Household income levels will drive growth, as vision care is primarily privately funded.
Los Angeles, CA (PRWEB) November 08, 2013
The Optometrists industry steadily grew over the past five years due to rising demand for vision care. The number of adults aged 65 and older increased at an annualized rate of 3.3% over the period, far outpacing population growth. As the population aged, aged-related vision diseases became more prevalent in the population. In particular, more Canadians suffered from age-related macular degeneration, glaucoma, cataracts and other vision diseases. According to the National Coalition for Vision Health (NCVH), the number of individuals with major blinding eye diseases increased from 386,000 in 2006 to 437,000 in 2011. Consequently, total vision care expenditure grew at an annualized rate of 2.7% over the past five years, resulting in greater demand for optometry services. Therefore, IBISWorld expects industry revenue to increase at an annualized rate of 2.3% to $1.8 billion in the five years to 2013.
Although Canada has a robust, publicly funded healthcare system, vision care is primarily privately funded. According to the National Institute for Health Information, private spending accounts for about 93.0% of vision care expenditure. As such, household income levels are an important demand driver for vision care services. In 2010, disposable income fell 0.7% due to the recession, resulting in a 6.5% drop in industry revenue. In 2013, industry revenue is anticipated to increase at a slow 1.2% due to anemic disposable income growth of 0.4%.
According to IBISWorld Industry Analyst David Yang, “While industry growth slowed in 2013, strong demand over the past five years has bolstered industry profit margins.” Optometrists offer high-value products, such as glasses and contact lenses, and provide value-added services like eye examinations.
The industry is projected to experience continued growth in the five years to 2018, driven by the aging Canadian population. The number of adults aged 65 and older is projected to increase at an annualized rate of 3.5% over the period, causing the median age of the population to increase an average of 0.3% per year. The NCVH forecasts that vision loss will become more prevalent as the population ages. According to Yang, “The number of individuals over 40 suffering from vision loss is projected to increase from 437,000 in 2011 to 542,000 by 2021, bolstering demand for vision care.” Furthermore, the Optometrists industry is highly fragmented, with no players accounting for a significant share of industry revenue.
For more information, visit IBISWorld’s Optometrists in Canada industry report page.
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IBISWorld industry Report Key Topics
The Optometrists in Canada is primarily engaged in the private or group practice of optometry. Optometrists provide eye examinations to determine visual acuity or the presence of vision problems and to prescribe eyeglasses, contact lenses and eye exercises. They can also perform services provided by an optician, such as selling and fitting prescription eyeglasses and contact lenses.
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