Analysis of the current state of the dental medical industry market: China's dental specialty hospitals will exceed 1,000

I. Definition

Oral health care is the diagnosis, treatment and prevention of oral and maxillofacial diseases and other related medical services. The oral health care industry is a vertical segment of the medical industry, which is based on the consumption of oral health care services. The oral medical industry is divided into three categories: oral disease treatment, oral medical aesthetics and oral care. Common oral diseases include endodontic diseases, periodontal diseases, oral mucosal diseases, and surgical inflammation of wisdom teeth, etc.; dental veneers, teeth cleaning, dental implants, porcelain teeth and teeth whitening are oral medical aesthetic items that consumers often focus on; oral care is mainly the daily personal care of consumers, such as toothpaste, mouthwash and other oral care products, as well as dental cleaning and other dental items. With the increase of people's income and consumption level, we are more and more aware of oral health care, the oral health care industry naturally ushered in a golden period of development.

Oral medical industry composition

Source: Wisdom Research Consulting

Second, the oral health care industry PEST analysis

1、Policy environment analysis (P)

In 2016, the "Thirteenth Five-Year" Health and Wellness Plan incorporated oral health into the regular medical checkups, enhancing residents' oral health awareness while also encouraging social forces to develop oral health care services. In the 2019 Action Plan for Healthy Oral Health, it is directly proposed to carry out the transformation action of "reducing sugar" to promote healthy behaviors and lifestyles by strengthening health education, controlling risk factors, emphasizing the reduction of intake of sugary drinks and high-sugar foods, promoting the ban on smoking in public places, and intervening in high-risk behaviors such as long-term betel nut chewing. lifestyle. The national policy not only guides the health concept of the residents, but also regulates the dental medical industry.In 2019, the General Office of the National Health Commission issued the Notice on the Issuance of Setting Standards for National Dental Centers and National Dental Regional Medical Centers.The Health Commission organized the formulation of the Setting Standards for National Dental Centers and National Dental Regional Medical Centers to optimize the regional distribution of dental medical resources and improve the dental medical service system. In September 2022, the National Health Security Bureau also issued the Notice on the Special Treatment of Oral Implant Medical Service Charges and Consumables Prices, with the improvement of living standards and the deepening of the aging population, China's dental implant demand has continuously shown a double-digit high growth, while the problems of irregular charges and heavy cost burden in this field are increasingly The notice indicates that the comprehensive management of oral implant fees will be implemented, and the cost of dental implants will be effectively reduced.

China's oral health care industry related policies

Source: Wisdom Research Consulting

Related report: "2022-2028 China Oral Health Care Industry Development Status Survey and Market Size Forecast Report" published by Wisdom Research Consulting

2、Economic environment analysis (E)

With the positive development of China's economy, China's per capita disposable income is also increasing year by year. 2021 China's per capita disposable income is 35128 yuan, an increase of 9.13% year on year, and the median per capita disposable income of China is also rising year by year in the same period, and the median per capita disposable income of China is 29975 yuan in 2021. With the increase in disposable income, people's consumption ability and consumption level are also rising simultaneously. With the basic needs of food, clothing, housing and transportation being met, people are beginning to pay more attention to various other aspects of health, such as oral health.

China's per capita disposable income and its median (yuan), 2014-2021

Source: National Bureau of Statistics, Smart Research Consulting

In 2020, influenced by the epidemic prevention and control, the expenditure on epidemic prevention products increased significantly, while outpatient medical visits and so on decreased, so the per capita healthcare expenditure of residents in 2020 showed a small decrease, but from 2014-2021, the per capita expenditure on healthcare of Chinese residents showed an overall upward trend, and the per capita expenditure on healthcare of Chinese residents in 2021 was 2,115 yuan, up 14.76% year-on-year. From 2014-2019, the share of per capita expenditure on healthcare of Chinese residents in total per capita consumption expenditure shows a slow upward trend overall, and after a small decline in 2020, it rises back to 8.78% in 2021.

Per capita expenditure on healthcare in China, 2014-2021

Source: National Bureau of Statistics, Wisdom Research Consulting

3、Social environment analysis (S)

The number of dental patients in China is rising year by year due to the influence of dietary habits on the one hand and the improvement of residents' consumption level on the other. the number of dental patients in China reaches 707 million in 2021. With the improvement of people's living standard, there are all kinds of delicacies in the market, especially sweets and all kinds of carbonated beverages, people enjoy these delicacies and bring many oral problems at the same time. At the same time, with the enhancement of social health awareness, people pay more and more attention to oral problems and are willing to spend time and money to treat oral problems.

Number of dental patients in China from 2014-2021 (billion people)

Source: Health and Welfare Commission, Smart Research Consulting

According to the third and fourth Chinese residents' health survey, the caries rate of all age groups showed an increasing trend, and the caries rate of the adult group was over 80%. At the same time, the caries rate of 5 years old children group is as high as more than 60%. The reason for such a high rate of tooth decay in young children is many, one is that many parents are too fine with children's diet, which reduces the opportunity of children's chewing, and children's teeth are not exercised, so they are easy to grow crooked, resulting in food residue not easy to clean, which leads to the appearance of tooth decay in the long run; two is that most snacks are high sugar and high salt food, which seriously affect the growth of children's teeth; three is that Children do not brush their teeth carefully and do not clean thoroughly.

The third and fourth Chinese residents' health survey caries rate

Source: Health and Welfare Commission, Wisdom Research Consulting

From the third and fourth Chinese residents' health surveys, the rate of Chinese residents brushing their teeth twice a day has increased, which indicates that people's awareness of oral health is increasing and more people are beginning to pay attention to and pay attention to their oral problems. In addition to removing oral dirt and reducing oral bacteria, brushing can also improve the resistance of gum tissue to prevent heart disease and stroke. As the Chinese saying goes, "disease enters through the mouth", paying attention to oral health is also a way to build a strong wall to defend the health of the body.

The third and fourth Chinese population health surveys on the rate of twice-daily tooth brushing

Source: Health and Welfare Commission, Wisdom Research Consulting

4、Technical environment analysis (T)

As people pay more attention to oral health, China's specialized dental hospitals have been increasing, and in 2021, there will be a total of 945 specialized dental hospitals in China, of which 164 are public dental hospitals and 781 are private dental hospitals. Compared with public dental hospitals, the growth rate of private hospitals is significantly faster, the growth rate of private dental hospitals in 2021 is 8.02%, while the growth rate of public dental hospitals is only 1.23%.

Number of specialty dental hospitals in China from 2014 to 2021 (home)

Source: Health Care Commission, Wisdom Research Consulting collated

The concept of people began to pay attention to oral health issues, the economic consumers' oral health care consumption ability to enhance, so the oral health care industry will also usher in a broad market, will also attract more practitioners. 2016-2020 China's number of dentists rose year by year, and the growth rate of the number of Chinese dentists has always remained at more than 10%, especially in 2018, the number of Chinese dentists growth rate amounted to 15.43%, and the number of dentists in China is expected to exceed 300,000 in 2021.