Oral Care Industry ESG Thematic Report, 2023

Environmental, Social, and Governance (ESG) in the Oral Care Industry

Oral care products are essential for maintaining oral hygiene. It is quite evident from the fact that these products are used on a regular basis. These products have ESG correlations to the three pillars that are beneficial. There are also some inclusions that affect some of the critical pillars, including the social and environmental aspects.

As a common element, plastics are used in toothbrushes, toothpaste, packaging for these items, and many other products. There are several key risks associated with the use of plastic, which affect the ecosystem, and other social factors. In our further analysis, we will be looking through some of the key aspects that will assist us in understanding the overall impact associated with oral care products.

Sustainability Approach implemented by the Brands

The inclusion of plastic in our traditional oral care products negatively affects the environment. It has been observed that brands are adopting sustainable approaches. One of the most popular options is bamboo. This alternative to plastic toothbrushes helps in eliminating the toxic effects on the environment. Bamboo has a lot of properties as it is 100% compostable in nature. Other than this it is a fast-growing plant that consumes less water and even after being harvested for toothbrushes it continues to grow which is a beneficial quality that doesn’t affect the core of the plant. Additionally, other than these products, other products that can come into play as sustainable alternatives are recycled plastics, new bioplastics, and even recycled aluminum which could be a sustainable choice in the future.

Plastic and Its Risks

Plastic is considered to be a major polluter due to its creation which relies heavily on fossil fuels. Further, humans are also exposed to the toxicity of the chemicals released from plastic when not disposed of properly which can lead to several health risks. Furthermore, the excessive use of plastic has had a negative impact on the land as its toxic nature adversely affects the groundwater and soil nutrients when it gets accumulated in the soil. Additionally, polluting the marine ecosystem can pollute the water and harm aquatic life. In addition to the burning of plastic, pollution from emissions released by this process is harmful to health and the climate.

ESG Trends

There has been a major transition in the oral care industry over the years. The changing trends have slowly evolved across the industry. The main reason being people are more aware of the products which they use in their everyday life. The key factors influencing this are the preference for eco-friendly products, a rising health consciousness, and products made from natural ingredients. Today’s consumers care more about the environment, with plastic being the major contributor. The manufacturers have also adopted these changes, where they are developing recyclable products from the outset of manufacturing that will further optimize plastic pollution. The market has recently seen a trend where manufacturers are producing wood toothbrushes and recyclable toothpaste tubes.

Further, the producers aim to minimize the carbon footprint by excluding the use of virgin plastic. Other products which have made their way to the market are mouthwashes made from natural ingredients and toothpaste tablets. These products further assist in minimizing waste and stand out to be more efficient.

Risks Associated with Oral Care Products

On a daily basis, the plastic that we use is still present on our planet. This includes toothbrushes too. It is certain that these toothbrushes contribute to the pollution of the ecosystem in a negative way. The toothbrush is made of synthetic materials that prevent the plastic from further degrading naturally. The products which are not recycled often end up polluting key areas like cities, sewage systems, and ultimately the oceans. Decomposing plastic releases toxic chemicals into the environment when it shrinks. In the long run, this micro plastic shrinks and affects the marine ecosystem, which is a grave concern.

As per our analysis, not all toothpaste ingredients are harmful to the environment. However, there are some substances that have a significant impact on the marine ecosystem, such as the brilliant blue FCF used for coloring toothpaste blue. When this substance remains in water even after passing through sewage systems it impacts marine life. For this substance, the main observations were that not just one substance but many substances in large numbers would almost certainly be harmful to aquatic life. Similarly, helidone pink tends to contaminate soil if it stays on it for a long period of time. Finally, sodium pyrophosphate is a phosphorus compound that builds up algae in sewage systems, downstream of sewage lines, and in the water. This buildup produces an increase in CO2 release into the water which causes dead zones to develop. It causes aquatic animals to suffocate and may result in death.

Moreover, the packaging contributes to harming the environment alongside the components. The process of both creating and recycling toothpaste tubes releases a surge of CO2 into the atmosphere due to the fact that plastic is a petroleum product. It is therefore extremely eco-unfriendly to manufacture toothpaste.

Growth of the Oral Care Market

In 2021, the global oral care market size was estimated to be USD 33.7 billion, with a compound annual growth rate (CAGR) of 6.4% from 2022 to 2030. The growing prevalence of dental caries among adults and children will fuel market growth. Furthermore, the research also highlights key aspects of the oral care market.

Key Companies in this theme

    • Procter & Gamble Company

    • Johnson & Johnson Consumer, Inc

    • Colgate-Palmolive; GlaxoSmithKline

    • Church & Dwight Co., Inc

    • Dr. Fresh, LLC

    • Dentaid

    • Lion Corporation

    • Sunstar Suisse S.A

Scope of the Oral Care Industry ESG Thematic Report 

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits of the Oral Care Industry ESG Thematic Report 

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the sector, globally

    • Key insights into Infrastructure developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in the oral care industry

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment.