Emerging Markets to Drive Recovery of Global Printed Business Communications from 2010 onwards

02 December 2009

Leatherhead, UK, 2 December, 2009. Competing with new electronic communication methods, the global print market for business communication is expected to decline to US $50.8 billion in 2009, according to a new study by Pira International. From 2010 onwards, there will be a general recovery spearheaded by emerging markets, with the sector touching US $53.8 billion in 2014.

Based on primary research and expert analysis, The Future of Printed Business Communications breaks down the global market by product types, print processes and region, with five-year forecasts to 2014. The study also provides an up-to-date overview of key technology developments, drivers and environmental considerations affecting the business communications market.

The study segments the market for printed business communications into seven product types: annual reports and financial print, company brochures and literature, business cheques, transactional print, business forms, letterheads and stationery, and business cards. Letterheads and stationery continued to be the single largest market sector in 2009 with value sales of US $14.4 million, followed by transactional print and business forms.

Most of today's business communication print is document based, with offset litho and digital print the key technologies used, and virtually no gravure, flexo or silkscreen. There is also now a significant shift from offset printing to digital, reflecting the need for cost effective production of shorter runs and increased customisation to make the print more consumer friendly.

In 2009, web offset was the largest market for print processes at US $17.8 billion, followed by sheetfed at US $15.7 billion and electrophotography at US $13.7 billion. Pira International predicts that conventional print processes will show a declining trend till 2014, while digital processes such as electrophotography and inkjet will increase significantly over relatively smaller bases to reach US $20.8 million and US $8.1 million respectively over the same period.

Various technology developments are also shaping current and future business communication methods. Traditional offset printing is being displaced by technical advances, including workgroup and desktop printing, as well as alternative electronic methods. Printed products are becoming more relevant to final users with more customisation, personalisation and on-demand printing. Print buying is also changing rapidly, with e-procurement and new workflow systems reducing the cost of administering print.

According to the study, the main factors pushing print technology for business communication are:

• General IT developments: Higher bandwidth and database profiling, greater access to the internet by final users
• Improvements to printing machinery and equipment: Automation and set-up aids, workflow and process improvement and digital print technology
• Environmental impact reduction.

The study goes on to add that the market value of business printing is declining in developed regions, an offshoot of the economic slowdown and the usage of new multiple media-driven channels of communication. The key trends for printed business communications discussed in the report include greater media choice, cost reduction initiatives, greater corporate social responsibility and environmental impact reduction, increased personalisation, open tendering processes and increasing use of outsourced print management supply, and online print specifications and buying.

Environmental considerations for business communication print have also become crucial for all businesses, particularly in the developed world, with the replacement of printed material with electronic versions offering cost savings and environmental benefits. Environmentally lead printers are now also benefiting from cost reduction and an increasing customer base. For print, the environmental impact comprises the print process itself, the inputs to the print process (paper or other substrates, ink, solvents, glue and chemicals), the equipment, distribution and the subsequent recycling or disposal of the product. Some business customers demand green credentials such as recycled paper, accredited paper sources, reduced waste, and carbon neutral printing in order to demonstrate their own environmental concerns

Digital print as such offers several environmental benefits over conventional printing, not least the elimination of plates, chemicals and set-up waste in producing fewer copies that may become redundant, even though there is no real objective quantitative measurement to compare alternatives. There are however potential concerns about the recyclability of inkjet and other digital print, but equipment developers are taking action to develop recycling.

The paper industry has also been improving its environmental performance over time with the growth of independent chain of custody schemes, with FSC, PEFC and SFI leading the way. These offer meaningful and consistent classification of the environmental impact of paper, and proof that it comes from sustainable sources. High profile business communications, such as reports and accounts, are produced following best practices in the choice of paper and printing. Governments in developed regions have produced air, water, and hazardous waste regulations that printers need to be aware of and follow. Carbon reduction legislation is also becoming mainstream across the world, with proactive printers and paper companies seeking to target carbon neutrality.

The Future of Printed Business Communications is available now for £3,500. For more information, please contact Stephen Hill on +44 (0) 1372 802025, or via e-mail on stephen.hill@pira-international.com

Press contact: For editorial queries, details of the report or an expanded article please contact: Rebecca Leigh +44(0)1372 802207 rebecca.leigh@pira-international.com

Pira International
Pira International - the worldwide authority on packaging, paper and print industry supply chains

Established in 1930, Pira provides strategic and technical consulting, testing, intelligence and events to help clients gain market insights, identify opportunities, evaluate product performance and manage compliance