Oral Care - US - June 2008

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Data sources
• Sales data
• Consumer survey data
• Abbreviations and terms
• Abbreviations
• Executive Summary
• Slow growth overall, but dynamic segments
• Considerable opportunity exists
• Oral care and life care
• Products for children
• Specialized products
• Snapshot of retail sector
• Americans want white teeth
• Colgate and Crest rule
• Whitening products are for the young and women
• Other interesting findings
• Introducing new products
• Looking ahead
• Market Size and Forecast
• Key points
• Private label erodes sales growth
• Innovation that catches a trend is the key
  • Figure 1: U.S. FDMx sales and forecast of oral care and dental hygiene products, at current prices, 2002-12
  • Figure 2: U.S. FDMx sales and forecast of oral care and dental hygiene products, at inflation-adjusted* prices, 2002-12
• Wal-Mart sales
• Segment Performance
• Key points
• Mouthwash steals market share from tooth whitening/bleaching
• Manual toothbrushes gain at the expense of power toothbrushes
  • Figure 3: U.S. FDMx sales of oral care and dental hygiene products, by segment, 2005 and 2007
• Segment Performance -- Toothpaste
• Key points
• Mass merchandisers hurt the segment
• Innovations breathe new life and increase profits
  • Figure 4: U.S. FDMx sales and forecast of toothpaste, 2002-12
• Segment Performance -- Mouthwash/Dental Rinse
• Key points
• Whitening claims result in significant sales increases
• Future growth is likely
  • Figure 5: U.S. FDMx sales and forecast of mouthwash/dental rinse, 2002-12
• Segment Performance -- Manual Toothbrushes
• Key points
• Surviving the power toothbrush onslaught
• Innovations satisfy holdouts, increase profits
  • Figure 6: U.S. FDMx sales and forecast of manual toothbrushes, 2002-12
• Segment Performance -- Dental Accessories and Tools
• Key points
• Diverse products appeal to niche demographics
• Fears of gum disease, aging bode well for segment
  • Figure 7: U.S. FDMx sales and forecast of dental accessories and tools, 2002-12
• Segment Performance -- Tooth Bleaching and Whitening
• Key points
• Tooth-whitening and bleaching products temporarily lost their shine
• Innovations win back consumers
  • Figure 8: U.S. FDMx sales and forecast of tooth bleaching and whitening, 2002-12
• Competitive Context
• Dental care without dentists
• Do it yourself
• Retail Channels
• Key points
• Poor merchandise selection slows sales
  • Figure 9: U.S. FDMx sales of oral care and dental hygiene products, by retail channel, 2005 and 2007
• An alternative view
• Stop & Shop cuts prices to compete
• Retail distribution -- a wider context
  • Figure 10: U.S. sales of other hygiene needs*, by retail channel, 2005 and 2007
• Retail Channels -- Drug Stores
• Key points
• The right products at the right time
• The next big thing
• Drug store sales
  • Figure 11: U.S. FDMx sales of oral care and dental hygiene products at drug stores, 2002-07
• Market Drivers
• Poor brushing habits translate into market opportunities
• Millions can' t afford to see a dentist
• The never-ending quest for white teeth
• Tobacco, wine, and coffee discolor teeth and drive demand for products
  • Figure 12: Sales of tobacco products, wine, and coffee, 2003-11
• The American diet causes cavities
• A perfect storm: illness, age, and bad breath
  • Figure 13: Population, by age, 2002-12
• Leading Companies
• Key points
• Aquafresh extensions propel growth
• Chattem scores with ACT
• Grinding is good for U.S. DenTek
  • Figure 14: Manufacturer FDMx sales of oral care and dental hygiene products, 2007 and 2008
• Brand Share -- Toothpaste
• Key points
• P&G hits a home run with two brands
• GlaxoSmithKline also cashes in on the whitening craze
• Manufacturer and brand sales
  • Figure 15: FDMx brand sales of toothpaste in the U.S., 2007 and 2008
• Brand Share -- Mouthwash/Dental Rinse
• Key points
• ACT gets acquired
• Crest Mouthwash a bright spot in a lackluster portfolio
