Eyes on the prize: Revenue is expected to grow despite intensifying competitive pressures

The Optometry and Optical Dispensing industry has contended with an increasingly competitive operating environment over the past five years. New corporate players have continued to expand and online competition has increased, influencing the industry's performance. Ensuing price wars have pushed prices downwards, as both online and bricks-and-mortar optometry chains have competed for the growing number of consumers seeking competitively priced eyewear. These intensifying competitive pressures, alongside the ongoing freeze on the Medicare Benefits Schedule rebate for optometry services, have constrained industry growth over the past five years. Nonetheless, industry revenue is expected to grow at an annualised 2.9% over the five years through 2018-19, to total $3.7 billion...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Increasing incidences of digital eyestrain have contributed to volume growth
  • Rising competition has put pressure on prices and profit margins over the past five years
  • Ongoing competition from online retailers is projected to restrict industry revenue growth
  • Industry Report - Industry SWOT Analysis Chapter

    The industry is in the mature stage of its economic life cycle. Industry value added (the industry’s contribution to GDP) is forecast to grow at an annualised 2.6% over the 10 years through 2023-24. This rate slightly lags behind that of the general Australian economy (2.7%), suggesting that the industry is underperforming relative to the wider economy.The industry’s changing operating environment has led to several optical dispensing companies closing over the past five years. In other instances, operators have changed their business models and joined either franchise networks or buying groups. These developments are expected to continue over the next five years...purchase to read more.

    Additional Insights for the Optometry and Optical Dispensing Industry

    IBISWorld has determined the most important Key Success Factors for the Optometry and Optical Dispensing are:

  • Effective product promotion
  • Being part of a group buying, promotion and marketing scheme
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Private health insurance membership and Median age of the population in the Optometry and Optical Dispensing industry impact industry performance..

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    What's in this report

    What is the Optometry and Optical Dispensing Industry?

    The industry covers registered optometrists, optical dispensers and orthoptists. Optometrists primarily test eyesight, diagnose sight defects, and prescribe or dispense spectacles and contact lenses. Optical dispensers mainly dispense spectacles or contact lenses. Orthoptists diagnose and treat ocular muscle disorders.

    Industry Products
  • Optometry and orthoptic services
  • Frames and lenses
  • Other products
  • Industry Activities
  • Dispensing contact lenses
  • Eye testing
  • Optical dispensing
  • Optician services
  • Orthoptic services
  • Dispensing spectacles
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Private health insurance membership
  • Median age of the population
  • Real household disposable income
  • Federal funding for Medicare

  • Current Performance
  • Household spending trends
  • Medicare rebates and changes
  • Private health insurance
  • Budget optical retailers
  • Chart: Revenue Growth

  • Industry Outlook
  • Changing demand patterns
  • Market positioning
  • Provider agreements
  • Establishments and employment
  • Table: Optometry and Optical Dispensing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Optometry and Optical Dispensing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Health Insurance

  • Key Selling Industries
  • Pharmaceutical Product Manufacturing
  • Pharmaceuticals Wholesaling
  • Photographic and Optical Goods Manufacturing
  • Retail Property Operators

  • Products & Services
  • Frames and lenses
  • Other products
  • Optometry and orthoptic services
  • Chart: Optometry and Optical Dispensing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 45 to 64
  • People aged 65 and over
  • People aged 25 to 44
  • People aged 24 and under
  • Chart: Major Market Segmentation for the Optometry and Optical Dispensing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Wages
  • Purchases
  • Profit
  • Rent
  • Other Costs
  • Chart: Cost Structure Benchmarking – Sector vs Optometry and Optical Dispensing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Optometry and Optical Dispensing Industry

  • Industry Globalization
    Specsavers Pty Ltd, Luxottica South Pacific Holdings Pty Ltd,
  • Table: Specsavers Pty Ltd - financial performance
  • Table: Luxottica South Pacific Holdings Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Optometry and Optical Dispensing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Optometry and Optical Dispensing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Optometry Services (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Clouding of the natural lens of the eye, usually caused by aging in conjunction with other risk factors, such as exposure to the sun's UV rays, smoking, steroid intake and diabetes.
  • Glaucoma
  • A disease characterised by elevated intraocular pressure, which causes optic nerve damage and subsequent peripheral vision loss.
  • Macular Degeneration
  • A disease of the retina resulting in loss of central vision.
  • Mbs
  • Stands for Medicare Benefits Schedule.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Optometry and Optical Dispensing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Optometry and Optical Dispensing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Optometry and Optical Dispensing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Optometry and Optical Dispensing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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