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DENTISTRY - UK - JUNE 2018

Published By :

Mintel

Published Date : Jun 2018

Category :

Industry Profile

No. of Pages : N/A

With rising fixed costs in the industry, the last decade has seen a period of sustained consolidation through acquisition. Strategic investors and private equity see the market’s underlying growth drivers as an opportunity - offering scope to acquire, consolidate, improve efficiencies, and sell practices at greater multiples.

Table of contents
EXECUTIVE SUMMARY
Market size
Figure 1: UK expenditure on dental care, 2014-18 (£ billion)
Figure 2: UK expenditure on dental care, by segment, 2014-18 (£ billion)
Market trends
Increase in clawback levels highlight recruitment troubles
The number of patients seeking orthodontic treatment continues to rise
Market factors
Trade associations unite to ensure Brexit has as smooth an effect as possible on practice costs, recruitment and legislation
Ageing population likely to drive demand for dental care
Figure 3: UK population estimate and projection, 2018 and 2023, by age group (millions of people)
Consumer
Half of people have never visited a private dentist
Figure 4: Last dental appointment, by time of last appointment and service type, April 2018 (% of respondents)
Nearly seven-in-10 ‘self-fund’ dental treatment
Dentists most commonly perform a general examination alongside a scale and polish during one visit
Location, cost and staff friendliness most important factors
Fear and cost of treatment are the main causes behind not visiting a dentist
Opinion of friends, family, and co-workers is important when finding a new dentist
Industry structure
Forecast
Slow but steady growth expected
Figure 5: UK dental care expenditure forecast, by segment, 2019-23 (£ billion at 2018 prices)
What we think
KEY INSIGHTS
How is the future model of dental practice ownership likely to change?
How can the industry use digital platforms to its advantage and boost dental patient activity?
INTRODUCTION
Definitions
Methodology
Abbreviations
Market positioning
The role of the NHS
Dental practices
Regulators
General Dentist Council
Care Quality Commission
Regulation of Dental Services Programme Board
Recent regulation
Private Dentistry (Wales) Regulations 2017
Market demand
UK ECONOMY
Key points
Overview
Figure 6: Forecast GDP development 2017-22 (% annual growth)
Figure 7: UK GDP quarterly development, 2007-17 (% quarterly growth and GDP in £ billion)
Inflation
House prices
Figure 8: UK house price changes, 2007-18 (12 month % change)
Interest rates
Consumer spending
Manufacturing
Figure 9: UK manufacturing, 2014-18 (index, 2015 = 100)
Business investment
Figure 10: UK GFCF, 2007-17 (£ million, chained volume measures, seasonally adjusted)
Imports
Exports
MARKET FACTORS
Key points
Trade associations unite to ease Brexit’s impact on practice costs, recruitment and legislation
Ageing population likely to drive demand for dental care
Figure 11: UK population estimate and projection, 2018 and 2023, by age group (millions of people)
Figure 12: UK population estimate and projection, 2018 and 2023, by age group (millions of people)
Inflationary pressures are affecting household real incomes which could reduce the number of dental visits
Figure 13: GDP per head at current market prices and real household disposable income per head, Q4 2013-Q4 2017 (£)
Figure 14: GDP per head at current market prices and real household disposable income per head, Q4 2013-Q4 2017 (£)
Decline in dentists’ NHS activity recorded alongside a fall in the percentage of people treated...
Figure 15: Dentists with NHS activity in England, 2012/13-2016/17 (no. of dentists and % annual change)
Figure 16: Number of dentists with NHS activity in England, 2012/13-2016/17 (no. of dentists)
Figure 17: Dental patients seen in England under the NHS over the previous 24 months, at 30 June, 2013-17 (000s of patients)
Figure 18: Dental patients seen in England under the NHS in previous 24 months, at 30 June, 2013-17 (000s of patients)
...but this has not been helped by a number of dental practices not accepting new patients
Student intake target has been reduced from 2017/18, although vacancies for current dental positions remain unfilled
Figure 19: Target number of dental students and actual intakes in England, 2011/12-2016/17 (number of students)
Figure 20: Target number of dental students and actual intakes in England, 2010/11-2015/16 (number of students)
MARKET SIZE
Key points
Growth in dental care expenditure starting to slow
Figure 21: Total UK dental care expenditure, 2014-18 (£ billion)
Figure 22: UK expenditure on dental care, 2014-18 (£ billion)
