Colgate-Palmolive and Hindustan Unilever are set to become more competitive in the toothpaste segment of oral care industry. Presently, they were under threat from herbal toothpaste makers such as Patanjali and Dabur which were giving them stiff competition. However, the GST Council has kept the toothpaste segment under the 18% slab which is much lower than the present 25-26% tax bracket. MNCs believe this decision will help them stave off competitors as they can offer price cuts to their customers.
Colgate has been steadily losing market share due to a growing demand for herbal toothpastes. The demand is such that it has propelled Dabur’s Red Paste to number 3 in the toothpaste segment with a volume share of 8.5%.