The industry will continue to grow due to favourable population demographics.
New York, NY (PRWEB) January 10, 2014
Despite the recession, the Eye Glasses and Contact Lens Stores industry experienced growth during the past five years due to favourable population demographics. The aging population, particularly adults aged 65 and over, prompted demand for prescription glasses in line with this demographic's age-related eyesight issues, such as cataracts and glaucoma. “Additionally, changing fashion trends have bolstered demand for high-margin, luxury eyewear over the period,” according to IBISWorld Industry Analyst Sarah Turk. Fluctuating fashion trends shortened the replacement cycle for eyewear, which prompted revenue growth. Nevertheless, revenue still declined 1.0% and 0.9%, respectively, in 2009 and 2010, as many consumers curbed their demand for brand-name eyewear and put off their nonmedical eyewear purchases in response to low disposable income.
However, total health expenditures increased over the period as consumers increased their overall healthcare spending, including their out-of-pocket costs for prescription eyewear and contact lenses. Favourable governmental regulations also benefited the industry. For example, prescription glasses and contact lenses are considered medical devices, and are thus subject to regulation pertaining to the manufacturing process to ensure safe, effective and high-quality products. “Also, in many provinces and territories, only optometrists and opticians are able to supply prescription eyewear,” says Turk. As such, it is difficult for online retailers to comply with Canadian standards, which limits external competition and benefits the industry. Revenue is anticipated to grow at an annualized rate of 0.2% to $1.9 billion, including 1.9% growth in 2013, due to strong growth in consumer sentiment. Profit is also expected to rise, from about 5.7% of revenue in 2008 to 7.0% in 2013, as revitalization in consumers' discretionary spending increases demand for nonmedical eyewear, such as high-margin sunglasses and coloured lenses.
During the five years to 2018, revenue is forecast to grow at an annualized rate of 1.8% to $2.0 billion due to growing demand for prescription eyewear from the aging population. Also, competing retailers, particularly online optical retailers, will continue to face significant regulatory barriers. As such, the industry will continue to generate high sales volumes of industry products. Strong consumer sentiment for luxury eyewear, coupled with demand for industry products from optometrists (IBISWorld report 62132CA), will support revenue growth over the next five years.
For more information, visit IBISWorld’s Eye Glasses and Contact Lens Stores in Canada industry report page.
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IBISWorld industry Report Key Topics
The Eye Glasses and Contact Lens Stores industry sells eye glasses, contact lenses, sunglasses, safety eyewear and optical accessories. These retail stores may also provide fitting and lens-processing services. This industry excludes the manufacture of lenses, online and mail-order retail of optical goods and sales at optometrist doctors' offices.
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