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MARKET II International Sales

THE EUROPEAN

Hearing Aid Marke'

Europe has, a fte r the en try o f C roatia , 2 8 m em bers.

Tony Grant-Salmon (British Hearing Aid Manufacturer's

Association) has com piled all the available sales figures

from Europe for 2012 for Audio Infos. There was weak

growth during the year for the EU countries, but Grant-

Salmon is not so optimistic for 2013.

his year’s study of hearing aid sales in Western

Europe has revealed sales of 2,929,000 units

in 2012, a decrease of 0.9% over the 2011

figure of 2,955,000 units. The 2012 result

was a little disappointing since Europe had

susta ined reasonable growth th rough the

By Tony Grant-Salmon

victoria.adshead@edpsante.fr

Fotos: EU / Innocentia

recent years of the world financial crisis. Sales figures

for the European Union countries were more positive at

ca.4,275,000, an increase of 1.9 %.

Countries making the main contribution to the growth

in 2012 were Netherlands at 6.5%, Sweden at 5%,

Denmark at 4%, UK at 3.9%, Germany and Spain at

2.3%. Of particular note were the dramatic downturns in

both Switzerland and Norway.

A U D IO INFO S I N°81 I SEPTEMBER 2013

| MARKET

In the Netherlands, sales were poor in the first few

months due to negative commentary from “Watchdog”

style programmes. Consumers tended to stop buying

aids believing there were no benefits to having hearing

aids with extra features. During the summer of 2012,

the Government indicated they would make changes

to funding in early 2013 and this created demand in the

last half of 2012 and it coincided with manufacturers

making special deals depending on age. This resulted

in an above average growth of 6.5% for the year.

In the UK, the market continued to show growth in that

private sales increased by 3.9% to 214,000 and Public

sales by 7.6% to 1,008,000, thus totaling 1,222,000,

an overall increase of 6.9% over 2011. The planned

introduction by the Department of Health of the Any

Guallfied Provider (AQP) system, which gives patients

the right to choose freely, where appropriate, from a

range of providers that are qualified to provide safe, high

quality care and treatment - and select the one that best

meets their needs - has been a slow process with still

only a limited number of companies accredited.

Mixed results

Growth in Germany was limited by irritations caused

by the upcom ing new fla t rate system. Custom ers

waited fo r h igher fla t rates (m eaning lower private

pays) and thus their decision to buy a hearing aid was

postponed. Unfortunately, the new flat rates didn't come

into force in 2012 because the d ifficu lt negotiations

be tw een the p u b lic hea lth care system and the

Association of Hearing Aids were not finished and they

are still dragging on in 2013.

In Spain, despite the difficult econom ic and political

situation and limited or no growth in recent years, the

Hearing Industry maintained its figures and there was

nominal increase of 2.3%. There is optimism for greater

increase in 2013.

In Switzerland, the figures show a sharp decline down

to 49,650 units in calendar year 2012. There was a

particularly strong first half due to a strong pipeline of

prescriptions under the old pre-July 2011 prescriptions

regulation but followed by a weak second half reflecting

fewer leads to the shops due to new post-July 2011

regulations, this resulted in a significant reduction in

patient streams to the shops.

The key issues were a) lower reimbursement sums, b)

tightened HL qualification criteria (20% binaural hearing

loss in quiet situation), c) end-consumer covering the

fu ll am ount to the HCP and applying fo r individual

re im bursem ent to state, as opposed to previously

paying only the difference to the HCP, who in his turn

got the reimbursement money from the state.

An increase in binaural fittings has also influenced sales

positively, in some countries binaural sales are now

close to 90% of total sales.

Europe and the USA

Comparison of sales and growth between Europe and

the USA reveals that in 2012, the market in the USA

grew at 3.1% whereas that in Europe declined by 0.9%.

US sales are influenced by sales to the VA, where sales

growth has slowed to 3.2% from 10.8% in 2010 and

3.9% in 2011.

Five year trends are also interesting in that Europe has

grown by 23% since 2007 whereas the USA has grown

by only 18%.

The growth in BTE sales in the USA continues and has

now reached 71% compared to 57% in 2007. This is in

comparison with Europe where BTE stands at 84% of

sales. Much of BTE growth has been due to the rise in

sales of RIC/RITE instruments, which have continued

to confirm their position in the market with sales already

above 45% of total sales, as indicated above.

