In conversation with Mr. Marvin Ancheta Oki, Business Development & Operation at ASO Dental Design International Manila, Philippines, we tried to understand the overview of Dental Services Industry in Philippines.
“The Philippines Dental Services industry is still developing and has a long way to go. It is predicted to grow at a comparatively slow pace than other developed countries”
Q1. What is the current scenario of Dental Services Industry in the Philippines?
The Philippines Dental Service Market is having quite a few players. The clinics with more than 1 branch i.e., the organized clinics are less dominant as compared to the unorganized clinics. The organized clinics are generally run by members of the same family whereas unorganized clinics are run by individual dentists solely.
Q2. How would you describe different dental services (General Dentistry, Orthodontics, Endodontics, Prosthodontics, Periodontics, Oral Surgery, Cosmetic dentistry, Paediatric Dentistry etc.) in terms of being the most opted for by patients and revenue contribution towards the Dental Services market in the Philippines?
General consultation and teeth cleaning are the most opted for services but still General Dentistry has an overall share of around 15 to 20% from the market revenue as these services are the least expensive as they are priced around 1,000-1,500 PHP. In the Philippines, braces are considered to be fashionable and thus are quite frequently opted for. They are also expensive especially the clear aligners and hence this service is a major revenue contributor. In short, major revenue contributors are General Dentistry, Orthodontics, Endodontics and Prosthodontics.
Q3. What about services like Cosmetic Dentistry and Paediatric Dentistry?
Cosmetic dentistry is picking up especially in regions like Manila, Davao and Cebu. People have started getting slightly more conscious about the way their teeth look, especially women.
Pediatric Dentistry is not much of a revenue contributor here in the Philippines because Filipinos don't spend much on their children's healthcare especially their oral health as is the case in developed countries.
Q4. What is the current trend with the braces in the Philippines?
Invisalign, Orthero and K-line used to be the major players in the Philippines Dental Market for the production of braces especially Clear aligners. Their market share was around 40% -Invisalign, 25% - K-line and around 10% - Orthero. However, this was before the pandemic. The companies have stopped their production in the country post pandemic and have shifted their focus on importing the products.
Q5. What is the scenario of dental treatments opted by domestic and international patients?
Though Filipinos do not prefer spending much on their dental health as it is considered to be a luxury than being a necessity, still majority of the patients tend to be the Filipino population. The healthcare is not that developed in Philippines that tourists would specially come for dental treatments. Also, there's something known as the foreigner's charge where the prices for foreigners are higher than that for domestic people which is the reason behind revenue contribution coming from international tourists. Average spend on 1 visit by Filipinos is around 4,000-6,000 PHP whereas it is 2-3 times by foreigners.
Q6. Do patients in Philippines prefer going to a Dental Clinics or a Hospital?
Patients go to hospitals only for extreme cases/surgeries. Majorly, the dental clinics are the most opted for treatments and hence majority revenue contribution comes from dental clinics. Around 85% patients prefer going to dental clinics over hospitals having Dental OPDs.
Q7. What does the distribution between organized and unorganized clinics look like?
Organized clinics in the Philippines are generally run by family members (legacy) whereas unorganized clinics are solely owned by practicing dentists. Majority of the market is dominated by unorganized clinics Around 80% of the revenue is generated by the unorganized clinics whereas the rest 20% is contributed by the organized dental chains.
Q8. Which are the major revenue contributing cities for Dental Services Industry in the Philippines?
Out of the three Major Island groups i.e., Luzon, Visayas and Mindanao, Luzon (precisely Metro Manila) contributes majority of the revenue, approximately 40% of total revenue in 2021. Apart from that, the major revenue contributors are Davao, Cebu and Iloilo.
Q9. Could you give us an idea of the age group of patients visiting the dental clinics?
The share of patients in the ‘below 15’ age group is very low (around 5%), patients visit only when needed. People in the ‘15-30’ age group are most conscious out of all age groups. They generally opt for services like General Dentistry, Orthodontics, Periodontics and Cosmetic Dentistry. Patients in the age group ‘30-55’ visit majorly for maintenance and for ‘above 55’, the share of patients is very low since they are quite indifferent.
Q10. Could you give us an idea of the patient profile on the basis of gender?
Speaking of the dental patients, there is female dominance because women are more concerned about their oral and dental hygiene than men. The ratio of male – female patients in Philippines is approximately 2:3.
Q11. Could you provide some insights on the general trends and developments in the Philippines Dental service industry?
Braces and clear aligners are currently the major trending services in the Philippines Dental Services Market. As Philippines is the selfie capital of the world, these services are highly gaining popularity among the younger generation. Branches like cosmetic dentistry and orthodontics are slowly picking up the pace in the country.
The Dental Services industry has a long way to go and is expected to grow slower than other Asian countries. It is expected to grow at a CAGR of around 3% – 5% for the next 5 years.
For more insights on the market intelligence, refer to the link below: -
Philippines Dental Services Market