According to statistics generated by the Hearing Industries Association (HIA), hearing aids dispensed in the United States during 2007 totaled 2.42 million units, an increase of 2.3%. While that sounds like pretty flat sales, it should be remembered that this follows a 7.7% increase in sales in 2006 (Figure 1)—the industry's largest year-on-year increase in almost a decade. 

As previously reported in the weekly e-newsletter The Insider (July 26 edition), first-half 2007 hearing instrument unit sales for the entire market increased by 3.5%, but then increased by only 1.2% in the second half, compared to 2006 figures. Similarly, private sector sales (ie, non-government dispensing activity that excludes the Veterans Administration) of hearing aid units increased by 2.2% in the first half and essentially zero (0.45%) in the second half of the year. Overall, the average dispensing office in 2007 witnessed a 1.3% net unit increase.

Mini-BTEs, RICs, and open-fits continue to drive growth. BTEs constituted 51.4% of the overall US market in 2007, and 53.3% of the private-sector. Ten years ago, in 1997, BTE market penetration was only 18.8%, and the usage rates of BTEs rose fairly slowly until 2003. From that year forward, BTE market share has climbed steeply, and should continue to increase. A recent HR Web Poll suggested there are two fairly distinct users of BTEs. In that poll, a total of 36.2% of survey respondents said they use traditional BTEs (with typical #13 tubing) for less than one-fifth of their BTE fittings, while about 40.4% said they use them in over half their fittings. Although it's difficult to draw any firm conclusions, the presence of these two groups may suggest that a number of dispensing professionals have yet to utilize fully the "newer" BTE options.

What's ahead. The 2.3% sales gain in 2007 is on the low-end of HR's prediction of 2% to 5% in our May 2007 market analysis, "Green Lights and Speed Bumps: The Road Ahead for Hearing Health Care in 2007." Perhaps, the best news to take away from these year-end figures is that hearing aid sales volume has increased each year for the past 5 years—the longest continuous stretch of positive sales since the 7-year period from 1994 to 2000. Quarterly sales in 2007 were fairly consistent, with 1.1%, 5.9%, 1.9%, and 0.4% gains, respectively. The small percentage-gains experienced in Quarters 1 and 4 were largely the result of double-digit quarterly gains during the same quarters of 2006. In other words, although these percentage increases are nothing to "jump for joy" about, they are also nothing to panic about.

Total US net hearing aid units (private and VA sales) sold, as reported by HIA, and corresponding year-to-year volume increases/decreases (percentages at top of bars). Red bars denote ITE use while blue bars denote BTE use.

The final analysis? Looking at the up-and-down nature of US hearing aid sales during the past 5 years, and assuming that the economy doesn't completely nosedive, HR predicts a similar hearing aid sales increase of 2% to 4% for 2008. Last month in this column I wrote an article titled "Are We Recession-Proof?" in which I showed why there are good historical reasons to remain optimistic in the face of dark economic indicators. In addition to these reasons, there are many things to be excited about in hearing care, as demonstrated by the new technologies and resources featured in the enclosed AudiologyNOW! supplement, the possibility for a hearing aid tax credit, high levels of positive media attention, and incredible new research and product development.

Karl Storm
Editor-In-Chief