The industry's major market of senior adults will grow, driving industry demand.
New York, NY (PRWEB) January 12, 2014
Despite the recession, the Eye Glasses and Contact Lens Stores industry experienced slight growth during the past five years due to strong demand for eyewear products from the aging population. In 2009, eyewear sales were slightly propped up by stable need-based demand; however, revenue still declined as many consumers lowered their demand for brand-name eyewear and put off nonmedical eyewear purchases. Additionally, many consumers curbed their demand for fashionable eyewear and colored contact lenses, which limited industry revenue growth. Nevertheless, growth in disposable income, coupled with the aging population demanding more industry products, supported revenue growth over the period. For example, 60.0% of industry revenue stems from sales of prescription glasses and frames, which older individuals are more likely to use, compared with younger consumers. Over the five years to 2013, industry revenue is anticipated to grow at an annualized rate of 0.4% to $9.5 billion, including revenue growth of 1.1% in 2013.
According to IBISWorld Industry Analyst Sarah Turk “While cost-cutting strategies such as consolidation boosted industry profitability, this trend was offset by optical retailers incurring high raw material prices such as petroleum, which is an input in plastic lenses and frames.” Many operators are not vertically integrated and thus do not include manufacturing in operations, which caused operators to contend with volatility in eyeglass and frame prices. Industry operators also struggle to generate sales in a mature market. Due to most potential customers already owning corrective lenses, new sales generally depend on prescription and technological changes. Furthermore, many individuals are receiving corrective eye surgery, which limits demand for industry products. As a result of high competition between industry players and alternative eyewear retailers such as Costco, the industry is consolidating.
During the five years to 2018, the industry will exhibit stronger growth compared with the previous period. “Despite growing concentration among the top companies, the rest of the industry remains fragmented through small retail chains and independent locations,” says Turk. Nevertheless, the industry is expected to grow in line with the rebounding economy, but necessary prescription adjustments and new prescriptions will also drive growth as many consumers put off these purchases during the recession.
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IBISWorld industry Report Key Topics
The Eye Glasses & Contact Lens Stores Industry sells 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 optometrists’ 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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