The optical market - United States

1.2 A growing global market

CAGR, or Compound Annual Growth Rate, is a metric used to determine the average annual growth rate of an investment or a company's revenue over a specific period. In this case, the CAGR between **** and **** is calculated to *.**% for the global eyeswear market, indicating that the market is expected to grow consistently over this period. The turnover is projected to increase from $***.** billion in **** to $***.** billion in ****, with estimations for each year showing a steady upward trend.

Value of the global eyewear market Worldwide, **** - ****, in billion U.S. dollars Source: ****

Despite its relative maturity, the growing demand for eyewear was mainly driven by the increase in cases of myopia and presbyopia related to the evolution of the lifestyle the trend is also influenced by the aging of the world's population and the fact that the number of people with disabilities is increasing (***). In addition, the influence of fashion, which supports the demand for eyeglass frames and sunglasses, continues to grow.

1.3 Growth in eyewear sales in the United States

The total value of the vision care market in the United States experienced growth from **.** million USD in **** to **.*** million USD in ****. The market saw a dip in revenue in **** but recovered in ****.

Total value of the vision care market United States, **** to ****, in million USD Source: ****

One of the reasons for this is the growing awareness of the importance of eye health. This has resulted in increased funding from private and government sources to educate Americans about possible solutions to vision problems that are available in the marketplace.

Estimated size of the reading glasses market United States, **** - ****, in billion U.S. dollars Source: ****

In summary, the table shows a significant growth in the reading glasses market, with a noticeable increase from $**.** billion in **** to $**.** USD in ****. The forecasted compound annual growth rate (***) for the period of ****-**** is *.**%.

1.4 International trade

The U.S. export value of goods under HS Code **** experienced fluctuations between **** and ****. In ****, the export value was $***.* million, which increased to $***.** million in ****. A slight uptick was observed in **** with $***.** million, followed by a significant rise to $***.** million in ****. The export value peaked at $***.** million in **** before dropping to $***.** million in ****. The downward trend continued with $***.* million in **** and $***.** million in ****. In ****, the export value slightly decreased to $***.** million, followed by a sharp decline to $***.** million in ****. However, the export value rebounded to $***.** million in **** and further increased to $***.** million in ****. 

U.S. export value of goods of HS Code **** United States, **** - ****, in million U.S. dollars Source: ****

The market is heavily dependent on imports. Between **** and ****, the import value of goods with HS Code **** in the United States has experienced a steady increase. In ****, the import value was *.** billion U.S. dollars, and it gradually rose to *.** billion U.S. dollars in ****. The highest growth rate was observed between **** and ****, with an increase of *.** billion U.S. dollars. Overall, the data shows a consistent upward trend in the U.S. import value of goods with HS Code **** during this period.

U.S. import value of goods of ...

2.1 Summary of the application

There are many sub-segments in the eyewear industry, a relevant distinction in the analysis of demand is based on the use of eyewear:

Non-corrective use (***) Corrective use (***)

The share of the population benefiting from the product is undoubtedly a relevant variable influencing the current and future turnover of the industry. Nevertheless, it is relatively difficult to estimate the number of Americans wearing eyeglasses because there are many variables to consider. Customers alternate between glasses and contact lenses. It is also possible that the sunglasses they use are prescribed by a doctor but are only for sun protection or are simply used as a fashion accessory.

Nearly **% of American adults aged ** and older require some form of vision correction. Factors such as increased screen time, aging population, and genetic predisposition contribute to this high prevalence. About **% of adults use vision correction methods, including glasses, contact lenses, and/or corrective surgeries, with glasses being the most common form, followed by contact lenses, and surgeries like LASIK being less common. 

Proportion of people wearing visual aids United States, ****, in % Source: ****

A discrepancy becomes apparent between people who need glasses and people who actually wear glasses. 

Many individuals begin needing glasses between the ages of ...

2.2 The average spectacle wearer

Gender-based Eyewear Statistics

Over **% of women require glasses for vision correction, indicating a high prevalence of vision issues such as nearsightedness, farsightedness, astigmatism, and presbyopia among them. In comparison, only **% of men wear glasses, possibly due to a lower likelihood of seeking eye check-ups or addressing health concerns.

Share of woman who wear glasses United States, ****, in % Source: ****

    Share of men who wear glasses United States, ****, in % Source: ****

As women age, they are more prone to nearsightedness and may require prescription glasses. They also access eye care more frequently than men, increasing their likelihood of needing glasses. Additionally, hormonal fluctuations during pregnancy and menopause may cause vision changes in women due to estrogen and progesterone levels.

