Analyzing Oral Care Market in Middle East: Strategies for New Brands
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The Middle East oral care market is expected to grow due to increased awareness of oral hygiene, increased purchasing power, and an increasing number of dentists. The market is predicted to reach USD 1.7 billion by 2023.
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Running Head: Market Overview DENTAL MARKET OVERVIEW IN MIDDLE EAST
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Market Overview Table of Contents 1. Dental Market Overview Middle East, 2018...............................................................................4 1.1 Drivers...................................................................................................................................4 1.2 Restraints...............................................................................................................................4 1.3 Opportunities.........................................................................................................................4 1.4 Challenges..............................................................................................................................5 2. Demographic Insights (2018)......................................................................................................5 2.1 Number of Dentists................................................................................................................5 2.1.1 Dentistry in Saudi Arabia...............................................................................................5 2.1.2 Dentistry in Israel...........................................................................................................8 2.1.3 Dentistry in Iran..............................................................................................................8 2.1.4 Dentistry in UAE............................................................................................................8 2.1.5 Dentistry in Iraq..............................................................................................................8 2.2 Number of Dental Clinics..........................................................................................................8 2.2.1 Saudi Arabia.......................................................................................................................9 2.2.2 Iran................................................................................................................................10 2.3 Number of Pharmacies............................................................................................................10 2.4 Number of dental Schools & Universities...............................................................................11 3. Middle East Oral Care Market (Byproduct)..............................................................................12 3.1 Toothbrush...........................................................................................................................13 3.2 Toothpaste............................................................................................................................13 3.3 Mouthwash..........................................................................................................................13 3.4 Top Big 5 Players at the Market and forecast to 2022........................................................13 4. Market Strategy.........................................................................................................................14 4.1 S.W.O.T Analysis................................................................................................................14
Market Overview 4.2 Porter 5 Forces.....................................................................................................................14 4.3 Conclusion & Recommendation..............................................................................................15 References:....................................................................................................................................17 List of Tables Table 1:Distribution of dentistry professionals in Saudi Arabia....................................................5 Table 2: Dental Care in Iran..........................................................................................................10 Table 3: Number of dental schools in the Middle East.................................................................11 Table 4: SWOT analysis................................................................................................................14 Table 5: Porter's five forces analysis.............................................................................................15 List of Figures Figure 1: Different dentistry specialists in Saudi Arabia.................................................................7 Figure 2: Year of establishment wise distribution of private dental clinics in Riyadh....................9 Figure 3: Category-wise distribution of pharmacist......................................................................11 Figure 4: Product-wise distribution of Middle-East and Africa Oral care market........................12
Market Overview 1. Dental Market Overview Middle East, 2018 1.1 Drivers The key drivers of oral care market growth in the Middle East are— Increased awareness on Oral hygiene--The routine of brushing teeth twice is being prevalent in the Middle East countries. As an impact, the use of oral care products such as toothpaste, toothbrush and mouthwash is increasing.Increased purchasing power--The purchasing power of the people in the Middle East is increasing. As a result, the spending onthe oral care products is also increasing. Use of approved ingredients in oral care products--Use of natural ingredients in the toothpaste comply with the religious belief of consumers in Middle-East. Use of natural ingredients facilitate the consumers to use such products any time even during fast also. The alternative ingredients also increased the use of oral care items. 1.2 Restraints The Middle- East Oral care market is already dominated by big players of the industry (Chidzonga et al., 2015). So, acquiring customers can be difficult for new brands. 1.3 Opportunities The Middle East oral care market is still growing. The new brands can focus on the untapped portion of the market. ThetendencyofpurchasingmanualtoothbrushishighamongtheMiddleEast consumers. Launching of modern electric toothbrushes can create new opportunities for new brands. The modern retail supermarkets are increasing in the Middle East. The new brands can reach customers through these supermarkets. Reaching the customers through online shops can create new opportunities for the new brands. The number of dentists is increasing in the Middle-East countries. So, use of the medicated products can also increase accordingly.
