ATLAS DENTAL European Markets /// Structures, Challenges and Scenarios - GFDI

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ATLAS DENTAL European Markets /// Structures, Challenges and Scenarios - GFDI
ATLAS DENTAL
European Markets /// Structures, Challenges and Scenarios

       www.gfdi.de |   A study from REBMANN RESEARCH with strategy ideas for the European dental industry.
ATLAS DENTAL European Markets /// Structures, Challenges and Scenarios - GFDI
PUBLISHERS‘ FOREWORD (GFDI/VDDI)
The European dental market is in a state of flux,   and complex environment are confronted by a       readers, encouraging reflection and stimulating
but despite the different framework conditions      range of variables when taking strategic deci-    discussion. It is designed to promote dialogue in
prevailing in individual EU member states,          sions for which more accurate information on      the industry and, where possible, sensitise read-
common challenges and developments are dis-         the market and its development is needed.         ers to questions that affect market players and
cernible. In a complex and heavily regulated                                                          illustrate approaches in the search for solutions.
market, these impact equally on dental service      When illustrating findings, particular impor-
providers and dental laboratories, manufactur-      tance was placed on the depiction of informa-     The study in no respect represents action or
ers of dental technology and dealers.               tion for specific countries in a comprehensive    strategy recommendations for participants in
                                                    and, yet, striking manner that grasps the read-   the dental sector. None of the propositions put
The engines behind current developments in          er’s attention. Differences within or between     forward in it represent the official positions of
terms of what is on offer are demand factors        European countries can be easily compre­          the publishers.
(e.g. demographic trends), regulatory require-      hended, thanks to cartographic illustrations
ments within the common EU internal market,         and so-called structural profiles.
digitisation and advances in medical technolo-
gy which are increasingly based on cross-cutting    The purpose of the ATLAS DENTAL study is to
technologies. Consequently, any market players      highlight trends and tendencies on the basis of
positioning themselves in an extremely dynamic      contemporary dental market activity, informing

GOALS OF ATLAS DENTAL
    1. Sector overview & reference work
Our first GFDI study, the “Schedule for the European Dental Market”,         a series of propositions regarding probable tendencies, and we would
marked IDS 2013 by collecting information relating to FIDE countries,        like to replicate this again with a contemporary overview of the sector.
illustrating the latest events on the European dental market and making

    2. Clear, compact depictions
The issues selected and the manner in which they are elaborated upon         DENTAL. Individual countries are depicted in green or red, depending
mean that this work far surpasses our 2013 study in many respects.           on whether an average value is exceeded or not. National and interna-
It aims to help the reader identify items of relevance at, so to speak, a    tional differences are immediately identifiable. A uniform evaluation
glance. The selection is accompanied by cartographic representations,        grid enables direct international comparisons.
with national or European maps being used to create a true ATLAS

    3. Offering a basic analysis of the European situation
Drawing on a multitude of features which influence the dental market         system and dental supply and demand structures is also illustrated for
in a particular country, a comparative analysis is then conducted for        these countries.
ten selected countries. In addition, information relating to the health

2 /// 3
ATLAS DENTAL European Markets /// Structures, Challenges and Scenarios - GFDI
CONTENTS
   International perspective������������������������������������������������������������������������������������������������������������������Page 6                            DEVELOPING SCENARIOS
   Germany�����������������������������������������������������������������������������������������������������������������������������������������������������Page 12
                                                                                                                                                                                 Tomorrow’s patients������������������������������������������������������������������������������������������������������������������������ Page 68
   Belgium������������������������������������������������������������������������������������������������������������������������������������������������������Page 16
                                                                                                                                                                                 Tomorrow’s dental practice����������������������������������������������������������������������������������������������������������Page 70
   France���������������������������������������������������������������������������������������������������������������������������������������������������������Page 18
                                                                                                                                                                                 Tomorrow’s dental laboratories�������������������������������������������������������������������������������������������������Page 72
   Italy��������������������������������������������������������������������������������������������������������������������������������������������������������������Page 20
                                                                                                                                                                                 Tomorrow’s manufacturers and trade������������������������������������������������������������������������������������Page 74
   Netherlands��������������������������������������������������������������������������������������������������������������������������������������������Page 22
   Austria�������������������������������������������������������������������������������������������������������������������������������������������������������Page 24
   Switzerland���������������������������������������������������������������������������������������������������������������������������������������������Page 26
   Spain�����������������������������������������������������������������������������������������������������������������������������������������������������������Page 28
                                                                                                                                                                                 #IDSCOLOGNE
   Czech Republic�������������������������������������������������������������������������������������������������������������������������������������Page 30
                                                                                                                                                                                 IDS as part of the marketing mix and showcase of tomorrow������������������������������Page 78
   United Kingdom������������������������������������������������������������������������������������������������������������������������������������Page 32
                                                                                                                                                                                 Sources��������������������������������������������������������������������������������������������������������������������������������������������������� Page 80
                                                                                                                                                                                 Legal notice�������������������������������������������������������������������������������������������������������������������������������������������Page 83
   MASTERING CHALLENGES
   Demographic change������������������������������������������������������������������������������������������������������������������������Page 36
   The digital patient������������������������������������������������������������������������������������������������������������������������������Page 40                     Perspectives of this study:
   Technological developments��������������������������������������������������������������������������������������������������������Page 46                                          Demand structures
   Market consolidation������������������������������������������������������������������������������������������������������������������������Page 50                                Dentists/Practices
   Globalisation������������������������������������������������������������������������������������������������������������������������������������������Page 54
   Outsourcing��������������������������������������������������������������������������������������������������������������������������������������������Page 58                     Dental laboratories
   Regulatory requirements���������������������������������������������������������������������������������������������������������������Page 60                                      Manufacturer/Trade
                                                                                                                                                                                       Infrastructure

   4. Dental sector profiles
ATLAS DENTAL illustrates differences between countries through the                                                                                                               contribute to a rapid appreciation of conditions in different countries.
aid of structural profiles that analyse relevant features, both in terms                                                                                                         Dental technology is an important and independent component of gen-
of supply and demand. This examination is complemented through                                                                                                                   eral medical engineering. The similarity of these sectors also means that
the addition of recognised indices which compare countries in terms                                                                                                              we frequently make references to general medical technology.
of competitiveness, innovativeness and digitisation. Structural profiles

   5. Identifying potential and risks
One significant goal of a work of this nature is to sensitise readers to                                                                                                         be exploited in the different countries (and, in part, in their different
significant issues associated with the dental care available to Europe’s                                                                                                         regions) is illustrated and measures presented to obviate future risks.
citizens. Simplified depictions also help “amateurs” form a picture of
what is certainly a complex market situation. The potential which can

   6. Current market developments in the dental sector
This study illustrates contemporary market developments from the per-                                                                                                            of the respective country are also described at various points. Texts and
spective of dentists/practices, dental labs and manufacturers/dealers.                                                                                                           graphic depictions are marked in colour to reflect different perspectives.
Furthermore, demand structures and information on the infrastructure

