The competition among domestic dental medical device corporations is becoming increasingly fierce. As the Chinese economy, which has been the basis for stable growth, has fallen into recession, a crisis has emerged. Corporations are striving to pioneer new markets and discover future growth engines.
According to industry sources on the 9th, the revenue and operating profit of domestic dental implant corporations have generally decreased in the first quarter of this year.
The operating profit of Austem, the largest dental implant corporation in Korea, decreased by 55.45% in the first quarter of this year, recording about 23.3 billion won. During the same period, Dentium's operating profit decreased by 50.14% to about 9.5 billion won, while MegaGen Implant saw a 64% drop in operating profit, recording 10.1 billion won.
In particular, analyses indicate that poor business performance in China has negatively affected the performance of each company. According to company business reports, the first-quarter revenue of Austem's Chinese subsidiary decreased by about 30% compared to the same period last year, recording approximately 41.4 billion won. The subsidiary had a net profit of around 800 million won in the first quarter of last year but posted a net loss of about 5 billion won in the first quarter of this year, resulting in a turn to deficit. Dentium's first-quarter revenue in China decreased by 21.2% to 34.1 billion won compared to the previous year.
As the economy of China, the largest exporter of dental implants, contracts, the demand for implant procedures has also decreased. Additionally, a centralized procurement (VBP) policy implemented by the Chinese government earlier has had an impact. This policy involves bidding for items supplied to public hospitals in China for bulk purchasing and procurement. As a result, there has been pressure to lower implant production costs, leading to diminished demand.
Shin Min-soo, a researcher at Kiwoom Securities, noted, "Due to the second VBP policy, which will take effect in January 2026, hospitals are postponing their product purchases, and demand in the fourth quarter of 2025 may decline and be deferred to 2026."
Park Seon-young, a researcher at Mirae Asset Securities, stated, "The sluggish performance of the Chinese business, which had a high revenue dependency, is fatal to overall growth," and added, "Given that the effects of economic stimulus measures are being observed in some consumer goods sectors in the Chinese market, there appears to be a gradual improvement in the dental industry as we move into the second half of the year."
Domestic dental medical device companies are expanding their sales in markets outside of China, including the United States, Europe, and Middle Eastern countries. They are focusing on strengthening local sales networks and diversifying products. While conditions in China are unfavorable, the global market is showing a growth trend.
Global market analysis firm Fortune Business Insights forecasted in a dental industry report released last month that, buoyed by the increasing prevalence of oral diseases and demand for cosmetic dentistry, the global dental market size will grow from $41.03 billion (approximately 55 trillion won) in 2025 to $87.65 billion (approximately 118 trillion won) in 2032.
Austem has established a liaison office in Saudi Arabia last year and launched a direct sales system in the United Arab Emirates (UAE) in October. The company plans to expand exports to the Middle East and Africa through this initiative.
Dentium has recently ventured into the Indian and Vietnamese markets. The company established its Indian subsidiary last September and followed up by setting up a local subsidiary in Vietnam in May of this year. A company official stated, "We plan to expand direct management stores led by local subsidiaries in major cities such as Hanoi and Da Nang in Vietnam, and launch not only implants but also implant mobility measurement devices, painless anesthesia equipment, and dental unit chairs in the local market."