Investment is customarily defined as the “commitment of money to receive more money later” but its literary meaning gives a little broader intuition. It means “commitment of resources to achieve later benefits”. In oral health sector, investing in Oral Health Care and Oral Health Industry give two distinct perceptions as stakeholders for the two are unalike. Investors in the oral health care are individuals and the families who aim to improve their oral health whereas investors interested in oral health industry can be private equity firms, venture capitalists or institutional investors who contribute capital to businesses operating within the oral health sector.
Investment in oral health care
Investing in oral health care primarily refers to personal or organisational efforts and expenditures aimed at maintaining or improving one’s oral health. This includes expenses related to regular dental check-ups, preventive treatments, dental hygiene maintenance, and lifestyle choices that promote good oral health. Good oral health not only contributes promisingly to general body-health but also saves money in the long run by preventing costly dental treatments as neglecting oral care can lead to more severe health issues and increased healthcare costs. It is, therefore, believed that investing in oral health care is not only financially profitable but also crucial for one’s complete well-being.
Visiting your dentist for regular check-ups is a wise investment as preventive care can catch dental issues early, preventing more expensive treatment procedures later. Professional Fluoride application strengthens the teeth and prevents future cavities. Regular check-up appointment with dentist determines the need of Fluoride treatment if required. Investing time in teaching children good oral hygiene habits at an early age saves them from future tooth decay and gum ailments, potentially reducing long-term expense. Having interceptional preventive treatments like fissure sealants and resin infiltration for children’s teeth to protect them from cavities are cost-effective measures recommended by dentists globally. If you have missing teeth, dental implants can be a worthwhile investment as implants provide a long-term solution that restores smile and enhances chewing function as compared to conventional old fashioned oral prostheses. Do consider investing in oral accessories like mouthguards if you play contact sports or grind your teeth at night as they prevent permanent dental injuries. Many siblings suffer from crooked teeth making their look ugly and oral health compromising. Correcting such misaligned teeth through braces can be an excellent investment. It not only improves their oral health but also boosts their self-confidence level.
Investment in oral health industry
Investing in the oral health industry involves putting money into businesses, stocks, or ventures that operate within the oral health sector and is typically driven by profit motives. Investors seek financial returns by participating in the dental and oral care market, which may involve funding dental startups, purchasing stocks in oral health-related companies, or supporting research and development efforts in the industry. This can include investments in dental clinics, dental equipment manufacturers, pharmaceutical companies producing oral health medications, or dental insurance providers.
It can be a promising financial opportunity due to the growing demand for oral health services and products. In 2021, the global oral health care market in terms of revenue was estimated to be worth $47.20 billion and it is poised to reach $54.90 billion by 2026, growing at a compound annual growth rate (CAGR) of 3.10% from 2021 to 2026.
Toothpaste manufacturing industry is a high growing industry across the globe and more precisely in the emergent markets. The rise in awareness of oral health has helped vendors introduce diverse oral hygiene product categories for global customers and professionals. In Pakistan, despite instability in economics, the toothpaste market has been around Rs7 billion in the recent past. The tooth brush and mouth wash markets were found to be Rs300 million and Rs85 million respectively.
Investing in companies that manufacture and sell dental equipment and technology can be profitable. Advancements in dental technology continually drive demand for new equipment and instruments. The global dental equipment market size was valued at $10.6 billion in 2022 and is expected to grow at CAGR of 6.2% from 2023 to 2030. Investment here can stimulate economic growth, create jobs, and drive innovation in dental technologies and treatments.
Market size of dental equipment is also on the rise in Pakistan. According to a report there are around 20,000 dentists registered with the regulatory authority, Pakistan Medical and Dental Council (PMDC) Islamabad while only 5,000 have been able to open their own practices. This indicates an opportunity for further growth of the market in coming years. Moreover, technological advances such as digital X-ray machines, laser technology, CAD/CAM technology, intraoral cameras, radiography systems, tooth decay detection devices and electronic endodontic devices will further drive up the demand for these products over upcoming years.
Dental Tourism is a growing trend in the healthcare industry where individuals travel to foreign countries to receive dental care at a lower cost while also enjoying their vacation. This concept presents an attractive venue for investment as Dental Tourism packages characteristically include not only dental treatment but also travel and accommodation arrangements. This convenience makes it an attractive option for the individuals who want to combine their dental needs with a vacation.
Investing in or owning a dental practice can be lucrative. If the investor is not a dentist, he/she can partner with experienced dentists to run the practice. Ensuring that these clinics maintain high standards of care and offer competitive pricing can attract international patients and generate consistent revenue from the professional services provided by the dentist for resolving patients’ problem to their gratification.
Dental Tourism Agencies handle travel arrangements, accommodation bookings, and liaise with dental clinics, making the process seamless for patients. Investing in or creating such travel agencies can be another option for the investors.