Glasses and Contact Lenses - US - April 2008

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Data sources
• Sales data
• Consumer survey data
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• $13.8 billion market will grow moderately
• Corrective eye surgery poses threat
• Off-the-shelf products growing fastest
• Optical stores account for half of sales but slipping
• Nestlé replaces Bausch & Lomb as market leader for eyecare products
• Category innovations limited but important
• Majority of population use corrective eyewear
• Key brands
• Focus on style
• Market Size and Forecast
• Consultants on fashionable frames may stem tide of declining segment
  • Figure 4: Total U.S. sales and forecast of glasses and contact lenses, at current prices, 2002-12
  • Figure 5: Total U.S. sales and forecast of glasses and contact lenses, at constant prices*, 2002-12
• Competitive Context
• Corrective surgery
  • Figure 6: Use of laser surgery, by age, March 2008
  • Figure 7: Views on corrective eye surgery, by age, March 2008
• Ignoring problems with vision
  • Figure 8: Incidence of eye exams and holding vision care insurance, by age, March 2008
• There is no physiological reason why more women are wearing corrective lenses
  • Figure 9: Use of corrective eyewear, by gender, May 2006-June 2007
• Hispanics may be out of touch with their eyes
• Segment Performance
• Off-the-shelf reading glasses boosting sales
  • Figure 10: U.S. sales of eyeglasses, contacts lenses, and accessories, at current prices, by segment, 2002-07
  • Figure 11: U.S. sales of eyeglasses, contact lenses, and accessories, by segment, 2005 and 2007
• Segment Performance--Prescription Eyeglasses
• Focus on the frames, not the prescription
  • Figure 12: Total U.S. sales and forecast of prescription eyeglasses, at current prices, 2002-12Figure 13: Total U.S. sales and forecast of prescription eyeglasses, at constant prices*, 2002-12
• Opportunity for expansion during periods of low consumer confidence
• Potential for expansion with free exams
• Segment Performance--Contact Lenses
• Lenses too much trouble
  • Figure 14: Total U.S. sales and forecast of contact lenses, at current prices, 2002-12
  • Figure 15: Total U.S. sales and forecast of contact lenses, at constant prices*, 2002-12
• Lasik attractive to the contact wearer
• There' s gold in them there colored contact hills
  • Figure 16: Attitudes toward colored contact lenses, by gender, March 2008
  • Figure 17: Attitudes toward colored contact lenses, by age, March 2008
  • Figure 18: Attitudes toward colored contact lenses, by race/ethnicity, March 2008
• Segment Performance--Off-the-shelf Glasses
• OTC reading glasses soar with Boomers
  • Figure 19: Total U.S. sales and forecast of off-the-shelf glasses and sunglasses, at current prices, 2002-12
  • Figure 20: Total U.S. sales and forecast of off-the-shelf glasses and sunglasses, at constant prices*, 2002-12
• Segment Performance--Contact Lens Care Products
• Increased prices combined with lower volume result in a stagnant segment
  • Figure 21: Total U.S. sales and forecast of contact lens care products, at current prices, 2002-12
  • Figure 22: Total U.S. sales of contact lens care products, at constant prices*, 2002-12
• Segment Performance--Optical Accessories
• Fashionable eyewear trend bodes well for accessories
  • Figure 23: Total U.S. sales and forecast of all other optical goods and accessories, at current prices, 2002-12Figure 24: Total U.S. sales and forecast of all other optical goods and accessories, at constant prices*, 2002-12
• Retail Channels
• Introduction
• Discounters to make gains with premium selections of reading glasses
• Optical store sales decline with convenience and low price offered by discount stores and supercenters
  • Figure 25: U.S. sales of eyeglasses and contacts, by retail channel, 2005 and 2007
