Eyeglasses Frames Manufacturing
Operators in the Eyeglasses Frames Manufacturing industry produce eyeglasses frames using plastics, metals and other materials, as well as parts used in eyeglasses. Consumers have increased expenditure on frames over the five years to 2022 as a result of increased per capita disposable income and fe...
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| Format: | Market Research |
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| Language: | eng |
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| Summary: | Operators in the Eyeglasses Frames Manufacturing industry produce eyeglasses frames using plastics, metals and other materials, as well as parts used in eyeglasses. Consumers have increased expenditure on frames over the five years to 2022 as a result of increased per capita disposable income and federal funding for Medicare and Medicaid. However, operators have experienced continued pressure from external competition, primarily imports, which account for almost half of domestic demand in 2022. While international trade was halted due to the effects of the COVID-19 (coronavirus) pandemic, an appreciating US dollar during the period has benefited foreign manufacturers and has hindered exports. Overall, industry revenue is expected to increase at an annualized rate of 0.2% to $1.9 billion over the five years to 2022, including an increase of 1.5% in 2022 alone.
Industry revenue has almost always exhibited some level of volatility. The coronavirus pandemic weakened demand as many consumers were unable to visit an optometrist, holding off on any purchases of eyeglass frames until stay-at-home orders were lifted. While this caused revenue to decline in 2020, it generated pent-up demand, which resulted in revenue growth rebounding toward the end of the period. However, while operators continue to experience challenges from imports, domestically produced frames provide increased durability and quality, making them attractive to domestic and foreign consumers.
Over the five years to 2027, the industry is expected to benefit from an anticipated depreciation of the US dollar and declining import penetration. As a result, industry exports will likely rebound from pandemic-induced lows while import growth slows. Additionally, as the US population continues to age, the number of people with vision-related health complications is expected to continue to increase, resulting in increased demand for eyeglass frames. Furthermore, with increased disposable income and federal funding for Medicare and Medicaid, alongside an increasing number people with private health insurance, more consumers will likely be able to afford industry products without the financial burden. As a result, IBISWorld anticipates industry revenue to increase at an annualized rate of 2.0% to $2.1 billion over the five years to 2027. Furthermore, profit, measured as earnings before interest and taxes, is expected to account for 8.6% of revenue in 2027, up from 8.3% in 2022. |
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