Is the aligner business still profitable in 2023?

Clear aligners are modern-day alternatives to fixed metal braces. They are designed to reposition teeth and correct malocclusion by using a gradual force to control tooth movement. Aligners are made of durable plastic material, making them both functionally efficient and aesthetically superior to traditional braces.

Invisalign, Spark, ClearCorrect, SureSmile, and 3M Clarity aligners are some of the biggest players in the global clear aligner market. While the concept and principles surrounding clear aligners remain the same, companies are racing to make wide-ranging improvements in this vast, ever-expanding market.

However, it hasn’t been easy for the dental industry. Dentists around the world are facing what seems to be an endless wave of economic turmoils due to a wide range of external factors. The pandemic had a primary role in plummeting revenue, forcing dental practices to close and reopen sporadically. Most dental practices struggled with supply chain issues, a critical staffing shortage, and rising interest rates.

With many patients rethinking every trip to the dental office or putting off elective procedures like clear aligner treatment, dental practices grappled to make ends meet. In fact, a survey reviewed dentists from 29 countries during the first wave of the pandemic. It was reported in this survey that 75.9% of participants who took part reported practice closure with a significantly higher percentage in the private sector as compared to the non-private sector.

That being said, the global clear aligners market size was also valued at USD 2.31 billion in 2019. By the same token, we learn that putting money into the clear aligner business may still be a viable option. But, how sure are we? The question still lingers – is the aligner business still as profitable in 2023?

Clear aligners market size in 2023

Clear aligners are the biggest driver of growth in the orthodontic space. It has been estimated that the US market surpasses 4 million cases of clear aligner therapy each year. The global clear aligners market size was recorded to be USD 4.9 billion in 2021.

According to the Clear Aligners Market Size & Trends Analysis Report, 2030, the global clear aligner market is expected to surpass around USD 46.3 billion by 2030. Experts believe that the market value of clear aligners will be expanding at a compound annual growth rate (CAGR) of 28.34% during the forecast period between 2022 and 2030.

The report also shattered some misconceptions about the pandemic which was believed to the crippled the dental sector. They found that the pandemic instead had a positive impact on the market globally. Key players of clear aligners were able to recover with high revenues in 2020 as compared to the previous years. For instance, according to Dental Tribune, Align Technology successfully sold a record 1.6 million cases of clear aligners in 2020 alone as compared to 1.5 million cases in 2019.

Adoption of clear aligners by adults and teenagers also went up by 36.7% and 38.7% respectively in 2020. In fact, the adoption of aligners among teens or younger patients was highest during the pandemic. This could have been due to the apprehension of patients to go to their dentist’s office and get fixed appliances after the pandemic. The advent of clear aligners, especially Direct-to-consumer (DTC) aligners helped patients pursue their dream smiles and in turn, helped the industry prosper in sales and revenue.

Some key insights from this report were:

• The ‘Adults’ segment held the largest market share of 61.2% in 2022 and is expected to grow at a significant CAGR over the forecast period.
• The ‘End-use’ segment is divided into hospitals, standalone practices, group practices, and others. The ‘Standalone Practitioners’ segment held the highest market share of 52.7% in 2022 and is also reciprocating significant CAGR over the forecast period.
• The ‘Orthodontists’ segment held the highest market share of 67.9% in 2022 and is expected to exhibit a significant CAGR over the forecast period.
• The ‘Offline’ segment held the highest market share of 75.0% in 2022, since, Align Technology is the most dominant player in the global market, and the company carries out its sales operations solely through offline channels.
• North America dominated the market capturing 57.1% market share in 2022 and is expected to showcase a significant CAGR in the forecast period. This is attributed to increasing R&D investments and the local presence of global players & their efforts to obtain new patents.

Since the evidence is glaringly obvious, the business of clear aligners is not expected to fall behind anytime soon. With escalating dental malocclusion cases and the hand-in-hand advent of technologies like 3D impression systems, biomaterial advancements, and CAD/CAM appliances, clear aligners continue to be at the forefront of efficient, predictable, and aesthetic orthodontic treatments. It is looking up for clear aligner businesses in 2023!