ORAL HYGIENE

February 2013

AMY ZIEGLAR Global Personal Care Analyst azieglar@mintel.com

Oral care receives vitamin supplemtation to boost its healthcare benefits; consumers take more interest in gum health as a way to promote overall oral hygiene; Dr. Fresh acquires the Reach brand of manual toothbrushes from J&J

Oral Hygiene
February 2013 Consumer

GUM HEALTH CONCERNS INCREASE WITH AGE

Gum health is becoming a larger concern in consumers overall oral hygiene Older consumers are more likely to be concerned about the state of their gums Opportunities to increase engagement exist in new format types

Gum health is one of the top functional considerations of consumers oral hygiene habits, but tends to peak at a later age

Gum health is cause for concern When it comes to oral hygiene, gum care is often overshadowed by teeth cleansing and breath freshening needs. As a less visible recipient of oral care practices, the gums are most likely to receive reactive attention after the onset of a problem; however, proper dental health cannot be achieved without consideration to this area. Fortunately, consumers are taking a greater interest in protecting and preserving the state of their gums in an attempt to improve their overall oral hygiene. Nearly half of UK adults say they are concerned about gum problems, including bleeding and receding. Worries about these issues are fairly consistent among both men and women, indicating the broad consumer base for gum protection benefits. Within the remaining Big 5 European countries, gum disease control is a frequently sought after attribute for at least three in ten Italian, German and Spanish adults. France is the only exception, where just 16% of consumers believe gum control to be an important factor. Among Chinese consumers, bleeding gums and gum disease are a focal point for many. Oral care products that provide a cure for bleeding gums are expected by 53% of adults when shopping the oral care aisle, while 49% expect their dental products to offer an element of gum disease control. Each of these factors is deemed more important than enamel strengthening, tooth sensitivity and tartar control, putting gum health towards the top of Chinese consumers oral care considerations (See Figure 1).

Older and wiser The importance of proper gum health increases in line with consumers age. Concern about the health of teeth and gums peaks at 66% in the US among adults aged 55-64, which is significantly higher than the 49% of 18-24-yearolds who feel the same way. The state of ones oral health deteriorates with age so its not surprising that older consumers are more in tune with gum care, identifying them as a prime target for manufacturers of gum care products (See Figure 2). Across the Big 5 European countries, gum health benefits are also more likely to be sought out by older consumers than their younger counterparts. UK adults aged over45 are most likely to look for gum protection properties when shopping the toothpaste aisle, and the importance of oral care products offering gum disease control steadily increases with consumers age in Spain, Italy, Germany and France. As more and more oral care products are introduced for seniors, manufacturers have the opportunity to highlight their products gum health claims to resonate with the aging demographic (see Oral B and Crest jump on the baby boomer bandwagon). Challenged by cosmetic choices Although gum health has a definite place in consumers oral care considerations, these concerns do not always translate into action. While 40% of UK adults look for gum disease control benefits when shopping the toothpaste aisle, just 16% use plaque and gum protection pastes (2011). More often than not, cosmetic attributes are outweighing functionality in consumers eyes, which is evident in the expanding whitening segment (See Figure 3).

Oral Hygiene
February 2013 Consumer In fact, teeth whitening trumps gum disease control as a sought after attribute for Italian, German, French and Spanish consumers, making it the second most popular property, falling only to cavity prevention. UK consumers have also stepped up their whitening ways. Use of whitening toothpaste rose by 2 %points between 2007 and 2011 to land at 39%, putting it on par with regular pastes, which posted a 3 %point decline in usage rates during the period. Notable new formats One of the ways functional attributes can compete with the rise of cosmetic characteristics is through new format types. Products specifically designed to combat gum recession and diseases will appeal to consumers, encouraging them to take a more targeted look at their overall oral health. When asked about their potential interest in new oral care products, a third of US adults respond positively to the idea of a dental floss for sensitive gums. Considering the relatively low uptake of regular flossing, multifunctional floss that additionally addresses gum sensitivity could increase consumers engagement in the segment. As consumers interest in gum health skews higher among the older demographic, manufacturers may decide to target their communication to this aging group. Gear for Gums

Protective Paste Oral-B Pro-Saude Clinical Protection Gum Care Toothpaste with Fluoride is said to combat cavities, prevent gum infection, whiten teeth and refresh breath as well as protect against sensitivity

