Oral_Care_in_India.pdf

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ORAL CARE IN INDIA

Euromonitor International

July 2014


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O R A L C A R E I N I N D I A P a s s p o r t I

E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLESHeadlines ..................................................................................................................................... 1

Trends ......................................................... ................................................................. ................ 1 Competitive Landscape ..................................................... ........................................................... 2 Prospects ..................................................................................................................... ................ 2 Category Data ........................................................ ................................................................. ..... 3

Table 1 Sales of Oral Care by Category: Value 2008-2013 ...................................... 3 Table 2 Sales of Oral Care by Category: % Value Growth 2008-2013 ...................... 3 Table 3 Sales of Toothbrushes by Category: Value 2008-2013 ................................ 3 Table 4 Sales of Toothbrushes by Category: % Value Growth 2008-2013 ............... 4 Table 5 Sales of Toothpaste by Type: % Value Breakdown 2009-2013 .............. ..... 4 Table 6 NBO Company Shares of Oral Care: % Value 2009-2013 ........................... 4 Table 7 LBN Brand Shares of Oral Care: % Value 2010-2013.................................. 5 Table 8 LBN Brand Shares of Mouthwashes/Dental Rinses: % Value 2010-

2013 ............................................................. ................................................ 6 Table 9 LBN Brand Shares of Toothpaste: % Value 2010-2013 ............................... 6 Table 10 Forecast Sales of Oral Care by Category: Value 2013-2018 ....................... 7 Table 11 Forecast Sales of Oral Care by Category: % Value Growth 2013-2018 ....... 7 Table 12 Forecast Sales of Toothbrushes by Category: Value 2013-2018 ................. 8 Table 13 Forecast Sales of Toothbrushes by Category: % Value Growth 2013-

2018 ............................................................. ................................................ 8


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O R A L C A R E I N I N D I A P a s s p o r t 1


ORAL CARE IN INDIA

HEADLINES Oral care sees value growth of 15% to reach INR83.5 billion in 2013

New product launches and increase in penetration in rural India aids value and volume growth

Toothpaste continues to be the biggest category with 80% value share of oral care andmouthwashes/dental rinses has the highest value growth of 44% in 2013

The average unit price increases due to inflation and rising raw material prices

Colgate-Palmolive India Ltd continues to lead with 46% value share

Oral care is expected to have a value CAGR of 9% at constant 2013 prices to reach INR131.0billion by 2018

TRENDS Companies continued to focus on toothpaste with additional benefits such as sensitivity

protection, whitening and gum care to strengthen and expand their position in the market. Forexample, Colgate-Palmolive India Ltd launched Colgate Total Pro Gum Health Toothpaste inJanuary 2013 for gum care and Colgate Visible White in April 2013 for whitening of teeth.

Oral care saw value growth of 15% in 2013 compared to 14% in 2012 due to increasingpenetration in rural India and upward mobility of urban consumers.

Sensitivity was a main theme to attract urban customers. This toothpaste also had a higherprice than average toothpastes. Sensitive toothpaste gained popularity as more than 30% ofIndian population suffers from sensitivity according to published sources.

Mouthwashes/dental rinses witnessed the highest value growth of 44% in 2013 as urban

consumers used it for better protection and included i t in their dental hygiene routine, althoughit remained nascent in India.

Toothbrushes did not see many developments in 2013 mainly because Indian consumerswere not very discerning about the products. Only Colgate-Palmolive India Ltd launched atoothbrush named Slim Soft with thin bristles which is claimed to clean teeth better. Theaverage Indian does not change toothbrushes frequently, with low per unit annualconsumption.

Market size for power toothbrushes remained negligible in 2013 primarily due to its highprices and India being a price-sensitive market. Companies did not market powertoothbrushes due to the low market size.

Dental floss remained very small in India in 2013, and there were no marketing efforts bycompanies to promote it.

Traditional white toothpaste, which was dominant in India for decades, lost share in recentyears and constituted 47% of total toothpaste value sales in 2013. Sensitive toothpaste grewfastest and had 9% value share in 2013 compared to 4% in 2012. Whitening toothpaste alsogrew rapidly by 38% in value sales in 2013.

