Colgate Porter’s 5 Five Forces: 2022 Detailed Overview

Porter’s Five Forces Analysis of Colgate


Key Facts


Name Colgate Palmolive
Industry Personal Care Products
Founded 1806
Headquarters  New York City, US
CEOs Noel Wallace
Revenues US $17.96billion,FY December 312022

US$ 17.42 billion ,FY December 31 2021

Profit US$  1.785 billion, 2022

US$ 2.16 billion,2021

Competitors Johnson & Johnson, Unilever ,Procter & Gamble


Company Overview

Headquartered NewYork, United States reachingthe 211th place in the Fortune 500 List, Colgate Palmolive claimed itself number 1 company in the toothpaste industry. The company was founded by William Colgate in 1806.The Company is giving record revenues for consecutively last 4 years with a growth rate of 3% to 5%.The Company reported a net revenue of US$ 17.96 billion  with a Net Income of US$ 1.78 billion and with Net Assets of US$ 15.73 billion as of FY 2022.

Today we are Porter’s Five Forces Analysis of Colgate:


Porter’s Five Forces Analysis


Porter’s Five Forces Analysis is used to determine the competition and profit margin in the Industry and guide the company’s to keep strategizing its operations in a better competitive position. It is invented by Professor Micheal E. Porter in 1979,at Harvard Business School.


Colgate Rivalry among Existing Competitors


  • Colgate Business – Business Segmentation and Revenue Analysis: The Company is specialized in the category of oral care products including other personal care and home care products including shampoo, gels and home cleaners. The Company is generating highest revenue of 43% from Oral Products, 21% from Net Sales, 19 % from Personal Care and 17% from Home Care products.The company is operating globally with an employee count of 33,800 people.


The company gave record revenues of US$ 17.96 with Net Income of US$1.78 Billion in FY 2022,US$ 17.42 Billion with Net Income of US$ 2.16 Billion in FY 2021 and US$ 16.47 Billion with Net Income of US$ 2.69 Billion in FY 2020.


The company generated US$ 14.25 Billion in FY 2022 while 14.11 in FY 2021 from Personal and Home Care, from Pet Nutrition the company generated US$ 3.71 Billion in FY 2022 3.31 in FY 2021.


  • Geographical Business Segmentation: The Company is generating majority of sales from Latin America by generating 22% of the total revenue and North America with 21% of the total revenue. The second largest market for the brand is Asia Pacific with 16% of the total sales and Europe with 14% of total sales. While Africa/Eurasia contributed by 6% and 21% from Hills Pet Nutrition mentioned by Colgate Palmolive in their Annual Report.


  • Johnson & Johnson is also one of the established pharmaceutical, personal care and health care products providing company with a record sales of US$ 94.9 billion dollars with a Net Income of US$ 19.8 billion in 2022.


  • Unilever is also one of the leading personal care and health care products providing company with a record sales of US$ 63.44 billion dollars with a Net Income of US$ 6.57 billion in 2022 declared by Fortune 500.


Colgate Threat of New Entrants


  • Global Personal Care and Home Care Products Industry: The Global Personal Care Market is standing at 528.6 billion, while the global home care market is standing at 167.4 billion so it is one of the attractive markets for new entrants or keep attracting if some already established brands are looking for diversion in these related category product lines.


  • Strong Brand Image and Presence – Successful Track Record and History: The Company has a track record of 2 centuries with the facilities presence in more than 80 countries and serving consumers in more than 200 countries with the claimed number # 1 market share in the tooth paste industry. It is also ranked amongst Top 100 Most Sustainable US Companies.


Colgate Bargaining Power of Suppliers


  • Supplier Diversity and Ethical Standards and Policies: The Company developed and observed a wide guideline and range of policies for a better sourcing and procurement cycle including Procurement Policies, Third Party Code of Conduct, Anti-Bribery Policy, Terms and Condition, Invoice Standards and Third-Party Labor Provider Responsible Recruiting and Employment Standard etc.


The company also works with National Minority Development Council and Women’s Business Enterprise Council MetroNY for better Supplier diversity and inclusion.


  • E-Invoicing and Digital Portal Usage: The Company inculcated a lot of IT Tools and tried to make the supplier experience more digital and easy for the same purpose the company offer Supplier Portal facility with the E-Invoicing Service.


Colgate Bargaining Power of Buyers


  • Product Innovation Smart Tooth Brush: The Company launched World’s Smartest Toothbrush with application of Artificial Intelligence which is called “Kolibree” first “Smart Toothbrush, invented with the amalgamation and application of magnetometer and Bluetooth transceiver by Thomas Serval.
  • Pet Care Product Revolution: The Company invented a better pet care products by adding ActiveBiome+ in it’s product range which works better on the health’s of pets and dogs.


The launching of such products and innovation will giving no choice or bargain power to customers to switch or think for other alternatives.


Colgate Threat of Substitute Products or Services


  • Trends towards Ayurveda and Herbal Products: With the growth and awareness of planet friendly practices herbal products and natural products user also in trending and especially there is a category try to avoid un-necessary chemical ingredient products. There is huge and increasing trend of Ayurveda products export and online sales globally only from India US$ 628 million worth of ayurvedic and herbal products are being sold in Fiscal Year 2023 declared by Statista.

Only in U.S. around 24% of the adults use herbal and alternate products for the health related problems and issues. While 10% adults used non-prescribed medicines and drugs as alternative medicine and healing methods.


  • Online Sales and Product Distribution Channels and Structure: With the digital revolution targeting Digital Sales and keeping pace with the current market trends with Post COVID-19 world is very necessary. Colgate Palmolive just tapped this line of sales with the declared results of 8.5% organic sales from digital channels in Q4 2022.


The mechanism of Digital Sales also connected with Digital Platform presence and audience related to it and their digital connectivity.


Also It affects the complete business cycle and needs a more efficient supply chain cycle.







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  3. Fortune 500, Unilever , Unilever
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  5. Statista (February 7, 2023) –Colgate Palmolive statistics and facts. Available at Statista
  6. Statista,(March 17,2023) Total Net Sales of Colgate-Palmolive worldwide from 2011 to 2022 (in million U.S dollars).Available at Statista
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  8. We are reimagining  a health future, Colgate Palmolive
  9. How we are Revolutionizing the Pet Microbiome
  10. Connected :The Story of the World’s Smartest Toothbrush
  11. Supplier Diversity, Colgate Palmolive
  12. Statista (May 05,2023 ) Export value of ayurvedic and herbal products from India from financial year 2015 to 2023 (in million U.S. dollars).Available at Statista
  13. The Current,(January 27,2023) Colgate Palmolive takes a sharing approach to ecommerce
  14. Forbes, Profile, Johnson & Johnson
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  18. About Johnson & Johnson About
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  20. Unilever at a glance. Unilever
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