The hearing aid market - Portugal

The global hearing aid market, valued at around $8.38 billion, has shown a projected growth trend with a CAGR of 7.2%, aiming to reach $14.45 billion by the end of 2026. This growth is driven by an aging population and an estimated increase in hearing impairment, which is expected to affect around 900 million people worldwide by 2050 due to factors such as noise pollution, genetic predisposition and infection. 16 million hearing aids have been sold worldwide, indicating a strong demand that is likely to persist as awareness of the consequences of hearing loss increases. Meanwhile, the cost attributable to untreated hearing loss in Europe was a substantial 216 billion euros a year. The Portuguese market echoes these trends, with a market value of around 80 million euros and an estimated 40,000 hearing aids sold that year.

Supply dynamics in Portugal show a highly concentrated market structure due to recent acquisitions, in particular by Amplifon. However, the COVID-19 pandemic posed significant challenges to the industry, affecting supply chains and reducing immediate demand for hearing aids due to closures and the prioritization of critical care.

Emerging trends in the hearing aid market

In recent years, the hearing aid market in Portugal has experienced significant growth - a significant increase on previous years. This growth has been fuelled by a combination of factors, including an ageing population, growing awareness of hearing health and technological advances. The number of hearing impairments reported by the Portuguese population highlights a striking contrast between those who need aids and the low penetration rate of actual use. Only a small percentage, between 2-3% of the population, claim to use hearing aids, while over 20% report having a hearing problem. This indicates a clear potential for market expansion.

Several key demographics influence demand trends in the hearing aid market. Notably, older people - between 65 and 74 - make up the largest segment of those reporting hearing problems. With demographic trends in Portugal pointing to an increase in the "over 60s" group, and around half the population over the age of 45, the hearing aid market is set to grow. Geographically, regions such as Alentejo and the island areas of Madeira and the Azores report higher percentages of self-reported hearing difficulties, framing a clear regional demand pattern. Internationally, Portugal has positioned itself as a major net importer of hearing aids, with Poland and Spain being the main suppliers. Sales volumes of hearing aids also rose overall, with the world selling between 15 and 20 million units, an increase of around 6.5% on the previous year. Price sensitivity remains a predominant factor affecting hearing aid adoption. Consumers often prioritize cost over quality, which influences their purchasing decisions.

Indeed, untreated hearing loss entails considerable societal costs, estimated at around 8,200 euros per person per year in Europe due to associated sequelae such as unemployment, lack of productivity and depression. In the Portuguese market, adults with a low level of education run a higher risk of hearing loss, and targeted awareness and prevention measures can significantly influence demand. There is also a link between exposure to noise or harmful drugs and hearing problems, which could extend the reach of the market as awareness grows. With the COVID-19 pandemic impacting healthcare services and consumer behavior, market dynamics faced short-term challenges, with supply shocks and a postponement of hearing aid consultations. However, tele-audiology services have emerged as key market players that are shaping the hearing aid landscape in Portugal

The Portuguese hearing aid market is a dynamic landscape dominated by a handful of leading players who have strengthened their presence through strategic acquisitions and extensive retail networks. These leading companies account for a significant share of the market, offering a diverse range of hearing aid solutions designed to meet the different needs of people with hearing impairments. Below, we look at the profiles of the main entities that have a substantial influence on the retailing of hearing aids and accessories in Portugal.

• Amplifon: Amplifon has emerged as a powerhouse in the market, particularly after its notable acquisition of Minisom in 2017, followed by the subsequent incorporation of Spanish giant GAES in 2018. This move catapulted Amplifon to a leadership position, commanding significant market share and offering an extensive selection of hearing aid solutions. Amplifon has established a strong retail presence with stores across the country, catering to the diverse needs of consumers looking for hearing aids that are both affordable and feature cutting-edge technology.
• Acústica Médica: This leading name in the market holds a substantial share and continues to maintain its position as one of Portugal's leading hearing aid suppliers. Acústica Médica is known for its broad distribution network and offers that cover different price ranges and levels of technology, making hearing solutions accessible to a wider segment of the population.
• Widex: As a world leader in hearing aid innovation, Widex has made a name for itself in the Portuguese market thanks to its commitment to providing advanced hearing solutions. Its presence in Portugal is notable, with a good market share that builds on the company's reputation for high-quality, technologically advanced hearing aids with the latest features to enhance the listening experience.
• Audição Activa: Growing rapidly in the competitive landscape, Audição Activa has firmly established itself in the market in recent years. Their focus on providing customer-centric hearing aid solutions and personalized services has enabled them to capture a significant share of the market, fostering customer trust and loyalty. The market is also home to other smaller players who collectively occupy a segment of the industry, demonstrating a rich and diverse range of options for consumers.

Despite the high level of market concentration attributed to the major chains, these additional competitors contribute to the variety and price competitiveness enjoyed by end-users. In summary, the main players in the hearing aid market in Portugal have strategically positioned themselves to meet the growing needs of an ageing population that prioritizes hearing health

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 02/03/2022

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