Celebrity endorsement was the dominant method of oral care promotions in 2013. Colgate-Palmolive India Ltd used Bollywood celebrities like Kareena Kapoor and Sonam Kapoor for itsbrands Active Salt and Visible White respectively. At the same time, Procter & Gamble HomeProducts Ltd used leading Bollywood celebrity Madhuri Dixit Nene for the launch andpromotion of its Oral B toothpaste.


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Pepsodent by Hindustan Unilever Ltd used comparative advertising with Colgate brand wherePepsodent was shown to have better protection from germs than Colgate toothpaste.

Oral care products were mainly sold through independent small grocers which accounted for51% of total oral care sales. Sales through hypermarkets and supermarkets continued to

increase and reached 11% and 8% respectively. Direct selling saw a decline to 3% of totaloral care sales because most brands were available across all retail channels and Glisterfrom Amway India Enterprises Pvt Ltd was the only toothpaste brand which was sold throughdirect selling in India.

COMPETITIVE LANDSCAPE

In 2013, Colgate-Palmolive India Ltd continued to lead with 46% value share because of thestrong presence of its Colgate brands in rural India along with urban India. The companycommands high value share of 48% in toothpaste and 41% in toothbrushes. In 2013, Colgate-Palmolive India Ltd launched Slim Soft, a toothbrush with thin bristles in the second quarter of2013 on a value proposition of better cleaning. The brand was priced higher at INR50 per unitcompared to the average of INR33 per unit in 2013.

GlaxoSmithKline Consumer Healthcare Ltd saw the fastest value growth in oral care and had4% value share compared to 2% in 2012. Its brand Sensodyne helped the company to re-establish itself in oral care segment. The Aquafresh brand from GlaxoSmithKline ConsumerHealthcare Ltd failed to perform and was phased out.

The Himalaya Drug Co re-entered toothpaste with four variants: Sensitive, Active Fresh Gel,Sparkling White and Complete care in Jan 2013. Its earlier toothpaste brand Himalaya DentalCream did not perform well and was phased out.

International companies such as Colgate-Palmolive India Ltd and Hindustan Unilever Ltdcontinued to dominate oral care in India due to their long-standing presence and strongdistribution network. Domestic company Dabur India Ltd was in third position in terms of value

share. Braun Oral-B brand from Procter & Gamble Home Products Ltd was extended to toothpaste.

The launch was supported by frequent TV commercials, celebrity endorsement and strongshelf space in hypermarkets. Braun Oral-B toothpaste was aimed at total mouth protection.

Private label toothpaste Sach by Big Bazaar performed well as it was priced lower thanmarket price and shared the same shelf as other brands.

PROSPECTS

Oral care is expected to grow at a value CAGR of 9% at constant 2013 prices over theforecast period to reach INR131.0 billion by 2018. The reasons for the growth include

increasing awareness of oral care products, increasing penetration in rural market andexpanding product portfolio of leading companies. Companies operating in oral care are tryingto increase awareness by educating consumers about good dental hygiene via TVadvertisements as well as urging them to brush twice a day.

Sensitive and whitening toothpastes are expected to perform well as they are well received inthe market and there is a huge unexploited potential.

Mouthwashes/dental rinses is expected to grow at a value CAGR of 29% at constant 2013prices during the forecast period. it is expected to see the launch of new variants of brandssuch as Colgate Plax, Pepsodent and Listerine.


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Braun Oral-B toothpaste is expected to see a higher market share directly competing againstColgate as it is priced competitively and marketed aggressively.

Hindustan Unilever Ltd launched Pepsodent Mouthwash in the last quarter of 2012 with thevalue proposition of First Non - Alcoholic herbal mouthwash. Although the market for

mouthwashes/dental rinses is still low in India, it saw value growth of 44% in 2013. Power toothbrushes and dental floss are expected to remain small during the forecast period

as there were no marketing efforts by companies to promote them.

