Oral health segment on a growth drive, thanks to the rising global awareness
Oral healthcare industryincludes various products which are toothpaste, toothbrush, mouthwash liquid, dental cleaner and toothpowder. The last on the given list is a product normally used in the Asian regions. In fact, toothpowder was the largest selling oral care product until couple of decades ago before it got replaced by its variant toothpaste. Rising populations globally and with that rising cases of oral health issues are major drivers for the oral healthcare products which have come a long in the last few decades.
Big contributor to the Consumer Goods category:
Today, this segment from the FMCG sector holds a prominent share of the entire industry and somewhat dominates the performance of the sector. With the literacy rates growing there is an increase in people using these oral health products. There is a giant shift from the traditionally utilized products towards the factory manufactured oral hygiene products.
Of late mouthwash brands are witnessing an above expected upsurge and thus most brands manufacturing toothpastes and dental brushes are jumping into producing mouthwash products. This act of acceleration of product range in the niche is constantly increasing the business value and the returns are seeing a continuous rise year after year.
Market Research indications for the niche:
Market research on the global dental care products and their business trends reports indicate that there is still potential for growth in the developing nations where people are trying different variants based on brands, product attraction and price tag. It is found that about 97% of the population in the less developed countries constantly changes their preferences according to the innovations and new developments done in the products by their brands. There is a massive competition at least in the segment of toothpaste as well-renowned brands are finding it tough to tackle the pressure which is applied by the new products bought in by latest brands. A worldwide business strategy has options available for customers as it has opened up the global markets but at the same time it has turned it difficult for the brands in the business.
Recent trends: Dip and Rise:
Other segments like the toothpowder, oral care brushes and mouthwash have a constant demand which is delivered by all companies with a shared profit margin. Although the industry dipped a little during the 2008-10 period it is trusted to be back on tracks. It had reported to slide around 1 to 2% overall globally during the economic downfall.
The oral care industry is a notable contributor to the beauty and personal care industry in the growing economies. Rising awareness and beauty consciousness in both the genders from the developing countries is seen as an aid for the international players. Section wise, the mouthwash niche is estimated to have the biggest growth rate in the upcoming years. The entire segment is predicted to have a CAGR of 17% for the period from 2011-15. The toothpaste market as expected is turning out to be the most active section which is likely to be valued at $12.6 billion by the end of 2015.
Leading brands participating in the market:
Colgate-Palmolive is a household brand globally when it comes to dental care products. The company has a rich presence in most of the countries but it is a top player in the Asian regions of India and its surrounding nations. Unilever Private Limited with its Indian undertaking company –Hindustan Unilever HUL is next having a wide range of dental care products is an absolute competitor to the former. There are other companies such as Church and Dwight, Procter and Gamble (P&G) and Johnson & Johnson which continue to enjoy notable shares in the world dental products market.