Favorable Government Initiatives And Increasing Disposable Incomes Support Asia Pacific’s Dental Services Market
Asia Pacific will be the fastest growing region in the dental services market in the period between 2018 to 2022, growing at an annual rate of 15.6%. The fast growth of Asia-Pacific’s dental services market can be attributed to the increasing government initiatives towards awareness of oral care, and increased disposable incomes among the population in the region, driving the affordability of dental care in low- and middle-class populations.
Government initiatives in the form of awareness programs on oral health diseases and treatment support the dental services market in Asia Pacific. In India, for example, in 2014, the government launched the National Oral Heal Programme (NOHP) under the Ministry of Health and Family Welfare that focuses on increasing the awareness on prevention of oral diseases through media campaigns. Under the National Health Mission, 760 dental services in primary health centres (PHC) were established across 33 states in the country. Government initiatives towards creating awareness about oral health among a country’s population support the dental services market in that country, hence in that region.
Developing countries in Asia Pacific such as India and China are expected to attract investments into their healthcare systems. This is mainly due to continued economic growth, positive demographic trends, healthcare reforms and initiatives by governments, policies inviting foreign investment, urbanization, increasing income levels, and comparatively cheap labor and manufacturing costs. Economic growth has been significant in emerging markets such as China and India. India, for instance, recorded a GDP (gross domestic product) growth of 7.6% in 2015. This has led to higher spending on healthcare services. The per capita healthcare expenditure in India rose from $62 in 2014 to $69 in 2015. Increased disposable incomes and growth in awareness of oral health, are driving the demand for dental services in emerging countries of Asia Pacific.
Historically, Asia Pacific’s dental services market was valued at around $132 billion in 2018, making it the second largest region after North America. Between 2014 and 2018, Asia Pacific’s dental services market grew at the fastest annual growth rate of 12.8%. The size of the market can be attributed to government initiatives to broaden basic healthcare coverage and expand healthcare infrastructure that help individuals to pay for preventative and primary care. To increase oral health coverage in health insurance programs, governments have started forming partnerships with private health insurers to distribute the healthcare costs. Rising public dental care insurance coverage increases the likelihood of treatment affordability for patients with oral health problems, thus benefiting the dental services market in the region.