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Long-term growth drivers
An estimated 60% of the current global population requires some form of vision correction. This represents more than 4 billion people. As populations continue to expand, the addressable global market for eyewear grows. Growth projections vary per region, with higher growth rates in Latin America and Asia compared to Europe and North America.
Aging populations are more prone to visual disorders, which stimulates demand for vision correction and also more complex solutions. Until 2030, the percentage of the population over 60 years old is expected to increase two to three times faster than the rate of global population growth. This is particularly true in Europe and North America, but also in emerging markets and highly populated countries such as China and India. The number of individuals requiring eyesight correction and the demand for more complicated and higher-value solutions such as multi-focal lenses is expected to increase.
Under-penetration of eyesight correction
There is a strong potential for eyewear providers to address the under-penetration of eyesight correction, particularly in emerging markets. Growth of the global eyewear market in the short–to-medium term is expected to be strongly fueled by these markets. Not only do they account for the vast majority of the global population, the penetration of eyesight correction in these countries is also still significantly lower.
Emerging middle classes
The size of the eyewear market and its development is highly correlated to economic development. As economic activity and wealth increases in emerging markets such as Latin America and Asia, the intrinsic need for eyesight correction and eye protection translates into active consumer demand.
Higher value propositions
Technical innovations in the eyewear market include both innovations in quality of lens material as well as functionality and design features. Growing awareness and penetration of these innovations contribute to increased demand for higher value eyewear products. Additionally, needs for vision correction increase in complexity as a person ages. This leads to a demand for higher value solutions such as multi-focal lenses. These generally have a higher retail price and generate higher profit margins but also require higher service levels.