Market Trends of Argentina Dental Devices Industry
This section covers the major market trends shaping the Argentina Dental Devices Market according to our research experts:
Prosthodontic Segment is Expected to Witness High Growth over the Forecast Period
As prosthodontic dentistry has a wide range of tools used for dental corrections, there is a massive application of prosthodontic equipment. There is an increasing demand for dental prostheses across Argentina due to the rising number of older adults. However, due to the COVID-19 pandemic, elective and prosthetic dental surgical procedures have been significantly impacted, with all specialties writing various guidelines on managing this crisis. Regulatory bodies have had to triage the urgency of their daily surgical procedures and consider non-surgical management options wherever possible, avoiding all non-emergent practices. According to statistics published by World Data Atlas, in 2021, Argentina's population aged 65 years and above was 11.5%. Argentina's population aged 65 years and above increased from 7.2 % in 1972 to 11.5 % in 2021, growing at an average annual rate of 0.95%.
Furthermore, according to the Observatory of Economic Complexity, in August 2022, there was an increase in Dental Product's year-by-year exports in Argentina (86.7%), which exported USD 1.98 million in dental products. With the rise in the export of dental products, the demand for dental devices increases leading to a significant contribution to the segment growth.
Therefore, the factors mentioned above are expected to drive segmental growth in the market during the forecast period.
General and Diagnostics Equipment Segment is Expected to Witness High Growth During the Forecast Period
The expansion of the Argentine dental device market is more likely to be aided by growing healthcare spending and the number of hospitals. For instance, according to International Trade Administration 2022, healthcare expenditures in Argentina account for approximately 9% of the GDP, among the highest in the region. Imports in the medical equipment and device sector have been estimated to account for around 70-75% of the total market, with local manufacturing of medical devices representing about 25% of the market. The increasing healthcare expenditure increases dental treatment, thus boosting the market's growth in Argentina during the forecast period.
Furthermore, Argentina's healthcare system comprises four subsectors, i.e., public hospitals, the social security/union-run health insurance system, private medical insurance, and PAMI (National Institute of Social Services for Retirees and Pensioners). Formal sector workers in Argentina are obligated to participate in one of the 300 or so union-run health insurance schemes, each guaranteeing minimum coverage levels for preventative, diagnostic, medical, dental, and maternity care. Thus, with more than 50% of the reliability of the population toward a union-run health insurance system that covers dental treatment, the demand for dental equipment is expected to grow in the Argentine market.
Additionally, initiatives by key players are expected to drive the market's growth. For instance, in October 2020, Henry Schein Inc. signed an agreement with Carrizo Dental, to distribute the company's Henry Schein-brand product portfolio to dental professionals throughout Argentina. As a result, dental practitioners operating in Argentina will have a local sales channel to purchase Henry Schein-brand products, helping to ensure a convenient, fast, and seamless process for requesting and receiving these products that can help improve clinical outcomes. Therefore, such an initiative is expected to drive the market's growth.
Thus, owing to the above factors, the general and diagnostics equipment segment is expected to show significant growth over the coming years.
