Opticians and Optical Goods Market Assessment August 2006

Executive Summary
This Key Note Market Assessment report provides an analysis of the opticians and optical goods market, which includes, spectacles, contact lenses and solutions, laser eye treatment, private sight tests and general ophthalmic services. It updates a previous Opticians & Optical Goods Market Assessment report published in 2004.

The market has been affected by a number of regulatory changes since 2004, including amendments to the 1989 UK Opticians Act, which allowed major supermarket chains including Tesco, ASDA and Sainsbury's to sell contact lenses. Also important was the decision by the Scottish Executive to introduce free and more comprehensive eye tests for all in Scotland. If this move were to be copied in the rest of the UK, it would have important consequences for the industry.

Overall, the opticians and optical goods market showed fairly steady growth between 2001 and 2005. The UK population has an ageing profile, with an increasing number of people over the age of 45 — a group that generally has greater need of sight correction. This means that the pool of potential customers is steadily growing. In addition, the highly competitive nature of the optical sector is leading to extensive discounting, which is boosting sales, while demand for premium eyewear remains strong.

The spectacles sector has grown in value since 2001 as an indirect result of an increase in sight tests and also due to various sales promotions. However, the sector remains highly competitive and, despite an element of `trading up' to designer spectacles by some consumers, `two for one' offers are still widespread. The leading suppliers of spectacles and frames include Carl Zeiss/SOLA, Essilor, Luxottica, Rodenstock, Safilo, Silhouette and the UK-based Norville


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