Last year, I estimated that sales in the European Union

for 2011 were 4,154,000 and my estimate now for 2012

is ca.4,275,000, an increase of 1.9 %. This figure is

inclusive of the UK Government NHS sales, unreported

sales in some countries and sales in the twelve EU

member states not shown in the main matrix.

At 4,275,000 the EU maintains its position with 38%

of world sales which I estimate at ca.11,300,000 units

in 2012.

I reported last year on the Eurotrak study commissioned

by EHIMA, carried out by the Swiss market research

com pany Anovum initia lly in Germany, France and

the UK. The study covers hearing loss prevalence,

adoption rates, hearing loss population demography,

fac tors in fluenc ing purchase of hearing aids and

satisfaction rates.

I mentioned that the second phase of the study would be

Although the EU

countries account for

38% of global hearing

aid sales, the hearing

aid industry is still too

small for Brussels to be

that interested. Studies

like EuroTrak and other

work by EHIMA may

start to change this.

SEPTEMBER 2013 I N°81 I A U D IO IN FO S 0 |

MARKETInternational Sales

HEARING AID MARKET SURVEY - WESTERN EUROPE (N um ber o f H earing Aids so ld (000's)

WEST EUROPE TOTAL 2011 2012 c h a n g e 2011 2012 c h a n g e

BTE 2 502 2 474 -1,1% D ig ita l 2 955 2 929 -0,9%

ITE 453 455 0,4% A n a lo g u e 0 0

Total 2 955 2 929 -0,9% 2 955 2 929 -0,9%

%BTE 84,7% 84,5% -0,3% % D ig ita l 100,0% 100,0% 0,0%

GERMANY 2011 2012 2011 2012

BTE 807 830 2,9% D ig ita l 887 907 2,3%

ITE 80 77 -3,8% A n a lo g u e 0 0

Total 887 907 2,3% 887 907 2,3%

%BTE 91,0 91,5 0,6% % D ig ita l 100,0% 100,0% 0,0%

UK PRIVATE 2011 2012 2011 2012

BTE 113 117 3,5% D ig ita l 206 214 3,9%

ITE 93 97 4,3% A n a lo g u e 0 0

Total 206 214 3,9% 206 214 3,9%

%BTE 54,9 54,7 -0,4% % D ig ita l 100,0% 100,0% 0,0%

FRANCE 2011 2012 2011 2012

BTE 458 461 0,7% D ig ita l 518 520 0,4%

ITE 60 59 -1,7% A n a lo g u e 0 0

Total 518 520 0,4% 518 520 0,4%

%BTE 88,4 88,7 0,29% % D ig ita l 100,0% 100,0% 0,0%

ITALY 2011 2012 2011 2012

BTE 275 277 0,7% D ig ita l 328 330 0,6%

ITE 53 53 0,0% A n a lo g u e 0 0

Total 328 330 0,6% 328 330 0,6%

%BTE 83,8 83,9 0,0 % D ig ita l 100,0% 100,0% 0,0%

DENMARK 2011 2012 2011 2012

BTE 107 110 2,8% D ig ita l 125 130 0,8%

ITE 18 20 11,1% A n a lo g u e 0 0

Total 125 130 4,0% 125 130 4,0%

%BTE 85,6 84,6 -1,2% % D ig ita l 100,0% 100,0% 0,0%

NETHERLANDS 2011 2012 2011 2012

BTE 205 220 7,3% D ig ita l 231 246 6,5%

ITE 26 26 0,0% A n a lo g u e 0 0

Total 231 246 6,5% 231 246 6,5%

%BTE 88,7 89,4 0,8% % D ig ita l 100,0% 100,0% 0,0%

SPAIN 2011 2012 2011 2012

BTE 91 93 2,2% D ig ita l 130 133 2,3%

ITE 39 40 2,6% A n a lo g u e 0 0

Total 130 133 2,3% 130 133 2,3%

%BTE 70,0 69,9 -0,1% % D ig ita l 100,0% 100,0% 0,0%

SWEDEN 2011 2012 2011 2012

BTE 125 130 4,0% D ig ita l 145 151 4,1%

ITE 20 21 5,0% A n a lo g u e 0 0

Total 145 151 4,1% 145 151 4,1%

%BTE 86,2 86,1 -0,1% % D ig ita l 100,0% 100,0% 0,0%

NORWAY 2011 2012 2011 2012

BTE 90 38 -57,8% D ig ita l 105 48 -54,3%

ITE 15 10 -33,3% A n a lo g u e 0 0

Total 105 48 -54,3% 105 48 -54,3%

%BTE 85,7 79,2 -7,6% % D ig ita l 100,0% 100,0% 0,0%

SWITZERLAND 2011 2012 2011 2012

BTE 81 43 -46,9% D ig ita l 90 50 -44,4%

ITE 9 7 -22,2% A n a lo g u e 0 0 0,0%

Total 90 50 -44,4% 90 50 -44,4%

%BTE 90,0 86,0 -4,4% % D ig ita l 100,0% 100,0% 0,0%

