Oral Hygiene - China - December 2016

OVERVIEW
What you need to know
Covered in this Report
Excluded
Definition
EXECUTIVE SUMMARY
The market
Not bad growth for an established category
Figure 1: Annual value growth of beauty and personal care markets, China 2015
Sustained growth is foreseen in the next five years
Figure 2: Best- and worst-case forecast of total value sales of oral hygiene market, China 2011-21
Premiumisation trend spreads across segments but with different drivers
Still big room for growth in non-basic products
Figure 3: Segment share of oral hygiene market in selected countries, 2015
Key players
Big wins for local players
Figure 4: Leading companies in oral hygiene market, by value share, China 2015-16
The consumer
Bleeding gums has highest sufferer rate
Figure 5: Dental issues experienced in past 12 months, September 2016
Online shopping and imported products gain large audience
Figure 6: Purchase behaviour and dental experience, September 2016
Electric toothbrush penetration rises, but challenges ahead
Figure 7: Selected product usage (currently using and ever used), September 2016 vs 2014
Curiosity and seeking better teeth drive trials of non-basic products
Figure 8: Reasons for using niche oral hygiene products, September 2016
Product, rather than brand, comes first when selecting babies’/kids’ oral hygiene products
Figure 9: Purchase consideration for babies’ and children’s oral hygiene products, September 2016
What we think
ISSUES AND INSIGHTS
What have local brands done right to capture share?
The facts
The implications
Opportunities for niche products
The facts
The implications
Kids’ oral care brands should not only think about products but also services
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Total market is growing continuously, mainly driven by premiumisation
Premiumisation is the key driver of positive value growth across the four sub-categories
Toothpastes and toothbrushes still account for the large share
Ancillaries and mouthwashes are smaller sub-categories but are growing faster
MARKET SIZE AND FORECAST
Moderate growth for a nearly saturated category
Figure 10: Annual value growth of beauty and personal care markets, China 2015
Slightly lower but sustained growth in the next five years
Figure 11: Best- and worst-case forecast of total value sales of oral hygiene market, China 2011-21
MARKET DRIVERS
Premiumisation trend is spreading across sub-categories
New products and bundle packs are promoted online
Products designed for more usage occasions
MARKET SEGMENTATION
Toothpaste takes lion’s share but niche segments lead growth
Figure 12: Value growth rate and value contribution to total oral hygiene market, by sub-categories, 2016
Market is growing quickly in China but is not mature yet
Figure 13: Segment share of oral hygiene market in selected countries, 2015
Each segment in detail
Toothpaste – Increasing prices drive sales
Figure 14: Toothpaste new product launches, by price tier, China, 2014-16
Figure 15: Toothpaste new product launches, by top ten claims, China, 2014-16
Figure 16: Best- and worst-case forecast of total value sales of toothpaste market, China 2011-21
Toothbrushes – Trading up from manual to electric toothbrushes
Figure 17: Best- and worst-case forecast of total value sales of toothbrush market, China 2011-21
Ancillaries – Convenience claims on the rise
Figure 18: Ancillaries new product launches, by top ten claims, China, 2014-16
Figure 19: Best- and worst-case forecast of total value sales of ancillaries market, China 2011-21
Mouthwashes – Global trend influencing China
Figure 20: Mouthwash new product launches, by top five claims, China, 2014-16
Figure 21: Best- and worst-case forecast of total value sales of mouthwash market, China 2011-21
KEY PLAYERS – WHAT YOU NEED TO KNOW
A concentrated market led by toothpaste players
Local brands are catching up
Focus on toothpaste, but do not forget other segments
Development of e-commerce
Premium products offer different innovations
MARKET SHARE
Key toothpaste players dominate the market
Figure 22: Leading companies in oral hygiene market by value share, China 2015-16
International giants are losing share
GSK’s tri-brand strategy helps consolidate its market position
Local brands’ premiumisation and brand extension strategies are is paying off
Weimeizi Company – Brand Saky
Hawley & Hazel Company – Brand Darlie
Yunnan Baiyao Company – Brand Yunnan Baiyao
Dencare Oral Care Company – Brand Lesening
COMPETITIVE STRATEGIES
Enrich product range
Stories behind premiumisation
Online becomes the stage for global products
TCM is still a competitive advantage for local brands
WHO’S INNOVATING?