NHS treatment costs rise by 5% for the second consecutive year in 2018
Figure 23: NHS dental charges in England, 2014-18 (£)
Figure 24: NHS dental charges in England, 2014-18 (£)
High number of children still not visiting a dentist could impact future growth...
...as well as regional disparities in dental standards
MARKET SEGMENTATION
Key points
Segment overview
Figure 25: Total UK dental care expenditure, by segment, 2014-18 (£ billion)
Figure 26: UK expenditure on dental care, by segment, 2014-18 (£ billion)
Private treatments
Cosmetic dentistry growth slows
Figure 27: UK expenditure on private cosmetic dental care, 2014-18 (£ billion)
Figure 28: UK expenditure on private cosmetic dental care, 2014-18 (£ billion)
NHS dentistry
Figure 29: UK expenditure on NHS dental care, by payment segment, 2014-18 (£ million)
Figure 30: UK expenditure on NHS dental care, by payment segment, 2014-18 (£ million)
Courses of NHS treatment rise since 2016 due to growth in band one treatments
Figure 31: Number of courses of dental treatment under NHS, in England, 2012/13-2016/17 (000s)
Figure 32: Number of courses of dental treatment under NHS, in England, 2012/13-2016/17 (000s)
Dental insurance and new payment plans offer patients a route to receiving treatment
MARKET TRENDS
Key points
General decline in dental earnings
Figure 33: UK dental salaries, by job role and region, 2016 (£000)
Increase in clawback levels highlight recruitment troubles
Dental practice profits rise in 2017
The number of patients seeking orthodontic treatment continues to rise
THE CONSUMER – LAST DENTAL APPOINTMENT
Key points
Half of people have never visited a private dentist
Figure 34: Last dental appointment, by time of last appointment and service type, April 2018 (% of respondents)
Figure 35: Last dental appointment, by time of last appointment and service type, April 2018 (% of respondents)
Likelihood of most recent NHS visit rises with age, but declines with age for most recent private visit
Figure 36: Last NHS dental appointment, by time of last appointment and by age and gender, April 2018 (% of respondents)
Figure 37: Last NHS dental appointment, males, by time of last appointment and by age, April 2018 (% of respondents)
Figure 38: Last NHS dental appointment, females, by time of last appointment and by age, April 2018 (% of respondents)
Figure 39: Last private dental appointment, by time of last appointment and by age and gender, April 2018 (% of respondents)
Figure 40: Last private dental appointment, males, by time of last appointment and by age, April 2018 (% of respondents)
Figure 41: Last private dental appointment, females, by time of last appointment and by age, April 2018 (% of respondents)
THE CONSUMER – DENTAL PAYMENT
Key points
Nearly seven-in-10 ‘self-fund’ dental treatment
Figure 42: Dental payment, April 2018 (% of respondents)
Figure 43: Dental payment, April 2018 (% of respondents)
Over-65s more than twice as likely to self-fund than 16 to 24 year-olds
Figure 44: Dental payment, by age and gender, April 2018 (% of respondents)
Self-funding of NHS treatment has risen over time...
Figure 45: Dental payment, by last NHS visit, April 2018 (% of respondents)
...whilst it has declined in the private industry
Figure 46: Dental payment, by last private visit, April 2018 (% of respondents)
THE CONSUMER – TYPE OF TREATMENT
Key points
Dentists most commonly perform a general examination alongside a scale and polish during one visit
Figure 47: NHS dental treatment, April 2018 (% of respondents)
Figure 48: Private dental treatment, April 2018 (% of respondents)
Figure 49: Dental treatment, by dentist type, April 2018 (% of respondents)
Rise in check-ups and scale and polish seen over the last year
Figure 50: NHS treatment, by time of last NHS visit, April 2018 (% of respondents)
Figure 51: Private treatment, by time of last private visit, April 2018 (% of respondents)
THE CONSUMER – CHOICE FACTORS
Key points
Location, cost and staff friendliness most important factors
Figure 52: Dentistry choice factors, April 2018 (% of respondents)
Figure 53: Dentistry choice factors, April 2018 (% of respondents)
THE CONSUMER – REASONS FOR NOT VISITING A DENTIST
Key points
Fear of the dentist and cost of treatment limit visits
Figure 54: Dentistry non-visit factors, April 2018 (% of respondents)
Figure 55: Dentistry non-visit factors, April 2018 (% of respondents)
THE CONSUMER – SOURCES USED TO SELECT A NEW DENTIST
Key points
Opinion of friends, family, and co-workers would be used by half to find a new dentist
Figure 56: Sources of information, April 2018 (% of respondents)
Figure 57: Sources of information, April 2018 (% of respondents)
INDUSTRY STRUCTURE
Key points
