Oral Care: Major Players Launch Growth

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  • Topic: Toothpaste, Mouthwash, Colgate-Palmolive
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MARKET REPORT

Oral care: Major players launch growth-driving products
USA
Positive performances by all oral care categories led to market growth of 5% in 2007. Toothpastes and mouthwashes grew by 3% and 8% respectively, while whitening treatments posted growth of 10% – a turnaround from the decline of previous years. All categories have benefited from product launches. Education in the category continues to revolve around the link between oral care and overall health. For example, Colgate-Palmolive partnered with health insurer Aetna and numerous drug chains to offer an education programme on preventive dental care and its link to general wellbeing. Also, in September 2007, GSK, the American Dental Association (ADA) and the ADA Foundation debuted the Oral Longevity programme, designed to increase oral health awareness in older adults.

Market Review
US • New products lead to growth in all categories • Influx of products from foreign marketers • Technological innovation aids upturn of whitening strip sales Canada • Toothpastes and mouthwashes grow, while sales of whitening treatments are flat

Toothpastes
Toothpaste sales grew by 3% in 2007. Products made with natural ingredients continue to be successful, according to industry sources. Private label sales are minor. In June 2007, the FDA advised consumers to avoid using toothpastes manufactured in China, as many that had been imported from the country were found to contain poisonous chemical diethylene glycol. Some of the counterfeits were falsely labelled as Colgate, but other major brands were not impacted and so the situation is unlikely to have hindered overall growth.

USA and Canada: Oral care categories 2005-2007
USA US$mn Toothpastes Mouthwashes Whitening treatments Total Canada Toothpastes Mouthwashes Whitening treatments Total 163.5 75.9 32.6 272.1 173.9 82.0 30.7 286.5 178.8 86.9 30.4 296.0 2005 1,619.1 721.9 298.8 2,639.8 2006 1,635.3 772.5 265.9 2,673.6 2007 1,690.5 834.9 291.3 2,816.8

The competitive environment
Crest continues to battle with Colgate for the category’s No.1 spot. Crest grew by 8% and takes roughly a third of category sales. The growth was largely thanks to sales of its Pro-Health toothpaste, which more than trebled to reach $95mn. The presentation benefited from a category-leading adspend of $69mn. Crest Pro-Health tackles cavities, gingivitis, plaque, sensitivity, stains, tartar build-up and bad breath. Education about the brand informs consumers about the links between oral care and overall wellbeing. Meanwhile, industry sources stated that the Pro-Health Night arm of the range, launched in September 2007, has proved popular with consumers. It is positioned to tackle bacteria through the night.

Source: Nicholas Hall’s Insight, sales via all retail outlets, full year 2007 (MSP), applies to following tables and references to sales data in the text unless otherwise stated. Canadian data based on exchange rate of US$mn: C$mn – 0.9870, published in the UK Financial Times on 1 January 2008

Simpliƒyle 6
MARCH 2008 63

ORAL CARE

Crest Whitening Plus Scope grew by 8% to $138mn. However, sales of Crest Whitening Expressions fell by 18% to $68mn. Crest Extra White Plus Scope was launched in September 2007 with the “Smile Bright in the Spotlight” competition, which offered the chance to host the People’s Choice Awards show with presenter Ryan Seacrest. P&G spent around $35mn advertising Crest Nature’s Expressions – introduced in April 2007 – which includes natural ingredients. The brand is for consumers “who want to experience natural ingredients but whose preference indicates a strong loyalty to brands with established heritage” according to Diane Dietz, general manager of P&G’s North American oral care business. Crest Healthy Radiance Toothpaste System is available to consumers from March 2008. It comprises toothpaste and weekly deep clean strips, to strengthen enamel and whiten teeth. The system is targeted at women who...
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