This Year’s Top Three Drivers of Print
Print revenues are up
There’s an uptick in the print business. Yep, print. This year and next are on track for an impressive recovery for print manufacturers, with predicted revenues rising to $199.5 billion.
This revenue increase is up 3% from 2017 according to an article on PIWorld.com by Vincent Mallardi, head of the Printing Brokerage Buyers Association and adjunct professor in International Economics, Marketing and Finance.
Here are the top three forecasted big drivers of print revenue reported by Mallardi:
1. Packaged Foods
Packaged Foods claims the top spot, with the highest demand for printed products. Buyers want features like longer shelf life and tamper proofing. Even more importantly, they are willing to pay more for that flexible packaging. The biggest demands in this segment are for point-of-sale and promotional inserts, which will account for a combined total of 23% of the revenue for this sector.
The Medical/Pharmaceutical business is holding steady. Healthcare reform is expected to keep this industry in second place with all the materials needed to communicate on the topic: letters, folders, inserts, billboards, etc.
Interestingly, there is pressure from lobbyists to put a stop to pharma TV advertising. If that happens, the spillover to print media will be fairly substantial.
3. Publishing, Non-Newspaper
The Publishing, Non-Newspaper sector jumped up two spots in one year to number three (as shocking as that might be)! How is this possible when so many magazines are closing shop? Well, don’t forget about all the special-interest publications, like trade periodicals, that happen to be holding their own right now. New publications that reflect the new social climate and other verticals are on the way, which should account for 26% of this sector.
I love seeing the uptick in hard- and soft-cover books — 7%! Production digital inkjet printing combined with on-demand workflows bring to life short-run titles and self-publishing. Large publishers are poised to re-open backlists and introduce new titles – some will be universal literature translated from other cultures. We will see a rise in rare books and recreational print as the population ages.
On an interesting side note, the telephone directory business is actually doing well. Seriously! While those huge yellow books are no longer needed, directories are popular with small business and special-circumstance publishers that print for ethnic groups, veterans, immigrants and just about any other vertical you can think of.
All of this is more evidence of technology and culture shifting to the way in which we utilize paper, not just our consumption habits. We’d love to share more insights with you. Please reach out to us!