China sees more active launches but also more competition
Figure 23: New product launches in oral hygiene, by launch type, China, Japan, UK and US, 2014-16
Toothpaste
TCM for cooling internal body heat and gum care
Figure 24: New toothpaste with botanical/herbal ingredients, China, 2016
Flavour innovation in collection pack
Figure 25: New toothpaste in flavour collection pack, Denmark and France
Two-step products bringing specialised care
Figure 26: Toothpaste with two-step pack, Canada and China
Specialised for night care
Figure 27: New toothpaste for night care, China, 2016
Black for whitening
Figure 28: New toothpaste with charcoal, UK and Singapore, 2016
Enzymes for whitening
Figure 29: New toothpaste with enzymes, Japan and China, 2016
Not in a tube
Figure 30: New toothpaste with different formats, US and China, 2016
Toothbrushes
Battery-powered toothbrushes at affordable prices
Figure 31: New battery-powered toothbrushes, USA, 2016
High-end electric toothbrushes
Figure 32: New high-end electric toothbrushes, China, 2015-16
Ancillaries
Expanding floss for better efficacy
Figure 33: New dental floss products with better efficacy claims, Singapore and US, 2015-16
Helping clean thoroughly
Figure 34: New ancillary products, UK and South Korea, 2015-16
Mouthwashes
Alcohol-free mouthwashes
Figure 35: New alcohol-free mouthwashes, US and China, 2016
Travel pack/portable packaging
Figure 36: New mouthwashes in sachet packs, Thailand and Japan, 2015
THE CONSUMER – WHAT YOU NEED TO KNOW
Bleeding gums has the highest rate of suffering
20-year-old females are core users of imported products
Electric toothbrush penetration rises, but challenges ahead
Curiosity and seeking better teeth drive trials of mouthwashes and ancillaries
Safe products and helping with teeth brushing habits are most important for parents
DENTAL ISSUES AND LIFESTYLES
Bleeding gums is the top dental issue
Figure 37: Dental issues experienced in past 12 months, September 2016
How lifestyle can impact demand for oral hygiene products
Figure 38: Eating and drinking habits, September 2016
Figure 39: Dental issues experienced in past 12 months, by lifestyle factors, September 2016
Younger females are more sensitive about dental issues
Figure 40: Repertoire of dental issues, by gender and age, September 2016
Savvy users suffering more from gum issues
Figure 41: Dental issues, by user segment, September 2016
PURCHASE BEHAVIOUR AND DENTAL EXPERIENCE
Nearly half have purchased imported toothpaste products
Figure 42: Purchase behaviour and dental experience, September 2016
Online is the main channel for buying imported products
Figure 43: Products purchased, by purchase behaviour, September 2016
Who are more likely to buy imported products?
Figure 44: CHAID analysis of imported toothpaste/toothbrush buyers, September 2016
Females in their 20s are most attentive to oral care
Figure 45: Purchase behaviour and dental experience, by gender and age, September 2016
PRODUCT USAGE
High churn rate of ancillaries
Figure 46: Product usage, September 2016
Significant increase in electric toothbrush adoption
Figure 47: Selected product usage (currently using and ever used), September 2016 vs 2014
Imported product buyers tend to use more products
Figure 48: Product usage, by imported product buyer and non-buyer, September 2016
Close to one fifth of consumers are heavy users of mouthwashes and ancillaries
REASONS FOR USING MOUTHWASHES AND ANCILLARIES
Curiosity to try is the biggest driver
Figure 49: Reasons for using niche oral hygiene products, September 2016
Savvy users rely on dentists’ recommendation
Figure 50: Reasons for using niche oral hygiene products, by user segment, September 2016
REASONS FOR LAPSED USAGE
Niche products are facing the challenge of low penetration but high lapse rate
Figure 51: Lapse rate, by product type, September 2016
Disappointment in performance is an often-cited reason, especially for high-priced products
Figure 52: Reasons for lapsed usage, toothbrush and toothpaste with TCM ingredients, September 2016
Complicated usage and potential damage to teeth are key barriers for dental floss and interdental brushes
Figure 53: Reasons for lapsed usage, dental floss and interdental brushes, September 2016
Mouthwash and breath sprays have the same issue regarding delivering results
Figure 54: Reasons for lapsed usage, mouthwash and breath sprays, September 2016
Results are a common concern for lapsed users of teeth whitening products
Figure 55: Reasons for lapsed usage, toothpowder/whitening dentifrice and teeth strips, September 2016
PURCHASE CONSIDERATIONS FOR BABIES’/CHILDREN’S ORAL HYGIENE PRODUCTS
Parents care more about product features than brand
Stronger trust in oral care than baby care brands
Figure 56: Importance of purchase consideration factors for babies’ and children’s oral hygiene products, September 2016
Edible products and education on proper teeth-brushing gain more attention for parents of younger kids
Figure 57: Very important purchase considerations for babies’ and children’s oral hygiene products, by child’s age, September 2016
Any difference across city tiers?
Figure 58: Purchase consideration for babies’ and children’s oral hygiene products, by city tier, September 2016
MEET THE MINTROPOLITANS
MinTs have higher awareness of dental issues
Figure 59: Dental issues, by consumer segmentation, September 2016
MinTs set trend in buying imported products and online shopping
Figure 60: Purchase behaviour and dental experience, by consumer segmentation, September 2016
MinTs twice as high in electric toothbrush usage
Figure 61: Current usage of products, by consumer segmentation, September 2016
Willing to pay more for better teeth is the biggest driver
Figure 62: Reasons for using niche oral hygiene products, by consumer segmentation, September 2016
APPENDIX – METHODOLOGY AND ABBREVIATIONS 
Methodology
Fan chart forecast
Abbreviations
APPENDIX – MARKET SIZE, SEGMENTATION, FORECAST
Figure 63: Total value sales of oral hygiene market, China 2011-21
Figure 64: Value sales of oral hygiene market, by segment, China 2011-21