China’s dental implant industry is expected to undergo a major transformation amid rapidly falling prices. The country’s first bulk procurement program targeting dental implants has seen prices drop on average by about 55%, according to the National Healthcare Security Administration (NHSA). The program mainly targets public hospitals, covering 72% of annual demand for dental implants across the country, and patients are expected to save CNY4 billion as a result, the Administration said. The price cut took effect in late March or mid-April, depending on the region. The dental implantation procedure to replace missing or decaying teeth incurs the cost of medical consumables, such as dental implants and crowns, as well as medical service fees. Previously, the total cost of dental implant surgery was as high as CNY30,000.
According to a survey in September 2022, about 60% of respondents complained about the differential pricing and called for a centralized procurement program to make the service more affordable. The adjusted service fee for dental implants in public 3A-grade hospitals is CNY4,500 per tooth.
“The rapid price drop in dental implants is a major turning point for the dental industry,” said Hu Xuan, a medical devices analyst at vbdata.cn, a Chongqing-based healthcare service platform. “The price drop will help increase patient visits to dental institutions, especially during basic treatment. In addition, the bulk procurement program mainly targets public hospitals, and private institutions can still determine their own prices, exerting a positive influence on the overall industry,” he said. Industry experts said domestic substitution will be accelerated in the upstream consumables end of the chain.
Homegrown dental implants came on the scene recently and the market share of domestic brands is relatively low. Data from vbdata.cn showed that by the end of 2021, about 117 implant products were registered and launched in China, of which 99 were imported products. The market share of domestic brands was only 15%. “Dental implants made in China lagged behind in technique and experience, and there was not enough clinical data support,” Hu said.
In terms of technique, Chinese enterprises were merely followers. Citing surface treatment technology as an example, Nobel Biocare and Straumann – two leading international brands – use the fourth-generation technology of anodizing and hydrophilic sand-blasting acid etching treatment, respectively, which offer better bio-compatibility, corrosion resistance and strength. In contrast, domestic companies still adopt second-to-third-generation technology of simple coating and sandblasting acid etching treatment, he said. “In addition, there is not enough clinical trial data going back five to 10 years for domestic dental implants. Dentists are concerned choosing domestic dental implant brands, which leads to the insufficient use of domestic products,” Hu said. “The bulk procurement program will promote the development of domestic dental implant brands, as it offers homegrown companies a good window period during which two to three dark horses are expected to stand out,” said Lyu Sang, a strategy consultant of Denfac, an oral medical device research and development enterprise based in Wuxi, Jiangsu province.
“The dental implant industry develops through rising orders. Once orders go up, enterprises will make more profits. Through the national-level or provincial-level bulk procurement programs, the market share of domestic dental implant enterprises is expected to rise. “However, once enterprises win the bid, demand for production capacity, supply chain delivery and personalized clinical guidance all raise challenges for domestic brands. They should ramp up efforts to rise up to the challenges,” he said.
With 710 million people suffering from oral health problems, China’s oral care market is expected to reach CNY128.5 billion by the end of this year, or about 33.8% of the world, according to a 2023 white paper on oral care released by Chinese e-commerce firm JD. Statistics from vbdata.cn show that between 2021 and 2022, there were 23 investment deals in China’s oral care market, with the total amount surpassing CNY1 billion. According to a report from market consultancy iiMedia Research, in 2021, China’s dental service market totaled CNY146.1 billion, up 16.2% year-on-year. The dental implant market makes up roughly 25% of the overall industry, adding up to CNY36.5 billion, the China Daily reports.
