Oral Health Care Products (Russian Market)

2022: Russia replaces foreign toothpastes and imports decline

Toothpaste supplies to Russia from abroad in 2022 decreased by 8.1% compared to 2021 and amounted to 398.8 million pieces. Against this background, the Russian Federation has strengthened import substitution processes in the market, according to a study prepared by BusinesStat analysts. The report was released in May 2023.

The largest drop in imports in 2022 was noted in the following areas:

• China (by 41.2 million items);
• Britain (by 9.4 million units);
• Germany (by 4.9 million units);
• US (4.8 million units).

Russia replaces foreign toothpastes

The key reason for the decline in toothpaste imports to Russia from China is the reduction in supplies by foreign multinationals whose divisions operate in China. These corporations are not subordinate to Beijing, but receive direct instructions from their headquarters located in the countries that imposed the sanctions. For example, the Chinese divisions of the American companies Colgate-Palmolive and Procter & Gamble significantly reduced shipments to the Russian market over the year - by 6.0 and 3.9 thousand tons, respectively.

There were no direct sanctions on the supply of essential goods, which include toothpastes. However, some international companies have limited cooperation with Russian enterprises until the foreign policy situation normalizes.

Experts note that from December 15, 2022 Russia , there is a duty of 35% on the import of shampoos, toothpaste and shaving products from "unfriendly" countries, including the United States,,,, and Canada Britain. Australia New Zealand Poland This measure will lead to a rise in the cost of products from these countries by 30-40%, analysts warn. They added that domestic production in 2022 did not fully cover domestic demand - import substitution in this direction was restrained by increasing competition from cheap toothpastes from China.^[1]

2012: Import volume is 2.3 times more than domestic products

The volume of the Russian oral care market (excluding the commodity category of toothbrushes) in 2012 amounted to 29.53 billion rubles. in retail prices. It should be noted that imported products prevail in the domestic market. So, in 2012, the volume of goods imported into the country was 2.3 times higher than the volume produced in value terms (data from DISCOVERY Research Group).

The cost of produced oral health products in Russia in 2012 amounted to 277.96 million units in physical terms. The leader in terms of output is the North-West Federal District, whose share in the first half of 2013 was 34%. A slightly smaller volume of production falls on the Ural Federal District - 27.2%, where the production facilities of the Kalina concern are located.

In 2012, the volume of imports of oral hygiene products into the country amounted to 2.38 billion rubles, which is 31.4% higher than in 2011. For 6 months of 2013, the total cost of imported goods is estimated at 1.34 billion rubles. However, export rates are quite low. In 2012, the volume of exports in value terms was 9.3 times less than the import indicator.

The Russian oral care market has a high growth potential, as the importance of personal hygiene in modern society increases. First of all, the development of the market will occur due to an increase in the variety of product categories, as well as by stimulating an increase in the frequency of consumption of products. The most promising is the direction of professional care of the oral cavity.

In general, experts divide the toothpaste market into four price categories: economical (up to 50 rubles), average price category (from 50 to 150 rubles), premium class (from 150 to 300 rubles) and sub-premium class (over 300 rubles). At the same time, domestic manufacturers and inexpensive lines of mass brands (for example, Colgate) are represented in the economical category. The middle price category includes the main lines of large brands Colgate, Blend-A-Med and others. The premium segment is made up of professional series of oral health care products, in particular brands such as Splat, R.O.C.S. and Lacalut.

The domestic oral health products market is highly competitive. The share of 3 multinational corporations - market leaders (Colgate-Palmolive, Procter & Gamble and Unilever) accounts for 54% from the volume of the oral health care market in value terms. At the same time, the most popular brands during 2011-2013. the brands Colgate and Blend-A-Med remain.

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