This document discusses business opportunities for Finnish dental companies in emerging Asian markets. It finds that the dental sectors in China, India, Taiwan, and Malaysia are growing rapidly due to an expanding middle class and increased focus on dental health. The number of dentists and dental clinics is rising in all countries. All countries import most high-end dental equipment from Europe, Japan, and the US, representing an opportunity for Finnish exporters. The dental market is worth $400 million in China and growing at 21% annually, while India's market is expected to reach $116 million by 2014 at 6% growth. Taiwan and Malaysia also represent opportunities as their markets grow over 10% annually and have relatively light regulations for foreign dental products and equipment.

1. Opportunities in the dental
sector in emerging Asian
markets and India
Time to seize the business
opportunity

2. The Drivers of Growth for Dental Sector
• In the emerging Asian markets the
wealth of middle class is growing
and consumers are increasingly
willing to invest into personal dental
care
• Drivers of growth are the rising
importance of own appearance and
increased knowledge about dental
health
• In the cities the amount of private
dental clinics is increasing fast and
they have urgent need for modern
equipment
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3. The Dental Statistics in the Emerging Asian
Countries
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China: 110,000 dentists
market growth rate 21 % p.a
Taiwan: 6,400 dental clinics
market growth rate 12% p.a
India: 180,000 dentists
market growth rate 25-30% p.a
Malaysia: 4,300 dentists
market growth rate 11% p.a

4. Business Opportunities for Finnish companies
• Business opportunities for
Finnish companies exist
especially in dental equipment,
software and biomaterials,
dental services and education
• Most of the high-end dental
equipment is imported from
Europe, USA and Japan – the
local competition is still limited
• There are already Finnish
dental companies present in
Asia, the well known are
Planmeca, Soredex and
Instrumentarium
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5. The Dental Market in China
• In China the market for dental equipment is worth around USD 400
million (2012)
• Oral health coverage has improved dramatically in the last fifteen
years
– 1:50,000-60,000 dentist to population ratio in 1995 to 1:13,000 in 2010
• Imports of dental equipment and materials reached USD 153
million in 2010, with a growth of 21.37% from 2009
• China imports 70% of the dental materials and furniture from
premium markets such as Germany and Japan although they
have own production and imports from low cost countries
(dental materials mainly)
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6. The Dental Market in India
• The potential size of India's dental market
is vast and the country is expected to
become one of the largest single market
for overseas dental products and materials
– Import of dental devices increased from
USD 25 mill. (2010) to USD 30 mill. (2011);
20% (Source: UN Comtrade 2012)
• By 2014, the Indian dental equipment
industry is expected to reach USD 116
million, growing 6% annually
– Both government and private sector
hospitals are in the process of upgrading
and expanding their facilities and dental
equipment
– Dental care services market USD 1.16
billion and oral care market USD 1.8 billion
• India’s market for dental products is
extremely dynamic, with a current
estimated growth rate of between 25-30%
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7. The Dental Market in Taiwan
• There are more than 6400 dental clinics in Taiwan (2011)
• Dental material and equipment import value in 2011 is about USD 103
million with estimate growth rate of 11.9%, potential market in 2013 will
be around USD 129 million
– Import of dental devices increased from USD 26 mill. (2010) to USD 31 mill.
(2011); 19%
• Nearly 65% of medical device market is imported products
– Dental market has the same or higher percentage, especially all high-end
equipment are imported
• Registration process (for FDA approved products) takes between 100 to
200 days only, depending on the innovation level for the Taiwanese
market
• More dental clinics are seeking for bank loans
– basic dental equipment cost will be around USD 167 000 to 267 000 for a clinic of 4
to 5 dentists
– equipment renew will cost around USD 33 300 to 67 000
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8. The Dental Market in Malaysia
• The market size for dental equipment is over USD 400
million
• There are a number of distributors selling dental
equipment, instruments and supplies
• Medical devices and supplies are mainly imported
• 90% of the high quality equipment is imported from abroad
• Main exporters to Malaysia are the U.S. and Japan, followed by
Germany
• Possibly the easiest market for Finnish dental companies
entering the Asian markets for the first time
• Low registration barriers for medical device imports from Europe
and US (currently no formal process)
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9. The strategic window is open now in selected
Emerging Asian Countries
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China: Take your piece of the pie
now – expand your operations
Taiwan: Heavily investing on devices –
light registration process
India: Limited own production in high-
tech devices; reduced customs
duty for dental imports
Malaysia: Opens the dental service
sector for foreigners now –
no registration barriers

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5/21/2013 © Finpro 10

11. More information
Christine Grumbach
Senior Consultant
Head of Health Technology sector
christine.grumbach(a)finpro.fi
+49 171 8893 000
Pietro Karjalainen
Regional Sales Manager, Asia
pietro.karjalainen(a)finpro.fi
Tel +358 40 1795 755
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Laura Strandberg
Senior Consultant
laura.strandberg(a)finpro.fi
+358 40 3433 410

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