Dynamic Growth for Transpromotional Printing to be Seen to 2014
02 July 2010
Leatherhead UK, 2 July, 2010. Transactional printing will to grow at a modest CAGR of 1.7% but its sub-segment, transpromotional printing, at a dramatic 18.9% from 2009-2014, a new report by Pira International finds.
The expansion of transpromotional print will be continuation of the very fast growth this market has seen in recent years. The moderate growth of transactional printing as a whole can be attributed to a range factors both positive and negative - such as an increasing number of households but at the same time environmental pressure towards paperless communication.
Based on industry interviews, desk research and Pira's extensive in-house databases, The Future of Transactional and Transpromotional Printing to 2014 - Global Market Forecasts provides detailed global and country market data for the transactional and transpromotional printing markets during 2006-14. Key trends and drivers shaping the sector are discussed, as well as the new technologies employed in production.
Unlike many other forms of mail, transactional print such as bills, invoices, payslips and similar documents are practically always opened, read and often kept on file. This makes them a desirable marketing vehicle. The new Pira report finds that an increasing number of businesses and institutions are using transactional print to convey additional messages - this is transpromotional printing. The process is facilitated by a new generation of high-speed, high quality colour print machines entering the market. According to the study, transpromotional printing has seen very fast growth globally in the last several years. In the period until 2014, its dynamic development is going to continue, even though there is still little hard evidence of the efficacy of transpromotional messages.
According to the report, global transpromotional printing amounted to $1.3 billion in 2009, which meant a CAGR of 70.4% on the 2007 value of $0.45 billion. In the same period, the value of the transactional printing market grew annually by 1.9% on average, from $10.9 billion to $11.3 billion.
From 2009-14, transpromotional print will continue growing strongly, with a CAGR of 18.9%, expanding the sector to $3.1 billion. The overall transactional print market is expected to grow on average by a mere 1.7% a year and Pira predicts it will reach $12.3 billion at the end of the forecast period.
Pira cites a number of factors affecting the current and future development of transpromotional printing. On one hand, the recent global economic downturn has reduced print volumes across the world and pushed many transactional originators to consider alternative channels. At the same time, the pressure on banks to reduce their potential bad debt has led to many credit cards being withdrawn, and consumers reducing spending to repay debt has meant less statement printing. Also an increase in paperless billing, driven by the desire for cost savings and environmental considerations, has affected the transactional printing market negatively, and will continue to do so in years to come.
On the positive side, the increasing number of households means more potential customers to be corresponded with. At the same time, forecast future growth in use of payment cards and itemised billing will mean more correspondence with a greater level of detail - this will stimulate the market. Higher performance digital print technology, particularly inkjet, which is now entering the marketplace, is enabling high quality, high volume transactional documents to be produced digitally.
With such dramatic continued growth in transpromotional print, the sector will be very attractive for increasing numbers of print service providers. Pira also expects a knock-on demand for support from software, finishing and other solutions suppliers, creating further opportunities for suppliers in this sector.
The Future of Transactional and Transpromotional Printing to 2014 - Global Market Forecasts is available now for £3,750. For more information, please contact Stephen Hill at +44 (0) 1372 802025, or complete the online contact form
Press contact: For editorial queries, details of the study 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.