LAS VEGAS — Just a few months after the U.S. Food and Drug Administration approved the sale of over-the-counter hearing aids, numerous companies have jumped into the potentially lucrative market. Now, many OTC hearing aids are on display at the technology industry's biggest trade show of the year, CES 2023.
"We're super excited about over-the-counter," said Christian Gormsen, chief executive of Eargo, one hearing-aid maker at the Las Vegas expo. "If you want more people to hear better, the No. 1 way to reach people is retail."
About 48 million people in the U.S. alone need hearing aids, Gormsen told Investor's Business Daily. Also, the lion's share of those, 94%, have mild to moderate hearing loss, which is the target market for OTC hearing aids.
But only 25% of the market has been penetrated, he said. Many people with hearing problems are put off by the high prices of medical-grade hearing aids, which can cost $5,000 or more. Others hate the ungainly look of traditional devices.
Hearing Aid Makers Trumpet Wares At CES 2023
At CES 2023, Eargo is promoting its seventh-generation hearing aid. That product, Eargo 7, is tiny enough to hide in the ear. The self-fitting device has advanced audio features such as making automatic adjustments when a person is moving through different sound environments. It retails for $2,950. Eargo's other hearing aids start at $1,450.
But other entrants into the market like Jabra and Nuheara are selling OTC devices for much lower prices.
Nuheara's new OTC hearing aids will be available next month and cost $699 a pair, Nuheara Chief Executive John Luna said at CES 2023. Further, the product, HP Hearing Pro, was created with PC and peripherals giant HP.
HP Hearing Pro devices look like typical earbuds for listening to music, taking phone calls and providing active noise cancellation. And they can do those things in addition to being hearing aids.
"People won't know they're hearing aids by looking at them," Luna told IBD.
New Products To Lower Prices, Raise Innovation
The FDA's approval of over-the-counter devices will drive prices lower and increase the level of innovation in the sector, Luna told IBD.
Plus, it will improve hearing for people who have been reluctant to go to an ear doctor or audiologist, he said.
"It's an underserved part of the market," Luna said.
The typical customer for OTC hearing aids is 52 years old vs. 72 for traditional hearing aids, he said.
Spencer McEvoy, marketing and public relations manager for Jabra, said OTC devices will provide an upgrade path for many people who will eventually need higher-end devices.
A Bridge To Medical-Class Devices
"It's a hearing-enhancement bridge to the stage when people would need a truly medical-grade hearing aid," McEvoy told IBD at CES 2023. Jabra's parent company, GN Group, makes medical-grade devices.
Jabra's new OTC product, Jabra Enhance Plus, is billed as a three-in-one device for hearing enhancement, music and calls. It retails for $799.
Last August, the FDA authorized the sale of over-the-counter hearing aids for people with perceived mild to moderate hearing impairment. Consumers can purchase the devices directly from stores without the need for a medical exam, prescription or a fitting adjustment by an audiologist. The rule took effect in mid-October.
The four-day CES 2023 trade show runs through Sunday in Las Vegas. More than 3,200 exhibitors are showing their latest consumer and enterprise tech products at the conference.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
