Hearing Aid Clinics in the US - Industry Market Research Report

Hearing Aid Clinics in the US - Industry Market Research Report

Hearing Aid Clinics

The Hearing Aid Clinics industry exhibits medium level of market share concentration, with the industry's four largest retailers, Starkey Hearing Technologies, Amplifon USA, William Demant Holding Group and Sonova Holding AG continually dominating the industry. However, outside of the industry's handful of major players, most companies have limited market share and employ fewer than five people.

Brand recognition drives revenue

• The largest industry operators own the most popular and well-known hearing aid brands, resulting in relatively steady consumer demand due to substantial brand loyalty.

• Starkey Hearing Technologies, the industry's largest player, has some of the most popular brands in its catalog, including All American Hearing, Audibel, MicroTech and NuEar.

• Amplifon USA, the second-largest industry operator, similarly owns several popular brands, including Miracle-Ear, Sonus, the Elite Hearing Network and Amplifon Hearing Health Care.

Acquisitions widen profit margins

• Over the five years to 2019, large industry operators have further secured their status and bolstered profitability by completing small and large mergers and acquisitions.

•Most notably, Starkey Hearing Technologies acquired All American Hearing, which gave it more than 800 total retail locations.

• Sonova Holding AG has been active in its acquisition of hearing aid companies at various points in its logistics chain, such as, Phonak, Unitron, Connect Hearing brands and Newport Audiology in recent years.

Companies compete on price and brand reputation

• Plans that cover hearing aids generally contribute only about one-sixth to one-fifth of the total cost of hearing aids. Therefore, sticker shock is a significant problem for industry companies to overcome, and they therefore compete heavily on the basis of price.

• Many industry operators lower their own costs by locking in contracts with certain manufacturers whose products they support. The brands a clinic sells are a basis of competition themselves, and these supplier contracts help protect a clinic's distribution of certain brands within their local market.

• The level of internal competition has only increased in recent years with the direct entry of many of the industry's major hearing aid manufacturers.

The Hearing Aid Clinics industry retails hearing aids for consumers of all demographics and ages. Operators in this industry also frequently provide hearing tests and consultation services.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.