The dental industry in Japan is facing a growing crisis, with a significant increase in the number of clinic closures and bankruptcies. Once thought to outnumber convenience stores, dental clinics in Japan are now being forced to shut down due to challenges such as aging staff, rising commodity prices, and the inability to afford technological advancements.
According to Teikoku Databank Ltd., a record 126 dental clinics filed for bankruptcy or closed between January and October 2024—1.8 times more than in the same period the previous year. The bankrupt clinics each had liabilities of 10 million yen ($65,000) or more. The main factor driving these closures is the advancing age of clinic operators. The average age of clinic owners who closed their businesses in 2024 was 69.3 years.
The dental industry is also grappling with a declining workforce of dental technicians. Health ministry statistics show a 5% decrease in the number of dental technicians between 2020 and 2022, with more than half of the remaining workforce being in their 50s or older. With fewer technicians available and rising material costs—particularly for alloys used in dental work—many clinics are struggling to stay afloat.
At the same time, clinics are under pressure to invest in the latest digital technologies in order to remain competitive. However, these advanced systems come with high upfront costs, making it difficult for smaller clinics to justify the expense. The disparity between clinics that can afford such capital investments and those that cannot is only growing.
Some dental practices, such as the Takabe Dental Clinic in Tokyo’s Shinjuku Ward, are turning to digital solutions to address these challenges. In February 2023, the clinic introduced an integrated medical system from U.S. manufacturer Dentsply Sirona, which allows patients to complete multiple treatment steps in a single visit. This technology reduces the need for manual processes like mold creation and custom crown adjustments, helping to streamline treatments.
While these technologies promise increased efficiency and better patient experiences, they are costly. For example, placing a crown on a front tooth can cost between 140,000 and 180,000 yen, with additional charges for fillings. Despite the high prices, some patients are willing to pay for the convenience, as evidenced by one bride who had her broken front tooth fixed just before her wedding.
Dentsply Sirona’s technology offers hope for addressing labor shortages, as it can speed up manual processes, allowing dental technicians to focus on more complex tasks. However, the financial burden of adopting such systems remains a significant challenge for many clinics.
As the gap between successful, technology-driven clinics and those forced to close widens, the future of Japan’s dental industry depends on how well it can balance labor shortages, rising costs, and the need for modernization. The situation calls for urgent attention and strategic solutions to ensure that dental care remains accessible to all Japanese citizens.
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