How To Start Toothpaste Production Business
Toothpaste is a white, red, or blue substance used together with a toothbrush to clean and brighten the teeth. It is a gel or paste formulation designed to remove particles of food and plaque, cleans the teeth to prevent bad breath too.
Daily brushing of the teeth in the morning and evening before retiring for the night is the routine for most families. In fact, dentists recommend that you go the extra mile to brush your teeth after every meal to keep your mouth clean and safeguard it from decay and gum disease.
Toothpaste is indeed formulated for the purpose of cleaning the mouth and keeping gum disease at bay. It is made with a range of ingredients such as fluoride which is at the center of tooth protection.
Toothpaste has been used for over 3,500 years and today has witnessed various brands in the market and more brands are still in the making.
The care for the teeth is important to all and since all of us have to brush teeth every day, the production and sale of toothpaste are increasingly on the up as the business of toothpaste continued to be profitable. Many players are on it already and if you have to join the bandwagon of those in the winning team of manufacturing toothpaste, this is the time for you to start your own business. You are indeed going to be a winner. This article gives you insight into starting your own production business; it also gives you a general view on the manufacturing of toothpaste. Read on and you will not be disappointed.
Toothpaste Global Industry Overview
The market of toothpaste globally has entered a new phase with the development of bio-technologies that have solved the problems of sensitivity in teeth brushing and allowing the re-growth of teeth. With this technological innovation, the world oral care is seeing new changes in health care products. People as a result are modifying their oral hygiene behaviors and embracing new technology. These developments have put the toothpaste industry to the tune of 12 billion US dollars by 2015, according to the Global Industry Analysis, Inc.
The world is estimated to hit USD$27.7 billion by 2023, with the Asia-Pacific holding a larger share of about 8.1 billion units of toothpaste consumption in the global arena in 2017. However, statistics showed that the increased dental problem among adults and children as a result of undernourishment was largely responsible for the increase in the global market growth. It was also found out that consumers seeking premium brands as well as manufacturers targeting consumers requiring special solutions to their oral-care partially contributed to the market for toothpaste growth.
Marketing strategies in the area of distribution through outlets like supermarkets adopted by countries in Asia, Africa, and Arab made a significant contribution in driving the sale of toothpaste. Significant sales were recorded from Pharmaceutical outlets with a record increase of 36 percent in sales value during the period expanding 2012-2017
Localization of international products in the areas of social class, lifestyle, ethnicity, and values currently taking place in some countries has become a major factor expected to drive toothpaste sales to a new record high. These strategies of localizing their brands are seen by multi-nationals as the key to gaining market share in the developing economies
In summary, the world market for toothpaste is still on the increase, consequent upon product effectiveness, and the increasing consciousness over oral hygiene. Other factors that have contributed to the rise in toothpaste sales include the growing public oral health campaigns, better standard of living, and the aggressive advertising blitz mounted by toothpaste manufacturing companies.
The toothpaste industry is deeply influenced by brand loyalty and price is not seen to play any part in determining which brand consumers favor. So to get your brand noticed and for consumers to form brand loyalty, you must keep on innovating and living up to consumers’ expectations. If you have an interest in going into the toothpaste production business, I am ready to take you along and show what the business of toothpaste business entails.
How To Start Toothpaste Production Business
As an aspiring entrepreneur, you will be able to learn all that is necessary to enable you to start this noble business and succeed. You will be able to learn about the equipment and the material ingredients required to engage in this business. I will be able to take you through the marketing and promotion strategies to enable you to produce the kinds of toothpaste that will satisfy the needs of the market and achieve your business goals. If you are ready, let us proceed together.
Carry out market research and prepare a business plan
Researching the market to understand how the toothpaste market is in terms of the number of players in the market, the different varieties of kinds of toothpaste, the consumers’ behavioral pattern when choosing a toothpaste, among others are essential before dabbling into the toothpaste production business.
The business plan:
A business plan for a small business enterprise can be seen as both an entrepreneur’s business ‘resume’ and its growth strategy. Since investors and venture capitalists usually want to consider investing on the basis of a business plan, a small business enterprise should document its business objectives and directions.
- The product – This section deals with the type of product you are going to produce and sell as a small business enterprise. There are varieties of toothpaste that can be manufactured and picking the right products that you will be able to market is essential. Some of the different varieties are white toothpaste, blue toothpaste, red toothpaste, gel toothpaste, ayurvedic toothpaste, and tooth powder; white or colored. Selecting the right variety and planning the strategy that will market the products to the target niche will ensure business success and meet the business goals
- The market segment, product sizes – The small business entrepreneur should know the potential consumers, a number of competitors, and other environmental factors in the industry. The market segment is all-inclusive but different categories of people are likely to use different toothpaste. They include babies, those with teeth sensitivity, elderly people, and those on the top of social class ranking. Proper research should be conducted to evaluate different market segment before making a selection of which brands to concentrate the marketing efforts.
- The management team – This section deals with the number of people to be part of the management team, their ‘resume’, and other relevant details. The management structure should comprise those of the production manager, purchasing and sales managers, accountant, and a technical manager, to oversee the maintenance of the machinery.
