Optometry Practices NAICS 621320
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Industry Summary
The 19,000 optometry practices in the US are the main providers of vision care. About 55% of optometrist revenue comes from fees for patient care, which includes exams and treatment for problems. The sale of eyeglasses and contact lenses, known as “dispensing revenue,” accounts for over 40% of overall revenue. There are about 36,690 optometrists in the US – a majority work in private optometry practices.
Competition From Retail Chains
Independent optometry practices face competition from large retail optical chains, as well as mass merchandisers offering optical services.
Reimbursement Issues Affect Profit
Since about 30% of their revenue comes from managed care and vision plans, changing reimbursement rates and rules creates challenges for optometry practices.
Recent Developments
May 1, 2025 - Tariffs may Impact Industry
- US tariffs on Chinese imports could result in increased costs for frames, sunglasses, and other glasses imports like readers, goggles, and blue light glasses, according to the US International Trade Commission. China is currently the largest source of eyeglass frames and mounting (plastic and non-plastic) imports into the US and the second-largest source of non-glass spectacle lenses (with Mexico coming in first). Prices of production equipment including but not limited to lens grinding and coating equipment, lens generators, lens finding machines, lens polishers, and lens edgers are also likely to be impacted by tariffs.
- Optometry is experiencing a growing emphasis on specialization to meet the changing needs of patients, according to the “Career Considerations in Optometry” survey conducted by Jobson Research. A majority of respondents (67%) described themselves as primary eye care providers while one-third identified themselves either as a primary optometrist with subspecialty skills (30%) or a subspecialist (3%). Top subspecialty areas included dry eye (65%), cornea and contact lenses (64%), ocular disease (55%), and glaucoma (51%).
- Optometry practice owners have been selling their practices and retiring at an increasing rate during the past five years, according to Invision Magazine. This has boosted demand for associate Doctors of Optometry to fill the vacant spots. Private practice is not appealing when it’s a choice between going into debt to start your business or accepting a high six-figure salary and a generous package as an employee, according to Invision. Compensation demanded by young optometrists reflects the disparity between low supply and high demand. The average day rate for a part-time optometrist is now above $700 and, in some markets, above $800.
- Optometry practice employment was unchanged and average wages for nonsupervisory employees increased slightly during the first month of 2025, according to the US Bureau of Labor Statistics. US optometry practice sales are forecast to grow at a 6.08% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
Industry Revenue
Optometry Practices
Industry Structure
Industry size & Structure
The average optometry practice has a single location, 8 employees, and about $947,000 in annual revenue.
- There are about 19,000 optometry practices in the US with $18 billion in revenue.
- On an annual basis, the typical optometry practice logs 2,500-3,500 patient visits per optometrist.
- There are about 36,690 optometrists in the US - a majority work in private optometry practices. The rest work for ophthalmologists, retail optical chains, hospitals, HMOs, or the military.
- Optometrists need a Doctor of Optometry (OD) degree, which requires 4 years of graduate study at one of 20 accredited schools of optometry in the US.
- All states require that optometrists be licensed, which requires an OD degree and passing a written National Board exam and a National, Regional, or State clinical exam. Licenses must be renewed every 1-3 years and continuing education credits are required for renewal.
Industry Forecast
Industry Forecast
Optometry Practices Industry Growth
Source: Vertical IQ and Inforum
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