OTHERS (Eire; Belgium; Portugal; Finland; Greece; Austria)

2011 2012 2011 2012

BTE 150 155 3,3% D ig ita l 190 200 5,3%

ITEI 40 45 12,5% A n a lo g u e 0 0

Total 190 200 5,3% 190 200 5,3%

%BTE 78,9 77,5 -1,8% % D ig ita l 100,0% 100,0% 0,0%

0 A U D IO INFO S I N°81 I SEPTEMBER 2013

carried out initially in the UK. Eurotrak UK 2012 was carried

out in early 2012, and was followed by Germany, France,

Switzerland, Italy, Norway and Japan. These studies were

carried out and the results of these studies were reported

in Audio Infos issues 09/2012 and 02/2013.

Summary of the key findings

‘ Switzerland has highest satisfaction rate at 84%

‘ Germany has h ighest prevalence of hearing loss

at 12.5%

*UK has highest adoption rate at 41.1%

‘ Norway has highest 3rd party reimbursement at 94%

‘ Norway has highest binaural fitting rate at 74%

The study of the latest four countries concludes that the

Swiss are most happy with their hearing aids and are

positive about the image of the hearing health industry

in Switzerland. The hearing im paired in Italy seem

most affected by the current economic downturn with

decreasing binaural fittings. Norway tops the chart as

regards the number of people with hearing aids with a

very small private sector and very high reimbursement

on the public system.

Seren Hougaard of EHIMA suggests that the studies

are send ing strong messages to the Industry and

regards the next steps as better education fo r ENT

The EU maintains

its position with 38% of world

sales, with the UK accounting

for 23% of EU sales ^

doctors; better information for the hearing impaired

about reimbursement possibilities; advocation of adult

screening programmes; education of politicians about

social cost issues; channelling more information to

tinnitus patients about treatment options.

Finally, what will 2013 bring? I am not so optim istic

a b o u t 2013; in itia l in d ic a tio n s be ing s ig n if ic a n t

difficulties in some countries which will inevitably lead to

poorer sales. The financial problems persisting in many

countries, especially the Eurozone, and the potential

difficulties and setbacks experienced in some countries

outlined above, the Hearing Industry will struggle.

Finally, my usual qualification that the availability of

information on hearing aid sales in Europe is limited,

only a few countries having formal reporting systems.

This study uses data collected by Industry Associations

plus that from informal but informed sources. I

November 2013

Manchester Central Conference Centre, Manchester, UK

The UK’s biggest audiology conference. This year’s theme - building skills for the future, aims

to address a broad range of clinical, academic and professional issues within audiology.

On offer are specific learning tracks and workshops in a variety of different areas to include;

hearing, ageing and cognition, tinnitus, balance, complex needs, paediatrics, service quality

and beyond the puretone audiogram. There are also dedicated learning tracks for students

and Assistant Audiologists, along with a specific sponsors track.

Early bird price valid until: 30th September 2013 q Full c o n fe re n S\

V fr°in £209 Ce )For the full programme visit: www.baaudiology.org

If you have any questions please contact the BAA events team at

events@baaudiology.org I 01506 292042

BRITISH ACADEM Y

O F A U D IO L O G Y

SEPTEMBER 2013 I N°81 I A U D IO INFO S