The Photochromic Lens Manufacturing industry has remained resilient despite economic volatility
Los Angeles, CA (PRWEB) March 28, 2012
This release is a correction to the release of February 3, 2012 titled “Clear View: Photochromic Lens Manufacturing in the US Industry Market Research Report Now Available from IBISWorld”. In the February release we stated that in 2010 the Federal Trade Commission (FTC) found Transitions Optical Inc. (TOI) in violation of unfair methods of competition, which is not correct. There was no finding or ruling that TOI had violated the law.
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. IBISWorld industry analyst Mary Nanfelt says that, “The aging population and the need-based demand for eyewear have helped revenue growth remain relatively stable. However, since photochromic lenses are more expensive than normal 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 returned, boosting revenue. During 2012, IBISWorld expects revenue to increase 2.7% as disposable income continues to increase.”
In addition to slight changes in revenue, industry participants have faced a heavily concentrated environment. Major player Transitions Optical had an average market share of 80% in the years prior to 2010. The company required industry customers, lens casters, to buy photochromic lenses exclusively through its company. Since Transitions owns the most popular brand of photochromic lenses, many industry customers agreed to their terms. This environment made it very difficult for other companies to gain market share. In 2010, the Federal Trade Commission barred Transitions from making such agreements, although there was no finding or ruling that the company had violated the law.
In the five years to 2017, industry revenue is forecast to increase faster than the general economy. The number of adults over the age of 50 will continue to rise, increasing the demand for glasses and expanding per capita disposable income will boost revenue. In addition, IBISWorld expects competitiveness will increase and more companies will gain market share after Transitions dominance has slightly declined. In addition the industry will face more international competition as imports are expected to rise.
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IBISWorld industry Report Key Topics
This industry manufactures photochromic lenses, which darken on exposure to ultraviolet (UV) radiation and lighten once they are no longer exposed to 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
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