The industry's major market of senior adults will grow, driving industry demand
Los Angeles, CA (PRWEB) June 16, 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 declined in 2008. Improving incomes and a growing aging population have helped bolster sales, 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. “The dependable need for vision correction is the most significant factor driving industry demand, reflected in the product segmentation for optical goods,” according to IBISWorld industry analyst Anna Son. “About 60.0% of industry revenue comes from the sale of prescription glasses.”
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,” adds Son. “However, neither of these strategies yields significant growth for operators.” Despite growing concentration among the major players, including Luxottica and Highmark Inc., the rest of the Eye Glasses and Contact Lens Stores industry remains fragmented through small retail chains and independent locations. The advent of standardized eyewear technologies has allowed independent retailers to successfully compete with these larger operators. Competition between industry players and alternative eyeglass retailers (like Costco) is also intensifying. Competition is expected to heighten in the next five years as operators consolidate to cut costs and gain market share. Profitability will remain stable through 2017 due to operators' cost-cutting efforts.
Over the five years to 2017, the industry will continue to grow and recover slowly as unemployment lingers through the next few years. Between 2012 and 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 is forecast to grow, and 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. For more information, visit IBISWorld’s Eye Glasses and 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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