An aging population helped keep demand afloat through the recession
Los Angeles, CA (PRWEB) February 03, 2012
The Photochromic Lens Manufacturing industry has remained rather resilient despite economic volatility and changes in competitiveness over the past five years. IBISWorld expects industry revenue to increase at an average annual rate of 1.7% to $669.8 million from 2007 to 2012. “The aging population and the need-based demand for eyewear have helped revenue growth remain relatively stable,” says IBISWorld industry analyst Mary Nanfelt. Although, since photochromic lenses are more expensive than standard lenses and disposable income decreased during the recession, industry revenue fell 6.8% in 2009. In 2010 and 2011 when the economy began to rebound, demand and revenue growth returned. IBISWorld expects this growth to continue in the year ahead as disposable income improves.
In addition to slight changes in revenue, Photochromic Lens Manufacturing industry participants have faced a monopolistic environment, with major player Transitions Optical controlling a large share of the industry prior to 2010. Because Transitions owns the most popular brand of photochromic lenses and had very specific supply terms, industry customers were limited in their supplier options. “This environment made it very difficult for other companies to gain market share and revenue,” Nanfelt points out. In 2010, however, the Federal Trade Commission found Transitions in violation of unfair methods of competition to maintain a monopoly and barred the company from creating such terms. As such, the industry is gradually becoming less concentrated.
In the five years to 2017, industry revenue is forecast to continue increasing as the number of adults aged 50 and older rises and expands the pool of potential eyeglass customers. Improving per capita disposable income will also aid revenue growth. Now that Transitions’ monopoly has lessened, IBISWorld expects competitiveness will increase and more companies will gain market share. The industry is also expected to face more international competition as imports increase. For more information, visit IBISWorld’s Photochromic Lens Manufacturing in the US industry page.
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IBISWorld industry Report Key Topics
This industry manufactures photochromic lenses, which are commonly referred to as transition lenses. These lenses darken on exposure to ultraviolet (UV) radiation.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.