                                                                                                                                                   European Markets /// Structures, Challenges and Scenarios                                                       ///       ATLAS DENTAL                         ///       INTRODUCTION
ATLAS DENTAL European Markets /// Structures, Challenges and Scenarios - GFDI
ATLAS DENTAL European Markets /// Structures, Challenges and Scenarios - GFDI
ANALYSING
STRUCTURES
ATLAS DENTAL European Markets /// Structures, Challenges and Scenarios - GFDI
INTERNATIONAL
PERSPECTIVE
Around € 80 billion is spent on dental treat-       the Federation of the European Dental Indus-         The utilisation rate is of particular interest
ment in the European Union. Given that there        try, represents the interests of over 550 dental     from the point of view of demand behaviour
are 512.7 million EU citizens (as of 2018), this    manufacturers organised in nine national as-         for dental services. It indicates what propor-
is equivalent to about € 156 per capita, and this   sociations.                                          tion of the population has contact at least once
figure continues to rise. The eurozone alone                                                             with a dentist within a year. Fig. 1 illustrates
was home to around 341.5 million people in          A Europe-wide consideration of selected de-          that high utilisation stretches like a green belt
2018. Public expenditure for dental treatment       mand and supply indicators is conducted ini-         from the Nordic countries over the United
was between 3 and 8 % of respective national        tially in the first chapter. This data is prepared   Kingdom and through Central Europe. The
health spending in individual European states.      for a few selected countries, with double the        Czech Republic, Slovakia and Austria form
Demographic, economic and political factors         number of pages dedicated to illustrating the        the eastern boundary lines of this green belt.
ensure that the demand for dental services          German dental market, due to its importance.         The utilisation rate in Southern and Western
continues to rise. Health systems are being         Significant challenges in the sector are pres-       Europe is considerably lower, and even Swit-
expanded, access to dental care improved,           ent in the second chapter. The third chapter         zerland only manages to reach the EU average.
the population‘s disposable income is rising        demonstrates how the target group under con-         Ireland exhibits a strikingly high utilisation
(again), the baby boomer generation is getting      sideration here (consumers, dentists/practices,      rate.
older and providing for people in need of care      dental labs and manufacturers/dealers) can
is becoming a major challenge.                      face these challenges in future.                     Where these values are available in even great-
                                                                                                         er detail, they are an indication of significant
Patients in a majority of the countries exam-       There is an increasing focus on working with         potential which is not only restricted to the
ined need to cover a higher proportion of costs     intelligent data in dental practices and dental      dental practice (e. g. in different age groups,
for dental services (particularly in the area of    laboratories, but in particular in the produc-       between women and men and between differ-
prosthetics) through private means (supple-         tion of and trade with dental products. The          ent regions). Utilisation rates for different den-
mentary dental insurance or out-of-pocket)          range of products and services on offer should       tal services such as screening examinations/
than for other outpatient or inpatient health       be customised to reflect the preferences of cus-     prophylaxis, fillings, X-ray services, endodon-
care. The tendency in most countries in recent      tomers in as complete a manner as possible:          tic treatment and dental prosthetics are availa-
years has been for this proportion to rise.                                                              ble for a few countries.
                                                    ■A
                                                      wareness of the demand behaviour of
The ATLAS DENTAL makes no claims with                 patients in a region (e. g. with regard to age,    The demand and supply situations for dental
regard to completeness, as the data situation in      gender).                                           services should match each other
a vast market such as Europe and an area as ex-     ■O ne‘s own patient file or the customer
tensive as dental health is far too varied. There     management system is the most important            Regional analyses of this kind regularly show
are around 340,000 practising dentists1 work-         source for one‘s own supply strategies. This       that significant differences still exist between
ing in approximately 230,000 practices in the         information interacts with external data in        demand and remuneration. Knowledge of
EU area alone. Approximately 210,000 dental           an ideal case.                                     age-specific characteristics among one‘s own
technicians are employed in around 40,000           ■ Th
                                                       e demand and supply situations for dental        patients or, also, of the demographic structure
dental laboratories throughout Europe.3 Aside         services should match each other.                  of the region help one to adapt more effectively
from this, approx. 25,000 medical engineering       ■F urther specialisation strategies first require   to special needs. The lock and key principle is
companies with about 650,000 employees are            an analysis of potential.                          also a guarantee for success here, because mar-
to be found in Europe. Half of these companies      ■K nowledge of demographic data is impor-           ket players can only be successful if the prod-
– with around 210,000 employees – are located         tant, as this impacts on both the demand           ucts or services supplied to the dental practice
in Germany. After the USA & China, Germany            and supply structure.                              or the dealer who supplies the dental practice
is the third largest producer of medical tech-      ■ Th
                                                       e secondary health market offers oppor-          also reflect the uniquely specific demand in the
nology in the world. The United Kingdom,              tunities for growth, but it requires a detailed    vicinity.
Italy, Switzerland, Spain and, also, France are       knowledge of the market.
further major producing countries.2 FIDE,

6 /// 7
ATLAS DENTAL European Markets /// Structures, Challenges and Scenarios - GFDI
Fig. 1 /// Utilisation of dental services
              GRÖNLAND

                                 ICELAND

                                                                                                                            SWEDEN
   ≥ 91 %
                                                                                                                            70.5 %

  81 – 90 %
                                                                                                                                                          FINLAND
                                                                                                                                                          56.9 %

  75 – 80 %
                                                                                                                                                                                                    RUSSIA

                                                                                                    NORWAY
  66 – 74 %
                                                                                                    77.9 %

  57 – 65 %                                                                                                                                                      ESTONIA
                    EU average                                                                                                                                   50.1 %
                      60.1 %
  48 – 56 %
                                                                                                                                                                  LATVIA
                                                                                                                                                                  48.3 %
  39 – 47 %
                                                                                                                                                             LITHUANIA
                                                                                      DENMARK                                                                 46.5 %
   < 39 %
                                                                                       80.2 %                                                       RUSSIA
                                           IRELAND                                                                                                                                   BELARUS
Not evaluated                              92.6 %
                                                      UNITED
                                                     KINGDOM
                                                      74.0 %                                                                               POLAND                                                       UKRAINE
                                                                                      NETHERLANDS                                          52.7 %
                                                                                         78.8 %
                                                                            BELGIUM
                                                                            59.7 %                   GERMANY
                                                                                                      81.9 %            CZECH REPUBLIC
                                                                                                                            75.6 %
                                                                                                                                                 SLOVAKIA                                             MOLDOVA
                                                                                                                                              74.8 %
                                                                                                                          AUSTRIA              HUNGARY
                                                                                                                          71.6 %                46.0%                              ROMANIA
                                                                                        SWITZERLAND                                                                                 15.0 %
                                                                   FRANCE                 63.0 %
                                                                   54.9 %                                                SLOVENIA        CROATIA
                                                                                                                           59.0 %        54.6 %
                                                                                                                                           BOSNIA AND         SERBIA
                                                                                                             ITALY
                                                                                                                                          HERZEGOVINA                                  BULGARIA
                                                                                                               45.8 %
                                                                                                                                                                                        44.5 %
                                                                                                                                                                  KOSOVO
                                                                                                                                            MONTENEGRO                 MACEDONIA
                PORTUGAL                     SPAIN                                                                                                           ALBANIA                                                   TURKEY
                 48.7 %                     46.2 %
                                                                                                                                                                           GREECE
                                                                                                                                                                            47.4 %

                                                               ALGERIA
                                                                                                                               MALTA
                                                                                                     TUNISIA
                           MOROCCO

                                                                                                                                                        Source: Eurostat, ZWP online4 /// Graphic: REBMANN RESEARCH /// As of: 2018

                                                                     European Markets /// Structures, Challenges and Scenarios                ///   ATLAS DENTAL                 ///     ANALYSING STRUCTURES
ATLAS DENTAL European Markets /// Structures, Challenges and Scenarios - GFDI
Further specialisation strategies first re-        population group, depending on the country                          poor oral hygiene. A further not insignificant
quire an analysis of potential                     involved. Caries are the main reason for the to-                    factor is tobacco consumption. With regard
                                                   tal loss of teeth among senior citizens. Between                    to paediatric dental hygiene, 14 % of children
Practice owners, dental laboratories, the dental   5 and 51 % of the 65 to 74 age group are affect-                    worldwide exhibit a lack of mineralisation of
industry and dental trade must be prepared to      ed by this, depending on the region. The main                       enamel (MIH). Tooth substance is lost in 5 %
face the demographic development and the as-       cause of caries and dental erosion is diet. Sugar                   of children, and they suffer from toothache as
sociate increase in chronic multiple illnesses,    consumption in particular encourages caries                         a result.
including appropriate care people in need of       bacteria and the formation of acids that at-
care and the elderly. This means that, through     tack tooth enamel. Over 50 % of the European                        Socio-economic factors also heavily influence
greater mobility and networking with other         population suffers from a periodontal disease,                      the prevalence of dental diseases. According
service providers, that the dentist too can also   with 10 % of these individuals suffering from                       to the WHO, underprivileged, disadvantaged
differentiate him or herself more markedly         a severe form. In the case of the 60 to 65-year-                    population groups who, generally speaking,
today. In addition, greater consideration of       old population group, the proportion affected                       find it difficult to access dental care are dis-
diseases which are associated with oral health     is as high as 70 to 85 %. The main factor con-                      proportionately affected. Preventive measures
could also close loophole in basic care.           tributing to the development of periodontal                         are decisive when it comes to improving oral
                                                   diseases which can also lead to tooth loss is                       health. Consequently, the WHO recommends
Financing of dental services is heavily influ-
enced by political/regulatory requirements.          Fig. 2 /// Dentists per 1,000 inhabitants
Two system variants are important when it
                                                         ≥ 1.00
comes to public health care in European coun-
tries: the Beveridge model and the Bismarck            0.90 – 0.99

