Recently, Shaanxi Provincial Public **** Resource Transaction Center issued the "Inter-provincial Union (District, Corps) oral orthodontic bracket centralized banding procurement announcement", decided to carry out oral orthodontic bracket centralized banding procurement in Shaanxi, Shanxi, Inner Mongolia and other 15 provinces (autonomous regions, production and construction corps) region. This is following the dental implants, another dental medical supplies will be included in the scope of collective purchasing.
Industry insiders said that at present, China's orthodontic industry penetration rate is at a relatively low level, centralized purchasing and other special governance activities, is expected to release the patient's demand for oral health care, improve the industry boom.
At least 30% price reduction
From the procurement details, the centralized volume purchasing, ordinary metal brackets, ordinary ceramic brackets, self-locking metal brackets, self-locking ceramic brackets, no bracket orthodontic appliances are divided into A and B groups, buccal tubes are bargaining for products.
By the inter-provincial alliance of medical institutions procurement demand in descending order, take each product category cumulative procurement demand of the first 70% (including) covered by the enterprise for the A group bidding unit, the rest of the B group bidding unit. Into the A group bidding unit effective declaration of the number of enterprises less than 5, according to the inter-provincial alliance of medical institutions procurement demand from more to less in order to fill, until the A group bidding unit effective declaration of the number of enterprises to reach 5; the same product category all the declaration of enterprises less than 5, all into the A group.
From the point of view of price reduction, the minimum effective reduction of brackets and bracketless invisible braces included in Group A/B is 30%, otherwise it is regarded as an invalid offer.
According to the announcement, Shaanxi, Shanxi, Inner Mongolia, Liaoning, Heilongjiang, Anhui, Henan, Guangxi, Hainan, Guizhou, Tibet, Gansu, Qinghai, Ningxia, Xinjiang and other provinces (autonomous regions, production and construction corps) to carry out oral orthodontics of the public health care institutions (including the military hospitals) should be participated in; health insurance designated social medical institutions to participate in the voluntary. The bracket, no bracket invisible braces, buccal tube centralized volume purchasing cycle for two years.
Penetration rate is expected to increase
There are two main methods of orthodontic treatment, i.e., traditional orthodontic therapy and invisible orthodontic therapy. Traditional treatment uses metal braces, lingual braces, ceramic braces and other visible aligners, while invisible orthodontic treatment uses custom-made removable invisible aligners. The cost components of orthodontic treatment include the cost of products and medical services, with the cost of products accounting for approximately 30% of the overall cost.
According to a report by Scorch Consulting, on the retail sales revenue side, the China orthodontic market increased from US$3.4 billion in 2015 to US$7.9 billion in 2020, at a CAGR of 18.1%. The China orthodontic market is expected to reach $29.6 billion in 2030, growing at a CAGR of 14.2% from 2020 to 2030. Among them, China's invisible orthodontic market is expected to increase from $1.5 billion in 2020 to $11.9 billion in 2030, growing at a CAGR of 23.1%.
IFC Securities believes that at present, China's orthodontic industry penetration rate is still at a relatively low level, the special treatment is expected to be carried out after the rapid increase, but also will further pull orthodontic related departments business volume, to meet the patient's large number of hidden oral health care needs. In addition, the future of excellent oral health care services can also be created through the creation of improved, differentiated demand pricing program to form a new growth point.
Western Securities research report shows that China's invisible orthodontic market is growing rapidly, and the penetration rate still has much room for improvement. As more and more people are willing to accept treatment, expanding the scope of treatable indications, expanding the base of dentists and other factors appear, it is expected that the domestic invisible orthodontic industry can still maintain rapid growth.
If you want to know more financial news in real time, welcome to follow us.