The past few decade have seen a mixture of emotions with respect to Indian FMCG sector. There has been an increased demand from consumers for herbal and organic products in all product types, especially so in terms of personal grooming products and healthcare products.
Owing to this dynamic market shift in requirement the key players like Colgate, Palmolive, Dabur and HUL are struggling to be on top of the game. This is more evident with respect to toothpastes and especially after the aggressive market entry of Patanajali in the market with ‘Dant Kanti’. This has led all the leading toothpaste manufacturers, enter the market of herbal toothpastes. In spite of the market dynamics there has been a decline in sales in the year of 2018, for Patanjali.
Two years ago Colgate launched Vedshakti toothpaste and it took a defined period for it to change the market game. As said by Colgate’s global chief executive Ian Cook, Vedshakti has beaten Colgate’s other brand products like Active Salt, Colgate Dental Cream, and Cibaca. Vedshakti improved Colgate’s oral care segments market share but obstructed its overall shares in the market. Recently in a report shared by, Sanjay Manyal and Kapil Jagasia, the ICICI Securities analysts specified, “The entry of Patanjali has disturbed the toothpaste product category, denting Colgate’s market share by 190 bps in the past year in the toothpaste product category. However, HUL has been impacted the most with market share loss of over 410 bps between 2015 and 2018 and Patanjali’s one-time aggression seems to have declined witnessing a flat growth in FY18.” The herbal group is also trooping towards other sectors of the FMCG industry. Right from toothpastes to hand wash, all the FMCG industry key players are working on introducing herbal product range in all possible verticals.