Market Challenges And Opportunities

Fierce price competition between private labels and designer labels may constrict margins. Moreover, growing popularity of corrective laser surgeries can hamper the market growth. The U.S. dominates the market due to its leading economic position and highly brand-centric consumers. Meanwhile, Canada exhibits higher potential supported by positive demographic trends. E-commerce can boost the online penetration in the region's eyewear industry.

North America Eyewear Market Drivers:

Rise in number of visual impairment cases: Rising number of people facing visual impairment issues is a can drive the growth of the North America eyewear market. According to data by Prevent Blindness, an international non-profit eye health organization, the number of Americans, aged 40 yrs and older, who has eye exams has increased from 56.4% in 2014 to 60.3% in 2020. This increased awareness about eye health and regular check-ups has led to early detection of vision issues.

A surge in computer usage due to the spread of digital technologies has also contributed to increased vision problems. Prolonged screen time from activities like work from home, online classes, video streaming, and social media engagement have resulted in higher cases of computer vision syndrome with symptoms like dry eyes, headache, and blurred vision. According to the estimates by the American Optometric Association, around 90% of American adults experience digital eye strain. As more people recognize the importance of utilizing eyewear to reduce digital eyestrain symptoms, there has been huge demand for computer glasses with blue light filtering lenses in the region.

Lifestyle diseases also contributes to rising prevalence of impaired vision. Increased stress levels, unhealthy diets, lack of physical activity and obesity have led to greater incidence of diabetes in North America over the past decade. Diabetes is one of the major causes of diabetic retinopathy and blindness, according to the data by the Centers for Disease Control and Prevention. To curb the risk of vision loss from diabetes, regular eye checkups and use of protective eyewear are becoming increasingly necessary. For instance, according to a data provided by the World Health Organization (WHO), the prevalence of myopia has increased substantially among teenagers and young adults between 2010-2050 across U.S. and Canada.

Increased popularity of sunglasses and spectacle frames: The popularity of sunglasses and spectacle frames as a fashion accessory in North America can drive the growth of eyewear market. Nowadays eyewear is no longer seen solely as a vision correction product but more as a style statement. Leading brands have introduced diverse product lines that match the dynamic tastes and personalities of different customer segments.

Sunglasses and frames with bold colors, unique designs, and features like interchangeable lenses have resonated well with millennials and generation Z. Customers desire eyewear that reflects their personal aesthetics and complements different outfits for varying activities like work, travel, casual socializing, and others. Even older consumers have become more open to experimenting with eyewear beyond basic styles. Brands have aligned their marketing effectively around the changing attitude where eyewear equals self-expression. For instance, according to the American Academy of Ophthalmology, prolonged sun exposure increases the risk of developing cataracts and age-related macular degeneration. This has made sunglasses a year-round accessory rather than just a seasonal item.

North America Eyewear Market Opportunities:

Manufacturing of eyewear with new materials: Manufacturing eyewear by using innovative new materials has strong potential to drive North America eyewear market growth. Existing options like plastic, metal, and wood have served consumers well but advancements in material science offers new opportunities. Lighter yet durable frames that are made from sustainable composites and newly developed polymers could capture consumer interest if these offer performance advantages over traditional materials. Younger customers those who are focused on health, wellness, and the environment may embrace frames containing renewable biomaterials or made through energy-efficient processes. Such eyewear could promote brands as innovative leaders, if marketed effectively to relevant lifestyle segments.

The use of new materials also allows eyewear designers to get more creative with styles. Frames molded into ergonomic shapes that are optimized for comfort or customizable designs are produced through 3D printing, may satisfy unmet needs. Industrial and technology sectors are investing heavily in advanced materials research which could spawn opportunities for eyewear applications. For example, electroluminescent or photovoltaic components may soon enable "smart" eyewear providing optical display or recharging capabilities. According to the United Nations World Economic Situation and Prospects 2020 report, public and private investment in research in innovative materials can enable new applications benefitting multiple industries.