• Optometrists remain most popular place to purchase glasses or contacts
  • Figure 26: Where glasses or contact lenses are purchased, by gender, May 2006-June 2007
• Potential for growth in department store sales
  • Figure 27: Where eyeglasses or contact lenses are purchased, by age, March 2008
• Retail Channels--Optical Specialists
• Optical stores down 7% in share 2005-07 as sales shift to discounters
• The majority of optical store sales come from segments in decline
  • Figure 28: U.S. sales at optical specialists, at current prices, 2002-07
  • Figure 29: U.S. sales at optical stores, at constant prices*, 2002-07
• Retail Channels--Discounters, Drug Stores and Other
• Gaining share against optical specialists
  • Figure 30: U.S. sales of eyeglasses and contacts at other channels, at current prices, 2002-07
  • Figure 31: U.S. sales of eyeglasses and contacts at other channels, at constant prices*, 2002-07
• Market Drivers
• Boomers driving sales of reading glasses, bifocals and multifocals
  • Figure 32: Use of prescription eyeglasses and contact lenses, by age, May 2006-June 2007
  • Figure 33: Population, by age, 2003-13
• Fashion
• Under-45s, and 18-24s in particular most interested in eyewear as personal expression
  • Figure 34: Attitudes toward eyeglasses and style, by age, March 2008
  • Figure 35: Eyeglass purchasing and style, by age, March 2008
• Differences between men and women
  • Figure 36: Attitudes toward eyeglasses and style, by gender, March 2008
  • Figure 37: Eyeglass purchasing and style, by gender, March 2008
  • Figure 38: Frequency of purchase of eyeglasses and contact lenses, by gender, March 2008
• Minority groups show elevated interest in eyeglasses as personal expression
  • Figure 39: Eyeglass purchasing and style, by race/ethnicity, March 2008
• Computer Vision Syndrome (CVS)
  • Figure 40: Substantial daily use of video monitors, by age, March 2008
  • Figure 41: Substantial daily use of video monitors, by glasses worn, March 2008
• Leading Companies: Lens Care and Accessories
• Key points
• Large CPG companies
  • Figure 42: FDMx sales of eyeglasses/contact lens solutions and accessories, by leading companies, 2005 and 2007
• Brand Share-- Lens Care Solution
• Nestlé S.A.
• Bausch & Lomb Inc.
• Novartis
  • Figure 43: FDMx brand sales lens care solution, 2005 and 2007
• Brand Share--Lens Care Tablets and Accessories
• Novartis and Bausch & Lomb lead a fragmented arenaPrivate-label companies making headway
  • Figure 44: FDMx brand sales of lens care tablets and accessories, 2005 and 2007
• How contact lens solution is selected
  • Figure 45: How contact lens solution is selected, March 2008
• Brand Qualities
• Bausch & Lomb
• Alcon
• Novartis
• Similasan
• Advanced Medical Optics
• Innovation and Innovators
• To go kits
  • Figure 46: ReNu travel kit product packaging, November 2007
• Natural/Herbal
  • Figure 47: Holistic product packaging for dry/irritated eyes, August (Similasan) and November (Prima Vu) 2007
• Silicone hydrogel comfort lenses
  • Figure 48: Packaging for solutions for silcone hydrogel soft contact lenses, October 2007
• Advertising and Promotion
• Overview
• The doctor' s recommendation
  • Figure 49: Bausch & Lomb ReNu MultiPlus, TV ad, 2007
• Novel benefits
• Allergan Restasis only needs to be used twice a day
  • Figure 50: Allergan Restasis, TV ad, 2007
• Never break your glasses again
  • Figure 51: Flexon glasses TV ad,, 2007
• Johnson & Johnson offers free trials of new lenses
  • Figure 52: Johnson & Johnson Acuvue a, TV ad, 2007
  • Figure 53: Johnson & Johnson Acuvue female, TV ad, 2007
  • Figure 54: Johnson & Johnson Acuvue male, TV ad, 2007
• Get rid of those itchy eyes with just one application per day
  • Figure 55: Pataday once-a-day, TV ad, 2007
• Building the brand
  • Figure 56: Murine Clear Eyes, TV ad, 2007
  • Figure 57: Transitions spectacle lens, TV ad, 2007
