste) put a barrier between market and consumer development. In short, lack of customer awareness about R&D and innovations prevent the growth rate.
Toothpaste is KING
Toothpaste is actually one of the consumer goods with the highest penetration (about 80% on average). This is determined by the globally spread dental decay due to food quality, hereditary factors, poor eating habits, and more. Brushing with toothpaste is still the No.1 way to take care of our oral health. A rise in popularity for herbal oral products is driving the global toothpaste market, along with premiumization, and offerings of specialized solutions (Research and Markets).
The “BIG 4”
Conservative as it is, the oral care sector has a group of leaders that’s been here for a while. You can easily spot exactly who they are if you’re strolling down the isles in the supermarkets of the Americas, Asia, Europe, and Australia. Yes, you got it right. Those are Colgate, Elmex (Colgate-Palmolive), Oral-B (Procter & Gamble), Signal, Pepsodent (Unilever PLC) Aquafresh, Sensodyne, and Parodontax (GlaxoSmithKline PLC). The “Big 4” is here to stay and we don’t expect significant shifts soon.
However, all hope is not lost, especially for smaller regional players that make specialized products. A winning strategy is to address specific dental problems like gum disease, hyper-sensitivity, periodontitis, or halitosis. That’s how tinier brands became established in their local markets and can expand abroad.
THE OPPORTUNITY
Remember, the oral care market is marked by brutal price wars that could be led for years by the “Big 4”. So if you’re a toddler in the sector or still considering your entry plan your best chances are of presenting a product of superb quality dealing with specific dental issues and that has a taste that would be adored.
Are you ready for the EU regulation against single use plastic?
If you haven’t heard of the long-anticipated EU ban of single-use plastic, you have some catching up to do. It was approved in the first Q of 2019 and it states that single-use plastic items will be banned for production by 2021. And here we are…
This year we’ll have to see ecological friendly alternatives of plastic forks, knives, spoons, chopsticks, plates, straws, cotton buds, balloon sticks, food containers, and our favorite - polystyrene cups.
This measure comes in a bundle of legislative activities aiming to fight the industrial effects of climate change. It is part of the Juncker Commission's Circular Economy Action Plan and is part of the EU Plastics Strategy. We agree that those steps are belated, to say the least, since scientists have been alarming governments for decades. However, the new standards include higher company responsibility and more precise monitoring of industrial polluters. Starting from this year all EU states will have to achieve a target of 90% collection of plastic bottles that end up in the recycle bin, by 2029, and newly produced plastic bottles will have to contain at least 25% of recycled material by 2025 and 30% by 2030.
Nordics are whistling carefree while our mouthwash plastic bottles are produced from 100% recycled plastic from day one. Furthermore, Nordics was one of the pioneers introducing bamboo drinking straws for the European market.
Let’s get back to the legislative novelties. The expected outcomes from this ecological measure are to lessen the CO2 emission by 3.4 million tons, to avoid an ecological footprint that would cost the equivalent of €22 billion by 2030, and to save consumers a projected €6.5 billion.
The other important side of it is the “the polluter pays” principle. This means that every company should pay an equal price for the direct and indirect pollution it makes, including CO2. Actually, this is part of the 1992 Rio Declaration, a guide with general principles for sustainability.
Part of the new policy is targeting consumer education and consumer behavior. By mandatory labeling for packaging, users will be warned of the environmental damage they would cause by disposing of products incorrectly. Many Western countries and retailers' own brands have been doing this for quite some time now, uptaking the heavy task of consumer teaching.
Nordics’ products are born from the sustainability concept. We are passionate supporters of the principle "reduce, reuse, recycle". That's why our products are saving the Planet and satisfying the most pretentious consumer needs since 2015. But as we can see from the new EU law - it's a shared mission of manufacturers and consumers.