model: Beveridge systems are state systems,            0.80 – 0.89
with a health care network of doctors’ prac-
                                                       0.70 – 0.79
tices and hospitals financed through taxes                            EU average
                                                                         0.74
to which all inhabitants have access. Systems          0.60 – 0.69
                                                                                                                              SWEDEN
of this nature are to be found in the United           0.50 – 0.59                                                             0.77
Kingdom, the Scandinavian countries, Italy                                                                                                         FINLAND
                                                       0.40 – 0.49
and Spain. Bismarck systems are social health                                                                                                      No data
insurance models financed through the so-                < 0.39
                                                                                                                 NORWAY
                                                                                                                 No data
cial security contributions of insured persons        Not evaluated
                                                                                                                                                            ESTONIA
and their employers. There are three variants                                                                                                                0.95
of this system: standard regional or central                                                                                                                 LATVIA
                                                                                                                                                              0.73
insurance (France, Poland, Czech Republic),                                                            DENMARK
                                                                                                         0.73                                          LITHUANIA
company/occupational and compulsory re-                                                                                                                   0.99
gional insurance (Belgium, Austria), systems                          IRELAND
                                                                      No data       UNITED
with a free choice of insurer and competition
                                                                                   KINGDOM                                                 POLAND
between insurance providers (Germany, Neth-                                          0.52               NETHERLANDS                        No data
erlands, Switzerland).                                                                                     0.39
                                                                                                  BELGIUM        GERMANY    CZECH REPUBLIC
                                                                                                   0.74            0.87                        SLOVAKIA
                                                                                                                                  0.75     No data
Oral health
                                                                                                                               AUSTRIA       HUNGARY
                                                                                             FRANCE        SWITZERLAND           0.57          0.62                     ROMANIA
                                                                                              0.64            0.51            SLOVENIA                                   0.83
According to the WHO, there is a high preva-
                                                                                                                                    0.69
lence of dental diseases in European countries.                                                                                  CROATIA                                   BULGARIA
The main conditions affecting dental health                                                                                       0.81                                       1.14
are caries, dental (acid) erosion and periodon-                                                                            ITALY
                                                                         SPAIN                                                0.82
tal diseases. Between 20 and 90 % of 6-year-old         PORTUGAL         0.75
children suffer from caries while, on average,          No data                                                                                                      GREECE
                                                                                                                                                                      No data
between 0.4 and 3.5 (depending on the coun-
try) of the remaining teeth are damaged in
the case of 12-year-olds.5 In the case of adults
aged 35 to 40, almost 100 % suffer from caries.
Between 10 and 20 teeth are affected in this
                                                                                                                              Source: Eurostat, ADDE/ FIDE8 /// Graphic: REBMANN RESEARCH /// As of: 2018

8 /// 9
ATLAS DENTAL European Markets /// Structures, Challenges and Scenarios - GFDI
a drastic reduction in sugar consumption, ac-                      density of dentist in these countries (namely                                            (30 %) among dentists mean that, far from the
companied by legislative measures such as the                      France, Switzerland, Austria and Hungary)                                                low dentist density improving here in future, it
introduction of taxes on beverages and food-                       is, if anything, average to low. With 0.39 den-                                          is more likely to worsen in the wake of Brexit.
stuffs containing sugar or the introduction                        tists per 1,000 inhabitants, the Netherlands                                             The number of foreign dentists practising in
of mandatory labelling for the sugar content                       are the only “red blemish” on the European                                               the United Kingdom how are leaving has al-
of products. Fluoride also plays a key role                        map (at least in terms of the countries exam-                                            ready intensified.
in reducing levels of caries. In order to reach                    ined) and, consequently, the worst performer
the entire population, the WHO recommends                          in the comparison of countries. This shortage                                            In principle, per capita expenditure for dental
fluoridation of drinking water, salt or milk and                   of practising dentists can be traced back to                                             treatment (Fig. 3) divides Europe into three
use of toothpaste containing fluoride.6                            the high training figures in the 1980s and the                                           zones. The western zone encompasses the
                                                                   subsequent closure of some dental faculties. In                                          United Kingdom and France with average
  Dentists                                                         the United Kingdom, significantly more den-                                              to slightly below average per capita expendi-
                                                                   tists are registered than are actually practising                                        ture. The central “green” zone indicates high
Fig. 2 indicates that north and south of Eu-                       (registered dentists: 41,705; actually practising:                                       per capita expenditure in Sweden, Denmark,
rope, which is well supplied in dental terms,                      34,760). A growing problem with regard to re-                                            Germany, Austria and Switzerland. The east-
are divided by a yellow and orange belt. The                       cruitment and sharp fluctuations of personnel                                            ern zone reflects the extremely low per capita
                                                                                                                                                            expenditure in countries such as Finland, Es-
  Fig. 3 ///         Per capita expenditure for dental services in €                                                                                        tonia, Latvia, Lithuania, Poland, Slovakia, Slo-
                                                                                                                                                            venia, Hungary and Greece.
      ≥ 400

    300 – 399                                                                                                                                               In the majority of European countries (with
    250 – 299
                                                                                                                                                            only a few exceptions, such as the United
                                                                                                                                                            Kingdom or Spain, etc.) the provision of den-
    200 – 249
                                                                                                                                                            tal services is currently (still) characterised by
     150 –199                                                                                                                                               conventional sole practices. 24 % of all dentist
                                                                                SWEDEN
     100 – 149
                   EU average
                       156                                                      283.31                                                                      in the United Kingdom and 25 % in Spain are
                                                                                                      FINLAND                                               organised in chains (see Fig. 30, p. 51). The
     50 – 99
                                                                                                       93.25                                                number of practising dentists in Europe has
       < 49
                                                              NORWAY                                                                                        only risen marginally in recent years. Spain in
                                                              No data
   Not evaluated
                                                                                                              ESTONIA
                                                                                                                                                            particular has experienced a significant rise in
                                                                                                               88.92                                        the number of practising dentists (for the peri-
                                                                                                               LATVIA                                       od 2010 – 2015: + 23 %). On the other hand, the
                                                                                                                47.21
                                                    DENMARK                                                                                                 number of dentists practising in Denmark and
                                                     284.32                                              LITHUANIA
                                                                                                           38.75                                            Lithuania is declining.
                    IRELAND
                    122.42       UNITED
                                KINGDOM                                                       POLAND
                                 129.83              NETHERLANDS                              31.88
                                                        192.74
                                               BELGIUM         GERMANY      CZECH REPUBLIC
                                               153.23          330.86                               SLOVAKIA
                                                                                68.77             49.97
                                                                               AUSTRIA             HUNGARY
                                          FRANCE        SWITZERLAND            213.44               50.52                ROMANIA
                                          163.35          439.3               SLOVENIA                                   No data
                                                                                   52.35
                                                                                 CROATIA                                     BULGARIA
                                                                                No data                                      No data
                                                                           ITALY
                      SPAIN                                                  179.88
      PORTUGAL        164.6
      No data                                                                                                     GREECE
                                                                                                                    62.89

                                                                  Source: OECD, REBMANN RESEARCH, Eurostat7 /// Graphic: REBMANN RESEARCH /// As of: 2018

                                                                         European Markets /// Structures, Challenges and Scenarios                          ///   ATLAS DENTAL   ///   ANALYSING STRUCTURES
ATLAS DENTAL European Markets /// Structures, Challenges and Scenarios - GFDI
Dental laboratories                              worldwide volume of more than USD 4.5 bil-                              A growth in dental tourism (especially in
                                                    lion in 2016, and it is expected to grow to USD                          the Asia-Pacific region)
The remuneration of dental prostheses in Den-       8.4 billion by 2025. The reasons for this are a
mark, Germany, the Netherlands, Switzerland         reflection of the situation in the overall dental                  With regard to concentration processes, the
and Hungary was examined in greater detail          market:                                                            implant market has also become an example
in a comparison of countries by the Institute                                                                          for mergers and acquisitions to position itself
of German Dentists (IDZ, Cologne). Overall            An ageing population                                            on markets worldwide. Simultaneously, indi-
prices for prosthetic services (dental fee plus       A trend towards group, multi-unit and                           vidual medium-sized enterprises remain very
material and laboratory costs) in Germany are          corporate dental practices                                      competitive.
in the middle range and roughly comparable            Technological advances in areas such as
with Denmark and the Netherlands. However,             CAD/CAM systems, intraoral imaging,                             At 22 %, the proportion of manufacturers
if material and laboratory costs are considered        digital radiography, caries diagnosis and                       supplying dentists or laboratories directly is
on their own, these are the second highest in          computer aided implantology.                                    highest in Germany.11 In many other Euro-
Germany, directly after Switzerland. With lab-        An increasing demand for particularly                           pean countries, especially the Netherlands,
oratory costs accounting for 61.3 %, Germa-            sophisticated aesthetic cosmetic dental                         Switzerland and the Czech Republic, sales are
ny is around 10 % higher than the average of           treatments                                                      conducted almost exclusively through dealers.
50.7 % for the countries examined.9
                                                      Fig. 4 /// Inhabitants per km²