• Manufacturer and brand sales
  • Figure 16: FDMx brand sales of mouthwash/dental rinse in the U.S., 2007 and 2008
• Brand Share -- Manual Toothbrushes
• Key points
• Dr. Seuss does it for Aquafresh
• Private label increasingly appeals
• Manufacturer and brand sales
  • Figure 17: FDMx brand sales of manual toothbrushes in the U.S., 2007 and 2008
• Brand Share -- Dental Accessories/Tools
• Key points
• DenTek stops grinding
• A Crest spin-off succeeds
• Manufacturer and brand sales
  • Figure 18: FDM brand sales of dental accessories/tools in the U.S., 2007 and 2008
• Brand Share -- Tooth Bleaching and Whitening
• Key points
• Aquafresh whitening kit delivers results
• Listerine Whitening Strips: the right product at the right time
• Consumers grab up less expensive alternatives
• Manufacturer and brand sales
  • Figure 19: FDMx brand sales of tooth bleaching and whitening in the U.S., 2007 and 2008
• Brand Qualities
• Trust and efficacy are universal and requisite qualities
• Aquafresh promises a happy life
• Crest gets clinical
• Innovation and Innovators
• Whiteners
• Toothbrushes
• Toothpastes
• Other products
• Innovative approaches
• Advertising and Promotion
• Key points
• Market share and adspend
• Spends shifting online
  • Figure 20: Ad expenditures for toothpaste, by brand, 2007
• TV commercials' key points
• Self-confidence
  • Figure 21: Aquafresh white trays, 2007
  • Figure 22: Listerine whitening strips, 2007
  • Figure 23: Crest Scope extra white, 2007
• Fear
  • Figure 24: Doctor' s night guard, 2007
• Technology
  • Figure 26: Oral-B Triumph, 2007
  • Figure 27: Crest SpinBrush Pro Clean, 2007
• Celebrities
  • Figure 28: Colgate and Brooke Shileds, 2007
• Adult Toothpaste Usage and Rationales
• Key points
• Almost everyone uses toothpaste
  • Figure 29: Usage of toothpaste, January 2007-November 2007
• Paste is popular
  • Figure 30: Type of toothpaste used, by age, January 2007-November 2007
• Reasons for purchasing toothpaste
  • Figure 31: Reasons for purchasing toothpaste, April 2008
  • Figure 32: Reasons for purchasing toothpaste, by gender, April 2008
  • Figure 33: Reasons for purchasing toothpaste, by income, April 2008
  • Figure 34: Reasons for purchasing toothpaste, by age, April 2008
• Usage of Toothbrushes
• Key points
• Over eight in ten use a manual toothbrush...
  • Figure 35: Use of manual toothbrushes, January 2007-November 2007
  • Figure 36: Type of bristle used, by gender, January 2007-November 2007
• ...and a third use power toothbrushes
  • Figure 37: Use of power toothbrush, January 2007-November 2007
• Usage and Reasons for Using Mouthwash
• Key points
• A segment with room for growth
  • Figure 38: Use of mouthwash/dental rinse, May 2006-June 2007
• Reasons for purchasing mouthwash
  • Figure 39: Reasons for purchasing mouthwash, April 2008
• Whitening Product Usage and Attitudes
• Key points
• Purchase of whitening products
  • Figure 40: Use of whitener, by gender, April 2008
  • Figure 41: Use of tooth whiteners, by gender, April 2008
  • Figure 42: Type of tooth whitener used, by age, April 2008
  • Figure 43: Ways used for whitening teeth, by household income, April 2008
  • Figure 44: Ways used for whitening teeth, by age, April 2008
• Oral Care Purchasing Insights, Concern and Perceptions
• Key points
• Women are more open-minded towards new products
  • Figure 45: Oral care purchasing insights -- concern and perceptions, by gender, April 2008
• Women are more concerned about oral health and appearance
• Oral care concerns
  • Figure 46: Concerns about oral care, by gender, April 2008
• Attitudes towards oral care issues
  • Figure 47: Attitudes towards oral care issues, by gender, April 2008
  • Figure 48: Attitudes towards oral care issues, by age, April 2008
• Teen Toothbrush, Toothpaste and Mouthwash Usage
• Key points
• Usage and attitudes of toothpaste
  • Figure 49: Type of toothpaste used by teens, January 2007-November 2007
