China Dental Implant VBP 2.0: Recent Progress and Outlook

This article builds on our previously published October 2025 report, "VBP 2.0 in FY 2026: Reshaping China’s Dental Implant Market." You can access the full report here.

China Procurement Overhang and Industry Performance

Earlier this year, insightsZ reported that VBP 2.0 round has been postponed to Q3’26 - creating a temporary drag on the industry’s topline for H1’26. A source familiar with the matter confirmed our speculation - indicating that the detailed implementation framework for the second VBP policy on dental implants is expected to be unveiled in July 2026, with the final supplier selection outcomes anticipated to be announced in August 2026.

FY2023 China implemented VBP for dental implants, achieving an ASP reduction of 55 percent, and fundamentally changing the market dynamics. The recent VBP 2.0 implementation delays have created significant timing volatility – leading to a unstable earnings trajectory, especially as major hospitals and local distributors have been delaying purchases in anticipation of the next, lower-price round. Almost all leading dental implant manufacturers have unanimously indicated a slowdown in Chinese sales activity as market anticipates VBP 2.0 roll-out.

Straumann Group Raises FY2026 Guidance

On Jun 17, 2026 Basel-based manufacturer Straumann (SWX: STMN) reported that the company’s China profitability is improving, supported by the Shanghai campus ramp-up as well as lower manufacturing costs. The delayed implementation of VBP 2.0 has led to an unchanged pricing environment, while patient flow and distributor demand is slowly normalizing.

To meet the upcoming VBP 2.0 requirements, Straumann group plans to progressively transfer the manufacturing of dental implants sold in the country to the newly licensed Shanghai campus. This strategic move ensures continued competitiveness and growth in China, which accounts for over 15 percent of the company’s global revenue.

insightsZ Findings:

• Our analysis revealed that VBP has had a mixed impact on the country’s dental implant market, characterized by a significant short-term uptick in implant sales, followed by demand normalization and a period of long-term market adjustment. In other words, the initial purchasing uptick was not sustainable over the long-term, especially as demand normalized, policy-driven procurement subsided and markets reached a new equilibrium.

  
  

• Even though lower implant prices theoretically boost demand, DSOs have continued to struggle with declining margins and slower-than-expected revenue growth. And despite leading market indicators remaining favorable, no tangible increase in patient volume was observed during FY2025. A recent insightsZ survey covering leading DSOs and public dental hospitals revealed that their overall procurement costs for dental implants declined by approx.15% in FY2025 – negatively impacting the implant manufacturers’ topline performance.

  
  

• insightsZ estimates that the immediate increase in purchase volumes post VBP 1.0 was driven by a combination of the significant price advantages AND possible stockpiling behavior by hospitals anticipating market adjustments. Our findings corroborate similar trends from the country’s drug procurement reforms, wherein similar stockpiling behaviour post VBP implementation was observed.

  
  

• The VBP has had a significant impact on the domestic manufacturers – in alignment with the policy’s long-term objective. That is, domestic implant manufacturers’ revenue growth-rate outperformed those of foreign brands. This is in alignment with the policy’s LT objective – creating a sustained space for local Chinese manufacturers to increase their market share.

  
  

• To protect market-share and fight-off intensifying market competition, foreign implant manufacturers have responded by engaging in aggressive pricing strategies, setting up local manufacturing, entering new distribution agreements and even supply lower cost products. You can read more on this topic in our research report here.

  
  

• Many leading dental implant manufacturers have consistently witnessed negative revenue growth in the last 5 quarters. Q1’26 Envista Holdings reported destocking activities and pricing pressure in China ahead of VBP 2.0 implementation. insightsZ expects commercial performance of leading dental manufacturers to gain momentum in H2’26 – overlapping VBP 2.0 implementation.

insightsZ continues to monitor the ongoing developments and plans to share its findings in the upcoming version of this report.

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