Luxury margins, mass-market volumes: Why eyewear is the new retail

No longer a medical niche, eyewear is establishing itself as a fully-fledged pillar of retail. The sector is at a tipping point, with margins that rival luxury, volumes comparable to the mass market and a growing appeal for tech giants.

The global eyewear market is valued at approximately 200.5 billion dollars in 2024. It is projected to reach 335.9 billion dollars by 2030, with a compound annual growth rate (CAGR) of 8.6 percent between 2025 and 2030, according to Grand View Research. These fundamentals, linked to the non-cyclical demand for visual health, give eyewear significant resilience against economic crises.

Visual health, premiumisation and smart glasses are all signals pointing towards a market undergoing a complete overhaul. This inflection point is already underway. For executives, the real question is no longer “if” but “how” to capture this growth.

Market with solid fundamentals: the appeal of margins

Eyewear attracts investors and luxury groups primarily due to its unique financial structure. The sector combines essential demand with gross margins comparable to those of luxury goods. This is largely thanks to technical added value, such as progressive lenses and treatments, and brand image from designer frames.

Healthcare product and fashion accessory equation

The margin on frames and lenses is based on a dual logic of function and aesthetics. The challenge for executives is to optimise the customer lifetime value (LTV). This involves transforming the initial prescription purchase into repeat purchase opportunities for sunglasses, reading glasses and accessories.

The French market generated 7.8 billion euros in revenue in 2023, driven mainly by prescription lenses. Although prescription lenses dominate the market, the sunglasses and reading glasses segments are recording the highest growth rates. For industry players, the challenge is to manage strict price segmentation to protect premium profitability against healthcare regulatory constraints.

The premium segment finances innovation, particularly in design and advanced technologies like smart glasses and high-performance lenses, becoming a strategic driver of differentiation. The mass market, under pressure from pure players and standardisation, ensures volume and recurring business. The most successful brands combine these two levers through a targeted strategy of cross-selling, upselling and price segmentation, maximising customer value and overall profitability.

Who dominates the game: global eyewear hubs and champions

The global eyewear industry is built around a few major hubs. Each occupies a specific place in the value chain, from design and distribution to technology and production.

Italy – centre of design and luxury licensing

Italy is the hub of global premium frame production, with companies like Luxottica, Safilo and Marcolin. They combine design, craftsmanship and international brand licenses for names such as Prada, Dior and Gucci. According to Statista, these groups capture the highest value in the high-end fashion segment.

France – technological and integrated powerhouse

With EssilorLuxottica, France holds a unique position. It masters lens research and development (R&D), fashion licensing and distribution through retailers like Sunglass Hut and Ray-Ban Stores. According to the publication Les Echos, this vertical integration model enhances its resilience and pricing power.

United States – pioneers of digital direct-to-consumer

Brands like Warby Parker and Zenni Optical have redefined online eyewear with digital-first, transparent and community-focused models. These players leverage data and personalisation to build large-scale customer loyalty, as noted by the Financial Times.

Asia – dual force of production and desirability

China and Taiwan produce approximately 90 percent of the frames sold in Europe, according to Le Monde. Meanwhile, South Korea stands out with Gentle Monster, which combines experimental design with immersive retail. Asia is becoming both a global workshop and a driver of cultural trends.

In summary, Europe leads in desirability and branding. Asia holds the industrial capacity, and the US is accelerating in technology and data. This triangulation now structures the global eyewear economy.

This geographical distribution reflects a differentiated value capture. Europe, through design and licensing, captures the majority of the margins, while Asia provides low-cost production. Vertically integrated players like EssilorLuxottica, which can combine R&D, licensing and distribution, benefit from high pricing power and strong barriers to entry, consolidating their position against new competitors.

Four drivers of growth (and the inevitable rise of M&A)

The projected trajectory, with annual growth of around 5 to 8 percent, draws its strength from four key drivers and points towards increasing sector consolidation.

1. Demographics, visual fatigue and public health urgency:

An ageing population fuels a continuous demand for progressive lenses. At the same time, widespread screen use is increasing visual impairments, particularly among younger generations. According to the World Health Organization (WHO), nearly one in two people could suffer from a visual impairment by 2050. This phenomenon is now considered one of the next major public health “epidemics”.

2. Healthtech × Fashion: glasses as a status symbol:

Eyewear has transcended its corrective function to become a powerful status accessory.

Two forces are accelerating this premiumisation:

Social visibility – glasses are more visible than any beauty accessory or piece of jewellery. They are ubiquitous in photos and on social media, becoming a marker of identity and style.

Gateway to luxury – a designer frame remains more accessible than a haute couture bag, while still conveying a strong sense of status.

EssilorLuxottica embodies this hybridisation by combining lens technology and fashion licenses to dominate an integrated value chain.

3. E-commerce, 3D and the elimination of friction:

The rise of augmented reality and ultra-realistic 3D modelling is reinventing the online try-on experience. The L’Oréal and Nvidia partnership, using the Omniverse engine, illustrates this beauty-tech convergence. It involves modelling faces and virtual frames to streamline the purchasing process without needing to visit a store, even though L’Oréal does not currently sell eyewear frames under its own license.

The removal of friction associated with trying on glasses repositions traditional opticians. They are becoming premium points-of-sale, advisory hubs and platforms for immersive digital experiences. Vertically integrated brands thus have a major competitive advantage over low-cost pure players, who struggle to offer the same quality of experience and personalisation.

4. Product innovation: towards smart glasses:

Smart glasses combine augmented reality, health sensors and connectivity. The partnership between Meta and Ray-Ban, through EssilorLuxottica, is a forerunner in this space, merging software, hardware and fashion.

This convergence is paving the way for a wave of diverse mergers and acquisitions. It involves cross-sector partnerships aimed at creating entities that can control the entire value chain, accelerate innovation and appeal to a broader spectrum of consumers.

Structural obstacles to anticipate

Regulatory pressure and price moderation in France

The “100% santé” reform imposes strict transparency and reimbursement caps, particularly on basic care offerings. To preserve margins, players must clearly segment their product ranges and justify the distinct value of their premium lines.

Dependence on Asia and supply chain resilience

In France, only 10 percent of frames sold are manufactured locally. Almost all are imported, as highlighted by Le Monde, exposing companies to price fluctuations, logistical costs and sustainability challenges.

This heavy reliance on Asia exposes players to geopolitical risks, customs costs and logistical tensions. Winning strategies could include partial reshoring; supplier diversification; and vertical integration to secure the supply chain while maintaining price competitiveness and sustainability.

Pressure from low-cost competitors and technological uncertainty

Volume-driven pure players, such as Lunettes pour tous, are putting pressure on margins. Meanwhile, smart glasses remain an emerging market, with design, cost, privacy and mainstream adoption still presenting major challenges.

2030 scenarios: towards which business model?

With a global market potentially reaching 340 billion dollars by 2030, two business models are expected to capture the majority of the market share.

This article was translated to English using an AI tool.

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EssilorLuxottica

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Gentle Monster