Procter & Gamble (PG) is a multinational consumer goods company that was founded in 1837 and has a market capitalization of $311 billion, as of Jan. 11, 2020, with total revenue of nearly $69 billion for the trailing twelve months. The company is headquartered in Cincinnati, Ohio, employs over 97,000 workers worldwide, and has paid a dividend to stockholders since 1890, increasing it in each of the past 63 years.

Key Takeaways

  • Procter & Gamble is a very well-known consumer products company, owning major brands like Crest, Gillette, Pampers, and Tide. 
  • The company has paid a dividend for nearly 130 years and has increased dividends for 63 consecutive years. 
  • Major competitors for P&G include Colgate-Palmolive, Church and Dwight, and Unilever.
  • Nearly two-thirds of P&G’s revenues are generated from developed markets, while Unilever gest the majority of its revenues from faster-growing emerging markets. 

The company has six business segments organized around its product lines:

  • Baby, feminine care, and family care
  • Beauty
  • Fabric and home care
  • Grooming
  • Health care

It is known for many popular household name brands including (among others):

  • Always menstrual hygiene products
  • Ariel laundry detergent
  • The Art of Shaving
  • Bounty paper towels, sold in the United States and Canada
  • Charmin bathroom tissue and moist towelettes
  • Crest toothpaste
  • Dawn dishwashing
  • Downy fabric softener and dryer sheets
  • Febreze odor eliminator
  • Gain laundry products 
  • Gillette razors 
  • Head & Shoulders shampoo
  • Olay personal and beauty products
  • Oral-B dental products
  • Pampers diapers 
  • Pantene hair care products
  • Tide laundry detergents and products
  • Vicks cough and cold products

Who Are P&G's Main Competitors?

In beauty care products, Avon is a major competitor to Procter & Gamble as are Colgate-Palmolive (CL), Estee Lauder (EL), Revlon (REV), Coty (COTY), Elizabeth Arden (RDEN), Inter Parfums Inc (IPAR), and Unilever (UL). This segment accounted for 19% of Procter & Gamble's net sales, according to the company's 2018 annual report.

In the grooming segment, Procter & Gamble's Gillette brand is the dominant market player. Bic is a major competitor with a large international presence. Some recent startups in the shaving space, like Dollar Shave Club (now owned by Unilever), Harry's, and Billie are also providing competition, and have also resulted in several patent-related lawsuits levied by P&G. This segment accounted for 9% of Procter & Gamble's net sales.

In the health care segment, major competitors include CCA Industries, Colgate-Palmolive, Church and Dwight Co. (CHD), Ecolab (ECL), Stepan Company (SCL), and United-Guardian (UG). This segment accounted for 12% of net sales.

In the fabric care and home care segment, major competitors include Colgate-Palmolive, Unilever, and Church and Dwight Co. Fabric care and home care sales represented about 33% of 2018 net sales.

In the baby, feminine, and family care segment, major competitors include Colgate-Palmolive, Unilever, and Church and Dwight Co. The segment accounted for 27% of Procter & Gamble's net sales.

Global Markets and Competition

Procter & Gamble also competes with countless smaller companies in the international segments in which it reports revenue.

P&G gets nearly 45% of its revenue from North America and some 23% from Europe. Nearly two-thirds of P&G’s total revenue is from developed markets. In contrast, rival Unilever reports almost 58% of its income coming from emerging markets. That is P&G's most significant problem: It is concentrated in slow-growth markets.