Orthodontic Market - Growth Trends

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Orthodontic Market - Growth Trends

Some of the trends driving growth in the orthodontic market are the rise of cheaper mail-order teeth aligners and the increasing use of clear alignments among teenagers.

RISE OF CHEAPER MAIL-ORDER TEETH ALIGNERS

TEENAGERS ARE INCREASINGLY USING CLEAR ALIGNERS

  • Invisalign, which has 80% market share in the clear aligners market, noted that from 2013 to 2017, the number of teenagers using their product grew from 100,000 to 230,000. The company further says that teen and tween sales volume grew faster than that of the adults in the past two years.
  • Overall, the American Association of Orthodontists estimates that there are 4.3 million patients aged 17 years old and younger who were treated in North America in 2016, which is a 66% increase since 1989.
  • Market Realist noted that 75% of both the Served Available Market (SAM) and Total Available Market (TAM) of the existing Orthodontics market is made up of teenagers. Align Technologies was able to capitalize on this trend, and the company has a 7% market share of SAM.
  • The New York Times mentioned that consumer demand, direct to consumer advertising, and a strong culture of social media among teens are the main factors behind the increased use of clear aligners among teenagers.

OTHER HELPFUL FINDINGS

Faster Orthodontic Treatment

RESEARCH STRATEGY:

We started by searching for the data on industrial and market reports such as Markets and Research regarding the market trends around the orthodontic market as a whole, as well as market reports on subsegments such as fixed metal braces and invisible aligners. However, reports found are locked behind paywalls, and the scope is global. This research path also out found that paywalled sites which contain market trends have a global scope.

Next, we tried to search for specific trends such as better technologies and companies that have tremendous growth recently. We were able to find companies such as SmileDirectClub and found that mail-order teeth aligners really changed the orthodontic landscape. This source also shows the technologies that are trending in the orthodontic space such as 3D imaging, self-ligating and clear invisible braces, and faster orthodontic treatments. Align Technologies has been using 3D imaging and clear invisible braces in the past decade, and we couldn't find metrics regarding the usage or the popularity of faster orthodontic treatments that is why we didn't include them as main trends, but we've provided them as part of our additional findings.

As our last resort, we searched for growth trends related to segmentation by product, by age, or by type whether fixed or clear alignments. We found out that teenagers are increasingly using clear alignment. We could not establish the growth trends between fixed and invisible aligners as the market size and share specific to the US were not available, and even paywalled sites have a global scope.
Sources
Sources

Quotes
  • "But the debate about the company has spilled onto YouTube and social media sites, where scores of customers have posted positive and negative reviews."
  • ""We think a lot of it is driven by the selfie phenomenon," says Justin Ishbia, managing partner at Shore Capital Partners, a Chicago-based private equity firm that specialises in health care investments. "This is a trend that is not going away.""
  • "SmileDirectClub's Mr Wailes dismissed the criticism as gripes by a status quo under threat, saying the firm's massive, growing customer base "speaks for itself"."
  • "The company, which debuted on the Nasdaq stock exchange this week, has served more than 700,000 people since its start in 2014."
  • "SmileDirectClub sells mail-order teeth aligners - a type of clear, plastic braces that the firm has turned into an $8bn (£6.5bn) business."
Quotes
  • " We read the S-1 and the S-1/A with great interest because SmileDirect is at the intersection of several mega-trends. This is not hype: we really mean this. SmileDirect has both the sales growth and, by now, the sales volume to prove it. Revenues grew 7x from 2016 to 2017, then almost 3x’ed from 2017 to 2018, and is now on track to more than double in 2019."
  • "And SmileDirect appears to be winning across the board with a vertical integration of advanced technology, in-house financing, high skill offshoring/regulatory arb, and good marketing. "
  • "SDC’s explosive growth has been, in our view, powered by true megatrends. These megatrends are: Direct to Consumer (DTC) with subscription and omnichannel characteristics Healthcare delivery innovations Healthcare access and affordability Beauty "
  • " The company also lists over 300,000 followers on Instagram and over 500,000 likes on Facebook, as of June 2019. These numbers as of right now are over 360,000 followers on Instagram (20% growth in three months) and 531,000 Likes on Facebook. The company also boost very high review ratings (4.9/5.0), and 57 Net Promoter Score (extraordinarily high, on par with Zappos, per the roadshow linked above). "
Quotes
  • "Clear aligners account for just 15% of the existing orthodontic appliances market, and Align currently holds an estimated 10%. New entrants with cheaper offerings could mean more patients, rather than chipping into Align’s existing customer base, says R.W. Baird analyst Jeffrey Johnson."
Quotes
  • "Fenkell told Racked that SDC has treated 250,000 clients and estimates that it has 90 percent of the at-home invisible aligner market share. "
  • "Startups like Candid Co., SmileLove, SnapCorrect, and SmileDirectClub have popped up to address the inaccessibility of orthodontic care, and they all have fundamentally similar business models."
Quotes
  • "Within the category, Invisalign captures more than 80% of the market, having served more than 5.8 million patients to date. It makes more than 332,000 unique aligners a day."
Quotes
  • "The American Association of Orthodontists estimates that nearly 4.3 million patients 17 years old and younger were treated in North America in 2016, a 66 percent increase since 1989."
  • "Align Technology, the maker of the brand Invisalign, reports that from 2013 to 2017 sales of its products for teenagers increased from approximately 100,000 to over 235,000. In the last two years, Invisalign’s volume of teen and tween patients grew faster than that of adults."
Quotes
  • "AcceleDent This device looks like a mouth guard and fits over both metal braces and clear liners such as Invisalign. AcceleDent uses micropulses, or low-frequency vibrations, which go through the teeth to the roots and surrounding bone, speeding cellular activity to move teeth more quickly."
  • "“People want to have their teeth straight and done quickly,” says Andrew Orchin, a Friendship Heights orthodontist who has been using OrthoPulse for about a year. He says he’s seen the usual 15-month time frame in his patients reduced to as little as nine months, with 12 months being the average."
  • "Orthodontist Wayne Hickory of Dupont Circle, who likens the office procedure to acupuncture for the tooth, says the Excellerator is beneficial for more challenging cases and can reduce treatment time by half."