Trends, challenges and opportunities in the dental market

Dental Tribune International

Mon. 17. March 2025

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LEIPZIG, Germamy: Since IDS 2023, quarterly reports from the world’s largest dental manufacturers have highlighted a dental market in flux. The industry, typically resilient to economic downturns, has grappled with macroeconomic challenges, fluctuating patient volumes and shifting demand between regions and product categories. As Asia-Pacific and Latin America have emerged as key growth regions, the US and European markets have faced stiff headwinds, owing to restrained consumer spending on high-end elective procedures like tooth alignment and dental implant treatment.

Orthodontics facing new challenges

The orthodontics market has shown mixed performance in recent quarters. Align Technology, despite a solid performance in its teen segment, faced challenges in adult case starts. The company’s record teen shipments of 236,300 cases in the third quarter of 2024 offset some declines, but CEO Joseph Hogan acknowledged weak consumer sentiment, particularly in the US. He commented: “The underlying dental market in the United States remains sluggish, and our doctor customers cite similar trends.” 

Direct-to-consumer (D2C) aligner therapy took a hit in December 2023 when SmileDirectClub was declared insolvent and in October 2024 when Dentsply Sirona suspended sales of its Byte aligners owing to regulatory concerns and macroeconomic pressures. The company acquired Byte for US$1.04 billion (€846.6 million*) in 2020. In January, it announced that it would reposition the aligner system with expanded clinical oversight. Dentsply Sirona CEO Simon Campion said in a press release: “We believe there is applicability for [D2C] demand generation in dentistry including aligners.” 

Flat or declining sales results in Europe and the US in recent quarters reflect weakened patient volumes and cautious consumer spending. (Image: marketlan/Shutterstock)

Asia-Pacific and Latin America drive growth

Amid sluggish results in North America and Europe, Asia-Pacific and Latin America have emerged as major growth regions for dental companies. Straumann Group continues to benefit from strong growth in Asia-Pacific, where sales grew by 26.4% year on year in the second quarter of last year. By the end of the following quarter, the region accounted for 23.4% of the company’s total business, compared with 19.6% in the same period the year before. China played a major role in this expansion, thanks in part to the country’s volume-based procurement of dental implants. Although companies like Straumann receive a lower unit price for implants sold in China, the sheer volumes make for lucrative business. By leveraging its purchasing power, China has halved the cost of implant treatment in the country, thereby boosting demand for dental implants among its ageing population. Dentsply Sirona saw a 53% increase in Chinese sales during the first quarter of 2024, boosted by surging demand for implants and aligners.  

Latin America also continued to shine for companies like Straumann and Envista Holdings, growth being driven by markets such as Brazil, Mexico and Colombia. Straumann’s regional success in Latin America is largely tied to the performance of Neodent, its challenger implant brand, and the sale of orthodontic products. 

North America and Europe face challenges

The traditionally strong dental markets of North America and Europe have shown flat or declining results in recent quarters, reflecting weakened patient volumes and cautious consumer spending on high-cost procedures. Dentsply Sirona’s second-quarter 2024 report showed that organic sales in the US and Europe had declined by 0.6% and 2.6%, respectively. 

“Private practice clinicians and [dental support organisations] remain cautious about near-term investments in both equipment and clinic-level inventories.”— Amir Aghdaei, former Envista CEO  

Inflation, high interest rates and geopolitical uncertainty—chiefly consequences of the war in Ukraine—continue to dampen patient flow and consumer sentiment in developed markets. Implant and orthodontic case starts have been particularly affected, and manufacturers noted a shift in patient priorities towards essential care over elective procedures. 

Summarising the operating environment in the second quarter of last year, Envista’s former CEO, Amir Aghdaei, said: “Private practice clinicians and [dental support organisations] remain cautious about near-term investments in both equipment and clinic-level inventories.” 

Bright spots amid caution

Dentsply Sirona and Envista reported declines in their dental equipment businesses, largely due to reduced spending on imaging systems and diagnostics. Glenn Coleman, chief financial officer at Dentsply Sirona, attributed the weak performance to rising interest rates, global economic uncertainty and increased competition. Despite these challenges, companies are investing heavily in research and development and working on new dental technologies in hopes of reigniting growth, and 2024 was a busy year for product launches. 

Despite macroeconomic headwinds, certain product segments continued to deliver positive results. Align Technology’s imaging systems and CAD/CAM services experienced 16.1% growth in the second quarter of 2024, and sales of intra-oral scanners provided a lift to several companies. Dentsply Sirona’s SureSmile and Envista’s Spark aligners posted growth driven by international markets, from which it was clear that the orthodontics segment outside of D2C models had achieved success too. 

Straumann’s robust performance in both the implants and orthodontics segments—boosted by premium brands like Neodent and Anthogyr—demonstrated the importance of adaptability. Straumann’s plan to open a new manufacturing and distribution facility in Curitiba in Brazil by 2026 reflects its commitment to serving emerging markets to achieve long-term growth. 

Overall, the dental industry’s performance since IDS 2023 highlights significant regional differences and the importance of strategic investments in emerging markets. Envista CEO Paul Keel summarised the outlook in the fourth quarter of 2024: “There just isn’t enough tangible evidence of improvement to expect an imminent upturn anytime soon, but unmet patient demand remains high, and we believe long-term investment in key areas will pay off.” 

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