A Better Brush Dr. Best Zahnfleischrand Medium Three-Head Toothbrush for Gum Line has an innovative cushioned brush head for cleaning the gum line that provides increased flexibility to protect the gums from

Figure 1: China, expected functions of oral hygiene products, March 2012

Base: 3,000 internet users aged 20+ Source: QQ Survvey/Mintel

% Teeth whitening Reduce or eliminate bad breath Kill germs and bacteria Prevent cavities Cure bleeding gums Prevent or heal canker sores Gum disease control Strengthen enamel Reduce or eliminate tooth sensitivity Tartar control Cure periodontal inflammation Reduce or eliminate dry mouth Toothache relief 75 73 66 63 53 51 49 47 42 37 35 34 29

Figure 2: US, concern over health and teeth and gums, by age, October 2010-November 2011
Base: Adults aged 18+ Source: Mintel/Experian Simmons NCS/NHCS Fall 2011 Adult Full Year -- POP

Oral Hygiene
February 2013 Consumer
Sensitivity Solution Colgate Gum Protection Fluoride Toothpaste is clinically proven to provide sensitivity relief and long term protection that promotes healthy gums and fights tartar Protective Paste Oral-B Pro-Saude Clinical Protection Gum Care Toothpaste with Fluoride is said to combat cavities, prevent gum infection, whiten teeth and refresh breath as well as protect against sensitivity

Figure 3: UK, type of toothpaste used, 20011

Base: Adults/users aged 15+ who use toothpaste Source: GB TCI, Kantar Media UK Ltd. Q4 2007-11 (Jul-Jun)/Mintel For trend data, see The Consumer Usage and Frequency

% Regular Whitening Sensitive Plaque and Gum Protection Cavity Protection Fresh Breath Toothpaste and Mouthwash 2 in 1 Tartar Control Other 39 39 32 16 14 13 8 6 5

Oral Hygiene
February 2013 Consumer

Whats next?

Consumers increasing interest in gum health will be a welcome boost for the stagnating dental floss segment Proper gum care is vital to overall oral hygiene and the effects of improper care can lead to extremely painful and costly conditions. One way manufacturers can increase consumers engagement in gum health is by establishing its benefits in a more cosmetic light. Consumers have readily accepted teeth whitening and breath freshening products into their oral care routines and would be more willing to supplement their efforts with gum-specific solutions if a link between gum health and whitening hues was made. Brands that offer gum-friendly formulations will shift their focus from strictly functional to more aesthetic attributes in order to alter consumers perceptions. Although a variety of oral care products and brands cater to gum health concerns, the dental floss segment has the most to gain from consumers increased uptake. Dental professionals continue to tout the benefits of regular flossing, but thus far it remains an infrequent activity for many. As gum health continues to garner attention around the world as an emerging oral care issue, manufacturers of dental floss have the opportunity to leverage their products gum strengthening properties, increasing awareness and usage rates in the dental ancillary segment. As the global leader in the oral care category Colgate is in a prime position to take on the challenge of gum health, but that doesnt mean smaller brands cant get involved. Norwegian company Jordan has been quite active with its oral care launch activity and has expanded its floss collection with new products and updated packaging. Its assortment of multifunctional flossers in various format types will be more widely distributed throughout Europe and the rest of the world, putting Jordan top of mind for consumers gum health needs.

Oral Hygiene
February 2013 Product Innovation

ORAL CARE INTRODUCTIONS COME WITH A VITAMIN BOOST

Vitamin and mineral fortified oral care formulations are on the rise Vitamin E and B derivatives are most often used for their protective properties However, recent research about vitamin D could result in an NPD boost

The addition of vitamins to oral care formulations provides an additional healthcare benefit with customer appeal