  • Figure 50: Type of toothpaste used by teens, by gender, January 2007-November 2007
  • Figure 51: Brand of toothpaste used by teens, January 2007-November 2007
• Usage of and attitudes toward manual toothbrushes
  • Figure 52: Teen use of manual toothbrushes, January 2007-November 2007
  • Figure 53: Type of bristle used by teens, by gender, January 2007-November 2007
  • Figure 54: Brand of manual toothbrush used by teens, January 2007-November 2007
• Usage of and attitudes toward power toothbrushes
  • Figure 55: Teen use of power toothbrushes, January 2007-November 2007
  • Figure 56: Brand of power toothbrush used by teens, January 2007-November 2007
• Usage of and attitudes toward mouthwash/dental rinse
  • Figure 57: Teen use of mouthwash/dental rinse, January 2007-November 2007
  • Figure 58: Teen mouthwash usage, by brand, January 2007-November 2007
• Teeth whitener penetration is low with teens
  • Figure 59: Teen use of tooth whiteners, January 2007-November 2007
  • Figure 60: Teen use of tooth whiteners, by race/ethnicity, January 2007-November 2007
  • Figure 61: Type of tooth whitener used by teens, by gender, January 2007-November 2007
  • Figure 62: Brand of tooth whitener used by teens, January 2007-November 2007
• Attitudes and Concerns Towards Children' s Oral Care
  • Figure 63: Attitudes towards oral care issues, April 2008
• Brand Usage
• Key points
• Toothpaste: Colgate and Crest the two most popular brands
  • Figure 64: Brand of toothpastes used, by age, January 2007-November 2007
• Toothbrushes: most popular brands
  • Figure 65: Manual toothbrush used, by brand, May 2006-June 2007
• Mouthwash: Listerine is the most popular brand
  • Figure 66: Brands of mouthwash/dental rinse used, May 2006-June 2007
• Tooth whiteners: most popular brands
  • Figure 67: Brand of tooth whitener used, May 2006-June 2007
• Race and Ethnicity
• Key points
• Usage of toothpaste by race and Hispanic origin
  • Figure 68: Usage of toothpaste, by race and Hispanic origin, January 2007-November 2007
• Type of toothpaste used
  • Figure 69: Type of toothpaste used, by race and Hispanic origin, January 2007-November 2007
  • Figure 70: Type of toothpaste used, by race and Hispanic origin, January 2007-November 2007
• Brand of toothpaste used
  • Figure 71: Brand of toothpaste used, by race and Hispanic origin, January 2007-November 2007
  • Figure 72: Brand of manual toothbrush used, by race and Hispanic origin, January 2007-November 2007
  • Figure 73: Attitudes towards oral care issues, by race and Hispanic origin, April 2008
• Use of mouthwash by ethnicity
  • Figure 74: Use of mouthwash/dental rinse, by race and Hispanic origin, May 2006-June 2007
  • Figure 75: Brands of mouthwash/dental rinse used, by race and Hispanic origin, May 2006-June 2007
  • Figure 76: Brand of tooth whitener used, by race and Hispanic origin, May 2006-June 2007
• Appendix: Simmons Cohort Analysis
• Usage of toothpaste by cohorts
  • Figure 97: Usage of toothpaste, by cohort group, January 2007-November 2007
  • Figure 98: Use of toothpaste, by cohort group, January 2007-November 2007
  • Figure 99: Use of toothpaste, by cohort group, January 2007-November 2007
  • Figure 100: Use of toothpaste, by cohort group, January 2007-November 2007
  • Figure 101: Use of toothpaste, by cohort group, January 2007-November 2007
• Use of power toothbrushes
  • Figure 102: Use of power toothbrushes, by cohort, January 2007-November 2007
• Appendix: Segment Performance
• Dental floss
  • Figure 103: U.S. FDMx sales of dental floss, 2002-07
• Oral pain relief
  • Figure 104: U.S. FDMx sales of oral pain relief, 2002-07
• Denture products
  • Figure 105: U.S. FDMx sales of denture products, 2002-07
• Power toothbrushes
  • Figure 106: U.S. FDMx sales of power toothbrushes, 2002-07
• Breath freshener sprays/drops
  • Figure 107: U.S. FDMx sales of breath freshener sprays/drops, 2002-07
• Portable oral care
  • Figure 108: U.S. FDMx sales of portable oral care, 2002-07
• Appendix: Trade Associations