CATEGORY DATA

Table 1 Sales of Oral Care by Category: Value 2008-2013

INR million2008 2009 2010 2011 2012 2013

Dental Floss - - - 52.0 70.8 95.9Denture Care - - - - - -Mouth Fresheners - - - - - -Mouthwashes/Dental Rinses 133.8 409.4 696.9 1,079.7 1,550.4 2,231.1Tooth Whiteners - - - - - -Toothbrushes 7,836.3 8,811.5 9,922.8 11,186.7 12,626.2 14,268.5Toothpaste 38,256.7 40,897.1 44,794.7 50,977.7 58,127.2 66,854.3Oral Care 46,226.8 50,117.9 55,414.5 63,296.1 72,374.6 83,449.8

Source: Euromonitor International from official statistics, trade associations, trade press, company research,store checks, trade interviews, trade sources

Note: Oral Care total excludes the category total for manual and power toothbrushes

Table 2 Sales of Oral Care by Category: % Value Growth 2008-2013

% current value growth2012/13 2008-13 CAGR 2008/13 Total

Dental Floss 35.5 - -Denture Care - - -Mouth Fresheners - - -Mouthwashes/Dental Rinses 43.9 75.6 1,567.5Tooth Whiteners - - -Toothbrushes 13.0 12.7 82.1Toothpaste 15.0 11.8 74.8Oral Care 15.3 12.5 80.5



Table 3 Sales of Toothbrushes by Category: Value 2008-2013

INR million2008 2009 2010 2011 2012 2013

Manual Toothbrushes 7,836.3 8,811.5 9,922.8 11,186.7 12,626.2 14,268.5Power Toothbrushes - - - - - -- Battery Toothbrushes - - - - - --- Battery Toothbrush - - - - - -


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Replacement Heads-- Battery Toothbrush - - - - - -

Units- Electric Toothbrushes - - - - - --- Electric Toothbrush - - - - - -

Replacement Heads-- Electric Toothbrush - - - - - -Units

Toothbrushes 7,836.3 8,811.5 9,922.8 11,186.7 12,626.2 14,268.5


Table 4 Sales of Toothbrushes by Category: % Value Growth 2008-2013

% current value growth2012/13 2008-13 CAGR 2008/13 Total

Manual Toothbrushes 13.0 12.7 82.1Power Toothbrushes - - -- Battery Toothbrushes - - --- Battery Toothbrush Replacement Heads - - --- Battery Toothbrush Units - - -- Electric Toothbrushes - - --- Electric Toothbrush Replacement Heads - - --- Electric Toothbrush Units - - -Toothbrushes 13.0 12.7 82.1


Table 5 Sales of Toothpaste by Type: % Value Breakdown 2009-2013

% retail value rsp2009 2010 2011 2012 2013

Acid Wear/Enamel 2.7 2.4 2.4 2.3 1.8Strengthening

Children's 1.6 2.0 2.2 2.6 2.7Fresh Breath 14.2 13.4 12.3 11.1 9.5Gum Health 3.2 3.0 3.0 2.9 2.6Sensitive 0.6 0.6 1.6 4.4 8.6Total Care/Complete Care 19.8 20.0 20.0 19.4 19.2Traditional/Standard/ 53.6 53.1 52.3 49.7 46.6

BasicWhitening 4.4 5.5 6.2 7.6 9.1Total 100.0 100.0 100.0 100.0 100.0


Table 6 NBO Company Shares of Oral Care: % Value 2009-2013

% retail value rspCompany 2009 2010 2011 2012 2013

Colgate-Palmolive India 44.6 45.3 44.7 44.6 46.1Ltd


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Hindustan Unilever Ltd 22.6 22.2 21.6 21.3 19.7Dabur India Ltd 11.3 11.7 11.9 11.3 10.8Gillette India Ltd 3.9 4.3 4.5 4.6 4.7GlaxoSmithKline - - 0.7 2.2 3.5

Consumer Healthcare Ltd

Amway India Enterprises 2.6 2.7 2.9 3.0 2.9Pvt LtdJohnson & Johnson 0.7 1.0 1.2 1.5 1.8

(India) LtdHimalaya Drug Co, The - - - - 1.3

Anchor Health & Beauty 2.5 2.0 1.7 1.3 1.1Care Pvt Ltd

Procter & Gamble Home - - - 0.0 0.2Products Ltd

Elder Health Care Ltd 0.1 0.1 0.1 0.1 0.1Hindustan Lever Ltd - - - - -Pfizer Ltd - - - - -Balsara Hygiene - - - - -

