Indonesia Contact Lenses Market Analysis

Indonesia Contact Lenses Market Executive Summary

Indonesia Contact Lenses Market was valued at $102.84 Mn in 2023 and is predicted to grow at a CAGR of 8.9% from 2023 to 2030, to $186.79 Mn by 2030. 

Contact lenses are versatile medical devices placed directly on the eye, serving both functional and cosmetic purposes. They come in several types: soft lenses, made of flexible plastic allowing oxygen to the cornea; rigid gas permeable lenses for sharper vision; hybrid lenses combining features of both; and scleral lenses covering the cornea and sclera, useful for irregular corneas. They correct refractive errors like myopia and hyperopia and cater to cosmetic needs with colored variants. Fitting by an optometrist or ophthalmologist ensures proper selection based on individual eye health and lifestyle. Regular cleaning and adherence to wearing schedules are crucial for preventing infections and maintaining eye health. Risks include infections, dry eyes, and corneal abrasions if not used correctly. Regulated as medical devices, advancements like silicone hydrogel materials and UV-blocking capabilities enhance safety and comfort, making contact lenses a popular choice for vision correction and aesthetic enhancement globally.

In Indonesia, eye diseases like glaucoma affect around 6 Mn people, making it a leading cause of blindness. Cataracts are prevalent, particularly incipient cataracts, affecting 52.6% in some areas. Refractive errors, including myopia (26.1%), hyperopia (9.2%), astigmatism (18.5%), and anisometropia (15.1%), are also common. Nationwide, 3.0% of the population is blind, with untreated cataracts being the primary cause, affecting up to 95.5% in certain provinces.

The market therefore is driven by significant factors like the rising prevalence of eye disorders, increasing disposable income, growing preference for convenience, and technological advancements. However, limited public insurance coverage, competition from online retailers, and rising cost of contact lenses restrict the growth and potential of the market.

Prominent players in this field are Bausch and Lomb, which emphasizes daily disposable contact lenses enhanced with comfort technologies and supports sustainability initiatives. On the other hand, CooperVision focuses on innovation through advanced materials, specialized solutions for myopia management, and convenient subscription services for contact lenses. Other contributors include Alcon Vision LLC, and Essilor International S.A. among others.

Market Dynamics

Market Growth Drivers

Rising Prevalence of Eye Disorders: Statistics suggest a growing population in Indonesia with vision problems. Euromonitor International estimates that around 3.2% of Indonesians (around 8.8 Mn people) suffer from uncorrected refractive errors in 2023. This creates a demand for vision correction solutions, including contact lenses.

Increasing Disposable Income: Indonesia's economy is experiencing growth, leading to rising disposable income for many Indonesians. The World Bank estimates Indonesia's GDP per capita at $6,390 in 2023. This allows people to spend more on discretionary items like contact lenses.

Growing Preference for Convenience: Contact lenses offer a convenient alternative to eyeglasses for many people, especially those with active lifestyles or who prefer a certain aesthetic. This trend is gaining traction in Indonesia.

Technological Advancements: Introducing new materials and technologies like silicone hydrogel and daily disposables is reaching the Indonesian market. This offers improved comfort, wearability, and user experience, attracting more people to contact lenses.

Market Restraints

Limited Public Insurance Coverage: Contact lenses are typically not included in Indonesia's public health insurance coverage. This exclusion can pose a significant obstacle for consumers, especially those with limited financial means.

Competition from Online Retailers: While online retailers offer convenience and potentially lower prices, there's a risk of encountering counterfeit or unauthorized contact lenses that could pose health risks. Regulations and enforcement regarding online sales are still evolving.

Rising Cost of Contact Lenses: While disposable lenses are becoming more popular, specialty lenses or frequent replacement schedules can be expensive in China. This can be a barrier for some consumers.

Regulatory Landscape and Reimbursement Scenario

In Indonesia, the regulatory landscape for contact lenses is managed by the Ministry of Health (Kemenkes) and the National Agency of Drug and Food Control (BPOM). Contact lenses, including corrective and cosmetic types, must undergo registration with BPOM before they can be imported or sold in the country. They are classified into Class B (Medium-Low Risk) and Class C (Medium-High Risk) categories based on factors like intended use and duration of wear. Manufacturers and distributors are required to implement a Quality Management System (QMS) adhering to international standards to ensure product safety and quality. Post-market surveillance is also mandated to monitor performance and report adverse events to BPOM.

Regarding reimbursement, Indonesia's public health insurance system, BPJS Kesehatan, typically does not cover contact lenses for routine vision correction. However, exceptions may apply for medically necessary lenses prescribed by an ophthalmologist for conditions like keratoconus or severe myopia. Coverage for such lenses under insurance plans can vary, often providing partial reimbursement rather than full coverage depending on individual circumstances and specific insurance policies.

Competitive Landscape

Key Players

Here are some of the major key players in the Indonesia Contact Lenses Market

• Optik Seis
• Orion Lenses
• Softlens Indonesia
• Yogya Optik
• Johnson & Johnson Vision Care
• Bausch & Lomb Indonesia
• Novartis Indonesia
• Alcon Vision LLC
• Bausch & Lomb, Incorporated
• CooperVision, Inc.