The industry's major market of senior adults will grow, driving industry demand
Los Angeles, CA (PRWEB) November 28, 2012
The Eye Glasses and Contact Lens Stores industry has begun its recovery from the economic recession. While sales of eyewear during this rough period have been relatively stable because of need-based demand, revenue did decline in 2008. Improving incomes and a growing aging population have helped bolster revenue, with revenue expected to grow 2.3% from 2011 to 2012. Despite the industry's lackluster performance in 2008, revenue has grown at an average annual rate of 0.5% to $9.1 billion over the five years to 2012, according to IBISWorld industry analyst Anna Son. The dependable need for vision correction is the most significant factor driving industry demand, reflected in the product segmentation for optical goods. About 60.0% of industry revenue comes from the sale of prescription glasses and frames.
The market for eyewear is mature. Most potential customers already own the corrective lenses they need, so sales largely depend on prescription changes and technological innovation. “Neither of these strategies yields significant growth for operators,” Son says. “As a result, competition between industry players and alternative eyewear retailers like Costco is intense.” Competition is expected to heighten in the next five years as operators consolidate to cut costs and gain market share. The Eye Glasses & Contact Lens Stores industry has shrunk from 8,119 firms in 2007 to 7,613 in 2012, and will shrink even further to a projected 7,484 by 2017. Profitability will remain stable through 2017 due to operators' cost-cutting efforts. Over the five years to 2017, the industry will continue to grow, with revenue projected to increase. Recovery will be slow as unemployment lingers through the next few years. From 2012 to 2013, demand will be driven by the need to adjust prescriptions and buy corrective lenses, which consumers put off doing during the downturn. Beyond 2013, sales of high-end luxury brands are expected to resume as consumers regain confidence.
Favorable demographic changes will also likely drive industry growth over the next five years. The number of senior adults aged 50 and older is forecast to grow at an average annual rate of 1.9% over the five years to 2017. Because this group makes up the industry's largest market segment, its growth will increase demand. Elements of the newly enacted healthcare reform bill will also expand access to vision care, giving industry demand an additional boost. About half of the eye glasses and contact lens retailers employ fewer than 20 people, and the average enterprise employs about five people. For more information, visit IBISWorld’s Eye Glasses & Contact Lens Stores in the US industry report page.
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IBISWorld industry Report Key Topics
Establishments in this industry sell eyeglasses, contact lenses, sunglasses, safety eyewear and optical accessories. These retail stores may also provide fitting and lens processing services. The industry excludes the manufacture of lenses, online and mail-order retail of optical goods and sales at optometrist doctors’ offices.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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