Vitamins become more visible As consumers continue to take an active interest in their overall health, an influx of products and services designed to supplement their efforts have appeared on store shelves. Vitamins are often positioned as a convenient way to improve nutrition when eating habits and dietary choices arent doing the trick. Even personal care products are tapping into this trend by fortifying their formulations with vitamins, minerals and other healthy supplements. Oral care manufacturers have incorporated vitamins in product formulations for years to enhance teeth and gum protection and care, but the use of these ingredients is on an upward swing. According to Mintel GNPD, products launched with the vitamin/mineral fortified claim have risen 60% between 2009 and 2012, substantially outpacing the 3% uptick seen in overall category launches (See Figure 1). Use of the claim has steadily increased since 2009 and peaked at 33% of total launches in 2012. The majority of these vitamin/mineral fortified offerings are toothpastes, but mouthwash is an emerging segment for these types of formulations with introductions taking off in 2011 and 2012 as a result of consumers increased interest in the segment. Although a significantly smaller segment, dental ancillaries have also seen a boost from vitamin enhancements, mirroring the trend seen in mouthwashes. A variety of vitamins The most popular vitamin selections in oral care products are derivatives of E and B. Tocopheryl acetate (vitamin E) has been present in nearly six in ten global vitaminenhanced oral care introductions since 2009 and its presence in the category has increased 48% between

2009 and 2012. The ingredient is most often tapped by manufacturers for its protective and enamel strengthening benefits. Panthenol (vitamin B) is another popular oral care inclusion and has been used in a quarter of vitamin-enriched formulations launched since 2009. The ingredient is also known for its protective properties and can be found in a variety of toothpastes and mouthwashes. Launch activity featuring panthenol more than doubled between 2009 and 2012, indicating its growing importance in the oral care aisle (See Figure 2). In addition to E and B derivatives, a few other vitamin variations have started to appear on oral care ingredient lists. Sodium ascorbyl phosphate (vitamin C) posted a dramatic increase in 2012 after three years of relatively stable launch activity and although use of vitamin A has fallen from its peak 2009 level, the ingredient has maintained its niche status in the toothpaste segment. Vitamin D dilemma Vitamin D has yet to establish a significant presence in oral care introductions with just two products featuring the ingredient since 2009. The VitaCare brand launched a toothpaste and mouthwash in 2011 that included vitamin D derivative cholecalciferol in its formulation, however its benefits are grouped together with other vitamin extracts of A, C and E as well as calcium when discussing the products benefits.

Oral Hygiene
February 2013 Product Innovation Vitamin Varieties
The C in Colgate Repackaged in a newly designed box, this toothpaste features mint and lemon flavors and is said to freshen breath, strengthen teeth and prevent cavities

However, recent research has uncovered some potential perks to vitamin D that could give a boost to NPD. Researchers at the University of Washington re-examined 24 clinical studies conducted since the 1920s on children aged 2-16 and found that vitamin D deficiencies can result in a higher incidence of dental caries and poor overall oral hygiene. Furthermore, the research found that increased levels of vitamin D resulted in a 50% reduction in the incidence of tooth decay among children. Additional studies will likely be pursued to validate this information, but vitamin D deficiency is becoming a larger issue for many. Reduced sun exposure has translated into a reduction in this natural source of vitamin D, leaving consumers to look elsewhere for the ingredient. Vitamin D use among UK adults jumped from 8% in 2011 to 12% in 2012, making it the third most popular vitamin consumed in the country. Incorporating the vitamin into oral care formulations would give consumers another option to deter deficiency, but manufacturers looking to take this route could encounter some challenges. The US Centers for Disease Control remains hesitant to stamp its seal of approval on vitamin D, particularly in childrens products as improper dosing may be toxic for younger consumers.

Floral Fresh Repackaged in a newly designed box, this toothpaste features mint and lemon flavors and is said to freshen breath, strengthen teeth and prevent cavities

Protective Paste Contains extra fluoride, vitamin B and vitamin E, providing active protection between teeth while strengthening enamel and sensitive teeth

Strength Solution Protects and strengthens the teeth and gums with an antibacterial effect that prevents the formation of plaque

Figure 1: Global launches of oral hygiene products with vitamin/mineral fortified claim, 2009-12
Source: Mintel GNPD

Oral Hygiene
February 2013 Product Innovation

Figure 2: Global launches of oral hygiene products with vitamin/mineral fortified claim, 2009-12
Source: Mintel GNPD

2009 Tocopheryl Acetate (vitamin E) Panthenol (vitamin B) Ascorbic Acid (vitamin C) Tocopherol (vitamin E) Sodium Ascorbyl Phosphate (vitamin C) Retinyl Palmitate (vitamin A) Pyridoxine HCl (vitamin B) Folic Acid (vitamin B) Niacinamide (vitamin B) Retinol (vitamin A) 29 11 15 11 3 7 0 0 0 1

2010 34 10 5 8 3 4 2 0 1 0

2011 45 17 9 6 4 2 1 1 0 1

2012 43 27 9 4 13 3 2 3 2 1

Oral Hygiene
February 2013 Product Innovation

Whats next?

