Oral Care in Malaysia

2021 DEVELOPMENTS

Premiumisation... Consumers continue to observe basic personal hygiene routines, supporting overall positive performance of oral care in 2021

Oral care in Malaysia experienced an overall positive performance in 2021, with accelerated growth rates compared to 2020. Value growth was in part driven by the preventive health trend and in part by premiumisation.

Toothbrushes continues to expand with dynamic growth for power models

Toothbrushes was another area to see further innovation in terms of antibacterial claims with a particular focus on charcoal, with the latter applied to the toothbrush rather than as an active ingredient as noted in other areas of beauty and personal care. Darlie (Hawley & Hazel (M) Sdn Bhd for Colgate-Palmolive Co) through its Charcoal Toothbrush which claims to offer 99% Anti-Bacterial Bristles incorporates volcanic minerals from the island of Jeju, Korea and Binchotan charcoal from Japan which it claims help to inhibit the build-up of bacteria on the bristles, thereby promoting greater oral hygiene.

Multinational brands continue to benefit from strong financial support, enabling them to continue developing innovative new products

Oral care in Malaysia remained a highly competitive environment in 2021, led by multinational Colgate-Palmolive known for its global brand Colgate which gained further value share, followed by Hawley & Hazel (M) Sdn Bhd, which locally distributes the brand Darlie for Colgate-Palmolive Co. Third-ranked Oral-B from Procter & Gamble followed at a distance, also gaining value share within both toothbrushes (where it leads both manual and power variants) and mouthwashes/dental rinses.

PROSPECTS AND OPPORTUNITIES

Stronger growth momentum predicted for oral care from 2021 onwards

Oral care is predicted to record strong growth from 2022 onwards, driven by the preventive health and premiumisation trends. Mouthwashes/dental rinses, power toothbrushes and toothpaste are all predicted to record double-digit growth rates in both volume and value terms (at constant 2021 prices) with the latter outperforming volume growth overall, signifying a greater willingness amongst Malaysians to invest in oral care that they perceive to offer greater specific value in terms of making antibacterial claims or using more natural ingredients.

Consumers likely to increasingly look to e-commerce for attractive promotional offers within oral care

While holding overall low value share within oral care, e-commerce made notable gains and recorded strong current value growth during the pandemic as an increasing number of consumers moved online for their oral care requirements due to the convenience and perceived safety of home delivery. However, the longer-term attraction to the channel is likely to be the significant cost savings that consumers can make through the e-commerce sites of popular retailers such as Tesco, Watsons and Guardian which regularly run price promotions on a variety of products, including the latter’s Hot Promotion campaigns for a limited time.

Further ingredients innovation likely in order to offer consumers differentiation

Oral care players are likely to continue to innovate when they develop new products through the use of natural ingredients to capitalise on the rising health and wellness trend in Malaysia. Leading mouthwashes/dental rinses brand, Listerine, is likely to benefit from further dynamic growth predicted for this category over the forecast period following the launch of its Limited Edition Coconut & Lime variant with no alcohol content, which is intended to make the use of mouthwash a more enjoyable experience with a move away from mainstream harsh mint flavours.