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Market Overview 1.4 Challenges The oral care practices are being popular among the consumers although the practices are not widely accepted among all of the users. Promoting the importance of oral healthcare can be challenging forthe new brands. 2. Demographic Insights (2018) 2.1 Number of Dentists The number of dentists in a country can be considered as an indicator of the current status of the dental health services in the nation. In this section, the information on a number of dentists in different countries of the Middle East is discussed. 2.1.1 Dentistry in Saudi Arabia The number of dentist in the Kingdom of Saudi Arabia was 16887 in 2016. A large portion of the professionals is General practitioners. Table1:Distribution of dentistry professionals in Saudi Arabia
Market Overview Source: (Source:AlBaker et al., 2017) Table 2: Registration-wise distribution of dentists in Saudi Source:(Source:AlBaker et al., 2017)
Market Overview Figure1: Different dentistry specialists in Saudi Arabia (Source:AlBaker et al., 2017) The table 1,2 and figure 1 indicates that the current status of dental health in the Kingdom of Saudi Arabia. Both Saudi and non-Saudi dentists operate in the country. Among the dentists with Saudi originality, a large portion of the professionals operate in public organizations whereas most of the dentists with non-Saudi background are working in private organizations. In case of both Saudi and non-Saudi population, both male professionals constitute the larger portion. The data also shows that most of the Saudi and Non-Saudi dentists are registered as General Dentist practitioners. In addition, the dentists operate in different regions of the country including the Makkah, Madinah and the Northern Borders.
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Market Overview 2.1.2 Dentistry in Israel In 2017, the predicted number of dentists in Israel was 6090 (Vered et al., 2010). It included both the Israeli and immigrants. It was also assumed that a negligible number of professionals is leaving the country. 2.1.3 Dentistry in Iran In 2017, approximately 25000 dentists were practising in different parts of Iran (Iran-daily.com, 2018). The country has a comparatively higher proportion of dentists than other nations of the Middle East. Due to the presence of higher number of dentists, Iran has better opportunities to boost dental tourism. 2.1.4 Dentistry in UAE In UAE, the number of dentists in 2007 was 566 (Data.bayanat.ae.,2018). In 2015, the number of dentists increased to 4205 (Data.bayanat.ae.,2018). It indicates that the number of dentists in UAE is increasing gradually. 2.1.5 Dentistry in Iraq The Oral Health services have been developed significantly in Iraq after 2003. In 2003, the total number of dentists registered to Iraqi Dental Association (IDA) was 3000. In 2010, the number of dentists increased to 4863 which indicates 1.7 dentists were available per 10000 people. In 2015, the number further increased to7277 and in 2017, about 8500 dentists were practising in the country. The analysis of the data available on a number of dentists in different countries of middle-east indicates that most of the nations do not have an adequate number of professionals. However, in some countries such as Saudi Arabia and Iran, the availability of dentists is comparatively higher. On the contrary, nations like UAE and Israel have a lower number of dentists. 2.2 Number of Dental Clinics The current section deals with country-wise analysis of the dental clinics in Middle-East countries.
Market Overview 2.2.1 Saudi Arabia The number of dental clinics in Saudi Arabia is increasing at a rapid rate. As per the Ministry of Health (MOH), approximately 5000 dental clinics will be operating in the Kingdom in next two or three years(Saudigazette, 2018). In next 10 years, the number of clinics will be more than 6700. Currently there are 24 large dentistry centers in Saudi Arabia along with 11 other centers with limited resources(Saudigazette, 2018). The MOH also focuses on working in collaboration with the private partners to promote oral health and incorporate international standards in Saudi. Both the private and public dental clinics are available in different cities of Saudi Arabia. For instance, in Riyadh, there are 236 private dental clinics are running (Alsalleeh et al., 2018). However, the clinics are concentrated in some areas such as Olaya and Rawdha. Distribution of private dental clinics as per year-of-establishment From 1984 to 1990From 1991 to 1995From 1996 to 2000From 2001 to 2005From 2006 to 2010From 2011 to 2016 0 10 20 30 40 50 60 70 Number of clinics Number of clinics Figure2: Year of establishment wise distribution of private dental clinics in Riyadh Source: Created by the Researcher The above figure indicates that the number of private dental clinics is increasing in Riyadh gradually. The increased consciousness of oral health can be one of the key reasons behind the
Market Overview boost in number of private dental clinics. However, the growth of private dental clinics indicates that the demand of medicated oral healthcare products can increase in Saudi. 2.2.2 Iran Table2: Dental Care in Iran (Source: Pakshir, 2004) The above table indicates that the dental healthcare in Iran is delivered in four levels. At the primary level, the preventive services are provided. At the second level, the services related to oral hygiene are offered. The management and treatment of oral health issues are provided by the dentists and technicians. The specialists conduct the tasks such as research, education and implant related services. 2.3 Number of Pharmacies The current section discusses the country-wise analysis of pharmacies in the Middle-East. The MOH in Saudi is emphasizing on promotion of pharmacy education. Currently there are 21 Government College of pharmacy and 7 private colleges of pharmacy (www.moh.gov.sa., 2018). The rate of pharmacists is 7.9 professionals per 10,000 people in Kingdom of Saudi Arabia (www.moh.gov.sa, 2018). The pharmacists available in Saudi can be categorized as the MOH- enlisted pharmacists, professionals in other government sectors and the professionals in private sector.