                                                          ≥ 400
   Manufacturers/Trade
                                                        300 – 399

About 95 % of all medtech companies, in-                250 – 299
cluding those involved in dental medtech, are
                                                        200 – 249
organised as small and medium-sized enter-
prises (SMEs). They are highly innovative and            150 –199
                                                                                                                                 SWEDEN
strong exporters. These companies generally              100 – 149                                                                24.4
employ fewer than 250 people. The most im-                             EU average                                                                       FINLAND
                                                          30 – 99         117.5
portant dental market is North America, fol-                                                                                                              18.1
lowed by Europe. Emerging Asian economies                  < 30
                                                                                                                  NORWAY
                                                                                                                   16.9
such as India, China, South Korea, Malaysia,           Not evaluated
                                                                                                                                                                 ESTONIA
Thailand and Singapore should offer a growing                                                                                                                     30.3
market due to their rising per capita income.                                                                                                                    LETTLAND
                                                                                                                                                                   31.0
Germany has by far the largest trading volume                                                           DENMARK
                                                                                                         136.4                                              LITHUANIA
in Europe. The German market is regarded as                                                                                                                    45.8
the world‘s leading market in the dental sec-                          IRELAND
                                                                         69.3        UNITED
tor. Manufacturers expect sales to increase
                                                                                    KINGDOM                                                     POLAND
for 2018, especially in the area of materials. In                                    270.5               NETHERLANDS                            123.6
the export business, manufacturers recorded                                                                 498.2
                                                                                                   BELGIUM        GERMANY     CZECH REPUBLIC
an increase in sales, particularly in the target                                                    372.1          233.1                              SLOVAKIA
                                                                                                                                  136.8             111.5
regions of Western Europe and the Far East.10
                                                                                                                                  AUSTRIA             HUNGARY
                                                                                              FRANCE        SWITZERLAND            105.9                                     ROMANIA
                                                                                              105.5            210.1             SLOVENIA                                     84.1
According to a forecast of the US market re-
                                                                                                                                      102.5
search institute Renub Research, the global                                                                                       CROATIA                                       BULGARIA
dental market (dental diagnostics and dental                                                                                        74.6                                         64.8
surgical equipment) will grow by more than                                                                                    ITALY
                                                                          SPAIN                                                  203.6
USD 10 billion by the year 2022. Global sales of         PORTUGAL         92.5
                                                          113.5                                                                                                      GREECE
dental equipment amounted to USD 12.8 bil-                                                                                                                             69.3
lion in 2016. This is expected to grow further
to USD 17.8 billion by 2022.

Particularly healthy growth is also predicted
for the implant market. This market reached a
                                                                                                                                              Source: Eurostat13 /// Graphic: REBMANN RESEARCH /// As of: 2018

10 /// 11
Currently, increasingly protectionist tenden-                      Massive effects on trade are also feared in the                                          dental care is provided on a widespread basis.
cies in world trade, an imminent Brexit and                        event of a hard Brexit.                                                                  The map shows green values for the densely
trade conflicts, especially between the USA                                                                                                                 populated United Kingdom and some coun-
and China, are a cause of worry. China‘s eco-                                                                                                               tries in Central Europe. The further one moves
nomic growth in the third quarter of 2018 has                           Infrastructure/young dentists                                                       away from the centre of Europe, the larger the
already fallen to its lowest level since 2009 (at                                                                                                           area of countries such as Sweden and Finland,
only + 6.5 % when compared to the same pe-                         This study illustrates some indices that en-                                             France and Spain, Romania, Bulgaria and
riod the previous year). As a few US special                       deavour to portray the infrastructural frame-                                            Greece become and, generally speaking, the
duties on imports from China have only been                        work conditions of a country. These include                                              more difficult it is to provide care, especially
in force since September 2018, their impact is                     the DESI Index which measures the level of                                               far away from major cities.
expected to be considerably greater in 2019.                       digitisation of European countries. In addi-
According to the Federation of German Indus-                       tion, the GC Index reflecting competitiveness                                            Figure 5 shows the number of dental gradu-
tries (BDI), these conflicts have not yet affect-                  is shown, as is the GI Index for innovativeness.                                         ates per 100,000 inhabitants. Very high levels
ed German exports. However, the BDI sees an                        Figure 4 illustrates the population per km2 as                                           of up-and-coming talent (depicted in green)
urgent need for political action to avoid future                   a key infrastructural feature. The larger an                                             can be found in, for example, Romania. Many
negative consequences for international trade.                     area is, the more difficult it is to ensure that                                         countries have significant entry barriers such
                                                                                                                                                            as the numerus clausus or high tuition fees.
  Fig. 5 ///         Dental graduates per 100,000 inhabitants                                                                                               Some Eastern European countries, such as
                                                                                                                                                            Hungary, Bulgaria and, above all, Romania
       ≥ 7.0
                                                                                                                                                            are producing astonishing numbers of gradu-
     4.0 – 6.9                                                                                                                                              ates in dentistry. Spain and Portugal are also
     3.5 – 3.9
                                                                                                                                                            currently educating an above-average number
                                                                                                                                                            of dentists. In Western Europe, where demo-
     3.0 – 3.4
                                                                                                                                                            graphics seemingly have the strongest impact
     2.5 – 2.9                                                                                                                                              on the future, levels of up-and-coming talent
     2.0 – 2.4
                   EU average
                      2.74                                                    2.33                                                                          are rather average (Germany) to critical (Ita-
                                                                                                   FINLAND                                                  ly, Netherlands). Today‘s prospective dentist is
     1.4 – 1.9
                                                                                                     2.01                                                   likely to be more internationally oriented and
       < 1.3
                                                              NORWAY                                                                                        location-independent.
                                                              No data
   Not evaluated
                                                                                                            ESTONIA
                                                                                                              1.9
                                                                                                             LATVIA
                                                                                                              3.26
                                                    DENMARK
                                                    No data

                    IRELAND
                      1.65       UNITED
                                KINGDOM                                                   POLAND
                                  1.80               NETHERLANDS                          No data
                                                         1.34
                                               BELGIUM        GERMANY      CZECH REPUBLIC
                                                2.23            2.91                          SLOVAKIA
                                                                                 2.97     No data
                                                                              AUSTRIA       HUNGARY
                                          FRANCE        SWITZERLAND             1.53                                    ROMANIA
                                           1.79            1.53              SLOVENIA                                    10.46
                                                                                   3.34
                                                                                CROATIA                                    BULGARIA
                                                                               No data                                       3.5
                                                                          ITALY
                      SPAIN                                                   1.32
      PORTUGAL         3.71
        6.5                                                                                                          GREECE
                                                                                                                      No data

                                                                             Source: Eurostat, ADDE/ FIDE12 /// Graphic: REBMANN RESEARCH /// As of: 2018

                                                                        European Markets /// Structures, Challenges and Scenarios                           ///   ATLAS DENTAL   ///   ANALYSING STRUCTURES
1,000 inhabitants15
                                                                                                                                                                                                        No. dentists per
                                                                                                   Schleswig-Holstein
                                                                                                         2,383

GERMANY
                                                                                                                        Mecklenburg-Vorpommern
                                                                                                         Hamburg                  1,423                                                        ≥ 1.00

                                                                                            Bremen        2,033
                                                                                              547 Lower Saxony                          Berlin                                               0.90 – 0.99

