Colgate is an umbrella brand principally used for oral hygiene products such
as toothpastes, toothbrushes, mouthwashes and dental floss. Manufactured by Colgate-
Palmolive, Colgate oral hygiene products were first sold by the company in 1873, sixteen
years after the death of the founder, William Colgate. The company originally sold soap.
According to a 2015 report by market research company Kantar Worldpanel, Colgate is the
only brand in the world purchased by more than half of all households. Colgate has a
global market penetration of 67.7% and a global market share of 45%.Despite this, it
maintained the highest growth rate of all brands in the survey, with 40 million new
households purchasing Colgate-branded products in 2014. Its global market penetration is
nearly 50%; higher than the second-placed brand in the study, Coca-Cola with 43.3%
penetration.
Position
Colgate is the market leader in the oral care segment, holding 56.7 % market share in
toothpaste and 42.4 % in toothbrush (as of January 23, 2015). Colgate’s growth in the Indian
market is attributable to several premium products like Colgate Visible White and the
company’s constant endeavor to launch new products tailored for the Indian market.
In order to build leadership position in the oral care market in India, Colgate Palmolive India
has neglected its personal products and household care brands giving other companies
like Hindustan Unilever, Dabur etc an opportunity to kill its market share in those
categories.
Scope and growth
colgate expects higher estimated freight and logistics costs, increased competitive activity
and a slowdown in growth in some markets to impact the company. However, colgate expects
the company’s Funding The Growth initiative to help offset some of the high raw material
inflation. Further, also expect Colgate’s revenues to be driven by population growth,
particularly in emerging markets. The company still has room to grow in emerging markets
such as China and India, primarily due to low penetration of its category products in these
regions and the likely increase in the consumption of its products with economic
development.
It is expected Colgate-Palmolive to generate around 16.2 billion in revenues in 2019 and
earnings of around $2.5 billion. Of the total expected revenues in 2019, forecast $7.4 billion
to come from the Colgate’s Oral Care business, nearly $3 billion for the Personal Care
business, around $3.5 billion in the Home Care business, and nearly $2.4 billion for Hill’s Pet
Nutrition.
Market segmentation
The global toothpaste market is segmented on the basis of its type, distribution channel, and
regional demand. Based on its type, the market can be bifurcated into whitening, sensitivity,
smokers, herbal, children’s, and others. Two most important distribution channels
mentioned in the report include non-store-based and store-based.
major players in the market
Major Players
1. Procter & Gamble
2. Unilever
3. Colgate-Palmolive
4. GlaxoSmithKline PLC
5. Lion Corporation
