Report on overseas market of Chinese dental laboratory in 2019

China’s denture processing industry is concentrated in the Pearl River Delta region centered on Shenzhen, and the Yangtze River Delta region focused on Shanghai. It formed a large processing plant + some small and medium-sized processing plants. Modern Dentistry, Jiahong, Berry, Kang Taijian Kenteng and China Dental Laboratory (CDL) represent 60%-70% of the global denture processing business in China. There are more than 100 companies engaged in denture processing in Shenzhen alone.

The denture industry has continued to grow in recent years due to increased dental cosmetic demand, increased oral health awareness, increased disposable income, population growth and an aging population, and is expected to continue this trend.

In 2019, the United States will be still the leading sales destination, and the industry is gradually shifting to low-cost regions.

Currently, North America and Europe are domestic denture processing companies, especially in the United States. Due to the high labor costs in the United States, it is mainly processed by Mexican workers. The wages are relatively low at the beginning, but the processing costs are still high and gradually shrinking, and customers begin to flow to cheap foreign counterparts. However, due to its high-profit margin, the most top end denture processing is still in the United States.

Chinese denture products have the following sales methods in the United States:

1. Acquired a local technology laboratory and materials company in the United States. They have a large number of orders and sell them using existing sources from these institutions;

2. Cooperate with local distributors and depends more on US distributors;

3. Cooperate with the largest dental clinic in the United States to conduct chain operations and obtain customers directly;

4. Obtain orders from all states in the United States. Since the state government uniformly purchases dentures from public hospitals in the United States and distributes them to hospitals, the amount of purchases is usually significant.

According to Bloomberg data, there were 12,250 technicians in the United States in 2008 and only 7,200 technicians in 2016. The current number is about 6,000. According to the data of NADL, up to 40% of dental restorations in the United States come from overseas, not only cheap, but also the quality of recovery is not worse than the United States. The data shows that the difference can be up to 10 times.

As competition in the dental industry intensifies, choosing to outsource dental laboratory in China may be the most cost-effective method as labor costs in dental laboratories in the United States, Europe, and elsewhere increase year by year, the manufacture of Chinese dental labs. Exported to the United States is no longer a basement business.

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