The Shift Towards Natural Ingredients

Traditionally focused on functionality, toothpastes and toilet soaps are now pivoting towards ingredients, reflecting a broader consumer preference for natural and plant-based components. This trend, observed by FMCG players and research agencies, is becoming increasingly pronounced, extending into haircare and other personal care products.

Recent product launches underscore this shift, as consumers increasingly favor scientifically backed and safe ingredients. Data from Kantar shows that over 70% of new toothpaste launches are now in the natural space, up from 60% in 2018-19, while the largest jump has come in hair wash products, from 10% to now 70%.

The Growth of Herbal and Ayurvedic Ingredients

In oral care, the natural or herbal segment is growing at a faster pace, with the trend towards herbal and ayurvedic ingredients in toothpastes gaining significant momentum over the past three-to-four years. The share of herbal/ayurvedic in the overall market is now 36%, up from 32% four years ago, according to Kantar Household Panel.

"Consumers are increasingly seeking toothpastes and even mouthwashes with natural ingredients. This trend is now becoming more pronounced, with other segments, such as gel variants, mouthwashes, and specialized solutions, for issues like whitening and sensitivity also shifting towards natural formulations," said Prashant Agarwal, marketing head-oral care, Dabur India.

Consumer Preference for Safety and Transparency

The ingredient-centric approach resonates strongly with consumers, particularly Gen-Z and Gen-Alpha, who prioritize safety and transparency in their personal care choices. "We've observed a significant shift in consumer preferences towards products that emphasize scientifically-backed, safe, and effective ingredients. This trend is particularly visible within our face washes and broader personal care portfolio, including face creams, scrubs, serums, face packs," said Ragini Hariharan, marketing director - beauty & personal care, Himalaya Wellness.