The global market for glasses is dominated by one compan: EssilorLuxottica. It is by far the biggest maker of frames and lenses in an industry valued at close to $175bn.
In 2024 it sold 240 million pairs of glasses and produced more than 720 million individual lenses. It controls dozens of leading vision brands, operates thousands of its own retail stores and partners with over 300,000 eyecare professionals.
Currently, 27% of the world’s population is thought to suffer from myopia and this rate is expected to increase to 50% by 2050 due primarily to individuals spending more time inside and in front of screens. In Asia this problem is acute, with up to 80% of students in China currently needing to wear glasses.
Nonetheless, it is estimated that 2.7 billion people worldwide do not properly correct their poor vision. Unsurprisingly, the market for prescription glasses is expected to double over the next decade.
Another issue is exposure to the sun’s ultraviolet (UV) rays, which is clinically proven to damage eyesight through conditions including cataracts. Yet only 20% of the world’s population owns a pair of UV protective sunglasses. The potential for growth is clearly huge.
Best-in-class brands
EssilorLuxottica owns or licenses leading brands in eyewear and eyecare including Ray-Ban, Oakley, Chanel, Giorgio Armani, Moncler and Prada. It has 18,000 stores owned under brands including SunglassesHut, Vision Express and Vogue.
The company’s brand management capabilities have become a core competitive advantage. The vertical integration of its brands across lenses, frames and retail has been highly synergistic.
The company is also the leading manufacturer of machinery for making lenses, sold to independent opticians globally. No other company in the industry has such depth and exposure, resulting in a business model that is extremely difficult to replicate.
Traits of a healthcare stock
EssilorLuxottica has delivered an enviable record of sustainable, profitable growth. Whilst the stock is often grouped with more cyclical, discretionary and/or luxury goods companies, it possesses many of the traits of a quality healthcare stock.
This status is clearly reinforced by the correction and protection benefits that glasses provide. In Asia, for example, the company has sold millions of its Stellest lenses that are supported by clinical trial data that evidences their ability to slow the onset of myopia in children. In addition, the technology has achieved US FDA approval as a medical device.
The company’s core revenue growth is therefore highly resilient. This can be seen from its recent performance in Asia, where weak consumer spending in China has seen most global brands’ regional sales decline.
Not so for EssilorLuxottica. Its size and scale ensure that, along with its solid revenue growth, its profitability is consistently growing. As of 2024, it was achieving a gross margin of >63% and an expanding operating margin >25% .
Pioneering innovation powering new growth opportunities
EssilorLuxottica has partnered with Meta to successfully develop AI-enabled smart glasses under the Ray-Ban brand. These glasses can be used to record video, take photos, play music, make calls and interact with Meta AI. They are, in essence, an extension of a smartphone, the device that smart glasses may one day replace.
The company has already sold more than two million pairs and is targeting more than 10 million in annual unit sales by the end of 2026. In June 2025 its Oakley brand also launched the product and Meta recently announced it had acquired a 3% equity stake in EssilorLuxottica.
In ‘MedTech’, through the acquisition of Nuance, EssilorLuxottica has developed a pioneering new product combining prescription glasses frames with hearing-aid technology, targeting mild to moderate hearing loss sufferers.
This cohort actively rejects hearing aids on the grounds of stigma, appearance and cost. These Nuance glasses combat these issues and are now being sold in the US and Europe.
Strategic competitive edge
EssilorLuxottica’s strategic competitive edge has two compelling components: its vertically integrated business model, giving it advantages over peers (it can sell frames and lenses it has made using its machines in its own stores, prioritising its own products over rivals’); and its portfolio of industry-leading brands that maintain relevance with customers and drive pricing power and product renewal.
As the industry leader, EssilorLuxottica is often the partner of choice for independent opticians and fashion brands. No other company can realistically offer the same level of expertise, capacity and distribution that its global ecosystem offers.
The risks
As with any company, there are risks. One is competition in smart glasses. Alphabet (Google) has announced a partnership with Kering Group to produce smart glasses.
Apple is expected in the next five years to launch its own range of smart glasses, likely to be made in-house. Whilst the EssilorLuxottica/Meta partnership has first mover advantage, cash-rich quality competition will emerge.
Second, there are tariff risks under the Trump administration. Most lenses and frames that EssilorLuxottica sells in the US are made in Mexico. However, under the USMCA’s rules of origin policy, it is likely that most of its products sold in the US will be exempt from these taxes, and whilst the unpredictable news flow has impacted investor sentiment, there should be minimal impact on its US business.
EssilorLuxottica is a unique company. Its competitive position is entrenched and unrivalled, and its brands are among the very best in the industry.
We believe there is a compelling investment case for owning EssilorLuxottica in a quality-growth portfolio, and that the company truly deserves its designation as a ‘global best idea’ company.
Gerrit Smit is lead portfolio manager of the Stonehage Fleming Global Best Ideas Equity fund. The views expressed above should not be taken as investment advice.