2020 Hot Markets Forecast for Print Demand
With only two months behind us in 2020, the year is already shaping up to be an interesting one. According to Vincent Mallardi, 2020 should be the best sales year in printing history — although with the growing concerns surrounding the COVID 19, that remains to be seen.
Today’s technology is making most everything possible, thereby raising individual and business confidence and expectations. Consumers — of which 97.5% are employed — have cash, credit, and investment savings for discretionary spending; the highest in real terms since 1979. The U.S. Presidential election is already intensifying print demand for bound books, direct mail, and out-of-home signage by double digits.
What are some highlights I saw that sign and graphics providers need to know? I’ll share some points here, but for more detailed information be sure to download the full report. (https://wideformatimpressions.tradepub.com/free/w_prid25/)
In the No. 2 market, Medial/Pharma, higher value-added print — medical products (+5%) and wellness management (29%) are benefiting from technology, an aging population, and government cost containment efforts. Carton and blister packaging, POP/POS, and out-of-home signage will be on the rise.
In the No. 4 market, Health Providers, private health insurance (+11%) will be the most prominent print buyer across all product categories; particularly in direct mail, out-of-home displays, and signage, garnering three-fifths of sector demand.
Travel/Hospitality (No. 5 on the list) will see increases from the previous year. Expanded retail, dining, lodging, and entertainment space in airports (+7%) means more signage, reading material, and specially re-packaged travel amenities. Cruise lines (+7%) continue to be the largest print consumer in the sector. Travel catalogs, posters, periodicals, on-board amenities, and directional/decorative signage are everywhere, including tens of thousands of travel agencies essentially thriving on the cruise business. More than 32 million passengers — one-half of them Americans — will embark on more than 300 ships, a third of which are less than five years in service.
Under the No. 6 market, Real Estate, screen-printed lawn signs, open-web pasted housing guides, and ROP advertising in the residential/resale (+3%) segment will keep pace with the sector, as will short-run color digital, of which real estate is its largest and least concentrated market.
Under home improvement, professional remodeling (+10%) is two-fifths of sector revenues, and is the fastest growing segment — except for print, which is confined to vehicle wraps, business forms, and local advertising.
At No. 7 is Beverages, a market that includes seven categories, but only one is in “high” growth. Cannabis-infused drinks (+>166%) is also a high-risk packaging proposition, since no standard exists for those infused with THC. Paperboard carriers, metal-decorated cans, aseptic packs, stretch-wraps, adhesive labels, bottle closures, floor and wall graphics, window-clings, POP/POS, branded apparel, and vehicle wraps will migrate here.
In the No. 8 segment of Banking/Insurance, the property/casualty segment (+7%) will likely net more than $66B with a return-on-revenues of 1/25th, and a roll-fed litho, digital document, direct mail, and out-of-home signage spend of $4B.
At No. 13, Entertainment, directional signage, posters, displays, programs, stage sets, and souvenir apparel should bill out above $3B. Live Nation (+8%) is the largest participant, with one-ninth of the marketplace, producing nearly 35,000 concerts and shows.
Societal Activity ends up at No. 24. Advocacy (+60%) — directly or indirectly designed to influence election races — will bring close to $0.7B in direct mail, literature handouts, FSIs, promotional imprints, and signage.
At No. 25 is Government, Federal/State. Health-related programs (+16%) and defense and homeland security (+7%) require extensive screen and litho print, notably wayfaring signage, vehicle decals, manuals, documentation labels, and forms.
There’s a lot more in this report, so make sure you download the PDF of the “Hot Markets Forecast for Print Demand in 2020.”
Denise Gustavson is the Editorial Director and Special Projects Editor for the Printing & Packaging Group, which includes Printing Impressions, packagePRINTING, In-plant Graphics and Wide-Format Impressions magazines, among other brands. She is also the Editor-in-Chief of Wide-Format Impressions.