What’s fueling China’s $21B oral care market?

From 2021 to 2022, Douyin recorded a 138 percent surge in related content posted on the short video app. Breath fresheners, dental floss, mouthwashes, whitening and rinses — in recent years, the Chinese younger cohort has expanded on the older generations’ basic oral care routine to a much more sophisticated one. According to the Douyin oral care report released in 2022, tooth whitening, freshening breath, preventing dental calculus, and oral ulcers are among consumers’ top priorities. Diego Natale, a dentist and odontologist who has served the Chinese community in Prato, Italy for over a decade, says, “Young Chinese generations not only prioritize their oral health compared to previous generations, but they also place greater importance on their oral aesthetics.” In 2021, the country’s oral care market size was $8 billion (52 billion RMB). In response to flourishing demand for more specialized products, China’s oral care market is expected to reach $21 billion (152 billion RMB) in 2025, according to estimates by consulting firm Frost & Sullivan. Oral health and a government push Older generations like Gen Y and Baby Boomers have long suffered from oral health issues, particularly tooth loss starting from a relatively young age, between 40 and 50. “In some cases, I had to reconstruct the patients’ entire mouth due to the severity of tooth loss. The medical process is extremely expensive,” says Natale. He points out two main factors that could have contributed to this: poor oral care habits, such as infrequent brushing, leading to the growth of calculus on teeth and eventual tooth loss, and a high glycemic diet, which experts believe is linked to type two diabetes, a prevalent disease in China. The alarmingly high percentage of people suffering from oral health issues has prompted government initiatives. The Healthy China 2030 Plan outlines actions to increase oral health awareness, strengthen oral hygiene consciousness, and reduce the dental caries rate among 12-year-old children by further 10 percent to 25 percent per city by 2030. It seems to be working. According to the Fourth National Oral Health Survey, 60.1 percent of respondents know about oral care, and 84.9 percent have a positive attitude towards oral care. Becky Wang, senior research manager at Kantar’s e-commerce data division, says, “Some schools and neighborhoods are organizing interactive dental days to increase awareness of oral and dental hygiene.” “Oral health is related to people’s well-being and is a matter of common concern for society as a whole. With the continuous advancement of science and technology and the improvement of people’s health awareness, electric toothbrushes, as emerging oral cleaning and care products, are gradually gaining popularity in the market,” says Xiang Jianqiang, chairman of the China Oral Cleaning and Care Products Industry Association. Marketing to Gen Z The Gen Z group aged 16 to 24 years has the strongest awareness of preventive oral care and is the core target group with sophisticated consumer demand. To appeal to this demographic, oral care brands are enhancing the functionality and aesthetics of their products. Domestic brands are leading this trend. For example, the Chinese electric toothbrush brand Usmile releases new products quarterly, featuring new functions, pastel colors, or toothbrushes designed for couples. Its relatively affordable price and frequent product releases are helping it gain market share from global giants like Philips in China. “Beyond the basic cleaning function, this cohort seeks premium packaging, innovative flavors, gum protection, anti-sugar properties, germicidal effects, and even Helicobacter pylori prevention,” says Wang from Kantar. Interestingly, there’s also a fragrance effect in the domestic oral care industry. “Some brands even explain the middle and top notes of their toothpaste,” she adds. The oral care product category is expanding rapidly. Recently, oral sprays and “explosive beads” (爆爆珠), small mouth-freshening candies, have become popular. The demand for product segmentation is particularly high among consumers in top-tier cities, who incorporate water flossers, dental rinsers, and even tooth-whitening lamps into their oral care routines. According to findings from Kantar x Tmall, young women account for 70 percent of online oral care consumers. This demographic has strong social attributes, and it’s increasingly common to see young girls sharing mini dental cleaning sets with each other after dinner parties, similar to sharing a box of chewing gum. Unlike other product categories that rely on lifestyle Key Opinion Leaders (KOLs), oral care brands prefer KOLs with professional medical backgrounds. There’s also a growing awareness among consumers regarding ingredients in oral care products. “When it comes to toothpaste for removing cigarette or tea stains, you have to explain which specific ingredient achieves this effect,” says Wang. Affordable or premium? Oral care issues have become one of the most common health concerns affecting consumers’ work and lives, second only to issues such as sleep and immunity, as revealed in Douyin’s 2022 report. “When given two options, a cheaper one and an expensive renowned brand, most of my Chinese patients go for the more expensive one, like the dental product maker Strauss. They believe in the quality of high-end labels and they meticulously follow our product recommendations,” says Natale. Wang agrees: “People are still willing to invest in high quality, durable products for themselves. We have also noticed the purchase of high-end products is also driven by the gift-giving scene.” Marvis has earned a reputation in China as the “Hermès of toothpaste” and is a popular choice for gifting, thanks to its focus on present giving. The brand is often included in bridesmaid and groomsmen gift boxes, and many Chinese tourists purchase it as a gift to bring back to friends and family when traveling abroad. “Marvis has been very active and creative in introducing new toothpaste tastes, such as its ‘Kyoto Matcha’ flavor, and creating high-end visuals,” Wang adds. Although Gen Z is the main consumer force in oral care, businesses must not overlook the older demographics. Many young people are purchasing electronic toothbrushes for their parents. Without doubt, demand for oral care products is steadily rising in China. Numerous niches are emerging in this nascent market, which presents lucrative opportunities for new and established players to enter and build their awareness there, like Marvis did.

What’s fueling China’s $21B oral care market?

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Published April 30, 2024

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What’s fueling China’s $21B oral care market?