As cosmeceuticals continue to take hold in the BPC space, oral care manufacturers will leverage this new technology to provide an enhanced format for teeth whitening benefits The presence of vitamins in oral care formulations will not be enough to convince consumers to switch brands or trade up to more advanced options. Manufacturers will need to substantiate these healthcare-based claims with clinical trials, user testimonials and informative marketing campaigns in order to ease consumers into the concept. However, should these vitamin-enhanced products find a place in the category, they could emerge as tough competition for the vitamin industry, appealing to consumers desires for convenience. The link between oral care and vitamins can also be leveraged by vitamin manufacturers through the introduction of daily or weekly supplements that can be taken in conjunction with consumers existing dental care routines. These products could promote enamel strength or reduce tooth sensitivity from the inside out, offering consumers an additional solution for their oral care needs. At the retail level, cross-merchandising these two categories will encourage consumers to add another step to their oral care practices. The idea of using pills for beauty benefits is a relatively new, but emerging concept in the BPC space and will continue to take hold as consumers become more familiar with cosmeceutical products and their associated attributes. Again, oral care manufacturers have the opportunity to capitalize on this trend with whitening-specific supplements to lighten and brighten the surface of the teeth. Whitening properties are key considerations for many consumers and the ability to replace cumbersome strips and gels with a simple pill with appeal to this group.

Oral Hygiene
February 2013 Companies & Trends

DR. FRESH EXTENDS ITS REACH IN THE ORAL CARE CATEGORY

Dr. Fresh acquired Reach manual toothbrushes in December 2012 The deal will increase the companys US and Canadian oral care presence Innovative product development and design will be used to further grow the brand

Dr. Fresh has acquired the Reach brand of manual toothbrushes from Johnson & Johnson, expanding its assortment in the US oral care market

An advantageous acquisition Dr. Fresh continues to grow its presence in the global oral care category. The company offers a selection of toothbrushes, toothpastes and ancillary products to meet the dental care needs of its consumers in more than 35 countries around the world. In addition to its namesake Dr. Fresh range, the company provides products under the Firefly, Binaca and SmileGuard brands, as well as a host of character licensed products targeting younger consumers. In December 2012, Dr. Fresh expanded yet again, this time with the acquisition of the Reach brand from Johnson & Johnsons Consumer Healthcare division. The deal includes the rights to the brands US, Canadian and Caribbean manual toothbrush businesses, but excludes the floss and interdental selections under the same name. Reach is now arguably the most well-known name in the Dr. Fresh oral care portfolio and has already brought some additional attention to the US-based company. But taking ownership of the Reach rights is just the beginning for Dr. Fresh. The company plans to build upon the brands existing awareness levels to strengthen and grow its presence in the oral care market in order to further its position in the share standings. Help for the home market Dr. Freshs global headquarters is located in the US, but with offices in the UK and China, the company is committed to becoming a worldwide player in the oral hygiene category. The year 2011 marked Dr. Freshs entrance in the Colombian and Venezuelan markets and it added Denmark to its distribution list in 2012. The purchase of Reach manual toothbrushes, however, is a testament to

the companys primary focus on its home base, which has captured 30% of its global launch activity since 2009. Oral care sales in the US are estimated to reach $7.8 billion in 2012 after posting a moderate 1% increase from 2011. Mintel forecasts the market to show positive annual growth through to 2016 when it will be valued at $8.2 billion. The toothbrush segment captured 19% of 2011 sales, making it the third largest oral care category behind toothpaste and mouthwash (See Figure 1). Within Dr. Freshs product assortment, toothbrushes take center stage. More than half of the companys global oral care introductions since 2009 have been toothbrushes, while toothpastes and mouthwash have accounted for 17% and 8% respectively. The addition of Reach to its oral care collection will enhance the importance and size of the companys toothbrush sales, putting it one step closer to the top of the leader list (See Figure 2). Creative oral care collaboration The Reach brand entered the market 40 years ago and revolutionized manual toothbrushes with its uniquely angled brush head, enabling more functional cleansing capabilities. This innovative foundation was a key selling point for Dr. Fresh and will complement its core strengths of product development and design. The company plans to reinvigorate the inventive spirit of the brand by leveraging its creative nature. Dr. Fresh will continue to communicate the performance, quality and value of the Reach name when appealing to consumers at point of sale. The history and heritage of Reach products is already engrained in many consumers minds and in that regard, Dr. Fresh plans to maintain a

