Trends and Opportunities in the Global Printing...

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Trends and Opportunities in the Global Printing Market Thayer Long President Association for Print Technologies May 2018

Transcript of Trends and Opportunities in the Global Printing...

Trends and

Opportunities in

the Global

Printing Market

Thayer LongPresident

Association for Print TechnologiesMay 2018

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The 26 countries selected and analyzed span across all global regions, representing 80% of global

GDP and 70% of the world’s population.

Geographic scope

Canada

United States

North America

Brazil

Chile

Colombia

Mexico

Latin AmericaAustralia

China

India

Indonesia

Japan

Philippines

South Korea

Vietnam

Asia-Pacific

Poland

Russia

Turkey

Central &

Eastern EuropeFrance

Germany

Italy

Netherlands

United Kingdom

Western Europe

Nigeria

South Africa

Africa

Iran

Saudi Arabia

Middle East

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The BIG picture: Size of Publishing, Commercial,

and Packaging Printing Market in Top 26 Markets

CAGR 2.7%

(US dollar terms)*

Average growth 2.8%

(local currency terms)

2017 2020

Note: The three printing segments we cover in WWMP 2.0 do not represent the entire printing market.

* Calculation based on EIU forecasts for average yearly exchange rates.

$421bn

Marketing &

commercial

15%

Publishing

17%

Packaging

68%

$389bn

Packaging

64%

Publishing

20%

Marketing &

commercial

16%

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Print Packaging Market – A Bright Spot

Association for Print Technologies

What is driving the Packaging Industry?

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Emerging Markets Retailer Impacts Design Thinking

Sustainability

Laws & Regulations

Science & Technology

Consumers/Social Media

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Emerging regions generally have high growth but smaller print packaging markets. Asia-Pacific is the

exception, having the happy confluence of both large and fast-growing markets.

Print packaging market size and growth

90.1North

America

7.4

52.3

3.1

1.3

1.0

130.3

Latin

America

Western

Europe

Central &

Eastern Europe

Africa

Middle East

Asia-

Pacific

> 8%

6%-8%

4%-6%

2%-4%

< 2%

Total print packaging

market, average growth

(2016-20)

Size of regional

print packaging

market in 2020

in US$ bn

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Asia-Pacific is the largest regional market for print packaging, accounting for over 42%

of revenues in this study, and will be the second fastest-growing region, expanding 6.7%

in 2016-20

Asia-Pacific

Association for Print Technologies

• Dairy Products on China will lead the growth in Brick Liquid Cartons, with slim 250ml cartons gaining popularity

• Savory Snacks and Confectionary drive growth in flexible plastic with small, affordable pack sizes being popular with low-income consumers

• Shaped Liquid Cartons to see highest CAGR, driven by growth in plain yoghurts

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Snapshot:

Food Packaging Trends in Asia Pacific

Source: Global Packaging Trends - Global Growth Markets for Packaging 2017 Report (2015-2020),

PMMI with data from Euromonitor

Association for Print Technologies

THAILAND: Volume Share of Food Packaging

9Source: Global Packaging Trends - Global Growth Markets for Packaging 2017 Report (2015-2020),

PMMI with data from Euromonitor

Association for Print Technologies

• Increased Disposable Income create growth in bottled water, energy drinks, and carbonates, supporting PET bottles

• Growing coffee consumption to drive flexible aluminum/plastic packaging

• Metal Bottles to grow steadily in beer markets. China will see a growth due to premium brands promoting limited edition bottles

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Snapshot:

Beverage Packaging Trends in Asia Pacific

Source: Global Packaging Trends - Global Growth Markets for Packaging 2017 Report (2015-2020),

PMMI with data from Euromonitor

Association for Print Technologies

THAILAND: Volume Share of Beverage Packaging

11Source: Global Packaging Trends - Global Growth Markets for Packaging 2017 Report

(2015-2020),

PMMI with data from Euromonitor

Association for Print Technologies12

THAILAND: Food/Beverage Packaging

Equipment Import

Source: Global Packaging Trends - Global Growth Markets for Packaging 2017

Report (2015-2020),

PMMI with data from Euromonitor

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Publishing printing and

marketing & commercial printing markets

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Only some countries in Asia-Pacific will experience solid, positive growth in publishing

printing. Most countries in our study will contract.

Publishing printing: market size and growth

North

America

Latin

America

Western

Europe

Central &

Eastern Europe

Africa

Middle East

Asia-

Pacific

> 2%

0% to 2%

-2% to 0%

-4 % to -2%

< -4%

Size of regional

publishing printing

markets in 2021 in

US$bn

$11.2

$3.5

$13.8$1.3

$0.3

$0.6

$43.3

Publishing printing’s

compound annual

growth rates in local-

currency terms

(2017–21)

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North American and Western European markets are declining, but Asia-Pacific is

growing at a healthy pace.

Marketing & commercial printing: market size and growth

North

America

Latin

America

Western

Europe

Central &

Eastern Europe

Africa

Middle East Asia-

Pacific

> 6%

4% to 6%

2% to 4%

0% to 2%

< 0%

Size of regional

marketing and

commercial printing

markets in 2021 in US$bn

$14.4

$2.6

$24.8

$0.2

$0.2

$1.1

$19.4

Marketing & commercial

printing’s compound

annual growth rates in

local-currency terms

(2017–21)

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Macroeconomic and demographic trends underpin the outlook for publishing printing markets and

marketing & commercial printing markets in all countries.

What is Driving the Commercial and Publishing Markets

Access to the internet continues to increase rapidly in emerging markets. The next step is get people connected to high-speed mobile internet.

Access to telecommunication

technology

The rise of middle-income consumers in emerging markets will boost

printing revenues. Consumer expenditures will increase overall,

especially in education and leisure, which supports publishing printing.

Higher incomes

Urbanization translates to higher concentrations of people, which makes marketing efforts more efficient.

Urbanization

Younger generations tend to consume more books and magazines, while older generations consume more newspapers. But this is changing.

Generational gap

All readers are potential print consumers. As the number of readers increases thanks to improved education levels and literacy rates, consumption of the printed word will grow.

Rising education levels and literacy

rates

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Asia-Pacific is expected to outperform all other regions in terms of both the publishing printing

industry and the marketing & commercial printing industry.

Asia-Pacific

0%

1%

2%

3%

4%

5%

0

5

10

15

20

25

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Bil

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Brochures & pamphlets Catalogs Directories

Inserts Direct mail Asia-Pacific growth (%)

Total growth (%)

Asia-Pacific’s marketing & commercial printing market by segment in 2012-21 (US$)

Note: Asia-Pacific includes Australia, China, India, Indonesia, Japan, Philippines, South Korea, and Vietnam; Regional growth is

the average LCU growth rate of all countries in the region; Total growth is the average LCU growth rate of all 26 countries in this

study.Source: The Economist Intelligence Unit.

Forecast

-3%

-2%

-1%

0%

1%

2%

3%

0

10

20

30

40

50

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Bil

lio

ns

Books Magazines Newspapers Asia-Pacific growth (%) Total growth (%)

Asia-Pacific’s publishing printing market by segment in 2012-21 (US$)

Note: Asia-Pacific includes Australia, China, India, Indonesia, Japan, Philippines, South Korea, and Vietnam; Regional growth is

the average LCU growth rate of all countries in the region; Total growth is the average LCU growth rate of all 26 countries in this

study.

Source: The Economist Intelligence Unit.

Forecast

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