Glasses & Contacts Wholesale

BARRIERS TO ENTRY
High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.
IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of capital for every $1 of labor.

CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

CONTACT LENS
A thin, removable plastic lens worn directly on the front of the eyeball that is used instead of ordinary eyeglasses for the correction or protection of vision.

CORRECTIVE LENS
A lens, usually made of glass or plastic, that is used to treat visual disorders; includes both prescription eyeglasses and contact lenses.

OPHTHALMOLOGY
The branch of medical science that studies the structure, functions and diseases of the eye.

Consistent revenue growth during most of the period has been a result of favorable economic conditions. As per capita disposable income has increased, consumers have been more willing to purchase eyeglasses and sunglasses. In addition, the number of adults aged 50 and older has increased at an annualized rate of 1.2% over the five years to 2022, bolstering demand for eyewear accordingly. During the period, many major companies have to increase their market share and profit by benefiting from economies of scale. Furthermore, many industry operators have bolstered their profit by increasing operational efficiency. For example, some wholesalers have automated their order-refill processes by developing online ordering services and streamlining additional services, including shipment reconciliation. In addition, as demand for eyewear has grown during most of the period, many eye care professionals (ECPs) have chosen to purchase in bulk, resulting in a more robust profit. However, the coronavirus pandemic ate into that demand, resulting in industry profit declining overall over the past five years.