2.3 Factors determining the demand

Visual problems in the population

In the sub-segment of eyeglasses, Nearly **% of American adults aged ** and older require some form of vision correction. Factors such as increased screen time, aging population, and genetic predisposition contribute to this high prevalence. About **% of adults use vision correction methods, including glasses, contact lenses, and/or corrective surgeries, with glasses being the most common form, followed by contact lenses, and surgeries. [***]

Demographic change

According to recent projections, by the year ****, nearly one in four Americans will be classified as an older adult. This significant demographic shift is expected to have a substantial impact on various aspects of health, including the demand for eyewear such as eyeglasses and contact lenses. As people age, their eyesight tends to deteriorate, making it increasingly necessary for them to rely on corrective eyewear to maintain their quality of life. Consequently, the eyewear industry is poised to experience a surge in demand, driven by the growing older adult population. 

Projections of the Older Adult Population: **** to **** By ****, nearly one in four Americans is projected to be an older adult. United States, ****, in total number and percent Source: ****

Lifestyle changes The technological transformations affecting society, both in the field of work and ...

3.1 Value chain & Distribution channels

This is a simplified value chain form, which includes customer retention and relationship management after the distribution stage. Customer service and relationship management are vital in maintaining strong customer connections.

While a significant portion of eyeglasses is still purchased in brick-and-mortar shops, e-commerce is experiencing rapid growth. The following statistics provide a comparison between these two distribution channels:

Eyewear statistics by distribution channels United States, ****, in % Source: ****

It can be assumed that the importance of e-commerce will increase. However, there are differences in the buying habits of the buyers. Regarding eyewear purchases, **% of adults with purchase plans prefer independent stores due to the unique and personalized experience they offer. These stores provide a more comprehensive selection of frames, including designer and niche brands. **% of adults plan to buy from chain stores, which may offer more competitive pricing. Additionally, **% of adults plan to buy from discount stores, although they might have a limited range of options and may lack the personalized attention found at independent or chain stores.

  Adults with eyewear purchase plans plan to buy at United States, ****, in % Source: Overnightglasses  

3.2 Production

The traditional dominance of specific distribution channels

Based on export and import statistics, US eyewear production is not very large compared to the rest of the market. In fact, more than **% of eyewear sold in the United States is manufactured in China or Europe. [***]

During the second half of the **th century, only a few companies such as Randolph Engineering and Shuron guaranteed the survival of the eyewear industry. Nevertheless, national production is now being buoyed by more favorable winds. In recent years, a new generation of brands has begun to offer American-made acetate frames:

State Optical Co. Founded in **** and based in the state of Chicago, the company has built a new plant equipped with ** Italian machines. It now employs some ** workers, all newcomers to the eyewear industry. For its glasses, the company uses Mazzucchelli acetate in Italy and OBE hinges in Germany. It is characterized by its production form focused on details, such as beveled edges and customized branch tips that highlight the skills acquired in the hand-finishing process.

Dom Vetro was founded in **** and is the first company to design and manufacture its entire eyewear line in Los Angeles. Initially, the company focused on producing luxury eyewear in ...

4.1 Companies in the market

The global eyewear market is a highly competitive industry, with several key players dominating the market. Some of the major companies include Bausch and Lomb Inc., Carl Zeiss AG, Charmant Group, CooperVision, Warby Parker, and EssilorLuxottica. These companies are known for their innovative products, quality, and wide-ranging consumer base.

In the United States, Luxottica and Vision Source: ****

These market leaders have contributed significantly to the growth of the global eyewear industry. Their continuous efforts in research and development, as well as their commitment to providing high-quality products, have enabled them to maintain their positions in the market. As the demand for eyewear continues to rise, these key players are expected to remain at the forefront of the industry, shaping the future of eyewear and ensuring consumers have access to the best products available.

Sales of the U.S. leading optical retailers United States, ****, in billion USD Source: ****

The luxury eyewear industry, which includes high-end glasses, sunglasses, and other optical products, has become a significant market in the world of fashion. With an estimated worth of £**.** billion in ****, this sector caters to discerning consumers who demand quality and luxury in their eyewear. These products can be found in high-end boutiques and through ...

4.2 A wide gap between prices and willingness to pay

To each his own glasses

Prices vary considerably within the different product categories of the eyewear industry. Products that are intended to last longer (***) have higher prices than products that are limited in time.

The largest gap is observed between spectacle lenses and contact lenses. The estimated number of contact lens wearers in the United States is ** million. [***] However, this product generates the lowest turnover of all categories because its unit price is the lowest. The average cost of glasses frames is $***, and basic single-vision lenses cost around $***. Without insurance, an average pair of glasses typically costs around $***.

