As part of its inSights Research Program, the Vision Council (TVC) is reporting new market data and analysis of the U.S. optical industry for Q2 2024.
First, talk about this research program.
Launched in May 2022, TVC’s inSights Research Program delivers quarterly consumer survey reports based on “a comprehensive perspective on the state of the optical industry.”
This is typically developed from key data sources on the following:
- Consumer insights
- Eyecare provider (ECP) insights
- Focused insights
- Industry data insights
- Market insights
The program is intended to provide “timely data and analysis in an accessible, flexible format.”
Now this Q2 2024 report.
This latest report features industry performance pertaining to categories such as:
- Eye exams
- Frames
- Lenses
- Contact lenses
- Readers
- Plano sunglasses
And what type of data sources were used?
TVC identified a few key sources utilized for the report’s estimates:
- Consumer retail expenditure data
- Patient billing and payment data
- Optical relation location data
- Updated consumer survey program
To note: Each of these data sources are routinely refreshed on a monthly basis, overwriting previous data when warranted.
Now to these market trends.
Looking at the bigger picture, TVC Vice President of Data and Insights Alysse Henkel noted that transaction data “shows a decline in both the value and volume of prescription products sold during (Q2 2024).”
However: “The non-prescription market saw growth”—specifically for sunglasses and reading glasses during the months of April, May, and June 2024.
Is that decline in prescription products normal?
It is, actually. Henkel stated that this downward trend is on par with a “typical seasonal pattern in consumer purchasing.”
The forecast: As seen in previous years, the value and volume of these products are expected to rebound in Q3.
Tell me more.
We’ll start with contact lenses and lenses.
From Q1 to Q2:
- The market value of contact lenses decreased from $3.57 million (Q1) to $3.11 million (Q2), with a decrease in volume to 38.2 million boxes (from 41.9 million in Q1).
- Similarly, the market value of lenses decreased an estimated $400 million, from $4.67 billion (Q1) to $4.27 million (Q2), with a decrease in volume to 21.1 million units of boxes (from 22.9 million in Q1).
And the Q3 expectation?
The report indicated an increase in Q3 contact lens market value to $3.20 billion and a market volume of 38.9 million units.
As for lenses: The market value is forecast to be $4.28 billion with a market volume of 21.8 million units.
Now to non-prescription product growth.
Both value and volume growth was seen in Q2 for plano sunglasses and readers, which was a notable improvement from their trending in Q1.
From Q1 to Q2:
The market value of plano sunglasses increased from $3.8 billion to $5.4 billion, with volume also increasing by 24.6 million units (62.5 million to 87.1 million).
Similarly, the market value of readers increased from $610 million to $790 million, with volume also increasing from 43.1 million to 51.2 million.
And the Q3 projection?
Not quite as positive for plano sunglasses:
The report forecast market value and volume to decrease in Q3; however, the silver lining is these projections are expected to still be higher than they were in Q1.
- The reasoning: “Consumers are more likely to buy plano sunglasses in the late summer and fall than in winter.”
Conversely, readers’ market value and volume are expected to remain steady in Q3—even surpassing Q1 numbers by $170 million (market value) and 7.4 million (volume).
And frames’ Q2 performance?
Frames’ market value decreased to $1.92 billion (from $2.16 billion in Q1).
- The Q3 projection: $2.01 billion
In terms of market volume, a decrease of 17.3 million pairs in Q2 was compared against Q1’s 18.8 million.
- The Q3 projection: 17.7 million pairs
The reasoning: Similar to exams, the report ties this projected Q3 increase to back-to-school season and summer taking “its toll on broken frames due to more active lifestyles in good weather.”
Let’s talk exams.
Per the report, the market value and volume of exams performed in the U.S. decreased in Q1 2024 compared to Q1.
Interestingly: TVC noted that this decrease was “an expected change,” that aligns with consumers’ have begun to follow historical purchase cycles again after 2020.
- For this fall: The expectation is for exams to (slightly) increase as pediatric patients (ie: students) go back to school.
And the numbers?
While exams’ market value in Q2 decreased to $2.78 billion (vs $2.93 billion in Q1), an increase of $2.88 billion is forecasted for Q3.As for market volume: Q2 saw 31.5 millions of units of exams (vs $32.4 millions of units in Q1) and is forecasted to reach 32.3 millions of units in Q3.
Lastly … where can I find the full report?
Click here to download.
Note: While the complete report is free for TVC members, the price for non-members is $1,000.
And in other TVC-related news, check out what else the organization has been up to.