- The production process and plan – This section highlights how the product will be made including associated technology, processes, purchases, expenses, etc. In starting operations for toothpaste production means a detailed plan is an utmost necessity. The plan should include the blending of all the ingredients together for a smooth texture. This formulation forms the basic toothpaste; but, to make toothpaste that whitens the teeth, whitening ingredients (e.g. turmeric) should be included in relatively small quantity. Also, the proportion of abrasive agents (e.g. baking soda) must remain very minute to prevent tooth enamel from getting damaged.
- The marketing plan – This section deals with marketing strategies for achieving the small business enterprises’ objectives. It should include how the kinds of toothpaste are going to be marketed in which store and whether direct marketing is to be used. It should also call for the right promotional tools to be used, the pricing method that is appropriate, and how frequently the products are to be updated.
- Manpower requirements – This section concerns the manpower procurement and planning. At the launching of the toothpaste company, only key personnel is recommended to be hired because of limited resources but as time progresses, there will be the need for all caliber of personnel.
- The production of toothpaste will involve a wide range of operations for the factory; marketing, sales, accounting, and administrative purposes. It is a good idea to produce an HR Manual at the outset of the organization in accordance with the anticipation of the size of the business. Accordingly, it will be necessary to recruit specific experienced and skilled manpower.
- In the factory operation, it is essential to recruit a ‘Chemist’ to oversee the compliance of the basic standard in terms of quality control.
Apart from this, identifying the proper and effective position and recruitment of the right and capable hands is an important factor in achieving overall business success
- Estimated capital Expenditure – This is the section that deals with the types of plant & machinery, office equipment, furniture, and fittings) which the small entrepreneur intends to use. In this plan, the basic machinery necessary for the production of toothpaste are as follows: shear mixer machine, injection shoulder, weighing scale, filling, and sealing machine. You can set up a small lab to take care of research & development. Since it is likely you are going to produce premium and specialized toothpaste in the future, there will be the need to anticipate the procurement of relevant machinery in the future.
- Estimated working capital – This section states the amount of working capital to be provided for daily operations. It will definitely include the cost of buying the required raw materials such as the following: sodium alginate (holds ingredients together), chalk or baking soda, detergent (foam-based compound) humectants (makes the toothpaste moist) mint (for sweet taste) fluoride (for healthy teeth), anti-bacterial agent (prevention of gum disease.
- Cash budget – This is the section that deals with the expected cash income and expenditure, including the estimated income statement (profit and loss account).
- Profitability analysis and the evaluation of the project. – This is the aspect of the decision making regarding whether to engage in the toothpaste business or not. There are certain guidelines that will help in taking these important decisions: They include:
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- Breakeven analysis
- Payback period
- Annual rate of return.
Data and information for small business enterprises may be collected through the usual business research methods of survey, observations, experimentation, and social networks, and the internet. Since small business research audiences vary, the format for reporting market research varies from one business research problem, audience, or project to another.
Toothpaste Equipment Required
Most machinery available in the market do a similar job when it comes to the production of toothpaste, but if you want to produce specialized or premium toothpaste, you may look for specific machinery. In this case, it is advised to seek expert advice if you want to be on the safe side. The following equipment is common to many types of toothpaste production:
- Tube body making machine
- Injection Shoulder machine
- Sealing machine
- Filing &Sealing machine
- Shoulder molds
- Chiller machine-
- Tube body mold
- Vacuum paste machine
What is in the toothpaste?
It has been observed that the human mouth houses thousands of microorganisms that are both harmful and harmless. Some can infect the mouth and cause tooth decay as well as gum disease. Toothpaste is formulated and used together with the toothbrush to clean the mouth and fight tooth decay/gum disease, thereby promoting healthy teeth.
A different myriad of kinds of toothpaste have been sold in the market and most of them have been prepared with similar basic ingredients but some of them are formulated with slight variations. The basic ingredients that are contained in toothpaste include the following:
- Abrasives
- Detergents
- Colouring agents
- Flavoring
- Fluoride
- Thickeners
- Humectants
- Sweeteners
- Preservatives
- whiteners
Abrasives: abrasive removes food residue and endows toothpaste to clean, remove stains, and polish the teeth. There are varieties of abrasives used in toothpaste production, they include the following:
- Hydrated silica
- Alumina
- Calcium phosphate
- Calcium carbonate
Colouring Agents: coloring bestows to the toothpaste something that attracts the eyes. So we can have such colors as green, red, and white while titanium dioxide gives toothpaste white color.
Detergents: detergents (foaming agents) are used to clear composite with opposite properties such as oil and water. Basic detergents include sodium lauryi sacrosinate and sodium lauryl sulphate (SLS).
Flavoring: that gives the toothpaste a sweet taste e.g. peppermint, spearmint, wintergreen, and menthol.
Flavoring: is included to improve the taste of toothpaste. It also masks the flavor of detergent components especially SLS. Commonly used flavorings are peppermint, spearmint, cinnamon, wintergreen, and menthol.
Fluoride: fluoride is included in toothpaste to prevent decay by depositing itself into the tooth enamel; it helps to keep the teeth healthy.