National Science Foundation's (NSF) investments in Materials Research Centers around the U.S have yielded advances in polymers, ceramics, and nanomaterials with applications spanning industries from construction to biomedical devices. Leveraging research, eyewear brands launch new product lines that are made from novel, high-performance, and sustainably-sourced materials can boost their stake in the North American eyewear market in the near future.

Emergence of smart eyewear technology: The adoption of smart eyewear technology presents a major growth opportunity for the North America eyewear market in the near future. Smart eyewear allows for augmented reality (AR) features and hands-free communication capabilities by integrating features like cameras, sensors, processors, and connectivity into existing eyeglass frames. As this technology develops further to become more seamless and user-friendly, consumers are expected to increasingly embrace wearable devices for both functional and entertainment purposes. This will open up new revenue streams for eyewear brands beyond basic vision correction. According to the U.S. Census Bureau, usage of augmented reality applications doubled in 2021. If major technical companies and eyewear brands can successfully introduce affordable and fashionable smart eyewear products with compelling use cases, it is likely that consumer adoption will surge over the next 5 years. Not only those who needed vision correction purchase smart glasses, but also those without vision problems who consider value in AR and connectivity on the go.

The ability to access information, stay connected, and experience new contexts through smart glasses, will drive technological innovation within the industry. Current trend data suggests the North America eyewear market is well positioned to capitalize on growing demand for innovative and multifunctional eyewear products. With continued breakthroughs, smart glasses may someday become as ubiquitous as smartphones, radically transforming the market landscape and creating new opportunities for growth. For instance, in 2021, according to the survey conducted by the Pew Research Center, 81% of Americans considers the potential for AR technology in the consumer market. Younger demographics have also shown rising interest in wearable tech solutions.

North America Eyewear Market Restraints:

High costs associated with branded eyewear products: High costs associated with branded eyewear products is significantly restraining the growth of North America eyewear market. Branded products like Ray Ban, Oakley, Versace, and others come with premium pricing which is not affordable for average consumers. This premium pricing maintain exclusivity of the brand and fund heavy marketing & celebrity endorsements. However, it limits their customer base only to affluent sections of the population.

Many consumers prefer cheaper alternatives available in the market rather than spending hundreds of dollars on a single pair of branded sunglasses or eyeglasses. The unorganized local producers and China based manufacturers provide low-cost copies of branded designs which consumers happily settle for a fraction of the price. This has severely dented the potential sales volumes of the famous brands. These are unable to penetrate deeper into middle-income and lower-income households where majority of population resides.

Counter balance: By providing a spectrum of products at different price points, companies can cater to both premium and cost-conscious customers. This includes introducing mid-range and budget lines alongside luxury collections. Companies can also offer financing options or flexible payment plans that make high-cost eyewear more accessible to a broader range of customers by spreading the cost over time.

Threat from counterfeit products: Threat from counterfeit products is posing significant challenges for the growth of North America eyewear market. Counterfeiting has become a widespread problem and counterfeiters are producing fake versions of popular eyewear brands and selling them at a fraction of original prices. This poses serious health issues as the quality of these counterfeit products is not verified and can potentially harm consumers.

The counterfeit eyewear products look similar to authentic brands at first glance but do not adhere to the same manufacturing standards and quality protocols. These often use inferior and cheaper materials that do not provide proper sun protection or correct vision. Prolonged use of such low-quality products can damage eyesight permanently in some cases. This poses serious health risks and creates distrust among consumers about the authentic eyewear brands. It also disproportionately impacts lifestyle and designer brands that spend heavily on marketing campaigns to cultivate brand image and premium positioning. The availability of similar looking counterfeits dilutes the cachet of original brands and affects their reputation and mystique over time.

Counter balance: Collaborate with law enforcement agencies and customs authorities to seize and destroy counterfeit goods. Additionally, conduct regular audits of suppliers and distributors to ensure compliance with anti-counterfeiting measures.