Profiting Through Convergence: How Print Providers Are Winning Across Market Segments

As Principal Analyst at Alliance Insights, Lisa Cross has spent years studying the business of print. In a recent presentation during the 2025 PRINTING United Expo, drawn from the firm’s Profiting Through Convergence study, she offered a revealing snapshot of how printers are expanding beyond traditional boundaries to capture new revenue.

Alliance Insights — formerly NAPCO Research — serves as the research division of PRINTING United Alliance, the largest printing and graphic arts association in North America. The Alliance Insights team provides market analysis, benchmarking, and data-driven insights for printers, converters, and manufacturers.

The Convergence Movement

At its core, “convergence” refers to the merging of formerly distinct print segments — commercial, packaging, apparel, wide format, and beyond — as technology, market demand, and customer expectations reshape the industry landscape.

“In the past,” Cross explained, “there were really defined lanes. A commercial printer did one thing. A sign and display company did another. A packaging converter did something else entirely. But today, the lines are blurred. Print providers are expanding into adjacent segments — sometimes producing in-house, sometimes outsourcing — because customers expect a one-stop solution.”

This shift, she said, isn’t theoretical. “It’s real, measurable, and accelerating.”

Alliance Insights has tracked convergence since 2017, conducting multi-year quantitative research to understand how diversification affects profitability and growth. “Back then, convergence was more of a conversation topic,” Cross said. “We wanted to validate it with hard data.”

The results were striking. Over the years, the research found that the average print company now serves nearly four different market segments beyond its original focus.

“That’s a huge transformation,” Cross emphasized. “It means most print providers aren’t just printers anymore — they’re communications partners offering everything from packaging to promo to digital marketing support.”

The Data Behind Diversification

According to preliminary findings from the most recent Profiting Through Convergence survey, 96% of print providers now operate across multiple print segments. Just as telling, 90% said their customers expect that kind of breadth.

“Customer expectation is the real driver,” Cross noted. “Clients don’t want to juggle five vendors for a single campaign. They want one partner who can handle print, signage, packaging, and promo — all coordinated under one brand experience.”

Technology has made that possible. The rise of digital printing, inkjet presses, wide-format devices, and automated workflows has dramatically lowered the barriers to entry. “It used to be you couldn’t move into a new segment without massive investment,” Cross said. “Now, digital systems make it faster, more affordable, and scalable.”

The business case is strong. Across Alliance Insights’ data set, companies that diversified into new print segments saw an average revenue increase of 15.6% and a profitability boost of 10.3%.

“That’s the money slide,” Cross said. “It really underscores that convergence isn’t just a buzzword. It’s a growth strategy that pays off.”

Why Companies Expand

When survey respondents were asked why they pursued new market segments, the top reason was clear: direct customer demand (this was cited by 73% of print providers).

“Our customers are saying, ‘Can you do this too?’” Cross said. “And most providers say yes — or they figure out how to.”

Other motivators included competitive differentiation, the need to offset declining core print volumes, and the desire to enter higher-margin categories like packaging, apparel, and promotional products.

But Cross was quick to point out that convergence isn’t without its hurdles. “Learning a new process is the number one challenge,” she said. “That includes selling into a different market, training staff, managing new workflows, and financing new technology.”

For many, the solution is to start small. “Outsourcing is an excellent way to test demand,” Cross advised. “You can validate a new offering before bringing it in-house.”

The research supports that strategy: 38% of providers said they initially outsourced to enter a new segment — and 83% of those providers eventually brought the work inside once demand was proven.

Convergence in the Real World

Cross illustrated the trend with vivid case studies.

“When I started in this industry,” she said, “Quad Graphics was one of the biggest publication printers in America. They printed Newsweek, Time, and People magazines. But when those titles went digital, Quad had to reinvent itself.”

Today, Quad’s $2.6 billion enterprise encompasses packaging, in-store displays, direct marketing, and logistics. “They’re the ultimate convergence story,” Cross said. “They didn’t just survive change — they capitalized on it.”

She also cited NRO, a Philadelphia-based commercial printer that branched into direct mail, promotional products, and fulfillment. “They became a one-stop marketing resource,” she said. “That shift opened up new clients and higher-value projects.”

Other examples include Think Patented, which added signage and marketing automation; Foremost Graphics, which moved into apparel and experiential print; and AlphaGraphics and Sir Speedy, both of which have evolved from quick printers into full-service communications providers.

Even retail chains are getting in on the act. “You can walk into a Staples today and order business cards, wall graphics, or even packaging,” Cross noted. “That’s convergence happening right in front of consumers.”

The Power of Print and Promo

Among all areas of diversification, one of the most synergistic pairings is print plus promotional products, particularly in kit-based campaigns.

“Print and promo go hand in hand,” Cross said. “Think of welcome boxes, sales kits, or employee recognition bundles — these combine printed materials, packaging, and branded merchandise into a single experience.”

She pointed to several standout campaigns:
• Salesforce’s “Grow Your Marketing” kit, which included a live terrarium and printed collateral, generating buzz and engagement while commanding a $40,000 budget for just 600 kits.
• Starwood Hotels’ sales motivation campaign, built around a sports locker box filled with personalized materials.
• Sky High Marketing’s rock-and-roll client kit, featuring guitar-shaped coasters, drumstick pens, and branded apparel — ultimately yielding between $75,000 and $100,000 in new business.

“These aren’t commodity print jobs,” Cross emphasized. “They’re high-margin, creative, experience-driven projects that blend disciplines beautifully.”

Lessons from the Frontlines

Despite the upside, convergence requires discipline. “The companies that succeed are the ones that plan,” Cross said.

When asked what they’d do differently, survey participants pointed to three things: more market research, better financial forecasting, and stronger sales and marketing. “Markets have their own language,” Cross noted. “If you’re entering packaging or apparel, you need to understand how those buyers think and what problems they need solved.”

Training and staffing are also critical. “You can’t just buy a machine and expect success,” she cautioned. “You need skilled people who understand production and customer service in that new space.”

And while not every diversification effort succeeds, even failures offer lessons. “Sometimes convergence doesn’t work because companies overestimate their capacity,” Cross said. “But the process of exploring new markets often sparks innovation that leads to future success.”

The Future of a Converged Industry

Cross closed her session with an optimistic but grounded perspective. “Convergence isn’t about abandoning your core business,” she said. “It’s about evolving — serving your customers more completely, building resilience, and finding profit in the spaces where markets meet.”

The takeaway from Alliance Insights’ research is clear: the most successful print providers are the most diversified. By embracing convergence, they’re not only growing revenue and margin — they’re securing their relevance in a changing world.

As Cross put it: “The future of print belongs to those who adapt. The boundaries between print segments are disappearing — and that’s where the opportunity lies.”