Open-Economy and the Toothpaste Industry in India

The toothpaste industry in India is booming as people are becoming more aware of dental hygiene. Modern options are replacing old methods of dental care. Today, an open economy means more options for consumers and new markets for brands to capture. But before looking at the toothpaste industry, it is essential to understand an open economy. 

What is an open economy?

An open economy allows domestic and international companies to participate in a product exchange (goods and services). For example, managerial interchange, technology transfers, and other products and services. It is the opposite of a closed economy, which prevents foreign trade and finance.

However, there are some exceptions to this kind of economy. For example, a country’s railway service cannot be traded with another country’s service.

Open Economy and the Toothpaste Industry

After 1975, when Colgate and Hindustan Unilever’s Close-Up were the market leaders, the toothpaste industry in India exploded. Since then, the industry has grown every year, and new companies have been entering the market. At one time, locally-created powders and natural plants were used to clean teeth, but the oral hygiene industry now outperformed them.

Top Oral Health Companies that Entered India

• Colgate

Colgate is synonymous with toothpaste for a majority of the population. For many years, the brand led the Indian toothpaste industry. It became the world’s number one toothpaste in 1999 and the most popular brand. Colgate provides a wide choice of toothpaste for the young, old, and children’s markets. Colgate Total, Active Salt, Colgate Max mixed with cooling crystals, Colgate Fresh, herbal, and Colgate Sensitive are some of its popular varieties. You can confidently choose from these options since the brand promises to make your teeth stronger, whiter, and cavity-free.

Colgate has the largest market share and the highest number of customers in the toothpaste industry.

• Sensodyne

It is the best toothpaste for people with teeth sensitivity. Sensodyne, a registered trademark of GlaxoSmithKline (GSK), has been available in India since 1961. Many people have experienced a drop in sensitivity after the first use. Novamin, an efficient bioglass formula, is known to reduce sensitivity in teeth when it comes into contact with sweet, cold, acidic, and hot meals.

• Oral-B

The internationally-recognised brand is a premium dental health care company in India. It sells various dental care items, but it specialises in toothbrush design. Oral-B toothpaste contains a unique and complex formula of Stannous Flouride Complex, which is known to help prevent tooth decay, cavities, and enamel erosion. When combined with an Oral-B toothbrush and mouthwash, Oral-B Pro-Expert toothpaste can help you tackle your dental problems.

• Close-Up

Close-Up is a Hindustan Unilever product that was India’s first gel-based toothpaste. Although it has a children’s toothpaste option, the brand promotes itself as a youth-oriented enterprise. Close-Up is available in a variety of flavours, including deep action, whitening gel, active gel, zinc-menthol gel, and more. It has the second-highest market share and is known to provide long-lasting fresh breath, strong teeth and gums.

Market Share of Brands in India

Colgate Palmolive India Limited (CPIL) is the market leader in terms of value at 48.3 per cent as of March 2020. HUL is in second place with 16 per cent. Dabur is gaining up to HUL, with a market share of 13.4 per cent. Patanjali now has a 9.2 per cent share of the Indian toothpaste market, compared to GSK’s 7.9 per cent.

Conclusion

The toothpaste market currently dominates India’s oral hygiene market, followed by toothbrushes, including manual and electric options. Due to shifting consumer preferences, tooth powder sales have decreased. In India, advanced oral care products, including mouthwashes, dental floss, and teeth whitening products, are still in their infancy, catering primarily to urban consumers. With the open economy, several international companies have entered India, such as Colgate-Palmolive Gmbh, Johnson & Johnson Gmbh, and Unilever PLC, with convenience stores dominating other distribution channels.