As the economy begins to recover and the Hispanic population continues to grow domestically, demand for Spanish-language books will likely rise
Los Angeles, California (PRWEB) December 12, 2011
The overall outlook for the Spanish-Language Book Publishing industry remains positive, with revenue forecast to increase at an average annual rate of 0.7% to $1.2 billion in the five years to 2016. Driven by improved consumer spending, retail demand for Spanish books is expected to recover in the short term, subsequently leading to higher revenue. In fact, IBISWorld projects that revenue will increase by 1.9% from 2011 to 2012. Nevertheless, news will not be entirely good for the industry in the long run, as changes in the Hispanic demographic are expected to heighten competition from English publications. Furthermore, technological developments such as e-books will likely cause competition from imports to increase, forcing industry players to diversify to remain competitive in the book publishing sector. For this reason, industry research firm IBISWorld has added a report on the Spanish-Language Book Publishing industry to its growing Books & Education report collection.
Despite solid year-on-year revenue growth of 1.0% expected in 2011, the overall Spanish-Language Book Publishing industry has slowly contracted in recent years. In fact, total revenue is estimated to fall at an average annual rate of 0.9% to $1.15 billion in the five years to 2011. The industry's overall decline can be largely attributed to a fall in book spending by the Hispanic population in the United States. As consumers of all ages and demographics faced high unemployment and low income during the recession, spending on books subsided considerably. Decline in reading expenditure is particularly notable for the Hispanic demographic, which make up the largest market for industry goods. Data from the Bureau of Labor Statistics reveals that the share of expenditure on reading materials in the United States from this group fell from 4.3% in 2006 to about 3.9% in 2009, corresponding to the industry's decline in those years.
According to IBISWorld analyst, Janet Shim, in addition to economic drivers, industry-specific challenges such as low readership and diverse reading tastes among the Hispanic population have further restrained industry growth during the past five years. Limited retail outlets for Spanish-language books have made it difficult for industry operators to pass on their products to consumers, creating an adverse market for players to operate in. In the face of these tough conditions, many publishers restructured their businesses and exited the industry.
Fortunately for industry operators, including Pearson, McGraw-Hill Companies, Bertelsmann AG and Santillana USA, demand conditions are projected to improve over the five years to 2016. “As the economy begins to recover and the Hispanic population continues to grow domestically, demand for Spanish-language books will likely rise,” says Shim. Consequently, industry revenue is forecast to increase by 0.7% annually over the next five years to reach $1.2 billion by 2016. The industry will still face some challenges, though. The percentage of the Hispanic population that prefers the Spanish language is set to decline and e-books will likely gain popularity, posing a threat to the industry.
For more information, including latest health trends, statistics, analysis and market share information on Spanish-Language Book Publishing, download the full report from IBISWorld on the Spanish-Language Book Publishing industry
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