Products LtdOthers 11.8 10.7 10.7 10.0 7.9Total 100.0 100.0 100.0 100.0 100.0


Table 7 LBN Brand Shares of Oral Care: % Value 2010-2013

% retail value rspBrand Company 2010 2011 2012 2013

Colgate Colgate-Palmolive India 27.3 26.9 25.4 23.7Ltd

Pepsodent Hindustan Unilever Ltd 9.4 9.2 8.7 8.0

Close-Up Hindustan Unilever Ltd 10.8 9.9 8.9 7.7Braun Oral-B Gillette India Ltd 4.3 4.5 4.6 4.7Colgate Cibaca Colgate-Palmolive India 5.5 5.2 4.8 4.4

LtdBabool Dabur India Ltd 4.0 4.2 4.1 4.0Colgate Active Salt Colgate-Palmolive India 2.1 2.6 3.5 3.8

LtdSensodyne GlaxoSmithKline - 0.7 2.2 3.5

Consumer Healthcare LtdDabur Red Toothpaste Dabur India Ltd 2.7 2.7 2.6 2.4Colgate Sensitive Colgate-Palmolive India - 0.0 0.6 2.4

Pro Relief LtdDabur Lal Dant Manjan Dabur India Ltd 2.9 2.7 2.4 2.2Glister Amway India Enterprises 1.9 2.0 2.1 2.1

Pvt LtdListerine Johnson & Johnson 1.0 1.2 1.5 1.8(India) Ltd

Colgate Flexible Colgate-Palmolive India 1.7 1.6 1.7 1.7Ltd

Colgate ZigZag Colgate-Palmolive India 1.5 1.4 1.4 1.4Ltd

Meswak Dabur India Ltd 1.1 1.2 1.3 1.3Himalaya Dental Crme Himalaya Drug Co, The - - - 1.3Colgate Total Colgate-Palmolive India 1.5 1.3 1.2 1.2

LtdColgate Visible White Colgate-Palmolive India - - - 1.2

Ltd


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Colgate Herbal Colgate-Palmolive India 1.1 1.2 1.2 1.1Ltd

Anchor Anchor Health & Beauty 2.0 1.7 1.3 1.1Care Pvt Ltd

Promise Dabur India Ltd 1.0 1.0 1.0 0.9

Amway Persona Amway India Enterprises 0.8 0.8 0.9 0.8Pvt LtdColgate Plax Colgate-Palmolive India 0.2 0.3 0.4 0.5

LtdColgate Navigator Colgate-Palmolive India 0.5 0.4 0.4 0.4

LtdColgate Extra Clean Colgate-Palmolive India 0.4 0.4 0.4 0.3

LtdOral-B Pro Expert Procter & Gamble Home - - - 0.2

Products Ltd AM PM Elder Health Care Ltd 0.1 0.1 0.1 0.1Babool Balsara Hygiene - - - -

Products Ltd Aquafresh GlaxoSmithKline - - - -

Consumer Healthcare LtdOthers 16.2 16.6 17.4 15.9Total 100.0 100.0 100.0 100.0


Table 8 LBN Brand Shares of Mouthwashes/Dental Rinses: % Value 2010-2013


Listerine Johnson & Johnson 76.0 72.6 70.8 66.4(India) Ltd

Colgate Plax Colgate-Palmolive India 12.1 16.1 17.3 17.6Ltd

AM PM Mouthwash Elder Health Care Ltd 7.6 6.7 6.0 5.2Pepsodent Fresh Mint Hindustan Unilever Ltd - - - 2.3Listerine Pfizer Ltd - - - -Others 4.3 4.6 6.0 8.5Total 100.0 100.0 100.0 100.0


Table 9 LBN Brand Shares of Toothpaste: % Value 2010-2013


Colgate Dental Cream Colgate-Palmolive India 28.1 27.9 26.3 25.4Ltd

Close-Up Hindustan Unilever Ltd 13.4 12.3 11.1 9.3Pepsodent Hindustan Unilever Ltd 9.7 9.5 8.9 8.2Babool Dabur India Ltd 4.9 5.2 5.1 5.0Colgate Cibaca Colgate-Palmolive India 5.9 5.7 5.2 4.8