Presence of corporate dentistry remains high despite recent practice closures and the need to develop a unique brand
Growing number of dental hygienists and therapists highlights their importance to the industry’s operational structure
Figure 58: Analysis of GDC-registered dental professionals, April 2018 (number)
Market consolidation slows, but new means of ownership emerge
Market share
Figure 59: Estimated dental care providers’ market share, 2017 (% of total market)
Figure 60: Estimated dental care providers’ market share, 2017 (% of total market)
Recent M&A activity
Sector structure
Figure 61: Analysis of changes in the structure of the dental practice sector, 2013-17 (number of companies and practices)
Figure 62: Analysis of the employment structure of the dental practice sector, 2016-17 (total employees and number of companies)
Figure 63: Analysis of the financial structure of the dental practice sector, 2016 and 2017 (£000 and number of companies)
Figure 64: Analysis of the financial structure of the dental practice sector, 2017 (£000 and number of companies)
COMPANY PROFILES
BUPA DENTAL SERVICES
Figure 65: Financial analysis of Bupa Dental Services, 2012-16 (£ million)
Figure 66: Financial analysis of Oasis Dental Care, 2012-16 (£ 000)
Figure 67: Financial analysis of Oasis Dental Care (Central), 2012-16 (£ 000)
Figure 68: Financial analysis of Oasis Dental Care (Southern), 2012-16 (£ 000)
Company strategy
COLOSSEUM DENTAL SERVICES (FORMERLY KNOWN AS SOUTHERN DENTAL)
Figure 69: Financial analysis of Colosseum Dental UK Ltd (formerly Southern Dental), 2013-17 (£ million)
Company strategy
DPAS
Figure 70: Financial analysis of DPAS, 2012-16 (£ 000)
Company strategy
MYDENTIST (FORMERLY IDH GROUP)
Figure 71: Financial analysis of Turnstone Equityco 1, 2013-17 (£ million)
Subsidiary companies
Figure 72: Financial analysis of Whitecross Dental Care, 2013-17 (£ 000)
Figure 73: Financial analysis of Petrie Tucker and Partners, 2013-17 (£ million)
Figure 74: Financial analysis of Orthoworld 2000, 2013-17 (£ million)
Company strategy
PRACTICE PLAN
Figure 75: Financial analysis of Practice Plan, 2012-16 (£ million)
Company strategy
RODERICKS DENTAL LIMITED
Figure 76: Financial analysis of Rodericks, 2013-17 (£ million)
Company strategy
SIMPLYHEALTH PROFESSIONALS (FORMERLY DENPLAN)
Figure 77: Financial analysis of Simplyhealth Professionals (formerly Denplan), 2012-16 (£ million)
Company strategy
WESTERN PROVIDENT ASSOCIATION
Figure 78: Financial analysis of Western Provident Association, 2012-16 (£ 000)
Company strategy
Figure 79: Profiled companies’ turnover, 2012-16 (£ 000)
FORECAST
Key points
Market size
Ongoing prototype testing of new NHS dental contract has highlighted growing recruitment issue
Slow but steady growth expected
Figure 80: UK expenditure on dental care forecast, 2019-23 (£ billion at 2018 prices)
Figure 81: UK dental care expenditure forecast, 2019-23 (£ billion at 2018 prices)
Lack of clarity over direction of Brexit continues to concern industry
Market segmentation
Private dental growth expected to decay as incomes stagnate
Figure 82: UK dental care expenditure forecast, by segment, 2019-23 (£ billion at 2018 prices)
Figure 83: UK dental care expenditure forecast, by segment, 2019-23 (£ billion at 2018 prices)
Both the youngest and oldest patients are likely to provide the greatest development opportunities going forward
The introduction of new technology and equipment will help improve patient outcomes and practice profitability...
...whilst digital platforms will help provide solutions to several dental care issues
FURTHER SOURCES AND CONTACTS
Trade associations
Association of Dental Administrators and Managers
The Association of Dental Anaesthetists
Association of Dental Groups
Association of Dental Implantology
British Academy of Cosmetic Dentistry
British Association of Dental Nurses
British Association of Dental Therapists
British Association of Prosthetists and Orthotists
British Dental Association
British Dental Industry Association
British Endodontic Society
British Orthodontic Society
British Society of Dental Hygiene & Therapy
British Society for Disability and Oral Health
British Society of Paediatric Dentistry
British Society for Restorative Dentistry
British Society for the Study of Prosthodontics
Trade magazines
British Dental Journal
Dental Health
Dental Insider
Dental Nursing
Dental Supplies
Dentistry
Primary Dental Journal
Private Dentistry
The Business of Dentistry
The Dentist
Trade exhibitions
British Academy of Cosmetic Dentistry Annual Conference
British Dental Conference & Dentistry Show 2019
BDIA Dental Showcase
Dental Technology Showcase 2019
Oral Health Conference and Exhibition

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