Oral care products are widely used to maintain hygiene as well as conduct a few procedures that are used to maintain oral hygiene. The changing consumer habits towards oral care have created a huge demand for these products across the world. The presence of several large scale companies in the dental sector will emerge in favor of industry growth.
Decreasing Labor Availability to Affect Manufacturing Units in Oral Care Sector
The recent coronavirus outbreak has created a sense of panic across the world. The measures taken to curb the spread of the disease have had an adverse effect on several businesses across the world. The strict measures such as lockdowns and social distancing practices have urged people to stay indoors. As a result, there has been a massive shortage in labor and manual workforce. The Covid-19 pandemic has thus, affected several manufacturing units in the oral care industry in the past few years. Having said that, the e-commerce services have provided a platform for growth for a few sectors in the oral care industry.
Increasing Number of Company Mergers and Acquisitions will have a Huge Impact on Industry Growth
The research encompasses several factors that have contributed to the growth of the overall industry in recent years. Among all factors, the increasing number of company mergers and acquisitions has made the highest impact on the growth of the industry. Accounting to the massive potential held by these products, several large scale companies are looking to acquire SMEs with the bid to establishing a stronghold in the industry. In June 2019, Unilever announced that it has completed the acquisition of Fluocaril and Parogencyl oral care businesses in France and Spain respectively. This acquisition is consequential to the company’s plans of strengthening its global footprint. Increasing number of such company acquisitions will have a massive impact on the growth of the overall industry in the coming years.
Oral care industry was worth USD 30.91 billion in 2019 and will exhibit a CAGR of 3.1% during the forecast period, 2020-2027. The global oral care industry size is projected to reach USD 38.89 billion by the end of 2027. Increasing awareness regarding the importance of dental hygiene will lead to a wider product adoption.
The research analyses the ongoing industry trends across five major regions, including North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Among all regions, the industry in Asia Pacific is projected to emerge dominant in the coming years. The rising geriatric population in countries such as India, China, and Japan will create several growth opportunities for the companies operating in the industry.
Moreover, the preference towards herbal oral care products will create several growth opportunities for the companies operating in this region. As of 2019, the industry in Asia Pacific was worth USD 10.83 billion and this value is projected to rise at a considerable pace in the coming years.
Colgate Palmolive Co. announced that it has completed the acquisition of Hello Products LLC. The company is engaged in premium oral care business and through its acquisition, the company will look to strengthen Colgate’s footprint in the industry