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Global Commercial Printing

Global commercial printing market: $460.5 billion industry forecast by 2018

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2014-03-25 16:54:02 - Global Commercial Printing - a new market research report on

The Global Commercial Printing industry is one of the world´s largest manufacturing industries. However, the industry´s growth has been stagnating, particularly in developed markets, where digital media is increasingly replacing the printed page.

There has been a shift in preference away from printed materials, in favor of alternative media such as the internet, which transmits information faster and cheaper. Furthermore, the global recession reduced consumer spending and advertising budgets, which ultimately led to a drop in commercial printing. As such, IBISWorld estimates that industry revenue will fall at an annualized rate of 1.2% to $430.3 billion in the five years to 2013.

However, growth in developing markets has somewhat mitigated the industry´s revenue declines. In China and India, for example, industry revenue



has increased, due to strong economic development. In addition, low labor costs allow operators in these countries to sell their products at lower prices. These factors have spurred export expansion from emerging markets, and will help industry revenue increase 0.3% in 2013. On the downside however, this growth has also contributed to intensified price-based competition and excess capacity. Consequently, industry profit margins have plunged over the past five years. IBISWorld estimates that industry profit will represent 2.9% of industry revenue in 2013, down from 5.6% in 2008.

Additionally, industry revenue is forecast to grow at an annualized rate of 1.4% to $460.5 billion in the five years to 2018. Nonetheless, increasing competition from digital and online substitutes will continue to adversely affect industry growth. The industry however, will likely continue to benefit from growth and high demand in emerging markets.

Such conditions will ultimately bring more players into the industry, in spite of continued consolidation in developed countries. In the five years to 2018, IBISWorld estimates that the number of companies operating in the industry will increase 0.4% to 346,849 locations. The industry is also expected to benefit from improving conditions in the global economy, which will boost advertising expenditure on traditional print media.

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