Oral Hygiene
February 2013 Companies & Trends smooth transition, but future additions to the Reach range will likely incorporate the companys more playful design elements. Licensing agreements are a definite area of opportunity for Dr. Fresh as it looks to blend the Reach brand with its existing offerings. The company has been successful in linking popular characters with its oral care products to Figure 1: US, retail value sales of oral hygiene, 2006-16
Source: US Census Bureau, Economic Census, US Bureau of Labor Statistics, Consumer Expenditure Survey, SymphonyIRI Group/Mintel

capture the attention of children and teens. In 2012, Dr. Fresh entered into a licensing agreement with Angry Birds for a new collection of dental care products. Marrying similar licensing agreements with the Reach brand will add an additional layer of authenticity to Dr. Freshs lineup, encouraging a wider range of consumers to use its products.

Figure 2: Global, Dr. Fresh oral hygiene NPD by segment, 2009-12

Source: Mintel GNPD

# Launches 2009 2010 2011 2012

Toothbrushes 10 6 9 4

Dental ancillaries 5 0 5 1

Toothpaste 2 2 2 3

Mouthwash 0 0 3 1

10

Oral Hygiene
February 2013 Companies & Trends

Whats next?

Dr. Fresh will benefit from future acquisitions in the oral care space, but will look to incorporate global brands in an attempt to increase its international operations Its unlikely that J&J will sell off its entire oral care portfolio, but brands that play second fiddle to Listerine could be on the chopping block. The remaining Reach range is still up for grabs and Dr. Fresh would be wise to consider keeping the brand under one company roof. Additional dental floss and interdental brush offerings will enhance Dr. Freshs existing ancillary segment, broadening its presence in the overall oral care category. Should another company pick up the rest of Reach, Dr. Fresh may find itself hard pressed to maintain a consistent brand identity. Yet another brand that may be on the way out at J&J is Rembrandt. The company has been increasing its focus on its core pharmaceutical businesses, with few resources being dedicated to its oral care brands. Although widely distributed, Rembrandt has taken a cosmetic approach to the oral care category with its whitening products and benefits and is less of a match with J&Js increasingly healthcare-heavy assortment. Should the Rembrandt range become available, Dr. Fresh would be wise to throw its hat in the ring, as whitening has yet to make a substantial presence in its oral care arsenal. Dr. Freshs acquisition of the Reach brand will expand the companys presence in the oral care aisle, giving it more leverage with retail partners in the areas of shelf space, promotional activity and the like. The brand buyout will also increase awareness of the Dr. Fresh name among US consumers, who have come to associate the Dr. Fresh name with licensed products and more niche offerings. Entering into the more mainstream oral care category will be a definite benefit to Dr. Fresh, not only for its newly acquired assortment, but for its existing brands as well.

11

Oral Hygiene
February 2013

AMY ZIEGLAR Global Personal Care Analyst azieglar@mintel.com

Amy is a Global Personal Care Analyst for Mintels Beauty & Personal Care research team. Amy has six years of experience in the retail industry, working with Walgreen Co, where she analysed new products and trends in personal care as well as designing merchandising concepts for instore application. She has a BS in Business Administration from the University of Illinois and lives in Chicago.

Published by Mintel Group Ltd

www.mintel.com email: info@mintel.com

Terms and Conditions of use

Any use and/or copying of this document is subject to Mintels standard terms and conditions, which are available at http://www.mintel.com/terms.

Help desk
UK: US: Australia: Japan: China: Singapore: +44 (0)20 7778 7155 +1 (312) 932 0600 +61 (0)2 8284 8100 +81 (3) 5456 5605 +86 (21) 6386 6609 +65 (0)6 818 9850 If you have any questions regarding usage of this document please contact your account manager or call your local helpdesk.

2013 Mintel Group Ltd. All rights reserved. Confidential to Mintel.

12