Industry Growth
The global optical retail market, valued at an impressive $279.24 billion, is expected to grow significantly. Projections indicate a promising CAGR of 7.5% from 2022 to 2030, creating tremendous opportunity for investment. The global optometry market, having already reached $70 billion in 2022, is expected to grow further, potentially reaching $91,357.95 million by 2028 with a CAGR of 4.31%. In the U.S., the landscape is equally promising, with approximately 44,850 brick-and-mortar optical retail locations as of 2023 and a burgeoning online market. This growth is fueled by the fact that 93% of U.S. adults wear some form of eyewear, presenting a vast and untapped market.

Consumer Experience
However, the consumer and clinician experience has seen little change in the last several decades when it comes to eyecare.

• From the consumer’s perspective, getting new prescription glasses can be tedious and time-consuming. It typically involves scheduling an appointment, often weeks in advance, visiting the clinic or retail store, waiting to see the doctor, and undergoing multiple tests with various devices. These include an autorefractor for an initial prescription approximation and a phoropter for a more precise, albeit subjective, prescription. After this, the consumer must select a frame and wait for days to receive the new glasses.
• Clinicians use auto refractors to estimate prescriptions, and then they use 100-year-old phoropter technology to get a patient’s prescription by flipping lenses to measure the refractive corrections needed for the prescription. In the next several years, the consumer experience will improve thanks to new market entrants, new technology, and shifting consumer behavior that the market will respond to.

1) New Entrants:
New companies are entering the eyecare market with innovative business models and technologies. Online retailers offer virtual try-on features, free shipping, free returns, and the convenience of ordering from home or office. The catch is that the consumer needs to know their prescription(1) to order, but this might change soon. Currently, most digital-first retailers are modest in scale, especially when juxtaposed against industry titans such as Vision Source, Luxottica, and National Vision Inc. (NVI). But the entry of e-commerce behemoths like Amazon, Walmart, and JD.com into the optical sector could be a game-changer. By harnessing their vast distribution networks and cost-efficient logistics, coupled with the integration of new technologies, these giants are well-positioned to deliver an enhanced customer experience. This includes offering a more comprehensive selection of frames at more competitive prices and setting new benchmarks for value and convenience.

2) Technological Advancements:
The top three disruptive technologies impacting eye exams are:

• Virtual and Augmented Reality – Beyond Vision Correction. These technologies are expected to significantly change how optometrists diagnose, manage, and treat eye-related problems. For instance, smart contact lenses capable of monitoring health conditions like blood sugar levels or detecting early signs of glaucoma are in development. (2)
• Telemedicine – Bridging the Gap Between Patients and Care Providers. Online eye exam services that provide patients with prescriptions for glasses or contacts without an in-person visit are becoming more prevalent. This technology was beneficial during the COVID-19 pandemic, allowing for remote vision monitoring and care. (3)
• Customization and speed of eyewear production – Customized Frames at Your Fingertips. Rapid advancements in manufacturing personalized frames enable customization and fast production at retail stores. (4) While lens fabrication is the subject of ongoing research and development, eventually, manufacturers will make strides in reducing production time while maintaining quality. (5)

These technologies are making eye care more accessible and convenient while enhancing the accuracy and effectiveness of treatments. They represent a shift towards a more patient-centric approach in the optical industry that has already affected other healthcare sectors, such as insurance and routine doctor visits.

3) Consumer Behavior Shifts:

• Increased Eyewear Usage: Approximately 93% of adults in the United States regularly wear some form of eyewear. (6) This high prevalence underscores the importance of understanding consumer preferences and habits.
• Affordability: There has been a notable shift in purchasing behavior over the past year. Consumers are now more inclined to buy prescription eyewear that costs less than $100 out of pocket. Simultaneously, fewer consumers spend over $200 for prescription glasses. This trend reflects a desire for cost-effective solutions. (7)
• Online Shopping Preference: The convenience of buying glasses online has become increasingly appealing to consumers. Retailers have responded by enhancing their online platforms and offering virtual try-on tools. (8)
• Impact of Social Media: Social media plays a pivotal role in shaping brand perception. Consumers now rely on platforms like Instagram, Pinterest, and YouTube to discover eyewear trends, read reviews, and explore fashion-forward styles. (9)
• Small Phones: Our reliance on smartphones and small screens accelerates the need for prescription glasses. Whether it’s reading texts or binge-watching shows, our eyes work overtime. Eyewear becomes essential for comfort and clarity.
• Aging Population: As the population ages, eye care becomes paramount. Addressing age-related vision issues and providing accessible solutions will be crucial.

Retailers’ Adaptation Strategies

The horizon of optical retail is expanding, and those who adapt will survive and thrive. They will lead the charge in creating a world where eye care and eyewear are accessible, personal, and a testament to the human spirit’s desire for choice and quality.

• Virtual Try-Ons: Retailers are integrating augmented reality (AR) and virtual try-on features into their websites and apps. These tools allow users to visualize how different frames look on their faces, bridging the gap between online and in-store experiences. (10)
• Personalization: Customization is vital. Retailers are leveraging data and analytics to recommend frames based on individual preferences, face shape, and lifestyle. Personalized recommendations enhance the shopping journey (11) and make it more likely a customer will purchase frames.
• Affordable Collections: Brands are introducing budget-friendly collections without compromising quality. By offering stylish frames at accessible price points, retailers are catering to cost-conscious consumers.

iCRx is at the forefront of developing next-generation eyecare technology in the form of the One-Minute Eye Exam that will make the consumer experience more enjoyable while providing a more accurate prescription. As a result, more consumers will get the prescription they need when they need it.

(1) Visibly is one of several companies developing technologies to help eye doctors assess a patient’s visual acuity remotely.
(2) For instance, smart contact lenses capable of monitoring health conditions like blood sugar levels or detecting early signs of glaucoma are in development.
(3) New telemedicine technology aims to disrupt the eye exam business
(4) 3D Printing of Eyeglass Frames
(5) Tobii Lense Technology – Lens casting for next-gen XR devices and eyewear
(6) 2023 Market inSights Press Release …
(7) 2023 Market inSights Press Release …
(8) Why Are Most People Buying Their Eyeglasses Online Now?
(9) Social Media Marketing for Fashion Brands: A Strategy That Works
(10) The Future of Virtual Try-On Technology for Eyewear Shopping
(11) Personalizing the customer experience: Driving differentiation in retail