Opticians
Description
Companies in this industry sell prescription and other eyeglasses and contact lenses; they usually include a lab on premises to grind lenses to specifications. Major companies in the US include LensCrafters, National Vision, Pearle Vision, and Visionworks of America, as well as Fielmann (based in Germany) and GrandVision (the Netherlands).
Global revenue for the retail optical industry is expected to reach a compound annual growth rate (CAGR) of 2.6% from 2026 to 2031, according to Mordor Intelligence. About 1 billion people worldwide suffer from some form of vision impairment, which has not yet been addressed, as per the World Health Organization (WHO).
The retail optical industry in the US includes more than 12,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $10 billion.
Optometrists are covered in a separate industry profile.
COMPETITIVE LANDSCAPE
Demand is driven by demographics, fashion, and changing health care practices. Most important is the aging of the US population, which is increasing demand for eye exams and glasses. Large retailers enjoy economies of scale in purchasing and can offer a wider range of product styles. Small retailers can often compete successfully with large chains by offering convenient locations, specialized products, or superior service. Eyeglass purchases are mildly cyclical with the economy, as many consumers view extra glasses as an expense that can be deferred. The US industry is concentrated: the 50 largest companies generate about 70% of revenue.
Although e-commerce only accounts for a small percentage of the eyeglasses market, a growing number of companies are selling glasses online. Warby Parker, most notably, has made waves by building a competitive online business before opening brick-and-mortar stores. The company is also one of several businesses that offer online eye exams. Responding to the trend, optometric industry advocates have argued that it is crucial for patients to receive custom fittings and have eye exams performed by doctors. Traditional eyeglass retailers have also moved into online sales, however.
PRODUCTS, OPERATIONS & TECHNOLOGY
Opticians' main revenue comes from the sales of glasses and contact lenses, with prescription eyeglasses accounting for about 70%, while contact lenses account for more than 10%. Other revenue sources include medical and diagnostic testing, among others.
Frames, which come in many varieties and a wide range of prices, are often branded and can produce high markups, while contact lenses and lenses for glasses are mostly commodity items with fairly low margins. A typical store may hold an inventory of hundreds of different frames and styles. The price range of frames a store carries depends on the demographics of local shoppers. Opticians also sell non-prescription products like sunglasses and reading glasses (magnifiers).
Contact lenses come in hard or soft varieties, may be colored, and may allow extended wear or be disposable. The lenses for glasses also come in various colors and with various coatings and may contain areas of different correction (bi- or tri-focals). "Progressive" lenses are bifocals with the corrective areas smoothly blended into each other. Simple conditions, like near- or far-sightedness, can be corrected with either contact lenses or glasses, while some can best be corrected with glasses.
Because the lenses for glasses must be ground, coated, and shaped to fit a particular frame, some retail stores have an attached optical laboratory, while others send such work out to a company-owned or independent laboratory. Some stores with an attached lab can produce a finished pair of glasses in an hour, but the usual turnaround time is several days.
US imports of ophthalmic goods, including contact lenses and eyeglasses, come primarily from China and Italy. Lenses for glasses are made of plastic and are bought from a few large manufacturers, such as Essilor and Carl Zeiss Vision. The world's largest producer of frames is Luxottica. Contact lenses are made by such companies as Alcon, Bausch & Lomb, and Johnson & Johnson.
Global revenue for the retail optical industry is expected to reach a compound annual growth rate (CAGR) of 2.6% from 2026 to 2031, according to Mordor Intelligence. About 1 billion people worldwide suffer from some form of vision impairment, which has not yet been addressed, as per the World Health Organization (WHO).
The retail optical industry in the US includes more than 12,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $10 billion.
Optometrists are covered in a separate industry profile.
COMPETITIVE LANDSCAPE
Demand is driven by demographics, fashion, and changing health care practices. Most important is the aging of the US population, which is increasing demand for eye exams and glasses. Large retailers enjoy economies of scale in purchasing and can offer a wider range of product styles. Small retailers can often compete successfully with large chains by offering convenient locations, specialized products, or superior service. Eyeglass purchases are mildly cyclical with the economy, as many consumers view extra glasses as an expense that can be deferred. The US industry is concentrated: the 50 largest companies generate about 70% of revenue.
Although e-commerce only accounts for a small percentage of the eyeglasses market, a growing number of companies are selling glasses online. Warby Parker, most notably, has made waves by building a competitive online business before opening brick-and-mortar stores. The company is also one of several businesses that offer online eye exams. Responding to the trend, optometric industry advocates have argued that it is crucial for patients to receive custom fittings and have eye exams performed by doctors. Traditional eyeglass retailers have also moved into online sales, however.
PRODUCTS, OPERATIONS & TECHNOLOGY
Opticians' main revenue comes from the sales of glasses and contact lenses, with prescription eyeglasses accounting for about 70%, while contact lenses account for more than 10%. Other revenue sources include medical and diagnostic testing, among others.
Frames, which come in many varieties and a wide range of prices, are often branded and can produce high markups, while contact lenses and lenses for glasses are mostly commodity items with fairly low margins. A typical store may hold an inventory of hundreds of different frames and styles. The price range of frames a store carries depends on the demographics of local shoppers. Opticians also sell non-prescription products like sunglasses and reading glasses (magnifiers).
Contact lenses come in hard or soft varieties, may be colored, and may allow extended wear or be disposable. The lenses for glasses also come in various colors and with various coatings and may contain areas of different correction (bi- or tri-focals). "Progressive" lenses are bifocals with the corrective areas smoothly blended into each other. Simple conditions, like near- or far-sightedness, can be corrected with either contact lenses or glasses, while some can best be corrected with glasses.
Because the lenses for glasses must be ground, coated, and shaped to fit a particular frame, some retail stores have an attached optical laboratory, while others send such work out to a company-owned or independent laboratory. Some stores with an attached lab can produce a finished pair of glasses in an hour, but the usual turnaround time is several days.
US imports of ophthalmic goods, including contact lenses and eyeglasses, come primarily from China and Italy. Lenses for glasses are made of plastic and are bought from a few large manufacturers, such as Essilor and Carl Zeiss Vision. The world's largest producer of frames is Luxottica. Contact lenses are made by such companies as Alcon, Bausch & Lomb, and Johnson & Johnson.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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