New lens technologies and the aging population will strengthen industry demand.
New York, NY (PRWEB) May 22, 2014
The Glasses and Contact Lens Manufacturing industry receives a steady stream of revenue from the 75.0% of adults who use some form of vision correction, according to the Vision Council of America. Industry operators produce eyeglass lenses and frames, contact lenses and protective eyewear. Prescription lenses are essential to the visually impaired, insulating this product segment from economic downturns. However, consumers waited for a longer period of time to upgrade their glass frames and lenses to decrease spending on vision care in the years following the recession. Also, sales of the industry's more discretionary products, such as sunglasses and costume contact lenses remained repressed at the beginning of this period. As a result, industry revenue dropped 4.3% in 2010 and continued to decline until 2012. Although growth stabilized in 2012, revenue for the Glasses and Contact Lens Manufacturing industry is anticipated to decrease an annualized 0.7% to $6.0 billion over the five years to 2014, including an increase of 1.9% in 2014.
According to IBISWorld Industry Analyst Hester Jeon, “The decline in revenue during this period has been counterbalanced by the introduction and subsequent consumer adoption of technologically advanced products that have revolutionized eye care.” For example, silicone hydrogel (Si-H) lenses, which increase the flow of oxygen to the cornea, now enable people to wear contact lenses for extended periods. Also, improving discretionary income supported the sales of these new, higher-margin products, helping lift both revenue and profit growth. However, increasing competition from imports over the past five years dampened revenue growth. Imports are anticipated to grow 6.5% per year on average over the five-year period to ultimately satisfy 52.2% of domestic demand.
“Moving forward, the industry is well positioned to capitalize on greater demand for lens products as the US population ages and the number of people with vision-related health complications increases,” says Jeon. As per capita disposable income improves, more consumers will upgrade their glass frames and trade up to premium products, such as daily disposable contact lenses. While these trends are set to support the industry's growth, other factors, including competition from foreign producers and laser refractive surgery, are expected to dampen demand for domestically produced goods.
For more information, visit IBISWorld’s Glasses and Contact Lens Manufactuing in the US industry report page.
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IBISWorld industry Report Key Topics
The Glasses and Contact Lens Manufacturing industry manufactures ophthalmic goods, including eyeglass frames and lenses and contact lenses. The industry also produces sunglasses and protective eyewear.
Industry Performance
Executive Summary
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Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
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Products & Services
Major Markets
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Business Locations
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Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
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Major Companies
Operating Conditions
Capital Intensity
Key Statistics
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Annual Change
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