New Zealand Dental Care Market Analysis

Dental Care Services Market Executive Summary

New Zealand's dental care services market size is at around $1.31 Bn in 2022 and is projected to reach $1.88 Bn in 2030, exhibiting a CAGR of 4.2% during the forecast period 2022-30. New Zealand has a publicly funded healthcare system that is referred to as "universal healthcare" or "free healthcare." It is mostly funded by taxes and is open to all citizens and permanent residents. Primary care, which is supplied by general practitioners (GPs) and community health services, and secondary care, which is delivered by hospitals and specialists, are the two main components of the healthcare system. Some prescription medications and medical procedures are also subsidized by the government. Overall, New Zealand's healthcare system is regarded as high-quality and efficient. The government devotes a sizable percentage of its money to healthcare. The actual amount varies from year to year, although it is normally approximately 7-10% of the country's GDP. From 1960 through 2021, New Zealand's GDP averaged $70.35 Bn, reaching an all-time high of $249.89 Bn in 2021, with healthcare accounting for 9.47% of this total. The government's healthcare spending supports different areas of the healthcare system, including primary care, hospitals, prescription medications, and public health initiatives. The government also funds District Health Boards (DHBs), which are in charge of providing and managing healthcare services. In addition, the government has a budget for capital and operating funds for the health system. Overall, New Zealand's healthcare system is seen as well-funded and efficient, with a strong emphasis on primary care and preventive measures.

Private healthcare services are often regarded as an addition to the publicly supported healthcare system. While the government provides a wide range of healthcare services to citizens and permanent residents through a publicly funded system, some people prefer to enhance or supplement the services they receive through the public system. Private hospitals, clinics, and medical practices are examples of private healthcare services in New Zealand. People who want to bypass significant wait periods for particular procedures or treatments, or who want more control over their care, frequently employ these services. Many private healthcare facilities provide a broader choice of treatment alternatives, such as cosmetic surgery or orthodontics, that the public system may not provide. These services are financed by out-of-pocket payments, private health insurance, or part government funds for the old and underprivileged.

Because of the prevalence of comorbidities in this demographic, such as cardiovascular disease, dental health is frequently ignored among the elderly. However, dental health influences general health and quality of life by influencing both the individual's general health and psychological condition. The current analysis focuses on the most common dental comorbidities in the old population, their impact on quality of life, barriers to dental treatment in the elderly, and approaches to enhance their dental health. In order to detect and treat dental pathology, information about dental care and its value must be offered to both elderly people and their caretakers. Ensuring oral health requires the participation of the entire society, including elders, carers, dental care providers, the public sector, and health officials.

Market Dynamics

Market Growth Drivers

The population of New Zealand is predicted to expand in the next years, creating a growing market for dental services. As the population ages, demand for dental care for older persons, such as dentures and oral surgery, is expected to rise. As New Zealand's economy grows, people may have more spare income to spend on dental treatments. The New Zealand government has adopted a number of programs to enhance access to dental care for low-income and rural communities, which may present chances for dental businesses to extend their services. Dental firms can offer more advanced and efficient treatments to their patients as technology and materials progress, which could be another avenue for growth.

Market Restraints

The limited number of dental professionals in New Zealand (3336 practicing dentists in 2021) in a population of 5.12 Mn people. Certain locations of New Zealand may have a scarcity of dental practitioners, which may limit the availability of dental treatments in certain areas. In some places, high competition among dental clinics can limit the market potential for new practices. Limited dental insurance coverage might make it difficult for certain people to afford the care they require, restricting the potential market for dental services. Access to dental care in New Zealand can be hampered by linguistic and cultural barriers. In New Zealand, a lack of oral health awareness among specific population groups may reduce the demand for dental services.

Competitive Landscape

Key Players

• Lumino The Dentists
• Southern Cross Dental
• Dentalcare Group
• Dental Health Associates
• Team Dental

Notable Recent Deals

February 2022 - BGH Capital and Tasman’s dental subsidiary Abano Healthcare have secured an agreement to purchase Bupa NZ's dental business, strengthening its market position in New Zealand. According to reports, Abano will add 22 clinics to its existing network through this deal, which operates under the 'Lumino' brand and includes more than 100 practices.

Healthcare Policies and Regulatory Landscape

The Health Practitioners Competence Assurance Act of 2003 established the Dental Council as a regulating entity. To protect the health and safety of New Zealanders, we ensure that oral health practitioners meet and maintain our requirements. Dental specialists, dental therapists, dental hygienists, oral health therapists, clinical dental technicians, dental technicians, and orthodontic auxiliaries are all regulated by us. The Dental Council protects public health and safety by requiring all oral health practitioners in New Zealand to achieve certain requirements before they may practice. The Standards Framework outlines the minimal ethical standards, clinical and cultural competency, and patient and public expectations of oral health practitioners. The ethical principles of oral health practice, adherence, and practice guidelines are the three components.

Reimbursement Scenario

In New Zealand, dental care services are primarily paid for out-of-pocket or through private health insurance. The reimbursement structure for dental care activities in New Zealand is based on a fee-for-service model. Some people can claim back some of the cost from their private health insurer or through government subsidies. For children and teenagers, there are some government subsidies that help to cover the cost of dental care. The Community Services Card (CSC) offers low-income families with subsidies for children and teenagers under the age of 18. The High-Cost Treatment Pool (HCTP) provides reimbursements for certain expensive dental treatments for persons who meet low-income or medical condition eligibility criteria. Most people pay for dental care through private health insurance or out-of-pocket payments. Some people prefer to get private health insurance to cover the expense of dental care services, while others pay for them out of pocket. Overall, dental care in New Zealand is mostly paid for out of pocket, with some government subsidies available for certain groups of people and some coverage accessible through private health insurance.