Publishers will look to enhance their digital capabilities by acquiring firms that specialize in new media. As large competitors acquire niche children’s book publishers, industry concentration will increase
Los Angeles, CA (PRWEB) January 17, 2012
The Children’s Book Publishing industry is successfully meeting challenges such as competition from new technologies and the post-recessionary dip in disposable income, according to IBISWorld industry analyst Agata Kaczanowska. In the IBISWorld report, Kaczanowska states that "although demand for children’s books did drop in 2009, the importance of children’s literacy remained high enough that even slight gains in personal disposable income generated greater demand for children’s books." IBISWorld's new industry report shows that in the five years to 2012, industry revenue will grow at a 0.7% annualized rate to $2.6 billion, including a 1.8% jump in 2012.
The market for children’s books is expanding as e-readers and other popular devices, like tablets and smartphones, make books easier to buy, read and store. Animation and other extra features made possible by these and other devices are making e-books particularly attractive to children. Another trend in the Children’s Book Publishing industry is the increasing marketing efforts toward adults in the wake of popular best-selling series, such as Harry Potter, Twilight and, more recently, The Hunger Games. Kaczanowska adds that "although increased marketing and digital development investments have eaten into publisher profit in the past five years, such investments are projected to boost profitability in the next five years."
Additionally, growth in the number of K-12 students is estimated to surpass the population growth rate in 2013 for the first time in a decade, which will expand the audience in the appropriate age range for children’s books. Along with projected benefits from e-books and increasing disposable income, IBISWorld forecasts healthy annual revenue growth in the coming five years.
The Children’s Book Publishing industry is characterized by a high level of concentration, with the top for publishers accounting for 73.6% of industry revenue. Major player Scholastics has the largest market share of all competitors. Concentration has been increasing as major book publishers dedicate more resources toward publishing children’s books, particularly within the young adult product segment. Many of these companies are investing in their brands and marketing toward a growing segment of the Children’s Book Publishing industry as a way to earn faster return on investment. Furthermore, publishers will look to enhance their digital capabilities by acquiring firms that specialize in new media. As large competitors acquire niche children’s book publishers, industry concentration will increase. As well as Scholastic, other major players include News Corporation, Bertelsmann AG and CBS Corporation.
For more information visit IBISWorld’s Children’s Book Publishing industry report
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This industry designs, edits and markets books for children aged 17 and under, including coloring and picture books. It does include e-books but excludes online-only publishers and authors, and also excludes textbook publishing.
IBISWorld industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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