Opportunities in the dental

sector in emerging Asian

markets and India

Time to seize the business

opportunity

The Drivers of Growth for Dental Sector

• In the emerging Asian markets the

wealth of middle class is growing

and consumers are increasingly

willing to invest into personal dental

care

• Drivers of growth are the rising

importance of own appearance and

increased knowledge about dental

health

• In the cities the amount of private

dental clinics is increasing fast and

they have urgent need for modern

equipment

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The Dental Statistics in the Emerging Asian

Countries

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China: 110,000 dentists

market growth rate 21 % p.a

Taiwan: 6,400 dental clinics

market growth rate 12% p.a

India: 180,000 dentists

market growth rate 25-30% p.a

Malaysia: 4,300 dentists

market growth rate 11% p.a

Business Opportunities for Finnish companies

• Business opportunities for Finnish companies exist especially in dental equipment, software and biomaterials, dental services and education

• Most of the high-end dental equipment is imported from Europe, USA and Japan – the local competition is still limited

• There are already Finnish dental companies present in Asia, the well known are Planmeca, Soredex and Instrumentarium

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The Dental Market in China

• In China the market for dental equipment is worth around USD 400

million (2012)

• Oral health coverage has improved dramatically in the last fifteen

years

– 1:50,000-60,000 dentist to population ratio in 1995 to 1:13,000 in 2010

• Imports of dental equipment and materials reached USD 153

million in 2010, with a growth of 21.37% from 2009

• China imports 70% of the dental materials and furniture from

premium markets such as Germany and Japan although they

have own production and imports from low cost countries

(dental materials mainly)

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The Dental Market in India

• The potential size of India's dental market is vast and the country is expected to become one of the largest single market for overseas dental products and materials

– Import of dental devices increased from USD 25 mill. (2010) to USD 30 mill. (2011); 20% (Source: UN Comtrade 2012)

• By 2014, the Indian dental equipment industry is expected to reach USD 116 million, growing 6% annually

– Both government and private sector hospitals are in the process of upgrading and expanding their facilities and dental equipment

– Dental care services market USD 1.16 billion and oral care market USD 1.8 billion

• India’s market for dental products is extremely dynamic, with a current estimated growth rate of between 25-30%

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The Dental Market in Taiwan

• There are more than 6400 dental clinics in Taiwan (2011)

• Dental material and equipment import value in 2011 is about USD 103 million with estimate growth rate of 11.9%, potential market in 2013 will be around USD 129 million

– Import of dental devices increased from USD 26 mill. (2010) to USD 31 mill. (2011); 19%

• Nearly 65% of medical device market is imported products

– Dental market has the same or higher percentage, especially all high-end equipment are imported

• Registration process (for FDA approved products) takes between 100 to 200 days only, depending on the innovation level for the Taiwanese market

• More dental clinics are seeking for bank loans – basic dental equipment cost will be around USD 167 000 to 267 000 for a clinic of 4

to 5 dentists

– equipment renew will cost around USD 33 300 to 67 000

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The Dental Market in Malaysia

• The market size for dental equipment is over USD 400

million

• There are a number of distributors selling dental

equipment, instruments and supplies

• Medical devices and supplies are mainly imported

• 90% of the high quality equipment is imported from abroad

• Main exporters to Malaysia are the U.S. and Japan, followed by

Germany

• Possibly the easiest market for Finnish dental companies

entering the Asian markets for the first time

• Low registration barriers for medical device imports from Europe

and US (currently no formal process)

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The strategic window is open now in selected

Emerging Asian Countries

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China: Take your piece of the pie

now – expand your operations

Taiwan: Heavily investing on devices –

light registration process

India: Limited own production in high-

tech devices; reduced customs

duty for dental imports

Malaysia: Opens the dental service

sector for foreigners now –

no registration barriers

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More information

Christine Grumbach

Senior Consultant

Head of Health Technology sector

christine.grumbach(a)finpro.fi

+49 171 8893 000

Pietro Karjalainen

Regional Sales Manager, Asia

pietro.karjalainen(a)finpro.fi

Tel +358 40 1795 755

5/21/2013

© Finpro

11

Laura Strandberg

Senior Consultant

laura.strandberg(a)finpro.fi

+358 40 3433 410

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