Podcast Summary: The Economics of Everyday Things – Episode 86: Toothpaste

Introduction

In Episode 86 of The Economics of Everyday Things, host Zachary Crockett delves into the seemingly mundane but profoundly intricate world of toothpaste. Exploring its history, market dynamics, production processes, and the science behind its formulation, Crockett uncovers how this everyday product is a marvel of modern engineering and economics.

The Toothpaste Market: Dominance and Dynamics

Crockett begins by highlighting the vast scale of toothpaste consumption. "Over the course of your life, it's likely you'll brush your teeth more than 50,000 times. In the process, you'll go through 450 tubes, almost 170 pounds of toothpaste," he states at [01:03]. This immense usage underscores toothpaste's significance as a daily essential.

Market Leaders: Colgate and Crest

Crockett introduces Stefan Habif, the Chief Technology Officer at Colgate-Palmolive, who emphasizes the company's dominance in the oral care industry. At [02:03], Habif notes, "Colgate Oral care is our number one category. More households purchase at least one Colgate product a year than any other brand in the world, including Coca Cola."

Together with Crest, these two giants control approximately 75% of the global toothpaste market, valued at $22 billion annually. Maintaining this dominance requires continuous innovation, from flavor adjustments to packaging designs.

Historical Evolution of Toothpaste

Ancient Practices

Toothpaste has been a part of human hygiene for millennia. Crockett narrates, "Humans have practiced oral care for at least 9,000 years. Ancient civilizations cleaned their teeth by chewing on sticks or using crude toothpicks." Early formulations included natural ingredients like snail shells and crushed bones, evolving over centuries to become more palatable.

Industrial Revolution and Mass Production

The 19th century marked a pivotal shift. Professor Peter Miskel from the University of Reading explains at [03:58], "Sugar went from being a luxury in pre-industrial times to much more of a staple. New industrial food products created a problem of dental hygiene that hadn't existed in anything like the same way previously."

With the rise of processed sugars, dental diseases surged, prompting the need for effective oral care products. Colgate capitalized on this trend by introducing aromatic toothpaste in 1873, initially sold in jars. By the 1890s, the introduction of the toothpaste tube revolutionized the market by offering a more sanitary and convenient packaging solution. This innovation, coupled with aggressive marketing and mass production, made toothpaste accessible to a broader audience. By the 1930s, toothpaste was present in 65% of American households.

From Cosmetic to Health Benefits

Initially marketed for cosmetic benefits—fresh breath and a sparkling smile—toothpaste's role evolved significantly in the 1950s. The introduction of Crest by Procter & Gamble, the first fluoride-based toothpaste, transformed toothpaste from a mere cosmetic product to one with proven health benefits. As Miskel remarks at [06:07], "It was more use this product, it'll make you feel better about yourself. Kind of a classic example of a product that you didn't really need." The endorsement from the American Dental Association gave toothpaste scientific credibility, solidifying its place in daily hygiene routines.

The Science Behind Toothpaste Production

Formulation and Ingredients

Sergio Leyte, Colgate's Global Head of Research and Development for Oral Care Products, provides an in-depth look at the composition of toothpaste. At [10:33], Leyte explains, "You have something to clean your teeth and abrasive. You have your active ingredient, the fluoride. You also have a surfactant, a detergent that helps you do the nice foaming in your mouth and reach hard areas." These core components—abrasives, fluoride, surfactants, binders, flavorings, and colors—work in harmony to ensure effective cleaning and consumer satisfaction.

Abrasive Materials and RDA Testing

The abrasiveness of toothpaste is crucial for effective cleaning without damaging tooth enamel. Leyte mentions at [11:31], "You cannot go too abrasive, right? You don't want to sand in your mouth." Colgate employs Radioactive Dentin Abrasion (RDA) testing to measure the abrasiveness, ensuring it scrubs teeth without causing harm.

Foaminess and Sensory Experience

Stefan Habif discusses the importance of foam texture in user experience at [12:02]. "You could have a very compact foam, like a lather, and it will give you a different experience than an open, airy foam." Adjusting the level of foaminess influences how consumers perceive the toothpaste's effectiveness and freshness.

Flavor Engineering

Flavor is a significant factor in consumer preference. Leyte elaborates at [12:57], "We have a whole team of flavorists on staff who carefully select just the right amount of mintiness to add to a formula." Additionally, flavor preferences vary globally. For instance, in India, flavors incorporate clove oil and anise to cater to regional tastes, while in China, more floral scents like jasmine are preferred.

Production and Packaging Innovations

The manufacturing process is a testament to modern engineering. Leyte describes the production facilities, where raw materials are meticulously blended and filled into tubes. The design of the toothpaste tube itself has undergone numerous refinements to enhance functionality and reduce waste. At [15:39], Leyte shares, "That same nozzle, instead of carrying one color of toothpaste, it has multiple channels inside separated by a wall." This innovation allows for the creation of multicolored toothpaste without compromising consistency.

Maximizing Product Usage

One common consumer complaint is the difficulty in extracting the last bits of toothpaste from the tube. Colgate addresses this by optimizing tube design. Habif explains at [16:35], "We're able to design the right tube with the right paste with the right size orifice to be able to maximize the experience for the consumer." This design consideration ensures that users can efficiently use the product, accommodating varying strengths and dexterities.

Global Market and Regional Preferences

Toothpaste formulations are tailored to meet regional tastes and dietary habits. Habif notes at [13:40], "Flavors really link to the kind of food that you like in the different regions. In some cases, people want to feel similar taste in their toothpaste that they have in the flavor of their food." This localization strategy ensures that toothpaste remains appealing across diverse markets, enhancing global sales and brand loyalty.

Conclusion: The Marvel of Modern Toothpaste

Crockett wraps up the episode by reflecting on the complexity behind a product that many take for granted. Stefan Habif urges listeners to appreciate the scientific and engineering efforts invested in toothpaste, stating at [17:33], "There are many brilliant people, scientists, passionate people in the factory that have made this product just for you and this product is a great contributor to your health and your well-being. So please be nice to it and use it with a bit of respect and love."

Final Thoughts

Episode 86 of The Economics of Everyday Things offers an enlightening exploration of toothpaste, revealing it as much more than a daily necessity. From its historical roots and market evolution to the intricate science of its production, toothpaste embodies the intersection of consumer behavior, industrial innovation, and global economics. This episode encourages listeners to look beyond the surface of everyday items and recognize the complex systems that sustain them.

Credits

This episode was produced by Zachary Crockett and Sarah Lilly, mixed by Jeremy Johnston, with contributions from Daniel Moritz Rapson, Jeff Sawyer, and Brian Minaji.