Oral Care Market Will Show Slow And Steady Growth, Packaged Facts Says

While there already is a toothbrush in every bathroom and a pack of breath-freshening gum in nearly every pocketbook, there is still room for oral care market growth, via product innovation or smart positioning and advertising, Packaged Facts says.

Oral care is a mature market in the U.S., as the consumer base essentially matches the size of the nation. The U.S. market grew three percent to $9.1 billion in 2008, the researcher says in an April 8 report.

Population growth is slow, but the net result for oral care sales will always be positive, as oral care is an ingrained habit for nearly all Americans, the report says. To wit, about 204.6 million U.S. adults, or 94 percent of the adult population, use tooth cleaners in some form.

In that sense, the 13 percent increase in retail sales of oral care products from 2004-2008 would be viewed as "lackluster" in a less-saturated market, Packaged Facts says. However, this represents a sales increase of $1 billion.

Retail sales for oral care are expected to reach $10.9 billion by 2014, according to the report. The compound annual growth rate will be about three percent during this period.

This projection is based on an assumption that global financial markets will see an upswing in 2010.

In June, market researcher Euromonitor predicted that the global oral hygiene market will increase about 2.2 percent annually from 2007-2012, to reach $33 billion (¹ (Also see "J&J Has Faith In Listerine Despite Projected Oral-Care Slowdown" - HBW Insight, 16 Jun, 2008.), p. 6).

Trends Drive Oral Care Growth

The researcher says trends such as the battery-operated Crest Spinbrush from Procter & Gamble and Johnson & Johnson's Listerine PocketPaks breath strips have been prime drivers of consumer interest and sales since 2000.

Yet by now the Spinbrush and breath strips trends have peaked and faded, Packaged Facts says. Listerine PocketPaks sold $126 million at retail in mass channels in 2003 before falling off to $34.3 million in 2007, according to figures gathered by Information Resources, Inc. Pharma company Pfizer sold the brand to J&J in 2006 as part of its consumer health business.

In contrast, the tooth whitening trend has lodged itself firmly in the consumer mindset, Packaged Facts says.

To satisfy consumer demand, manufacturers incorporated whitening ingredients into multifunctional products, such as toothpaste promising anti-cavity, whitening, and other benefits.

Colgate-Palmolive's Tom's of Maine Natural Antiplaque Tartar Control Plus Whitening Toothpaste is a case in point, the researcher says.

Other examples include P&G's Crest Pro Health , with its seven-point checklist of benefits ranging from tartar control to whitening to breath freshening, and its direct competitor, Colgate Total .

Colgate-Palmolive is increasing its ad spend despite the slow market in order to strengthen its emotional connection with consumers, the firm said recently (² (Also see "Colgate Seizes Chance To Reconnect With Consumers In Sluggish Ad Market" - HBW Insight, 2 Feb, 2009.), p. 5).

These multifunctional products are a hot item in 2009, Packaged Facts says, and will continue to be as the economy remains stagnant and consumers postpone costly trips to the dentist to save money.

The researcher notes that only about 62.3 million adults have visited a dentist's office in the year leading up to a summer 2008 survey. This accounts for about 29 percent of all adults.

"Many consumers will depend on more conscientious basic hygiene to stretch their paycheck, meaning that mainstream toothpaste, mouthwash, and manual brushes will perform well, especially if they are multifunctional," the report says.

The consumer focus on multifunctional offerings from mainstream brands such as Colgate and Crest might take a bite out of premium or natural brands such as Jason and Tom's of Maine.

The high cost of professional whitening services may increase sales for dedicated tooth-whitening kits, Packaged Facts predicts, though not to the levels seen during 1999-2003, the high point of the whitening trend.

Nearly 27.8 million people use dedicated tooth whitening systems. Women make up 18.5 million, or 67 percent of this group. The user base shrank by about 4 million adults during 2006-2008, Packaged Facts reports.

Firms are also introducing home oral care kits that promise "professional-style" cleaning at home, Packaged Facts says. One such product is Crest Weekly Clean, a product that offers a concentrated formula that uses similar ingredients to those in dentists' formulas.

Packaged Facts groups Weekly Clean with other home-use products designed to go beyond the toothbrush, such as WaterPik and Philips Sonicare electrical dental appliances.

The researcher notes an additional trend borrowed from the doctor's office: the use of UV light to sanitize toothbrushes or offer other benefits.

Philips Sonicare FlexCare toothbrush is sold with a light-based sanitizer to zap bacteria on brush heads. Violight and U.S. DenTek also offer products in this niche.

Probiotics, or the use of friendly bacteria to promote health, are also entering the oral care arena. German chemicals firm BASF and other companies hope to fire up a new trend by offering oral care ingredients based on probiotics (³ (Also see "“Friendly Bacteria,” In Yogurt For Years, Now Colonizing Oral Care" - HBW Insight, 13 Apr, 2009.), p. 7).

Packaged Facts reports that researchers at the University of Helsinki in Finland have created a chewing gum that delivers the amino acid cysteine to the mouth. Cysteine helps prevent oral cancer, as well as stomach and esophageal cancers.

Three-quarters of retail dollar sales for oral care are in the mass market, which represents a slight decline from 2007 as some consumer spending is migrating to online retailers, Packaged Facts says.

Despite the mass market's hold on oral care, there have been some attempts to bring the category into the prestige and premium channel.

LVMH introduced Go Smile , an upscale brand of toothpaste and home whitening kit at Sephora stores on the home shopping network HSN. Greek upscale naturals brand Korres sells a homeopathic toothpaste at Henri Bendel stores, Packaged Facts says.

- Molly Laas ([email protected])