The dental industry continues to show steady long-term growth, with a forecasted 4.98% annual sales increase through 2029, outpacing the broader U.S. economy. However, access to care remains uneven, and macroeconomic pressures are forcing practice owners to think more strategically about staffing, pricing, and the long-term value of their business.
Key Trends Shaping the Market
1. Millions Still Lack Dental Coverage Roughly 27% of U.S. adults, or 72 million people, do not have dental insurance, according to the CareQuest Institute. That’s nearly triple the number of Americans without health insurance. Lower-income adults and those without a high school diploma are disproportionately affected. This gap in coverage may continue to limit demand for routine and preventive care, especially for general dentistry practices in price-sensitive markets.
2. Flat Hiring, Modest Wage Growth Employment at dental practices grew just 0.8% year-over-year as of May 2025, suggesting a leveling off after a decade of expansion. Wages for nonsupervisory dental staff rose 2.7% to $33.43/hour over the past year. While pay has increased 41.2% over the past decade, recent growth lags behind broader wage trends. Staffing remains a concern for many independent practices, especially those competing with DSOs (Dental Support Organizations) that can offer more robust benefits and flexibility.
3. Industry Outlook Remains Positive Despite headwinds related to insurance access and staffing, the dental industry is expected to grow nearly 5% annually through 2029. This growth is driven by an aging population, increased demand for cosmetic dentistry, and emerging technologies such as AI-driven diagnostics and teledentistry. Valuation multiples remain healthy for practices with strong hygiene programs, stable patient bases, and efficient back-office operations.
Outlook for the Remainder of 2025
Expect buyer interest to remain strong, particularly from DSOs and private equity-backed groups seeking consolidation opportunities. Practices with steady cash flow, clean financials, and growth potential continue to command premium valuations. Owners considering an exit within the next 1–3 years should begin preparing now to improve operational efficiency and address key value drivers.
Lion Business Advisors’ quarterly industry insights incorporate data and trends sourced from internal deal flow and buyer activity, Vertical IQ, and market comparables from platforms such as Axial and BVR (Business Valuation Resources).
Industry Insight Report: Dental Industry Q2-2025
The dental industry continues to show steady long-term growth, with a forecasted 4.98% annual sales increase through 2029, outpacing the broader U.S. economy. However, access to care remains uneven, and macroeconomic pressures are forcing practice owners to think more strategically about staffing, pricing, and the long-term value of their business.
Key Trends Shaping the Market
1. Millions Still Lack Dental Coverage
Roughly 27% of U.S. adults, or 72 million people, do not have dental insurance, according to the CareQuest Institute. That’s nearly triple the number of Americans without health insurance. Lower-income adults and those without a high school diploma are disproportionately affected. This gap in coverage may continue to limit demand for routine and preventive care, especially for general dentistry practices in price-sensitive markets.
2. Flat Hiring, Modest Wage Growth
Employment at dental practices grew just 0.8% year-over-year as of May 2025, suggesting a leveling off after a decade of expansion. Wages for nonsupervisory dental staff rose 2.7% to $33.43/hour over the past year. While pay has increased 41.2% over the past decade, recent growth lags behind broader wage trends. Staffing remains a concern for many independent practices, especially those competing with DSOs (Dental Support Organizations) that can offer more robust benefits and flexibility.
3. Industry Outlook Remains Positive
Despite headwinds related to insurance access and staffing, the dental industry is expected to grow nearly 5% annually through 2029. This growth is driven by an aging population, increased demand for cosmetic dentistry, and emerging technologies such as AI-driven diagnostics and teledentistry. Valuation multiples remain healthy for practices with strong hygiene programs, stable patient bases, and efficient back-office operations.
Outlook for the Remainder of 2025
Expect buyer interest to remain strong, particularly from DSOs and private equity-backed groups seeking consolidation opportunities. Practices with steady cash flow, clean financials, and growth potential continue to command premium valuations. Owners considering an exit within the next 1–3 years should begin preparing now to improve operational efficiency and address key value drivers.
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