National oral health awareness is improved, and the market scale is expected to grow rapidly
From 2015 to 2020, the market scale of the global and Chinese oral care industry increased steadily. According to Euromonitor's calculation, the scale of China's oral market will be 49.1 billion yuan in 2020, with a compound growth rate of 9.6% from 2015 to 2020. The rapid development of China's oral care industry is mainly due to the favorable policies in recent years and the improvement of national oral care awareness. According to the fourth national oral health epidemiological survey, 60.1% of the respondents have oral care related knowledge and 84.9% have a positive attitude towards oral care. According to frost Sullivan, the scale of China's oral care market is expected to reach 152.2 billion yuan in 2025.
High industry concentration and high consumer awareness of head brand
According to Euromonitor, according to manufacturing enterprises, the top five enterprises in China's oral care industry are P & G, haolai chemical, Yunnan Baiyao Group Co.Ltd(000538) , Colgate and weimeizi. In 2019, they accounted for 53.7% of the market share, reflecting the high concentration of China's oral care market. As the head brand has established advantages in consumer awareness and recognition, distribution channels, supply chain, R & D capacity and capital investment, new enterprises need a lot of capital investment and time accumulation to make a breakthrough, and the market pattern is relatively stable.
Investment advice
The scale of the oral care industry is steadily increasing. The competitive pattern of Cr5 enterprises with a market share of more than 50% leads to a high entry threshold. Downstream consumers have formed stickiness and awareness of the brand. It is suggested to pay attention to the toothpaste head brand weimeizi, Yunnan Baiyao Group Co.Ltd(000538) and Perfect Group Corp.Ltd(603059) , which are jointly built by agent processing and private brands.
Risk tips
The recovery of offline channels is less than expected; Industry competition intensifies; New product launch progress is not as expected.
