The worldwide professional dental industry encompasses the diagnosis, treatment and prevention of disease and ailments of the teeth, gums and supporting bone.
The principal categories of the dental products market are dental consumables and dental equipment.
The global market for dental consumables is expected to grow at a 7.1% compound annual growth rate (CAGR) through 2018, reaching an estimated $23.8 billion. The global dental equipment market is to grow at a 4.7% CAGR over the same period, reaching an estimated $7.6 billion by 2018.1
The largest geographical markets for dental products are in North America, Europe, and Japan, followed by the rest of Asia, Latin America, Africa, the Middle East, and Australia.
The U.S. and Europe represent the fastest growing markets for dental products, due to the generation of aging baby boomers who can afford higher quality dental procedures. Europe is expected to show exceptionally high growth due to the added element of dental tourism from patients migrating from Western Europe to Eastern Europe, seeking cheaper dental care. Consequently, Europe is forecasted to grow at a 5% CAGR from 2012 to 2018.2
While the top ten competitors used to account for only 60% of the overall market, consolidation of the largest players in the past few years have led to a changing dynamic in the market. In 2011 DENTSPLY acquired Astra, the third largest dental implants maker for $1.8 billion. In 2012 Straumann acquired 49% of Neodent for $275 million, positioning itself as a leader in the Brazilian market. Straumann has the option to acquire the remaining 51% within 6 years. In 2013 Mitsui Chemicals significantly increased its presence in the dental market through the acquisition of Heraeus for $578 million.
More recently, Zimmer’s anticipated acquisition of Biomet for $13.4 billion will double Zimmer’s spine and dental business. Danaher’s anticipated acquisition of Nobel for $2.2 billion, will help it become the world’s biggest player in dental implants. As these deals complete and the these firms begin to integrate their operations, the dental implant market is likely to experience a transformation and look quite different in the coming years.