  • Figure 58: Visine advanced, TV ad, 2007
• Usage
• Six in ten Americans have corrective eyewear; more need it
  • Figure 59: Usage of eyeglasses and contact lenses, by gender, age, and race/ethnicity, May 2006-June 2007
  • Figure 60: Usage of eyeglasses and contact lenses, by type of glasses or contacts, May 2006-June 2007
• Type of glasses worn
  • Figure 61: Type of glasses owned, by age, May 2006-June 2007
• Type of contacts worn
  • Figure 62: Use of contact lenses, by type, May 2006-June 2007
• Women don' t want to cover up their faces
  • Figure 63: Use of contact lenses, by type, by gender, May 2006-June 2007
• Contacts too much of a hassle for those with multiple vision problems
  • Figure 64: Contact lens usage, by age, May 2006-June 2007
  • Figure 65: Contact lens usage, by household income, May 2006-June 2007
• Teen use of prescription eyewear
  • Figure 66: Teen use of corrective lenses, by age and gender, May 2006-June 2007
• Type of glasses worn
  • Figure 67: Teen use of eyeglasses, by age and gender, May 2006-June 2007
• Type of contacts worn
  • Figure 68: Teen use of contact lenses, by type, by age and gender, May 2006-June 2007
• Use of eyedrops/eyewash
  • Figure 69: Use of eyedrops and eyewash, by gender and age, May 2006-June 2007
• Attitudes toward Contact Lenses
• Attitudes by household income
  • Figure 70: Attitudes toward contact lenses, by household income, March 2008
• Men less comfortable with contacts
  • Figure 71: Attitudes toward contact lenses, by gender, March 2008
• Responses by Race/Ethnicity
• Type of glasses worn
  • Figure 72: Type of glasses worn, by race/ethnicity, May 2006-June 2007
• Asians better able to afford contacts
  • Figure 73: Type of contact lenses worn, by race/ethnicity, May 2006-June 2007
• Asian teens also keen on contacts
  • Figure 74: Teen usage of contact lenses, by type, by race/ethnicity, May 2006-June 2007
• Asian, Hispanics more interested in corrective surgery
  • Figure 75: Interest in corrective eye surgery, by race/ethnicity, March 2008
  • Figure 76: Attitudes toward eyeglasses and style, by race/ethnicity, March 2008
• Reasons for not Wearing Contacts
• Introduction
• Men, over-45s more frightened of putting things in their eyes
  • Figure 77: Reasons for not wearing contacts, by gender, March 2008
  • Figure 78: Reasons for not wearing contacts, by age, March 2008
• Use of Contact Lens Cleaning Solution
  • Figure 79: Use of contact lens cleaning solution, by gender, age, race/ethnicity and household income, May 2006-June 2007
• Glasses and Contact Lens Usage in Internet sample
• Introduction
  • Figure 80: Usage of glasses and contact lenses, by type of product, by age, March 2008
  • Figure 81: Usage of glasses and contact lenses, by type of product, by household income, March 2008
  • Figure 82: Usage of glasses and contact lenses, by type of product, by gender, March 2008
  • Figure 83: Usage of glasses and contact lenses, by type of product, by race/ethnicity, March 2008
• Consumer Data on Brand Selection
• Impact of age on contact lens solution brand selection
  • Figure 84: Brands of contact lens cleaning solution used, by age, May 2006-June 2007
• Brand selection by type of contact worn
  • Figure 85: Key brands of contact lens cleaning solution used, by type of lenses worn, May 2006-June 2007
• Impact of age on eyedrop/eyewash brand selection
  • Figure 86: Brands of eyedrops and eyewash used, by age, May 2006-June 2007
• Bausch & Lomb branding carries over to eyedrops in over-$50Ks
  • Figure 87: Brands of eyedrops/eyewash used, by household income, May 2006-June 2007
• Additional Consumer Data on Teens/Kids
• Place of purchase for teens
  • Figure 101: Where teens buy glasses/contact, May 2006-June 2007
• Use of eyeglasses among children
  • Figure 102: Child use of eyeglasses, by gender, age and race/ethnicity, May 2006-June 2007
• Appendix: Trade Associations