COVID-19 IMPACT SURVEY MAY 2020
The global market for Toothpaste is projected to reach US$18. 3 billion by 2025, driven by the sustained growth in population, increasing awareness over oral hygiene, and launch of innovative toothpaste variants at affordable prices. Interestingly, the COVID-19 pandemic has doubled the emphasis on oral hygiene with dental offices around the world closed for routine consultations. This largely because the risk of COVID-19 cross infections is higher in dentistry as saliva plays a key role in human-to-human transmission. Oral procedures involving the use of drills or ultrasonic devices cause aerosol release increasing the risk of inhalation of airborne particles by doctors. Private practitioners are facing new and unfamiliar challenges in delivering care to non-urgent patients. Maintaining a daily routine of brushing teeth and flossing to prevent tooth decay has suddenly gained prominence among consumers the world over. Plaque control is the first step in preventing tooth decay, cavities, gingivitis and other infection related inflammation of the gums. These simple oral care best practices become important at a time when there is no access to dentists or hygienists for cleanings and checkups. Toothpaste is a mature and stable market with premiumization being the only key to brand growth in a market ravaged by pricing pressures. Innovation in packaging ranks as one of the critical areas of premiumization along with developing targeted products for specific oral diseases such as sensitivity, gingivitis, sensitive teeth, enamel /gum protection. Commoditization of the market is evident by the fact that fluoride toothpaste is today globally affordable by all and per capita consumption is hitting near saturation limiting volume growth. Also, the sea of me-too competitors is growing in whitening, cavity protection and stain removal categories, stifling revenue growth. Localization is the quiet change currently underway in the market, against a backdrop of growing diversity of consumer communities in terms of ethnicity, wealth, lifestyle, and values. Brand localization represents a key strategy adopted by multinational companies to gain market share in developing foreign markets.
Other noteworthy trends in the market include high risk of dental fluorosis among toddlers and children and the ensuing demand for fluoride free toothpaste; increasing incidence of tooth sensitivity to over 35% of the global population and the resulting demand for toothpaste with potassium nitrate; growing focus on maintaining flawless white and clean teeth and the rising popularity of tartar control and whitening toothpastes; growing demand for triclosan free toothpaste on back of recent negative publicity over triclosan with the FDA banning its use in soaps. The growing trend towards natural products is spurring interest in toothpaste with aloe, eucalyptus oil, myrrh, and other plant extract as active ingredients among health conscious consumers. Colgate launched Colgate Naturals toothpaste in China, looking to tap the consumer preference for natural local ingredients. Colgate Naturals toothpaste makes use of twin lotus flow for the purpose of soothing gums. Similarly in India, the company introduced Colgate Swarna Vedshakti toothpaste, as consumers began exhibiting strong preference for natural ingredients to prevent dental problems. Asia-Pacific including China is a major market led by favorable economic environment, rising standards of living, shift away from homemade toothpaste recipes to commercial toothpastes, growing trend towards premiumisation of toothpaste packaging; growing levels of health awareness and the resulting increase in demand for organic toothpastes; and untapped demand potential in densely populated countries such as India and China.