Eyewear Market Projected To Hit $111 Billion In 2026; Here Is How Investors Can Profit

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Like most consumer markets at the time of the outbreak of the pandemic, the vision and eyewear industry was no different, seeing retail revenue decline by 14.2% between 2019 and 2020.

Now as industries try to make up for lost time, and revenue, with the global economy mostly back to normal, staggering growth predictions have placed market leaders in the eyewear industry in a battle to outpace consumer demand and market competitiveness.

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By the early months of 2021, global sales for eyewear were seen climbing 5% during the same period from the year before. And with estimates for market size to reach $111.12 billion by 2026, with an average CAGR of 5.83% between 2022 and 2026, ongoing consumer demand and emerging markets are positioning eyewear companies right in the middle of a soaring industry.

Growing opportunities and competition have led Brooklyn-based eyewear company, Designer Optics, to pursue new innovations in technology advancement and marketing strategies to garner ongoing consumer support.

Expansion and Market Improvement

While the lens and eyewear market expects a positive market improvement in the coming years, changes in consumer habits, trends, and the increasing need for better eye care treatment have led to an explosive expansion of industry-related services and products.

Traditionally, the market was solely focused on providing prescription and nonprescription lenses, with growing popularity for fashionable sunglasses taking off during the digital revolution of online shopping and social media. Modern practices have expanded beyond conventional means, involving an array of contemporary offerings.

Aron Ekstein from Designer Optics comments, “We’re seeing a rapid transformation in the eyewear and vision industry, and it’s led us to rethink our place within the sector, among our competitors, and more importantly how we can be impact-driven towards our consumers.”

Emerging economies, ongoing fashion trends, and a surge in visual impairment in both young and older generations have left eyewear providers with an opportunity to bridge the gap between the industry and the consumer.

Countries in Asia Pacific, including China and India, are seeing a rapid increase in younger populations with excess disposable income, and demand for eyewear treatment services and products. The region will add more than $7.8 billion worth of revenue to the overall market between 2021 and 2026, matching western Europe in regional revenue sales.

Over in Brazil, the same occurrence is playing out, as the economy is rapidly developing, allowing the consumer market easier access to eyewear services, and the adoption of premium quality and branded lenses.

“There’s no denying that we’re right in the middle of an exciting period, where we can see developing and emerging economies take advantage of the market to its fullest extent, even if it’s not directly tied to any pre-existing eyesight-related conditions,” wrote Ekstein.

The Public Market Offering

It’s no surprise that the rise of eCommerce and online shopping has burst through the doors of the global eyewear industry. And while scepticism is shared over the longevity of traditional brick-and-mortar stores in the modern consumer world, the eyewear industry is zig-zagging between two partial worlds.

In September 2021, eyewear startup Warby Parker (NYSE:WRBY) went public with share prices starting at $54.05 per share on the NYSE. While the initial public offering was set against a range of factors, company executives shared that clients, whether shopping online or in-store makes no real difference to their overall success and operations.

The eyewear startup which saw its revenue grow to more than $390 million ending 2020, mentioned that they were in the process of opening 30 to 35 new stores, totalling a shop count between 155 and 160 locations.

But the digital presence of its stores during the height of the pandemic saw the company attain more than 50% of its 2021 sales through online purchases. Warvy Parker shares have since fallen 32.65% on a year-to-date earnings basis.

CooperVision, a division of Cooper Companies Inc. (NYSE:COO) have on the other hand trailed a successful 2021 and start to 2022 thus far. In the past year alone, the company saw shares increase by 9.9%, well over the 8.5% predicted for industry growth. Currently, COO shares are in place of a Hold position according to the Zacks Rank.

But Cooper Companies and CooperVision for that matter are backed by industry-leading brands including Biofinity and Clariti, which is helping them hold a strong trading position. Their eyewear division saw revenues rise by 14%, and reported earnings of close to $561.5 million in 2021.

