Overview of Brazil’s Oral Hygiene Industry
Brazil’s Oral Hygiene market is huge with potential growth opportunities. Brazil is among the fastest growing beauty industries in the world, with oral hygiene market as one of the leading market.It is also one of the leading markets among oral hygiene markets of BRICS countries.Products like toothpaste and toothbrush have high penetration in Brazil’s society, however, companies have opportunities to develop product with specific feature under secondary oral care products. Oral health is of utmost importance in Brazil. The dental market is ranks third in the world after the US and China, implying growth opportunities in dental market. The market is also marked by the presence of global companies offering products from their international portfolio to provide for wider range of options to the local consumers.
Looking at the current landscape, the Toothpaste category has the largest volume share in 2015, with toothpaste as well as mouthwash to show fast growth in coming years.The Procter & Gamble Company and Colgate-Palmolive Gmbh are the leading market players, with Colgate-Palmolive capturing a 48% value share. Among various distribution channels, hypermarkets & Supermarkets is the leading distribution channel accounting for more than half of the overall Oral Hygiene products distribution in Brazil. Among various types of packaging, Flexible Packaging is the mostly used mode.
Key Factors Driving Growth in Brazil’s Oral Hygiene Industry
Along with economic recovery, dynamic consumer behaviour, companies’ promotional activities and presence of various international brands has boosted the growth of oral hygiene market of Brazil. The rising population of Brazil along with the emerging middle class has increased the consumer base for the oral hygiene market.
Consumer preferences have been changing over the time. With rise in disposable income and positive expectations for the economy, the demand for improved oral care products like mouthwash, dental floss, denture care, whitening strips have increased. Also, image consciousness has, along with rising income has encouraged consumers to trade-up for expensive premium oral care products.Teeth’s whitening is a local trend there.
Companies’ are also investing huge amounts on promotional activities to attract consumers, innovating and launching new products to provide for a wider variety of products to consumers as well as on digital advertisement and campaigns to increase and maintain their popularity. They are also shifting towards online selling, making shopping convenient to consumers. The beauty and personnel care industry is among the top industries as per the advertisement spending share. For e.g. in 2009, Johnson & Johnsontargeted the emerging middle classes of Brazil, which was not using mouthwash as much as rich Brazilians, so the company developed an affordable product called ‘Essencial’ and spent lots on advertising.
Presence of various international brands including various largest brands of Europe and North America is an important feature of Brazil’s oral hygiene industry. Brazil is considered as a growing market and hence, the internationals brands are expected to enter the Brazil’s market in future as well marking their presence into different categories. They use different strategies to capture the Brazil’s huge oral hygiene market. For e.g. Listerine company puts its mouthwash in public toilets for free so they can try the product.
Some of the key macroeconomics trends driving growth in oral hygiene industry:
- Increasing populations with rising middle class.
- Favourable economy outlook with rising GDP and hence increasing consumer confidence leading to increased spending.
- Increasing purchasing power along with rising GDP per capita, during economic recovery.
- Non-increasing unemployment rates with increasing labour force, hence increasing consumer base.
Future of Brazil’s Oral Hygiene Industry
Brazil has a massive oral hygiene market with potential growth opportunities especially in dental care. On account of key driving factors such as increased demand for improved oral care products and image-consciousness among consumers, companies’ promotional activities and presence of various international brands, the oral hygiene industry of Brazil is forecast to register growth in value as well as volume terms during 2015-2020. Toothpaste category is projected to witness fastest growth during 2015-2020. Also, secondary oral care product such as mouthwash is expected to register a CAGR of 12.5% during 2015-2020. To cater the growing demand for improved oral care, companies will focus on innovating and launching new oral care products.The Procter & Gamble Company and Colgate-Palmolive Gmbh will continue to be the leading market players in the country with Colgate-Palmolive ahead of P&G in market share terms. Among the various distribution channels, hypermarkets & supermarkets will continue to lead the market channels. The use of Flexible Packaging is expected to grow at a CAGR of 14.0% during 2015-2020.