Ophthalmic Goods & Services

Published by: Key Note Publications Ltd

Published: Jul. 1, 2008 - 120 Pages

Table of Contents

Executive Summary

1. Market Definition

Report Coverage

Providers and Suppliers of Ophthalmic Goods and Services

Market Sectors

Ophthalmic Goods

Spectacles

Contact Lenses

Ophthalmic Services

Market TRENDS

Sight Tests and New Prescriptions Show Solid Rises

Strong Demand in Spectacles Keeps Pace With a Decline in Average Prices

Contact Lens Uptake Continues to Increase

A Changing and Variable Retail Landscape

Consumer Attitudes Lean Towards Laser Treatment

Demographic Trends

Table 1: The Actual and Projected UK Population and the Proportion of Those of Pensionable Age (million and %), 1971-2026

Household Spending

Table 2: Average Household Weekly Expenditure on Health (£), 2004/2005 and 2006/2007

ECONOMIC TRENDS

Population

Table 3: UK Resident Population Estimates by Sex (000), Mid-Years 2003-2007

Gross Domestic Product

Table 4: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2003-2007

Inflation

Table 5: UK Rate of Inflation (%), 2003-2007

Employment

Table 6: Actual Number of Unemployed Persons in the UK (million), 2003-2007

Household Disposable Income

Table 7: UK Household Disposable Income per Capita (£), 2003-2007

MARKET POSITION

The UK

2. Market Size

The Total Market

Table 8: The Total UK Ophthalmic Goods and Services Market by Sector by Value (£m), 2003-2007

Figure 1: The Total UK Ophthalmic Goods and Services Market by Sector by Value (£m), 2003-2007

BY MArKET SECTOR

Ophthalmic Goods

Table 9: The Total UK Ophthalmic Goods Sector by Subsector by Value (£m), 2003-2007

Figure 2: The Total UK Ophthalmic Goods Sector by Subsector by Value (£m), 2003-2007

Table 10: Spectacles/Appliances for Which Vouchers Were Reimbursed by the NHS in England and Wales by Patient Eligibility (%), 2006/2007

Ophthalmic Services

Table 11: The Total UK Ophthalmic Services Sector by Subsector by Value (£m), 2003-2007

Figure 3: The Total UK Ophthalmic Services Sector by Subsector by Value (£m), 2003-2007

NHS Sight Tests

Table 12: Number of UK NHS Sight Tests and Spectacles Redeemed Using NHS Vouchers (million and 000), 2003-2007

Table 13: NHS Sight Tests Performed by Practitioners in England and Wales (%), 2006/2007

Table 14: NHS-Paid Sight Tests by Patient Eligibility in England and Wales (%), 2006/2007

3. Industry Background

Recent History

Sight Tests and Eye Examinations

Entitlement to NHS Ophthalmic Services

Table 15: Basic and Other NHS Optical Voucher Values in England (£), April 2007-April 2008

The Role of Optometrists

Number of Companies

Employment

Regional Variations in the marketplace

Distribution

How Robust is the Market?

Legislation

KEY TRADE ORGANISATIONS

Association of British Dispensing Opticians

Association of Contact Lens Manufacturers

Association of Optometrists

British Contact Lens Association

Federation of Manufacturing Opticians

Federation of Ophthalmic and Dispensing Opticians

Optometry Scotland

Optometry Wales

Other Key Associations

4. Competitor Analysis

The Marketplace

MARKET LEADERS

Boots Opticians Ltd

Company Structure

Current and Future Developments

Financial Results

Dollond & Aitchison Ltd

Company Structure

Current and Future Developments

Financial Results

Optical Express Ltd

Company Structure

Current and Future Developments

Financial Results

Specsavers Optical Superstores Ltd

Company Structure

Current and Future Developments

Financial Results

Vision Express (UK) Ltd

Company Structure

Current and Future Developments

Financial Results

Other Companies

Outside Suppliers

MARKETING ACTIVITY

Main Media Advertising Expenditure

Opticians

Table 16: Main Media Advertising Expenditure by Opticians (£000), Year Ending March 2008

Prescription Frames and Contact Lenses

Table 17: Main Media Advertising Expenditure on Prescription Frames and Contact Lenses (£000), Year Ending March 2008

Laser Vision Correction

Table 18: Main Media Advertising Expenditure on Laser Vision Correction (£000), Year Ending March 2008

Exhibitions

5. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREAT

6. Buying Behaviour

Introduction

EYE TESTS

Table 19: Those Who Have Had Eye Tests by Sex (% of respondents), 2008

I Have Had One Eye Test Within the Previous 12 Months (S1)

I Have Had More Than One Eye Test in the Previous 12 Months (S2)

I Have Had an Eye Test, But Not Within the Previous 12 Months (S3)

I Have Never Had an Eye Test (S4)

Table 20: Frequency of Eye Tests (% of respondents), 2008

ATTITUDES TOWARDS EYE TESTS AND EYEWEAR

Table 21: Attitudes Towards Eye Tests and Eyewear by Sex (% of respondents), 2008

Attitudes Towards Eye Tests

I Find Eye Tests Useful and I Trust the Results (S5)

I Have Concerns Over the Quality of Eye Tests (S6)

Table 22: Attitudes Towards Eye Tests (% of respondents), 2008

Attitudes Towards Eyewear

I Prefer to Buy Designer Frames for My Glasses (S7)

I Choose My Glasses Primarily by Cost (S8)

I Buy My Reading Glasses Over the Counter Rather Than Having Them Prescribed (S9)

I Would Prefer to Pay More for Eyewear, if it Means I Obtain a Higher Quality of Assistance in Eyewear Selection, Aftercare and Service (S10)