“Going out on a limb, and looking how companies have been performing in a semi-post COVID economy makes it difficult to fully understand how market offering, both for consumers and investors will be able to impact the survival of eyewear companies in an eerie economy in 2022,” told Aron Ekstein.

Teetering Consumer Shopping Habits

While the case may stand that online shopping offers better convenience, a larger variety selection, fast and simple delivery services, and a growing demand - the eyewear industry might have lagged a bit behind when it came to the virtual world of trading and conducting business.

Yet, it’s been possible for companies and eyewear specialists to grow beyond their traditional sense of marketing and consumer attraction, bringing to life a new branch within the market - telehealth, or sometimes referred to as eHealth.

Aron Ekstein commented that the pandemic pushed them to think differently, while at the same time still providing their customers with excellent service and offerings. “Giving clients the option where they can choose from premium brands and designs, to still being able to offer affordable pricing on what we do has helped us through the worst part of the pandemic.”

And that’s been working for most retailers. Diversifying their selections, keeping prices to a minimum, and allowing consumers better selection.

According to a report published by The Vision Council, surveyed individuals spent roughly 15% more time online using prescription contact lens retailer apps or websites in 2020. The same is said for prescription glasses retailer apps and website users, who spent  9% more time online amid COIVD-19.

Between online sales and in-store shopping, companies within the eyewear market are experiencing a rapid shift in consumer demand and trends. National Vision Holdings Inc. (NASDAQ:EYE) gained 76.6% in comparable store sales for eyeglasses in the second quarter of 2021. The same was said for Eyeglass World, with an increase of 67.6% adjustable comparable store sales.

All over, in-store sales have pushed investors to rethink their strategy, and portfolio standing when it comes to eyewear companies, as share prices and holding positions have ranked strongly on the Zack Rank. American Swiss medical company, Alcon Inc. (NYSE:ALC)  has been on the #2 “buy” position according to Zack Ranks, with sales figures jumping 74.8% in the second quarter of 2021.

“It will be interesting to study how share prices for major retailers will be impacted by the gradual shift towards online shopping and eCommerce. Telehealth and eHealth solutions are still only a temporary solution for people living with eyesight problems. In-person and in-office consultation visits will perhaps hold a strong position,” Ekstein mentioned.

Even with the gradual shift towards the online world, younger consumers remain the majority of online shoppers.

Statistics indicate that Millennials (25-34) make up 20.2% of the eCommerce shopper market, with individuals aged 35-44 being the second largest group at 17.2%. Older generations, those aged 55 to 64 and 65 plus, respectively make up roughly 14.6% and 14.4% of the market share.

And bringing structure to the narrative, we see that 93% of people between the ages of 65 and 75 make use of corrective lenses and prescription eyewear, a number that rapidly increases after the age of 45.

This is the same sentiment shared by Ekstein: “There’s always room for adjustment, and improving on what we already know gives us a head start to see how we can drive meaningful change, while at the same time, remaining a stronghold within our current client market.”

Future Potential

As ongoing global uncertainty looms over the heads of consumers and market leaders, changes in the overall retail industry, including the lense and eyewear market have directed consumer interests towards a different set of moral and ethical questions.

Questions of sustainability, environmental impact, and ethically sourced products are now quickly filtering into nearly every sector of the retail market. While it’s been a long time coming since consumers started regarding the importance of sustainability, and the growing concerns regarding climate change, perhaps this is a new potential area in which the eyewear industry can grow.

For Digital Optics, this remains an element they take into consideration throughout the shopping and retail experience. “Younger consumers and those who are requiring prescription lenses are rethinking how their needs are having an impact on the environment, and it’s become a strong driving force for not just us, but all contenders.”

Technological advancements and innovation on the manufacturing side will help lead the industry towards sustainable and environmental change, while at the same time having the ability to garner younger consumers and create meaningful impact.

Final Thoughts

Perhaps the pandemic has changed a lot within our society and general consumer habits. Looking towards the coming decades, we see a rapid modernization and digitization of the eyewear and prescription glasses market, an industry taking form in all corners of the world and leading the path to new advancements in professional eyecare.