Rising revenue and profit margins will attract new entrants to meet higher demand
Los Angeles, CA (PRWEB) June 28, 2013
Favorable demographic trends, patient behavior and access to dentistry, and new technology have underpinned growth for the Cosmetic Dentists industry over the past five years. From 2008 to 2013, industry revenue has increased at a 1.8% average annual rate to about $4.2 billion. During the period, the youth-oriented culture created by mass media has driven strong demand growth for cosmetic dental procedures among the older US population, says IBISWorld industry analyst Doug Kelly. Consequently, this demographic is increasingly concerned with having more aesthetically pleasing teeth, gums and smiles. New procedures and materials have also improved the aesthetic results of many cosmetic dental procedures, while third-party financing for patients has increased procedure accessibility, further facilitating demand growth.
Contracting consumer disposable incomes did lead to industry revenue declines during the recession in 2008 and 2009, as many consumers opted to delay or forgo costly cosmetic dental procedures. However, a strong resurgence in demand, improving incomes and rising consumer sentiment toward cosmetic dental procedures returned the industry to growth and carried it to new revenue highs, continues Kelly. In 2013, IBISWorld anticipates a surge in demand from consumers who delayed cosmetic dental work. In addition, rising incomes and sentiment, higher per-procedure revenue and expanded industry capacity will increase revenue 4.6% in 2013. High demand and profit margins will attract new entrants, expanding industry capacity to meet demand growth; the number of industry firms is expected to increase at a 1.3% annualized rate to about 5,847 in the five years to 2013. The Cosmetic Dentists industry has a low level of market share concentration. Most companies have just one location and operate within a local area. Consequently, there are no companies with a significant share of the market.
The Cosmetic Dentists industry is expected to see strong growth over the next five years. Continually rising demand and incomes, in addition to the aging population, will also support demand growth, particularly for teeth whitening, denture fittings and tooth replacement. Nevertheless, firms will face competition from traditional dentists and improved in-home preventative dental care, pressuring profit margins. For more information, visit IBISWorld’s Cosmetic Dentists in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes firms that primarily provide elective dental services that improve the appearance of teeth, gums or smiles. It includes cosmetic crown and bridge work, veneers, inlays and outlays, direct bonding and whitening procedures that are not typically covered by insurance, making them highly discretionary.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.