Ken Research announced its latest publication on, “Consumer and Market Insights: Oral Hygiene in Argentina”, offer insights on the changing trends and key issues within the Argentina’s Oral Hygiene market.The publication includes an insightful analysis of consumer behavior, packaging trends, leading players and distribution trends within Argentina’s Oral Hygiene market. The analysis of the aforementioned trends has been done across six product categories within the market: Breath Fresheners, Dental Floss, Denture Care, Mouthwashes, Toothbrushes & Replacement Heads and Toothpaste with further individual products under them.
Overview of Argentina’s Oral Hygiene Industry
After 2001 crisis, Argentina’s economy showed an incredible recovery. This led to increased demand in the oral hygiene market which boosted the growth trend. With rising disposable income along with rising GDP per capita, consumers demand for oral care products increased leading to unexpected volume growth, as well as, with positive outlook about the economy, consumers became more certain about their income and started investing in premium oral care products.
However, after a few years of high growth rates, the pace decreased to a steady level with the growth rates decreasing year-on-year. After 2013, Argentina’s economy had not been performing well. This economic crisis badly impacted the oral care industry in Argentina.In 2013, oral care registered volume growth of 4% and 37% in value reaching ARS2 billion. With declining disposable income along with a decrease in GDP per capita; many oral care products were considered non-essential by the consumers, which leading to sharp decline in their sales. The scenario was same in 2015 on account of weak economic conditions.
However, the economy is recovering and hence, growth and expansion is expected in the oral hygiene industry on account of changing consumer lifestyle, companies’ promotional practices such as innovation & advertisements as well as govt. policies favourable to the market.
Currently, if we look at the oral care market in Argentina, in 2015,toothpaste is the leading category both in value and volume terms.Among the various distribution channels, hypermarkets & supermarkets is the leading distribution channel accounting for nearly half of the overall Oral Hygiene products distribution in Argentina.Colgate-Palmolive Gmbh, Johnson & Johnson Gmbh, and The Procter & Gamble Company are the leading market players with Colgate-Palmolive capturing a 63% value share.
Key Factors Driving Growth in Argentina’s Oral Hygiene Industry
Growth in Oral Hygiene Industry is greatly influenced by dynamic consumer behaviour, supplier-side practices and the regulatory framework. Argentina’s oral hygiene industry, after a phase of declining sales trend, is expected to grow and expand in coming years on account of increased demand by consumers as a result of economic recovery.
With rising disposable income along with economic recovery increasing the GDP per capita, the consumer’s lifestyle changes, leading to increased demand for oral hygiene products. Due to increased income and more awareness regarding oral health, they go for high quality expensive products. Also, with changing fashion, image consciousness among consumers lead to more demand for premium products. This leads to stronger growth in premium products sales than mass product sales.
Supplier-side practices have also play an important role in driving the growth in Argentina’s Oral Hygiene Industry. Facing the declining sales trend, companies have carried out many promotional activities to attract consumers. They have invested huge amount in digital advertisement as well as in advertisement through campaigns. For e.g.Colgate- Palmolive ran the campaign “Encias Saludables”, (Healthy Gums) in 2013. Apart from this, they also work on innovating & launching new products diversifying and increasing the range of options available to the consumers. They aim at developing time-saving and long-lasting products as per the needs of consumers. They are also entering the era of online selling to provide for a convenient method of shopping to consumers.
Govt.’s welfare policies have also helped the oral care market to grow. The govt. has entered into a price agreement with leading companies that causes the prices of some oral care products to rise below the rate of inflation.Strict govt. policies are now relaxed creating favourable conditions for oral care industry to grow. Govt. imposed import and price controls were relaxed. Favourable USD exchange rates and import substitution encouraged companies to grow locally leading to market expansion.
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-increasingunemployment rates with increasing labour force, hence increasing consumer base.
Future of Argentina’s Oral Hygiene Industry
With economic recovery, on account of changing consumers’ preferences, companies’ promotional activities and favourable regulatory framework, the Oral Hygiene Market in Argentina is expected to grow, however with lower growth in value terms during 2015-2020 compared to 2010-2015. The innovation and launch of new products along with online selling is expected to play a major role in boosting the oral care market. Toothpaste is forecast to register fastest growth both in value and volume terms during 2015-2020. Hypermarkets and supermarkets are expected to continue to lead the distribution channel.Colgate-Palmolive will continue to be the leader in the market due to its enormous market share.The use of Tube container is forecast to grow at a CAGR of 7.1% during 2015-2020.
To know more on coverage, follow the link below:
- Natura Argentina SA
- Cosméticos Avon SACI
- Colgate-Palmolive Gmbh
- Bucal Tac
- The Procter & Gamble Company
- Glaxosmithkline Plc, Pierre Fabre S.A
- Johnson & Johnson Gmbh
- Nuk Usa Llc
Ankur Gupta, Head Marketing & Communications