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Market Overview MOH-registered professionalsGovernment sector professionalsPrivate sector professionals 0 5000 10000 15000 20000 25000 Categorization of Saudi Pharmacists Categorization of Saudi Pharmacists Figure3: Category-wise distribution of pharmacist (Source:www.moh.gov.sa, 2018) The above figure indicates that most of pharmacists in Saudi work in the private sector. The increased focus of MOH on development of pharmacists can be favorable for growth of oral healthcare market in Saudi. 2.4 Number of dental Schools & Universities CountryNumber of Dental School and Universities Saudi Arabia2 in 2018 Israel2 in 2018 Iran18 in 2003 Iraq30 in 2016 Table3: Number of dental schools in the Middle East Source: Created by the researcher
Market Overview In Saudi Arabia, the total number of graduating students from dental colleges is 1500 (Al- Shalan, 2018). Iran has made significant progress in the field of dentistry education. Before 1979, only 5 undergraduate dentistry schools were present in Iran (HR, 2003). In 2003, there were 18 dental schools and the postgraduate programs started being offered. By 2003, the number of dentists increased to approximately 11,000 (HR, 2003). Currently, there are 25000 dentists practising in Iran (HR, 2003). Similarly in Iraq also, significant progress has been made in dentistry education. In 2003, there were only 4 colleges in Iran and in 2016, the number of colleges increased to 30 (Ammar NH ALBUJEER, 2018). It, in turn, results in, a significant increase in the number of dentists in Iraq. 3. Middle East Oral Care Market (Byproduct) The current section deals with analysis on the oral care market in middle-east. The section covers the status of different products such as Toothbrush, Toothpaste and Mouthwash in different countries of Middle-East. Figure4: Product-wise distribution of Middle-East and Africa Oral care market (Source: Mordorintelligence.com., 2018)
Market Overview The above figure indicates that the oral care market in Middle-East is dominated by toothpaste, toothbrush and mouthwashes. However, a significant portion of the market is also acquired by products such as the denture cure, dental floss related products and breath fresheners. The product-wise distribution indicates that the dental care in Middle-East is still at its basic level. 3.1 Toothbrush The use of the manual toothbrush is high among the consumers of Middle East. However, with the increasing purchasing power, the demand for electric toothbrushes is also increasing. The sale of electric toothbrush increased at a CAGR (Compound Annual Growth Rate) of 8.6% in 2016-2017 (Mordorintelligence.com., 2018). 3.2 Toothpaste The use of Toothpaste in the oral care market is increasing gradually. By 2023, the demand for specialist toothpaste is expected to increase more than that of cosmetic toothpaste (Chidzonga et al., 2015). 3.3 Mouthwash The awareness of dental hygiene is increasing among consumers. As an effect, the use of mouthwash is also expected to increase. The use of medicated mouthwash can increase due to the rise of dentists in the middle-east countries. 3.4 Top Big 5 Players at the Market and forecast to 2022 The Oral care market of Middle-East is an increasing rise in the use of oral care products. By 2023, the market is predicted to reach USD 1.7 billion (Mordorintelligence.com., 2018). The top big five players of oral care market are – Colgate-Palmolive Company Procter & Gamble Co GlaxoSmithKline Plc Johnson & Johnson Services Inc
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Market Overview Unilever Plc 4. Market Strategy The marketing strategies are developed on basis of the SWOT and Porter’s analysis. 4.1 S.W.O.T Analysis Strengths Increasedawarenessoforal care hygiene Theincreasedpurchasing powerofcustomersand increasedavailabilityof products Weaknesses Presenceofbigbrandscan haveadverseeffectsonthe newbrandswithlowbrand awareness Opportunities The increasing demand for oral care products Increased number of dentists Increasedgrowthof supermarketsandonline markets Threats Lack of oral hygiene related awarenessamongahuge number of customers Table4: SWOT analysis Source: Created by Researcher 4.2 Porter 5 Forces Bargaining power of consumersThe consumers in the Middle East have strong preferencesfortheproductsthatmatchtheir lifestyle and religious beliefs. So, the bargaining power of the consumers is high. Bargaining power of suppliersThe oral care market is still emerging in the
