France Dental Care Market Analysis

France Dental Care Market Executive Summary

France's dental care market size is at around $987 Mn in 2022 and is projected to reach $1,503 Mn in 2030, exhibiting a CAGR of 5.4% during the forecast period. In comparison to other developed economies, the corporate France dental care landscape is very fragmented. It has approximately 20,000 dental practises, as formal dentists chose to establish their own businesses, and clinical organisations have less than a 1% market share. The total healthcare budget spent on dentistry was $12.56 Bn as of 2021, which formed 0.5% of the GDP expenditure in France which is higher as compared to other EU member states. Furthermore, in comparison to other EU nations, regulations in France, particularly those governing dental care and company ownership, are extremely stringent.

In the typical corporate scenario, dental practices must be owned by dentists and hence can only be sold to dentists, although investors can acquire and consolidate dental practises as long as a dentist holds the majority ownership (50.01%) in each individual practise under the corporate umbrella. This gives investors greater ownership and influence over both clinical and nonclinical revenue sources than the association model does. Recruiting new stakeholder dentists is critical to avoiding collective action by individual practice owners. Some consolidation on a modest basis has begun. Since 2012, the number of dental practises has decreased by about 0.5% per year, and while independent dentists continue to account for roughly 90% of the total pool, salaried practitioners as part of corporate entities are gaining share as dentists seek to save money by combining infrastructure and equipment costs. Dentego and DentiFree, both formed in 2013, are the largest firms in France, with 24 and 13 clinics, respectively. However, these are modest groupings in comparison to the leaders in the United Kingdom, one of Europe's most consolidated dental healthcare markets, which has groups of hundreds of dental practises. Because the populations of the United Kingdom and France are so similar, this suggests a possible opportunity for investors in France.

The investment potential of French dental care appears to be expanding, as private equity firms and sector enterprises recognise the opportunities presented by the newly opened market. Investor success in other European markets serves as a proxy for the potential of the French dentistry industry, and early movers in France have the opportunity to earn a significant competitive advantage while consolidating in conformity with French rules.

Market Dynamics

Market Growth Drivers

The dental services market in France is a significant industry, with a diverse range of services offered by private practices, clinics, and hospitals. The market is primarily driven by factors such as an aging population, increasing awareness of oral healthcare, and government initiatives to improve access to dental care. New regulatory reform 100% Sante - the government has stated that 10 Mn people in France have benefited from free dental work, glasses, or hearing aids since 2019. The reform has improved patient walk-ins by advancing reimbursement. In addition, advances in technology and the increasing use of dental implants and cosmetic procedures by private providers backed by funding from huge corporates who target revenue by aiding the clinical procedures by providing technical support are also contributing to the growth of the market.

Market Restraints

Low-cost dental clinics might put pressure on established dental offices to reduce their costs. Dental procedures are expensive, which can be a barrier for some patients. Dental experts are scarce in some locations, notably in rural areas. Dental practitioners are subject to stringent laws and qualifications, making it difficult for new professionals to enter the market. The largest regional markets in France include, among others, Île-de-France, Auvergne-Rhône-Alpes, Nouvelle-Aquitaine, Hauts-de-France, and Provence-Alpes-Côte d'Azur. The common assumption in France that dental care is not a priority has also resulted in decreasing demand for treatments.

Competitive Landscape

Key Players

• Dentego (FRA)
• DentiFree (FRA)
• Dentaylis
• Dentelia
• DentaSmile

Notable Recent Deals

December 2022 - Biotech Dental, situated in Salon-de-Provence, France, is a fast-developing provider of clinical software, oral surgery, and orthodontic devices. The two companies have reached a deal under which Henry Schein would acquire majority ownership of Biotech Dental, while the present majority owner Upperside Capital Partners Group will retain control of the remaining minority share.

January 2021 - Colosseum Dental Group (CDG), the leading pan-European network of high-quality dental care, has agreed to purchase a majority investment in Dentelia, a rising high-quality dental care provider in France, alongside Otium Capital, the present management team, and Dr Alexandre Attia, founder and CEO. With the current management team, Attia will retain a large equity stake and spearhead the group's expansion across France. The acquisition expands CDG's footprint in France, Europe's second-largest dental market, and solidifies the company's position as the pan-European leader in dental care, with over 300 dental clinics in 9 countries.

Healthcare Policies and Regulatory Landscape

In France, 99% of General Dentists adhere to the "Convention," a national contract negotiated by elected dental trade unions, the National Health Insurance (NHI), and Complementary (private) Health Insurers (CHI). Most procedures are performed under a fee-for-service (FFS) model, in which patients pay their dentist the full cost of the treatment and are reimbursed by their insurance a few days later. Third-party payment is also conceivable in some cases. The total budget spent on dentistry was $12.56 Bn, accounting for 0.5% of the GDP spending in France. Employer-provided insurance became mandatory for private firms with one or more employees under the ANI law.

Reimbursement Scenario

Previously, dental spending in France was paid by a combination of social security (government money), private insurance, and direct patient payment. For those over the age of 16, Social Security paid around 70% of preventative and routine surgical dental care, including exams, fillings, and extractions, but did not cover crowns, bridges, and other prostheses, cosmetics, or orthodontics. The "100% Sante" reform provides a specific basket of care services and equipment for three care items: audiology (hearing aids), optics (eyeglasses), and dental (dental prostheses). These baskets comprise a wide range of high-quality equipment that will be fully covered at no extra expense to the insured. From 2021, the 100% Health offer will be available to all French citizens who receive responsible health care or the Complémentaire Santé Solidaire (CSS). All of the items in the 100% Health basket are fully covered by Social Security and health supplements. While the new legislation is predicted to reduce dental revenue from prosthetics due to the implementation of controlled tariffs on most prosthetic treatments, it is also expected to have no influence on cosmetic care or orthodontics. Either a "100% Santé" option in which a variety of prostheses (crowns, bridges, removable prostheses) are fully reimbursed; or an intermediate solution with a price ceiling, leaving the insured person with a moderate payment; or an open-cost solution, with reimbursement based on the individual coverage of each health contract.