Composition of the average price United States, ****, in USD Source: ****

However, it can be observed that there is a difference between the pricing and the amount that customers are willing to pay. Consumers plan to spend an average of $*** on their next eyewear purchase, with factors such as location, type, and brand influencing the cost. Additionally, **% of eyeglasses frame purchases are priced at $*** or less, due to the increasing availability of affordable options from online retailers.

The statistics show the price differential between categories and the average price per unit, without considering the three sub-segments in terms of positioning mentioned below (***).

Price ...

4.3 Possible threats to the current market structure

A number of social, demographic, and economic factors are expected to enhance market dynamics, both globally and nationally (***). However, several potential threats are developing, which could also have an impact on market developments

Latest innovations

About **% of the world's population will be nearsighted by ****. In the future, this may not translate into an increase in the optical market. Research by scientists at Israel's Bar-Ilan University has developed an alternative solution to treat nearsightedness and farsightedness that could replace traditional eyeglasses: "nano-drops". These eye drops composed of non-toxic protein nanoparticles would have the same corrective effect as glasses or contact lenses. [***]

Current Innovations

Laser eye surgery is one existing innovation that could potentially pose a threat to corrective eye care. This technology was invented in the ****s after years of experimentation and testing, although it has long been associated with several drawbacks. [***]

Recently, an evolution of the technique and procedures of Lasik, makes it progressively safer and cheaper. [***]

4.4 Distribution trends

Customization

A trend affecting prescription and non-corrective eyewear is the gradual impact of personalization on consumer buying habits. According to a study conducted by Deloitte. One in three consumers base their purchases on the ability to personalize a product. The trend affects all industries and is particularly interesting to the consumer goods market, with a predominance of the fashion industry.

The possibility of obtaining a tailor-made product can convince **% of consumers to pay a premium. The result of companies that adopt this changing nature of consumer purchasing behavior is to gradually allow the customer to choose his or her tailor-made product. A growing number of companies are moving away from the concept of "one size fits all" in order to improve the customer experience with a highly personalized offer. Some players are setting the trend in the eyewear industry, offering the possibility of modeling glasses based, for example, on a *D facial scan.

Sustainability

Growing consumer awareness of the impact of sustainable, green, and environmentally friendly choices has transformed how companies position themselves and offer their products.

Sustainable awareness has a significant impact on the behavior of American consumers **% of consumers respondents reported that they consider environmental issues when purchasing a ...

5.1 Regulation of the sale of eyeglasses

Due to the particular nature of the product categories, all eyewear, whether worn for vision correction or not, is subject to specific and strict regulations at national and international level.

In the United States, sunglasses, eyeglass frames, eyeglass lenses and magnifying glasses are medical devices exempt from the notification ***(***), several other FDA regulations apply:

U.S. manufacturers and original U.S. distributors (***) must register their facilities with the FDA Foreign manufacturers must register their facility with the FDA and appoint a U.S. agent Manufacturers must register their devices with the FDA; Manufacturers must meet the quality system (***) requirements set forth in ** CFR *** Eyeglass and/or sunglass lenses must be certified as impact resistant in accordance with ** CFR Part ***.***.

Manufacturers of magnifiers, eyeglass frames, eyeglass lenses and sunglasses must list each of the devices manufactured by the company. The Medical Device Listing provides instructions on how to list new devices.

Eyeglass lenses and sunglasses sold in the U.S. must comply with impact resistant lens regulations, ** CFR ***.***, Use of impact-resistant lenses in spectacles and sunglasses. One certificate illustrating the compliance of the lens with ** CFR ***.*** must accompany each lot of eyeglass lenses and sunglasses intended for entry into the United ...

5.2 Fiscal aspects of regulation

Tax advantages are possible, both for product categories and for medical visits. According to the U.S. tax agency, the purchase of eyeglasses may be deductible because they count as a "medical expense," which can be claimed as a deductible itemized expense on Form ***, Schedule A.

To be eligible for this deduction, the medical expenses of the individual, his or her pair and/or dependants must exceed **% of adjusted gross income (***) less deductions. In addition, the taxpayer must have proof of the medical reasons for which the glasses are worn in order to benefit from this deduction

It is also possible to deduct the amount paid for contact lenses By achieving at least **% of the IGA If you have a medical condition, it is possible to claim as many medical expenses as you are legally able to. Products needed for lens care, such as lens cleaners and saline solutions, are also tax deductible. Finally, eye examinations, surgery and vision insurance premiums are also among the services that can be deducted. [***]

6.1 Segmentation

• Visionworks of America
• Costco Optical
• Eyecare Partners
• National Vision Holdings
• Vision Source