Haleon is intensifying its push into China’s consumer healthcare market at a time when many Western brands are encountering slowing demand and rising competition in the country. The maker of well-known oral-care products such as Sensodyne and Parodontax is investing heavily in local manufacturing and product customization to capture a larger share of the rapidly growing oral-health segment. While companies across industries—from automotive to luxury spirits and sportswear—have reported weakening Chinese sales, Haleon believes the combination of rising health awareness and unmet consumer needs offers a unique growth opportunity.

Investment Signals Long-Term Commitment to China

The company recently announced plans to invest £65 million (about $87 million) in a new oral-health manufacturing facility in Shanghai, reinforcing its long-term commitment to the Chinese market. Haleon Chief Executive Brian McNamara has emphasized that China remains one of the most promising growth regions for the company’s global consumer health portfolio.

China currently accounts for roughly 10% of Haleon’s £11 billion business, but its strategic importance extends beyond that share. The country represents nearly 13% of the global oral-health market, which is estimated at $59 billion today and projected to grow to about $80 billion by 2031. With rising disposable incomes and increased awareness of preventive healthcare, demand for oral-care products is expected to continue expanding, particularly in urbanizing regions.

Haleon’s strategy includes expanding the availability of its gum-health brand Parodontax to more than 30 Chinese cities by 2027, targeting not only major metropolitan areas but also second- and third-tier cities where consumer demand is growing rapidly.

Localized Products Aim to Win Chinese Consumers

One of Haleon’s key strategies in China involves adapting products to local consumer preferences rather than relying solely on global formulations. The company relaunched its Parodontax toothpaste in China in late 2024 after an earlier attempt failed to gain traction several years ago.

This time, the product has been specifically tailored to local tastes. Adjustments include a sweeter and more fragrant flavor profile, a foamier brushing experience, and packaging designed to appeal more strongly to Chinese consumers. These modifications reflect the broader trend of international brands customizing products to better match regional expectations.

Sensodyne, Haleon’s largest brand globally, has also seen strong traction in the market, with mid-teen growth rates reported in China. However, the brand currently reaches only about 11% of Chinese households, leaving significant room for expansion compared with the local market leader Yunnan Baiyao, which holds an estimated 29.8% share.

Standing Out as Other Western Brands Retreat

Haleon’s expansion contrasts sharply with the recent retrenchment of several Western companies in China. Firms including Nike and Pernod Ricard have reported declining sales in the country, reflecting weaker consumer spending and intensifying competition from domestic brands. In the retail sector, Starbucks recently sold a controlling stake in its China operations to Boyu Capital following a period of sluggish performance.

Despite these headwinds, Haleon appears confident in its ability to grow within the Chinese healthcare segment. The company recently acquired full ownership of its Chinese joint venture by purchasing the local government’s stake for about £700 million, signaling confidence in the long-term potential of the market.

Looking ahead, the success of Haleon’s strategy will likely depend on its ability to continue adapting products to local preferences while expanding distribution across China’s rapidly evolving retail landscape. If the company can effectively leverage its global brand reputation while maintaining strong local relevance, China could become an increasingly important growth engine in the global oral-care industry.