China and India could be growth markets for Colgate-Palmolive, say analysts

China and India could be growth markets for Colgate-Palmolive, say analysts

Market analyst Bernstein is urging Colgate-Palmolive to focus on emerging markets where tooth-brushing frequency is low, according to a report published by Market Watch.

“To start, growth in this category [toothpaste] remains strong at 5 percent,” wrote Bernstein. “Although likely slower, our analysis suggests good growth should continue to be supported by volume growth from penetration, as there are still markets where consumers brush their teeth less than once per day.”

Bernstein highlighted the opportunity presented by educational campaigns in emerging markets – if the company can educate consumers to brush more often and use more toothpaste per brush, they stand to gain sales.

However, these markets are not without their challenges for multinationals, with strong competition from established local players, such as India’s Patanjali, noted Bernstein.

 

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