Preservatives: this makes the teeth unable to grow microorganisms. Preservatives that are commonly used are sodium benzoate, methyl paraben, and ethyl paraben.
Sweeteners: this is included to improve the taste.
Whiteners: are included to reduce stains on the teeth but cannot make the teeth whiter.
Be ready To Start Toothpaste Production
If you decide to go into the production of toothpaste or the production of anything for that matter, the first thing that you should do is to get educated at the college or university level. Having a degree in production management or production engineering is recommended since you are going to be well-grounded and with some training in the toothpaste factory, you will be ready to take control of your toothpaste factory.
You could be updated regularly by belonging to the production management association and attending seminars or other similar events.
In addition to obtaining personal training and acquainting yourself with the knowledge necessary to set up your production facility, you need to commission market research to investigate the toothpaste industry and market to find out how viable is the toothpaste market and whether you will be able to capture part of the market. The research will be thorough and will cover the following areas:
- Product research to cover:
- New toothpaste introduction in the market
- The number of brands of toothpaste in the market
- Acceptance of existing ones
- Which brand is the leader?
- Packaging research and design
- Market research to cover:
- Market potential
- Market share for existing competitors
- Sales analysis
- Market characteristics
- Short and long-range forecasting
- Test market, store audits
- Sales promotion studies.
3. Distribution research
Research can provide crucial information affecting the distribution of toothpaste. For example, market research into alternative methods of distribution may involve;
- The location and design of distribution outlets
- Packaging for distribution and shelving
- Dealer supply requirements
- Dealers advertising requirements
- The cost of different methods of transportation and warehousing.
- Promotion research
All forms of marketing communications can be made more effective by careful research and analysis of the results of past marketing efforts. This involves researching media effectiveness, advertisement production, and testing media coverage. The activities involved include:
- Motivation research for advertising and sales promotion effectiveness
- Copy research
- Media research
- Advertising effectiveness.
- Competitive advertising studies.
- Effectiveness of advertising on sales demand
Toothpaste production plan
To be successful in the toothpaste business, you must apply due diligence and that includes planning for the various brands of toothpaste. The plan will include forecasting the current and future demand and the planned closing inventory. These will form the number of toothpaste to be produced. The detailed production plan will therefore include:
- Forecast your current and future sales
- Plan your production schedule for the period.
- Choose a production method that will make efficient use of resources.
- Compare actual production and actual sales to determine the difference.
- Analyze the differences to discover why the variance occurred.
- Apply corrective action to make sure such differences don’t re-occur
Toothpaste production process
All the ingredients should be gathered together and evaluated, put on a scale to determine their weight, mix them together in a large barrel.
Blend all the ingredients together for a smooth texture. This formulation forms the basic toothpaste; but, to make the toothpaste to whiten the teeth, whitening ingredients (e.g. turmeric) should be included in small proportions. Also, the proportion of abrasive agents (e.g. baking soda) must be very minute to prevent tooth enamel from getting damaged. From the barrel, the product will go through a filling machine, and then into the tubes.
Follow the steps below to make your toothpaste:
Step 1: Gathering the basic toothpaste materials
Step 2: Prepare the materials for processing.
Step 3: Mix the materials together for processing.
Step 4: Blending the materials with the appropriate machinery
Step 5: Package your final product
Toothpaste Production Business Compliance
You will need different types of permits and licenses to operate in the US and some other countries. You will need to procure the Trade license, factory license, and business permit to set up your toothpaste manufacturing company. It depends largely on location and the State laws in the area you operate as well as your ownership structure. If you incorporate your business as an LLC, it attracts higher fees but if you register your business as a sole proprietorship, the demand from the State is minimal but your personal assets may not be protected. If in doubt, however, consult your attorney.
Setup Your Toothpaste Production Business
Choosing your location for the toothpaste manufacturing plant is an important consideration because you may lose some benefits if you set up your facility in an obscure area away from the industrial business zone. For instance, some benefits that you gain by establishing in an industrial zone include labor availability with no differential wages, transport facility, regular electricity and water supply, and many more. Conduct location research and evaluate your findings before you make your choice to avoid the wrong choice of location.
Promotion strategy
You will hire an advertising agency to recommend the outlets to be used to advertise your kinds of toothpaste. You are likely to use the local and national print and electronic media, together with all social media platforms and the internet. The advertising agency will plan and schedule the campaign blitz both before the launch, during, and after the launch of the toothpaste.
You should also use the services of the advertising agency to brand your toothpaste. This means giving the ad agency all the information necessary to enable them to do a good job in crafting excellent brand names for all the kinds of toothpaste in your range of products.
One other very authentic marketing tool in the toothpaste business is the use of a direct marketing strategy where you have to approach the wholesalers and other store owners directly. At the launch, you should engage the services of (motor shows) to promote the kinds of toothpaste to members of the public.
Conclusion
The toothpaste production business is very profitable but requires those who are highly motivated and will apply due diligence to succeed. The process you need to pass through before a unit of toothpaste is produced is cumbersome. But if you are diligent enough to pass the Rubicon, the sky is your limit.