Photochromic Lens Manufacturing in the US Industry Research Report Updated by IBISWorld

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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.

IBISWorld Market Research

IBISWorld Market Research

The Photochromic Lens Manufacturing industry has remained resilient despite economic volatility

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.

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 darken on exposure to ultraviolet (UV) radiation and lighten once they are no longer exposed to UV radiation.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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.

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Gavin Smith
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