Hearing aid sales fall flat in 2nd quarter

David Kirkwood
July 26, 2011

This is a corrected version of an item originally published on July 26.

WASHINGTON, DC—Most years, hearing aid sales peak in the second and third quarters, and are weaker in the first and fourth quarters. But thus far, that pattern isn’t occurring, which may make 2011 a slow year for the industry.

According to the latest statistical report from the Hearing Industries Association (HIA), unit sales by manufacturers in the second quarter totaled 692,979, just 5375 (0.8%) more than in the first quarter, which was by no means a banner period. When you take the Department of Veteran Affairs (VA) numbers out of the mix the picture looks even worse. Sales to all other dispensing practices were actually a bit (0.4%) lower last quarter than in the first.

On a year-to-year basis, the second quarter was 1.0% ahead of 2010. Combined with a gain of 5.0% in the first quarter, the industry reached the mid-way point of 2011 with sales of 1,380,583, 2.9% more than in the first half of last year.

As has been true for most of the past decade, VA purchases this year have accounted for a disproportionate share of the modest growth in the hearing aid market. During the first 6 months of 2011, manufacturers sold 278,944 hearing aids to the VA, 5.8% more than in 2010. Sales to non-governmental buyers totaled 1,101,639, 2.2% more than in the first half of 2010. In the second quarter of 2011, sales to non-VA practices rose by 0.2% from last year. The VA’s share of the total domestic market climbed to 20.7% last quarter, an all-time high.

The behind-the-ear style continued its nearly decade-long ascent during the first half. BTEs accounted for 69.8% of hearing aids sold, up from 66.3% in 2010.

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