The COVID-19 pandemic has changed oral care: from being an essential category, oral care is now seen as an extension to overall health and beauty. Value-added products will drive growth in developed markets, while emerging markets will see consumers adding new products to their oral care regime. Evolving demographics provide opportunities for specific positioning. Sustainability and wellness will characterise innovation in packaging and formulations, with waterless oral care developing.
This report comes in PPT.
Oral health, a focus on hygiene and a preventive positioning is driving up consumption in developing markets, and is also driving greater ingredient focus and new formats in developed markets. As consumers’ purchasing power varies so much across markets, oral care players will have to determine how consumers balance their wellness/oral health goals with what they consider to be “discretionary” or “non-discretionary” spending in oral care.
Demographic shifts is one of the most influential trends impacting businesses, and oral care is not immune to this. A focus on gum and enamel health in ageing markets should be complemented by a beauty and lifestyle positioning when targeting younger consumers, especially Gen Z.
Top players are investing in multiple areas to remain competitive
Market leader Colgate-Palmolive benefits from its sheer size and from the fact that Asia Pacific is its biggest revenue generator, while it also has a sizeable presence in other emerging countries. It leads in innovation in sustainability and formulations, as well as in strategy to target younger consumers. Second ranked Procter & Gamble, meanwhile, is using gamification to reach younger consumers.
Sustainability and wellness will dictate product innovation
Innovation in oral care is driven by savvy consumers who understand sustainability and demand environmental friendly options from manufacturers. Wellness (featuring here as “clean beauty”) is seeing many indie brands using this as a differentiator. More needs to done in reducing plastic use, helping recycle items, using sustainable packaging and using less water. Investment in waterless toothpaste by major oral care brands will drive this trend further in the industry.
Market Attractiveness Scorecard suggests opportunities in Southeast Asia
The Market Attractiveness Scorecard indicates that oral care potential over the forecast period is coming from Asia Pacific (specifically Southeast Asia and South Asia), the Middle East and, to a lesser extent, Europe. Factors supporting this growth include increased awareness of oral health, aided by government initiatives, as well as an emerging middle class, and population and income growth.
This is the aggregation of baby and child-specific products, bath & shower, deodorants, hair care, colour cosmetics, men's grooming, oral hygiene, fragrances, skin care, depilatories and sun care. Black market sales and travel retail are excluded.See All of Our Definitions
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