Germany is Europe‘s “Dentalland”, achieving                                                                                             4,286
                                                                                                     6,639
peak values both in terms of consumers and                                                                                                Brandenburg                                        0.80 – 0.89
                                                                                                                        Saxony-Anhalt        1,967
suppliers. At 82 %, utilisation of dental services                        North Rhine-Westphalia                            1,919
is among the highest in Europe, since statutory                                   14,631                                                                                                     0.70 – 0.79
                                                                                                                                          Saxony
and private health insurance funds cover about                                                                     Thuringia              3,905
                                                                                                 Hesse               2,025                                                                   0.60 – 0.69
70 % of dental services. The population density                                                  5,569
of its almost 83 million inhabitants fluctuates                                                                                                         Region/Federal state/etc.
                                                                     Rhineland-Palatinate                                                                                                    0.50 – 0.59
strongly on a regional level. Around 75 % of the                            3,045                                                                         No. practising dentists
population lives in in towns and cities. Ger-                                                                                                                                                0.40 – 0.49
man health expenditure totalled € 374.2 billion                Saarland                                                   Bavaria
                                                                 674                                                       11,787
in 2017. Its share of GDP has risen steadily in                                             Baden-Württemberg                                                                                  < 0.39

recent years to a current (2017) level of 11.3 %.                                                 9,093
The healthcare market is therefore growing                                                                                                                                                  Not evaluated

significantly faster (2017: + 5 %) than the econ-
                                                                                                                                                                                    Graphic: REBMANN RESEARCH
omy as a whole (2017: + 2.2 %).14 Around 7.4 %
(€ 27.4 billion) of health expenditure can be
attributed to dental practices. In terms of per
capita dental spending, Germany scores in the        the demographic situation in Germany, which                                    involved in care) is responsible for organising
upper middle range across Europe at € 331, but       has one of the highest median ages (46 years)                                  care. Health insurance contributions (which
is still a third below the Swiss average. Provid-    in Europe, nevertheless raises many questions                                  are split and borne equally by employees and
er structures are correspondingly pronounced         for the future. This applies in particular to the                              employers) are paid into the health fund,
in Germany. When compared to the rest of             financing of an increasing demand for dental                                   from which insurers are allocated their funds
Europe, there is an above-average provision in       services and dental innovations. According to                                  through a risk structure compensation scheme
almost all states in Germany, with the figure        a study conducted by the Institute of German                                   adjusted to take morbidity into consideration.
on a federal level being 0.87 dentists/1000 in-      Dentists (IDZ), an increase in employment of                                   Insured persons can freely select their doctors
habitants. City-states such as Berlin (1.21) and     around 20 % is expected in the area of dental                                  (and dentists). Private households are the most
Hamburg (1.13) are “dentist metropolises”, but       care by 2030. This means approximately 65,000                                  important payers for dental care under the SHI
are still surpassed by, for example, the Czech       additional dental health and dental technology                                 system, with an average of 29.8 % of dental
capital Prague. Only Saarland, with a figure         professionals and around 11,000 additional re-                                 costs being paid privately (supplementary den-
of 0.68, still exhibits a value slightly below the   tailers of oral health products. Growth effects                                tal insurance or out-of-pocket). Germany is,
European average. However, more in-depth             should be generated primarily through the                                      by European standards, the country with the
Atlas maps indicate that there are also many         privately financed, so-called “second health                                   highest share of public funding. Associations
regions in Germany with dental care problems.        market”.                                                                       for panel doctors (and dentists) are responsi-
Despite this, the supply of young dental profes-                                                                                    ble for ensuring outpatient care. Around 15.4
sionals remains intact, as demonstrated by the         Demand structures                                                            million people (16.6 % of those with statutory
slightly above-average quota of dental gradu-                                                                                       health insurance) had supplementary dental
ates. In cross-European comparison, the den-         In terms of caries experience, periodontitis                                   insurance at the end of 2016 (a quadrupling of
sity of dental technicians also reaches a peak       and complete edentulism, Germany achieves                                      the figure since 2000). Statutory health insur-
value in Germany, with a dental technician for       top marks in oral health in an international                                   ance provides full coverage
almost every dentist. At € 7.5 billion, costs for    comparison. Public social insurance exists
dental prostheses are very high, and the lab-        which is mandatory up to an upper income                                       ■ for prophylactic measures in the case of
oratory density is also above average with 0.2       limit (Bismarck model). The dual system of                                        children and adolescents,
dental laboratories per 1,000 inhabitants. Most      private (PHI) and statutory health insurance                                   ■ for two prophylactic examinations per year,
manufacturers offer their products through           (SHI) is unique in Europe. Approx. 10.5 % of                                   ■ for necessary conservative and surgical
specialist dental dealers, but around a quarter      the population is privately insured. SHI cur-                                     treatments (including in the home environ-
also does business through direct sales. In the      rently consists of about 109 individual funds.                                    ment and nursing homes if necessary) and
dental trade, the ratio of dentists to each den-     The state specifies the framework conditions,                                  ■ necessary orthodontic treatments for adoles-
tal dealer (435:1) is above average. However,        while local self-administration (everybody                                        cents up to 18 years of age.15

12 /// 13
In the case of costs for dental prostheses, the                                                                                                                                                     The average age of dentists involved in dental                                                                                                                                                                             (ZFA) is a prerequisite for admission to stud-
own contribution rate is 50 % or higher (de-                                                                                                                                                        care has increased steadily in recent years,                                                                                                                                                                               ies.
pending on the form of care selected). The                                                                                                                                                          reaching 48.6 at the end of 2016, with female
fixed allowance increases by 20 – 30 % in the                                                                                                                                                       dentists on average younger (45.5) than their                                                                                                                                                                              The number of people working in dental prac-
case of regular visits to a dentist.15                                                                                                                                                              male counterparts (51.1).15                                                                                                                                                                                                tices has increased over the past decade by
                                                                                                                                                                                                                                                                                                                                                                                                                               around 53,000 to 365,000 (2017). However,
                                                                                                                                                                                                    In 2017, 3,819 orthodontists, 3,175 oral sur-                                                                                                                                                                              despite an absolute increase in jobs, services
         Dentists/Practices                                                                                                                                                                         geons and 1,733 oral and maxillofacial sur-                                                                                                                                                                                offered in dental surgeries have been steadily
                                                                                                                                                                                                    geons were active in dental medicine.15 There                                                                                                                                                                              declining since 2011 as a proportion of total
Of roughly 72,000 practising dentists, around                                                                                                                                                       are also many practices specialising in one                                                                                                                                                                                health expenditure.
61,900 were working in panel dental care for                                                                                                                                                        area, or groups of practices offering services
outpatients in 2017, with about 11,200 of these                                                                                                                                                     that focus on one or more specialities.                                                                                                                                                                                    A total of 69,075 dental operations were per-
employed as dentists. The density of dentists                                                                                                                                                                                                                                                                                                                                                                                  formed in German hospitals in 2017. Most
throughout Germany has increased consider-                                                                                                                                                          In contrast to some other European coun-                                                                                                                                                                                   of the procedures involved tooth extractions
ably since the year 2000. The number of dental                                                                                                                                                      tries, the job of dental hygienist is not an in-                                                                                                                                                                           (25,620 cases), followed by tooth removal
students in the winter term from 2017/2018                                                                                                                                                          dependent profession in Germany, but a career                                                                                                                                                                              through osteotomy (23,893 cases). In third
was 15,151, of which about 64 % were female. In                                                                                                                                                     advancement for qualified dental assistants                                                                                                                                                                                place was gingival modelling (gingiva plasty:
contrast to the number of dentists, the number                                                                                                                                                      (ZFA). Dental hygienists in Germany work                                                                                                                                                                                   11,533 cases) following extensive periodontal
of dental practices has been steadily declining                                                                                                                                                     under the supervision of a dentist. The focus                                                                                                                                                                              treatment or implantations.17
since 2010. Dental care continues to be largely                                                                                                                                                     of dental hygienists is oral prophylaxis as part
provided by individual practices (82 %), and                                                                                                                                                        of the pre- and follow-up treatment of perio-                                                                                                                                                                              (Public) expenditure for dentures only in-
small practice structures also dominate in the                                                                                                                                                      dontal disease. A bachelor‘s degree in dental                                                                                                                                                                              creased in five years by 5.8 % (+ € 179 million).
case of group practices (87 % of group practices                                                                                                                                                    hygiene also exists since summer 2014, where a                                                                                                                                                                             By contrast, all other dental services clearly in-
have two owners).16                                                                                                                                                                                 completed apprenticeship as a dental assistant                                                                                                                                                                             creased in the double-digit range. The largest