LtdColgate Active Salt Colgate-Palmolive India 2.6 3.2 4.4 4.7

LtdSensodyne GlaxoSmithKline - 0.9 2.8 4.3


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Consumer Healthcare LtdColgate Tooth Powder Colgate-Palmolive India 5.7 5.5 5.3 4.1

LtdDabur Red Toothpaste Dabur India Ltd 3.3 3.4 3.2 3.0Colgate Sensitive Colgate-Palmolive India - 0.0 0.7 3.0

Pro Relief LtdDabur Lal Dant Manjan Dabur India Ltd 3.6 3.4 3.0 2.7Glister Amway India Enterprises 2.4 2.5 2.6 2.6

Pvt LtdMeswak Dabur India Ltd 1.4 1.5 1.6 1.6Himalaya Dental Crme Himalaya Drug Co, The - - - 1.6Colgate Total Colgate-Palmolive India 1.9 1.7 1.5 1.5

LtdColgate Visible White Colgate-Palmolive India - - - 1.5

LtdColgate Herbal Colgate-Palmolive India 1.4 1.5 1.4 1.4

Ltd Anchor Anchor Health & Beauty 2.5 2.1 1.6 1.3

Care Pvt LtdPromise Dabur India Ltd 1.3 1.3 1.3 1.1Oral-B Pro Expert Procter & Gamble Home - - - 0.2

Products LtdBabool Balsara Hygiene - - - -

Products LtdMeswak Balsara Hygiene - - - -

Products LtdClose-Up Hindustan Lever Ltd - - - -Pepsodent Hindustan Lever Ltd - - - -Others 11.9 12.5 13.8 12.6Total 100.0 100.0 100.0 100.0


Table 10 Forecast Sales of Oral Care by Category: Value 2013-2018

INR million2013 2014 2015 2016 2017 2018

Dental Floss 95.9 117.6 145.3 179.2 222.2 276.2Denture Care - - - - - -Mouth Fresheners - - - - - -Mouthwashes/Dental Rinses 2,231.1 2,891.2 3,735.7 4,832.9 6,254.5 8,102.9Tooth Whiteners - - - - - -Toothbrushes 14,268.5 14,693.0 15,159.1 15,735.9 16,428.3 17,214.3Toothpaste 66,854.3 70,225.0 75,893.6 84,110.9 94,109.1 105,392.7Oral Care 83,449.8 87,926.9 94,933.6 104,858.8 117,014.1 130,986.2

Source: Euromonitor International from trade associations, trade press, company research, trade interviews,trade sources


Table 11 Forecast Sales of Oral Care by Category: % Value Growth 2013-2018

% constant value growth2013-18 CAGR 2013/18 TOTAL

Dental Floss 23.6 188.0Denture Care - -


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Mouth Fresheners - -Mouthwashes/Dental Rinses 29.4 263.2Tooth Whiteners - -Toothbrushes 3.8 20.6Toothpaste 9.5 57.6

Oral Care 9.4 57.0Source: Euromonitor International from trade associations, trade press, company research, trade interviews,

trade sourcesNote: Oral Care total excludes the category total for manual and power toothbrushes

Table 12 Forecast Sales of Toothbrushes by Category: Value 2013-2018

INR million2013 2014 2015 2016 2017 2018

Manual Toothbrushes 14,268.5 14,693.0 15,159.1 15,735.9 16,428.3 17,214.3Power Toothbrushes - - - - - -- Battery Toothbrushes - - - - - --- Battery Toothbrush - - - - - -

Replacement Heads-- Battery Toothbrush - - - - - -

Units- Electric Toothbrushes - - - - - --- Electric Toothbrush - - - - - -

Replacement Heads-- Electric Toothbrush - - - - - -

UnitsToothbrushes 14,268.5 14,693.0 15,159.1 15,735.9 16,428.3 17,214.3


Table 13 Forecast Sales of Toothbrushes by Category: % Value Growth 2013-2018

% constant value growth2013-18 CAGR 2013/18 TOTAL

Manual Toothbrushes 3.8 20.6Power Toothbrushes - -- Battery Toothbrushes - --- Battery Toothbrush Replacement Heads - --- Battery Toothbrush Units - -- Electric Toothbrushes - --- Electric Toothbrush Replacement Heads - --- Electric Toothbrush Units - -Toothbrushes 3.8 20.6


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