Table 23: Attitudes Towards Eyewear (% of respondents), 2008

Attitudes Towards Opticians and Quality of Eyewear Provided

I Choose My Optician Primarily Based on Cost (S11)

I Choose My Optician Primarily on the Range and Quality of the Eyewear Provided (S12)

Table 24: Attitudes Towards Opticians and Quality of Eyewear Provided (% of respondents), 2008

USAGE OF EYEWEAR

Table 25: Usage of Eyewear by Sex (% of respondents), 2008

Frequency of Usage of Glasses and Contact Lenses

I Wear Glasses for Reading and/or Close Work (S13)

I Need to Wear Glasses or Contact Lenses All the Time (S14)

I Usually Wear Contact Lenses Instead of Glasses (S15)

I Keep a Spare Pair of Glasses/Contact Lenses as Back-Up to My Existing Glasses/Contact Lenses (S16)

Table 26: Frequency of Usage of Glasses and Contact Lenses (% of respondents), 2008

Use of Glasses versus Contact Lenses

I Have Both Glasses and Contact Lenses, and Use Both Alternately (S17)

I Wear Glasses Because I Cannot/Do Not Wish to Wear Contact Lenses (S18)

I Prefer Contact Lenses to Glasses (S19)

I Prefer Glasses to Contact Lenses (S20)

Table 27: Use of Glasses versus Contact Lenses (% of respondents), 2008

I Have Tried Contact Lenses in the Past, But Was Unable to Wear Them (S21)

I Wear Disposable Contact Lenses (S22)

Table 28: Use of Glasses versus Contact Lenses (% of respondents), 2008

Use of Visual Aids and Laser Surgery

I Sometimes Use Other Visual Aids, Such As Magnifying Glasses (S23)

I Have Undergone Lasik (Laser) Eye Surgery (S24)

I am Planning to Have Lasik (Laser) Eye Surgery (S25)

I Wear Bifocals (S26)

Table 29: Use of Visual Aids and Laser Surgery (% of respondents), 2008

7. Current Issues

Developments in Contact Lenses

Technological Trends

Brands versus Own Label

New Developments

Other Trends

The Threat from Laser Surgery

Online selling

Threats in the Spectacles Sector

Economic Threats

8. The Global Market

International Developments in Ophthalmology

Table 30: Global Estimate of Visual Impairment by World Health Organization Region (million and %), 2002

global health Issues

Global Market Developments

9. Forecasts

Introduction

Economic Indicators

FORECASTS 2008 TO 2012

Table 31: The Forecast Total UK Ophthalmic Goods and Services Market by Sector by Value (£m), 2008-2012

By Market Sector

Ophthalmic Goods

Table 32: The Forecast UK Ophthalmic Goods Sector by Subsector by Value (£m), 2008-2012

Ophthalmic Services

Table 33: The Forecast UK Ophthalmic Services Sector by Subsector by Value (£m), 2008-2012

market growth

Figure 4: Growth in the Total UK Ophthalmic Goods and Services Market by Sector by Value (£m), 2003-2012

FUTURE TRENDS

NHS Subsidies Boost Spend

Retail Expansion is Less Certain

10. Company Profiles

Boots Opticians Ltd

Dcm (optical Holdings) Ltd

Dollond & Aitchison ltd

Specsavers Optical Superstores Ltd

Vision Express (uk) Ltd

11. Further Sources

Associations

General Sources

Government Publications

Other Sources

Bisnode Sources

Abstract

The UK ophthalmic goods and services market maintained growth over the review period and was worth an estimated £2.74bn in 2007, a rise of 18.3% from a value of £2.32bn in 2003.

Ophthalmic goods comprise the largest sector of the market, with spectacles dominating sales. A trend in preference for designer frames has greatly boosted excitement in the sector, and consumers using NHS vouchers in part-payment for spectacles also raised their average spend in 2006/2007, according to data from the Federation of Ophthalmic and Dispensing Opticians (FODO). The market is fiercely competitive in terms of promotions and discounted second pairs; therefore, strong volume sales have sustained healthy value rises, despite a fall in the average price of a pair of spectacles.

Contact lenses have also made strong gains in the ophthalmic goods sector and have risen in value by 19.4% since 2003 to an estimated £430m. Strong growth was seen particularly in 2007, when new materials and developments in the manufacturing of soft disposable lenses have enabled more users to wear them in comfort. Uptake is still increasing, and fewer wearers are giving up and returning to spectacles. Many more women than men wear contact lenses, and one of the industry's challenges must be to encourage more men (as well as more people in general) to wear lenses.

The ophthalmic services sector accounted for 14.9% of the total market in 2007. Strong growth in the number of NHS-paid sight tests since 2003 has reduced the number of privately paid sight tests. However, the overall value of the sector has grown, as has the number of new and changed prescriptions. This augurs well for the future and underlines the intrinsic robustness of this sector.

Despite price deflation and a fiercely competitive retail arena, which includes an active e-retailing channel for contact lenses, there is optimism within the market. On the high street, ambitious and thriving chains of opticians are looking to consolidate their position, and there have been a number of takeovers in 2007/2008. While many independent retailers continue to grow, offering higher levels of service and individual treatment, others are responding to market pressures and accepting a buyout.

The future may be one of more diversity — the threat of laser surgery has encouraged a number of retailers to offer alternatives in terms of contact lens vision correction technology. Specsavers also offers hearing correction, as do a number of other operators. Optical Express — the largest laser therapy operator in the UK, which also combines activities with conventional optometry — has recently ventured out into cosmetic dentistry, cosmetic surgery and non-surgery.

Overall, Key Note anticipates a period of slower growth for the market over the forecast period (2008 to 2012), taking into account the current economic outlook and an increasingly discounted market.

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