         Fig. 6 ///                     Structural profile – Germany

  80,000                 90 Mio.           30                         13                      48                           85                        30 Mrd.                                  500                          100                            1.0                          4.5                        4                     0.25                          1                                 5                                 100                        23                      600                       600                          75                                90                           70
                        82,850,000

                                                                                                                                                                                                                                                                                                                                                                                                                                                              22.0 %
                                                                                                                                                  € 27.41 bil.
                                                                                                                 81.9 %

                                                                                                                                                                                                                                                                                                                                                          0.94
                                                                                                                                                                                                                                                0,87

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              82.80
                                                                                      46.0

                                                                                                                                                                                                                                                                                                                                     0.2

                                                                                                                                                                                                                                                                                                                                                                                           4.06

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          435.92

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           58.39
                                     27.6 %

                                                                                                                                                                                           € 330.86

                                                                                                                                                                                                                                                       0.74
                                                                                                                                                                                                                                                                                                             2.91

                                                                                                                                                                                                                            72

                                                                                                                                                                                                                                                                                                                                                                                                   3.41
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        55.62

                                                                                                                                                                                                                                                                                                                2,74
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                55,5

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               50.85
                                                                                            43.1                         60.1                                                                                                                                                                                                                                                                                                                                                                                                                                                       72.9
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      11
 € 39,389

                                                                                                                                                                                                                                                                                                                                                                 0.46
                                         25,6                                                                                                                                                                                                                                                                                                                                                                                                                                              270.08
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  233.10

                                                                                                                                                                                                                                                                                                                                        0.09
                                                                                                                                                                                                                                                                                                                                                                                                                                           34
                                                                                                                                                                                                                                                                                                                                                                                                                                      30.0 %
                                                                                                                                                                                                                                                                                 1.69

                                                                                                                                                                                              156                                                                                     1,74
  30,000
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        171
                                                                  1.70 %

                                                                     2,11
                                                                                                                                                                                                                       30.0 %

   10.000                   0              22                         -2                      38                           35                                  0                                0                           20                           0.2                           0.5                        1                       0                           0                                  1                                  0                         0                       0                          0                          30                                55                           30
 GDP per inhabitant

                        Population

                                     Population share 60+

                                                             Population development
                                                                (growth) up to 2030

                                                                                      Median age of population

                                                                                                                 Utilisation of dental services

                                                                                                                                                  Market volume of dental practices

                                                                                                                                                                                      Per capita expenditure
                                                                                                                                                                                          for dental services

                                                                                                                                                                                                                   Share of private costs for
                                                                                                                                                                                                                 services in dental practices

                                                                                                                                                                                                                                                                                                         Dental graduates per

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Number of dentists
                                                                                                                                                                                                                                                                                 Dentists per practice

                                                                                                                                                                                                                                                                                                                                Dental laboratories per

                                                                                                                                                                                                                                                                                                                                                          Dental technicians per dentist

                                                                                                                                                                                                                                                                                                                                                                                           Dental technicians per dental lab

                                                                                                                                                                                                                                                                                                                                                                                                                                Goods procured by dentists

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        per dental trader

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Inhabitants per km²

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Degree of digitisation (DESI Index)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Competitiveness (GC Index)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Innovativeness (GI Index)
                                                                                                                                                                                                                                                Dentists per 1,000 inhabitants

                                                                                                                                                                                                                                                                                                         100,000 inhabitants

                                                                                                                                                                                                                                                                                                                                     1,000 inhabitants

                                                                                                                                                                                                                                                                                                                                                                                                                                           via the internet

                                                                                                                                                                                                                                                                                                                                                                                                                                                              Share of direct sales

      XXX             Ø EU               XXX                Ø 10 countries (study)

             Highest utilisation of                                                                              Lowest private contribution                                                                                                                          Greatest dental lab and                                                                                       Highest quota of dental                                                                                                           Very high competitiveness
             dental services                                                                                     to dental services                                                                                                                                   dental technician density                                                                                     manufacturers with direct sales                                                                                                   and innovativeness
                                                                                                                                                                                                                                       Source: Eurostat, OECD, European Commission, ADDE/FIDE, World Economic Forum, Cornell University, INSEAD, WIPO and others /// Graphic: REBMANN RESEARCH /// As of: 2018

                                                                                                                                                                                                                European Markets /// Structures, Challenges and Scenarios                                                                                                                                                      ///                 ATLAS DENTAL                                             ///                ANALYSING STRUCTURES
Fig. 7 /// Endodontic specialists                                                                                                        Fig. 8 ///         Dental practices with labs
                                                                                               249                                                                                                                            329

      Hesse: 7,040 inhabitants per dentist                                                                                                      Brandenburg: 21,959 inhabitants per dentist
                                                                                               84                                                                                                                             28

                                                                                               63                                                                                                                             14

                                                                                               42                                                                                                                              0

                                                                                               21                                                                                                                             -14

                                                                                                0                                                                                                                             -28

                                                                                               -33                                                                                                                            -43

                                                                                                      Percentage deviation from average

                                                                                                                                                                                                                                     Percentage deviation from average
                                             This map illustrated the density of den-                                                         This map illustrates the density
                                             tists in Hesse (Germany) specialising in                                                         of dental practices in Brandenburg
                                              endodontics. Green areas are regions in                                                         (Germany) with their own lab.
                                              which there are still good opportuni-                                                           The fewer own labs calculated per
                                             ties for specialising from a competitive                                                         inhabitant, the less the competition,
                                             point of view.                                                                                   hence the green colouration.

                                                               Source: www.ATLAS-MEDICUS.de /// As of: 2018                                                                                   Source: www.ATLAS-MEDICUS.de /// As of: 2018

area of spending, namely conservative surgical treatment, also grew the                                                                   consisted of 7,211 commercial dental laboratories, to which 11,290 prac-
strongest in absolute terms (+ € 1,469 million or + 22.6 %). With regard                                                                  tice laboratories with and without dental technicians can be added.18
to absolute spending, this is followed by the “Other” category which,
in percentage terms, increased most dramatically (+ € 144 million and                                                                     70.1 %, or 5,056 labs are among the small laboratories classified in the
+ 41.7 %, respectively). The field of orthodontics grew by € 125 million,                                                                 turnover tax bracket under € 500,000. Their share of overall turnover
or 12.8 %. Spending on periodontal treatment increased by € 67 mil-                                                                       was 26.0 % in 2016. “Medium-sized laboratories” include 29.4 % (2,117)
lion (+ 17.3 %), while turnover from individual prophylaxis (IP) grew by                                                                  of laboratories which are in the turnover tax class between € 500,000 and
€ 63 million (+ 13.3 %). Overall, this review illustrates that the dental                                                                 € 5 million. Only 0.53 %, or 38 laboratories achieve a turnover exceeding
service spectrum is shifting due to improving oral health and increasing                                                                  € 5 million. However, these laboratories have a total market share of
health awareness. The need for dental prostheses is increasingly shifting                                                                 21.4 %. The largest proportion of commercial laboratories (72 %, or 5,195
into advanced age.16                                                                                                                      laboratories) generates turnover of between € 100,000 and € 1 million.
                                                                                                                                          Operational figures have been steadily declining since 2012, with small
                                                                                                                                          businesses in particular being affected by this development. Of a total
   Dental laboratories                                                                                                                    of around 64,700 dental technicians, around 49,500 were working as
                                                                                                                                          employees in 2017. Over 85 % of dental technicians work in commercial
The German dental laboratory market is highly fragmented, with                                                                            dental laboratories.20
around 19,500 commercial dental laboratories and laboratories in prac-
tices active. Approximately 32 % of all dental practices have their own                                                                   Total expenditure on dental prostheses in 2016 was € 7.51 billion. This
laboratory (55 % of them with dental technicians). Spending per mem-                                                                      related to services provided by both commercial dental laboratories and
ber of the statutory health insurance was € 249.81 in 2016 for treatment                                                                  practice laboratories.21 The turnover of commercial dental laboratories
by dentists, including dental prostheses, and € 190.75 for treatment                                                                      subject to VAT was around € 5 billion in 2017. Turnover development
without dentures.16                                                                                                                       in recent years was continually below GDP, with the turnover increase
                                                                                                                                          in 2017 being 1 % when compared to the previous year. The volume of
When one only considers those businesses subject to VAT and disre-                                                                        services is declining and, despite annual increases in remuneration,
gards micro-enterprises, the German dental laboratory market in 2016                                                                      spending for dental prostheses has hardly grown in recent years. The

