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Newspaper Printing in the UK - Industry Market Research Report

United Kingdom newspaper printing market: £249 million industry by 2019


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2014-02-24 17:04:02 - Newspaper Printing in the UK - Industry Market Research Report - a new market research report on companiesandmarkets.com

Competition from online substitutes is wreaking havoc on the United Kingdom newspaper publishing market. While many publishers have been able to respond to the competition by building their own online brand and thus attracting advertising revenue from their websites, this is not possible for businesses that derive income from printing physical copies of newspapers. As a result, revenue declines in the Newspaper Printing industry have been savage and are expected to decline at a compound annual rate of 8.0% over the five years through 2013-14 to reach a current year total of £406.8 million, including a current year decline of 7.7%.

The deterioration of demand has forced many companies to exit the industry, as many smaller newspapers publishers have mothballed their

 

 

printing facilities and opted to outsource this function to larger contract printers. This is reflected in a sharp decline in the number of establishments and enterprises over the past five years falling at compound annual rates of 5.1% and 4.5% respectively. The remaining players in the industry have survived due to the size and resilience of the titles they print, and increasing demand for contract printing services. The industry is now consolidating around these dominant firms. Over the next five years, establishment numbers will likely fall at a compound annual rate of 5.3% and enterprises at a rate of 5.9%. The outlook for the next five years is equally as bleak as the past five years.

Revenue is expected to decline at a compound annual rate of 9.3% to reach £249.6 million in 2018-19. The industry in 2018-19 will be smaller in terms of demand and the number of companies operating. Those who will survive and even flourish in this diminished market will be operations that are not tied to the fate of any particular publication and offer contract printing services that are flexible to the needs (and changing fortunes) of clients. Already, many publisher-owned printing presses are earning significant additional revenue streams from contract printing and this trend is likely to continue.

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Mike King
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