The industry's major market of senior adults will grow, driving industry demand
Los Angeles, CA (PRWEB) July 10, 2013
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 did decline in 2008. Improving incomes and a growing aging population have helped bolster revenue, with revenue expected to grow 3.8% from 2012 to 2013. Despite the industry's lackluster performance in 2008, revenue is expected to grow at an average annual rate of 2.1% to $9.7 billion over the five years to 2013. “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, who says about 60.0% of industry revenue comes from sales of prescription glasses and frames.
The market for eyewear is mature. Because most potential customers already own the corrective lenses they need, new sales largely depend on prescription changes and technological innovation. But because neither of these strategies yields significant growth for operators, competition between industry players and alternative eyewear retailers (like Costco) is intense, says Son. “Competition is expected to heighten in the next five years as operators consolidate to cut costs and gain market share.” The Eye Glasses and Contact Lens Stores industry has shrunk from 7,986 firms in 2008 to 7,422 in 2013 and is forecast to shrink even further by 2018. As such, the level of concentration is steadily increasing. This escalating concentration can be attributed to acquisition activity, which is symptomatic of an industry in the mature stage of its life cycle, compeling businesses to grow by taking market share away from each other. Current major players include Luxottica Group SPA, National Vision Inc. and Highmark Inc.
Industry growth in the next five years will be in line with the rebounding economy, but necessary prescription adjustments and new prescriptions, which many consumers put off doing during the downturn, will also drive growth. Beyond 2014, sales of high-end eyeglass brands are expected to resume as consumer sentiment and incomes improve. Favorable demographic changes will also likely drive industry growth over the next five years. The number of senior adults aged 50 and older is forecast to grow through 2018. 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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