14 /// 15
reason for the decline in the volume of ser-        30 % (see also p. 55).23 More than half of dental             Overall, the German medtech market contin-
vices is primarily explained by the increased       prostheses manufactured abroad are produced                   ues to develop very positively. The domestic
oral health of the population. The demand           in China, with Turkey and the Philippines be-                 market recorded an increase in sales of 4.2 % in
for dental services is shifting more and more       ing further important countries of origin.24                  2018 compared to the same period for the pre-
towards restorative dentistry/prevention and        The increasing demand for high-quality, indi-                 vious year. Medtech exports to EU countries in
(due to the growing importance of aesthetics)       vidual products and, also, the growth in CAD/                 the first half of 2018 only slightly exceeded pre-
higher value care through which laboratories        CAM parts produced very cheaply and quickly                   vious year‘s level (+ 0.8 %). However, the situa-
can compensate somewhat for the decrease            in practices, dental laboratories and manufac-                tion with regard to profitability remains tense
in volume. On the other hand, baby boom-            turing centres put the importance of foreign                  due to falling prices and increased costs. In ad-
ers maturing into “best agers” and increasing       prostheses into perspective.25                                dition to economic reasons and the impending
cooperation with nursing facilities combined                                                                      Brexit, this development is chiefly attributable
with better billing options for the dental care                                                                   to increasing regulatory requirements (main-
of nursing home residents are having a positive       Manufacturers/Trade                                         ly due to the new European Medical Device
effect on future prosthetic needs. These devel-                                                                   Regulation [MDR]). Nevertheless, investments
opments are tempering the decline in the vol-       After the USA and China, Germany is the                       in German production locations grew and re-
ume of dental prostheses which, nevertheless,       third-largest producer of medical technology                  search spending also tended to increase. Ger-
will continue in future. The frequency of pros-     in the world. Heavily characterised by small                  man medtech enterprises currently invest on
thetic care and restorations decreased by 9 %       and medium-sized enterprises (approx. 11,000                  average 9 % of their turnover in R&D.26, 28 The
in the period from 2006 to 2016, while single       micro-enterprises < 20 employees and around                   German medtech industry is regarded as high-
crowns (+ 10.8 %), bridges (+ 8 %) and telescop-    1,300 companies > 20 employees), the medtech                  ly innovative with short product development
ic prostheses (+ 18 %) increased significantly.16   industry provides around 200,000 jobs. About                  cycles. The annual turnover of the entire Ger-
                                                    9 % of turnover is invested in research and de-               man medical technology sector was around
As well as being evidence of increased oral         velopment each year.26                                        € 30 billion in 2017.26
health, this also indicates a clear tendency
away from removable to fixed prostheses. Con-       The German market is regarded as the world‘s                  In its Survey 2018, the Association of Dental
versely, the volume of services increased by        leading market in the dental sector. German                   Dealers in Europe (ADDE) lists 165 dental
27.5 % in the area of orthodontics from 2006        dental companies are market leaders in nu-                    trade companies for Germany, of which 120
to 2016 and by as much as 86.5 % in the area        merous areas. The 200 mostly medium-sized                     are so-called full-service providers whose mar-
of mandibular fracture/temporomandibular            enterprises which are members of the Associa-                 ket share amounts to around 52 %. According
joint disease, presumably due to the increased      tion of German Dental Manufacturers (VDDI)                    to the ADDE, dental products marketed exclu-
need for occlusal splints.16                        represent 85 to 90 % of the German dental                     sively through distance selling (online, cata-
                                                    market. According to the VDDI, the range of                   logues, etc.) only account for a market share of
Very little reliable market data has been avail-    services offered by the German dental indus-                  around 18 % in Germany.
able to date to indicate the degree to which        try includes more than 60,000 products in
the stagnating volume might be offset by of-        the areas of equipment, devices, instruments
fering higher-quality service. A study on the       and materials covering the entire spectrum
cost of dental prostheses indicated that 59 %       of dentistry, from diagnosis and prevention to
of patients pay over € 1,000 for prostheses,        restoration/therapy. Solutions are also offered
with 19 % paying more than € 5,000.22 Many          for the dental laboratory sector. VDDI mem-
people simply cannot afford their own con-          bers alone provide work for 20,700 employ-
tribution towards dental prostheses. This was       ees. The numbers employed by VDDI mem-
revealed in a household survey conducted by         ber companies have risen by more than 22 %
the Federal Statistical Office in 2016. 44.3 % of   since the year 2000. Typical characteristics of
respondents (48.4 % of those at risk of poverty)    German dental companies are a high degree
decided against visiting a dentist for necessary    of specialisation, high development costs, an
treatment due to financial reasons.19 Dental        above-average patent quota and a high level of
prostheses from abroad exert additional com-        vertical integration. VDDI member companies
petitive pressure on laboratories working in a      achieved sales of around € 5.3 billion in 2017,
conventional manner. Exact data on the mar-         with exports accounting for 62 %. Growth out-
ket share of foreign prostheses is not available,   side Germany was 5.9 % higher in 2017 than
with estimates differing widely between 10 and      domestically (+ 2.8 %).27

                                                      European Markets /// Structures, Challenges and Scenarios   ///   ATLAS DENTAL   ///   ANALYSING STRUCTURES
1,000 inhabitants29
                                                                                                                                                                                              No. dentists per
BELGIUM                                                                                   East Flanders
                                                                                                                               Antwerp
                                                                                                                                1,175
                                                                                                                                                    Limburg
                                                                                                                                                                                     ≥ 1.00

                                                                                                                                                                                   0.90 – 0.99
                                                             West Flanders                    1,055                                                  3,045
Belgium occupies a very central location in Eu-                   811                               Brussels - Capital        Flemish Brabant
rope and, with 11.4 million inhabitants, 65 %                                                            Region                    3,045                                           0.80 – 0.89

of whom live in towns and cities, is one of the                                                          3,045
most densely populated countries (372 inhabi­                                                                            Walloon Brabant
                                                                                                                                                              Liège
                                                                                                                                                                                   0.70 – 0.79

                                                                                                                          3,045
tants/km2). In addition, a strongly technical                                                Hennegau                                                         3,045
infrastructure ensures that the country‘s im-                                                  667                                                                                 0.60 – 0.69

age appears above average in Europe in terms                                                                                          Namur
                                                                                                                                       299                                         0.50 – 0.59
of innovation, digitisation and competitive-
ness. These factors are also the reasons why                  Region/Federal state/etc.                                                                                            0.40 – 0.49
Belgium is forecasting relatively strong pop-                   No. practising dentists                                                            Luxembourg
ulation growth until 2030. Overall, therefore,                                                                                                         159
                                                                                                                                                                                     < 0.39

the country also offers first-class framework
conditions for the dental market. This contin-                                                                                                                                    Not evaluated