Market Overview MiddleEast(Mumghambaetal.,2015).The number of suppliers in the industry is limited. So, the bargaining power of suppliers is also high. The threat of substitute productsThe Middle East market is dominated by manual products. The demand for advanced and special products is increasing gradually (Chidzonga et al., 2015).So,thethreatofsubstituteproductsis moderate. The threat of new entrantsA huge portion of the oral care market is still untapped. Additionally, the market shows signs of steady growth. So, the threat of new entrants is also high. Market rivalryThe middle east oral care market is dominated by large global players. So, the competitive rivalry is also high. Table5: Porter's five forces analysis Source: Created by the researcher 4.3 Conclusion & Recommendation The discussion on Middle East oral care market indicates that the market shows signs of steady growth due to increased awareness of oral hygiene, increased purchasing power, increased product availability and an increasing number of dentists. However, the high bargaining power of buyers, suppliers and increased competition makes entry of the new brands difficult.Although the awareness on oral hygiene is increasing in the Middle –East, the growth of oral care industry is not equal in all the nations. The growth of oral care industry is the highest in Saudi Arabia. The following recommendations can be effective for entering the oral care market of the Middle East of new brands— Offering advanced products—The new brands can launch advanced products such as electric toothbrush in the Middle East market. Launching new products can be effective to attract customers.
Market Overview Offering products through dentist dispensaries—The number of dentists in Middle East countries is increasing. So, the new brands can focus on offering medicated products through the dentist dispensaries to attract customers. Increased focus on Saudi Market--The growth of oral care market in Saudi is high. The initiatives taken by the MOH is boosting the growth further. New brands can focus on tapping the Saudi market first to increase the profit. The dental care services are not equally available in all parts of the nation. The new brands can give importance on promoting oral hygiene and their productsin the areas where the services are less available. Working in collaboration with oral hygienists in Iran—In Iran, a multi-level system is incorporated to deliver the oral healthcare services. The new brands can work with the oral hygienists and promote their products among the users.
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Market Overview References: AlBaker,A.A.,Al-Ruthia,Y.S.H.,AlShehri,M.,&Alshuwairikh,S.(2017).The characteristics and distribution of the dentist workforce in Saudi Arabia: A descriptive cross- sectional study. Saudi Pharmaceutical Journal, 25(8), 1208-1216. Alsalleeh, F., Alohali, M., Alzeer, M., Aloseimi, M., Almuflehi, N. and Alshiha, S., 2018. Analyzing private dental clinics in Riyadh City, Saudi Arabia. The Saudi Dental Journal, 30(1), pp.70-73. Al-Shalan, T. (2018). Dental education in Saudi Arabia: Areas of attention. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6128310/ Ammar NH ALBUJEER, A. (2018). Dental Education and Oral Health Service in Iraq. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5442288/ Chidzonga, M. M., Carneiro, L. C., Kalyanyama, B. M., Kwamin, F., & Oginni, F. O. (2015). Determinants of oral diseases in the African and Middle East region.Advances in dental research,27(1), 26-31. Data.bayanat.ae. (2018). Number of Dentists - Number of Dentists - UAE Open Data Portal. Retrievedfromhttp://data.bayanat.ae/en_GB/dataset/number-of-dentists/resource/9d947a65- 38e1-4cad-a6ec-d0f9c6034594 HR, P. (2003). Dental education and dentistry system in Iran. - PubMed - NCBI. Retrieved from https://www.ncbi.nlm.nih.gov/pubmed/12707502 Iran-daily.com. (2018).Iran’s healthtourismpotentialshighin dentistry.Retrievedfrom http://www.iran-daily.com/News/198136.html Marketsandmarkets.com. (2018). Oral Care Market by Product, Distribution Channel & Region - 2022|MarketsandMarkets.Retrievedfromhttps://www.marketsandmarkets.com/Market- Reports/oral-care-market-80546246.html