ues to lead to a rather average existence in Bel-
                                                                                                                                                                          Graphic: REBMANN RESEARCH
gium, with per capita expenditure of € 153 on
dental care being just below the average for the
countries examined here. The market volume
is € 1.75 billion. Utilisation of dental services    both schemes since 2008. Private insurance                                            Dentists/Practices
and the density of dentists both fairly accu-        providers only account for a small share of the
rately reflect the average. What is noticeable is    market. A national health insurance institute                                       Belgium has some regions such as Brussels and
the relatively low private share of 48 % which       administers the entire health system and dis-                                       Flemish Brabant which enjoy a high level of
patients have to bear themselves for dental ser-     tributes funding to health insurance providers.                                     service. The density of dentists there is almost
vices. On the one hand, this makes the dental        It also negotiates tariffs for a duration of two                                    twice as high as in Hainaut or the province
market less susceptible to cyclical fluctuations     years at a national level with representatives of                                   of Namur. Due to the relatively small area, it
but, on the other, it also restricts the supply of   doctors (and dentists). This “convention” must                                      is assumed that even in less well-serviced re-
innovative forms of treatment, as these would        be signed by the health minister. All individ-                                      gions, a large part of the population can reach
place too great a burden on the state system.        ual doctors are then obliged to agree to this.                                      a dentist by bus or car within 15 minutes. The
                                                     Physicians are free to practice as “convention                                      approximately 8,300 dentists in Belgium work
                                                     doctors” or to apply their own tariffs (which                                       in around 4,050 practices. This means that, on
   Demand structures                                 are remunerated lower). Individual contracts                                        average, there are 2.04 dentists to a practice,
                                                     cannot be concluded between insurance firms                                         which overall is an above-average figure for the
In Belgium, 99 % of the population is in a com-      and providers. Patients are free to choose their                                    countries examined here. In the neighbouring
pulsory insurance system (Bismarckmodel).            doctor, hospital and insurance.                                                     Netherlands, this figure is just 1.25 dentists per
This consists of six private health insurance                                                                                            practice. Numerous dentists restrict treatment
funds and one public health fund. Insurance          Health expenditure in 2017 was € 43.8 billion,                                      exclusively to private patients. Following a
contributions are income related, not risk re-       with around 75 % of this being covered by                                           five-year master‘s degree, general dentists then
lated. Two insurance schemes exist:                  taxes and social security. 3.1 % of all govern-                                     complete their studies with a one-year intern-
                                                     ment spending on health care in Belgium is                                          ship. Having acquired their masters, they can
■ Major risks: hospital care, obstetrics,           spent on dentistry.30 Despite the relatively good                                   specialise further as an orthodontist, implan-
   elective surgery, dialysis, rehabilitation,       dental care cover provided by the compulso-                                         tologist or periodontist.31 Belgium also has
   implantations and consultant care.                ry insurance, utilisation of dental services is                                     a problem when it comes to up-and-coming
■ Minor risks: medical consultations,               only average at around 60 %. The more private                                       talent, as the rate of dental graduation is sig-
   dentist, minor surgery, home care,                medi­cal system in the neighbouring Neth-                                           nificantly below average. Whereas a European
   medication in the outpatient sector.              erlands obviously offers more mobili­      sation                                   comparison shows that 2.74 graduates are edu-
                                                     incentives, and utilisation there is around 20                                      cated for every 100,000 inhabitants, the figure
Self-employed persons previously only insured        percentage points higher.                                                           in Belgium is only 2.23. Although the problem
for major risks are obliged to pay insurance for                                                                                         regarding young talent is not as great as in the

16 /// 17
Netherlands, supply constraints, especially in                                                                                                                                                                    medical technology import rate is 80 %. Clin-
the already underserved regions, could soon                                                                                                                                                                       ic projects are opening up very good business
emerge, given the steadily growing population.                                                                                                                                                                    opportunities.32

                                                                                                                                                                                                                  About one quarter of all dental instruments
         Dental laboratories                                                                                                                                                                                      and X-ray appliances originates in Germany.33

Belgium has only half as many dental labora-                                                                                                                                                                      The proportion purchased by dentists via the
tories per 1,000 inhabitants as the 10 countries                                                                                                                                                                  internet is significantly below average in Bel-
which are the focus of this study. With 0.15                                                                                                                                                                      gium. In the neighbouring Netherlands, this
dental technicians per dentist, only one third                                                                                                                                                                    trend is three times as pronounced. At only
of the average value is achieved. Additionally,                                                                                                                                                                   5 %, the share of manufacturers involved in
with 2.08 dental technicians, the dental labo-                                                                                                                                                                    direct sales is also considerably below average
ratories are small to a below-average degree.                                                                                                                                                                     in Belgium (see Fig. 9). The sale of dental con-
                                                                                                                                                                                                                  sumer goods and consumables clearly takes
                                                                                                                                                                                                                  place through dealers. Since there are relatively
         Manufacturers/Trade                                                                                                                                                                                      many dental dealers and, by comparison, only
                                                                                                                                                                                                                  an average number of dentists, the number of
The Belgian medtech market is forecast to                                                                                                                                                                         dentists per dental dealer, namely 202, is also
grow by 23 % in the period from 2016 to 2019                                                                                                                                                                      below the average of the 10 countries focused
to attain a volume of € 2.5 billion. Around 300                                                                                                                                                                   on here.
medical engineering companies are registered
in the beMedTech association (formerly Un-
amec), with 250 of these involved in sales and
only 40 enterprises producing themselves. The

         Fig. 9 ///                     Structural profile – Belgium

  80,000                 90 mil.           30                         13                      48                             85                            30 bil.                                          500                           100                            1.0                              4.5                        4                     0.25                          1                                   5                                100                        23                      600                       600                          75                                90                           70

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            60.78
                                                                                                                                                                                                                                                               0.74

                                                                                                                                                                                                                                                                      0,74
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      372.10

                                                                                                                                                                                                                                           72
                                                                  7.25 %

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  76.60

                                                                                                                                                                                                                                                                                                                                                                                                                        3.41
                                                                                                                                                                                                                                                                                                                                   2.74
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    55.5
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               49.85
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   50,85
                                                                                                                   59.1 %

                                                                                            43.1                          60,6                                                                                                                                                                                                                                                                                                                                                                                                                                                                          72,9
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          11
 € 38,307

                                                                                                                                                                                                                                                                                                                                                                                    0.46
                                         25,6                                                                                                                                                                                                                                                                                                                                                                                                                                                                  270,08
                                                                                                                                                                                                                                                                                                                                2.23
                                                                                                                                                                                                                                                                                                    2.04
                                                                                                                                                                                                                                      48.0 %
                                                                                      41.6

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              201.86
                                                                                                                                                                                                         € 153.23

                                                                                                                                                                                                                                                                                                                                                           0.09
                                     24.5 %

                                                                                                                                                                                                                                                                                                                                                                                                                                                               34
                                                                                                                                                                                                          152,55                                                                                         1,74
   30.700
                                                                                                                                                                                                                                                                                                                                                                                                                2.08

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            171
                                                                    2.08
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  5.0 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                          20.0 %
                                                                                                                                                                                                                                                                                                                                                        0.05
                        11,413,058

                                                                                                                                                                                                                                                                                                                                                                             0.15
                                                                                                                                                    Market volume of dental practices € 1.75 bil.

   10,000                    0             22                         -2                      38                             35                                       0                                       0                            20                           0.2                               0.5                        1                       0                           0                                    1                                 0                         0                       0                          0                          30                                55                           30
 GDP per inhabitant

                        Population

                                     Population share 60+

                                                             Population development

                                                                                                                                                                                                                                                                                                                            Dental graduates per

                                                                                                                                                                                                                                                                                                                                                   Dental laboratories per

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Degree of digitisation (DESI Index)
                                                                (growth) up to 2030

                                                                                      Median age of population

                                                                                                                   Utilisation of dental services

                                                                                                                                                                                                    Per capita expenditure
                                                                                                                                                                                                        for dental services

                                                                                                                                                                                                                                  Share of private costs for
                                                                                                                                                                                                                                services in dental practices

                                                                                                                                                                                                                                                                                                    Dentists per practice

                                                                                                                                                                                                                                                                                                                                                                             Dental technicians per dentist

                                                                                                                                                                                                                                                                                                                                                                                                                Dental technicians per dental lab

                                                                                                                                                                                                                                                                                                                                                                                                                                                    Goods procured by dentists
                                                                                                                                                                                                                                                                                                                                                                                                                                                               via the internet

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Share of direct sales

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Number of dentists
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            per dental trader

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Inhabitants per km²

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Competitiveness (GC Index)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Innovativeness (GI Index)
                                                                                                                                                                                                                                                               Dentists per 1,000 inhabitants

                                                                                                                                                                                                                                                                                                                            100,000 inhabitants

                                                                                                                                                                                                                                                                                                                                                        1,000 inhabitants

     XXX              Ø EU               XXX                Ø 10 countries (study)

             Very good population                                                                                Private contribution to                                                                                                                                                        Dental lab market below                                                                                       Relatively few dentists                                                                                             Very good
             forecast until 2030                                                                                 dental services < 50 %                                                                                                                                                         average small                                                                                                 per dental dealer                                                                                                   infrastructure indicators
                                                                                                                                                                                                                                                     Source: Eurostat, OECD, European Commission, ADDE/FIDE, World Economic Forum, Cornell University, INSEAD, WIPO and others /// Graphic: REBMANN RESEARCH /// As of: 2018

                                                                                                                                                                                                                              European Markets /// Structures, Challenges and Scenarios                                                                                                                                                             ///                ATLAS DENTAL                                             ///                ANALYSING STRUCTURES
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