New technology to enable increased customization will boost demand for industry services
Los Angeles, CA (PRWEB) August 10, 2012
The Online Photo Printing industry is benefiting from a consumer shift toward photo sharing. During the past five years, social networks and links to other photo sharing sites encouraged consumers to store and print pictures through online channels. According to IBISWorld industry analyst Agata Kaczanowska, an increasing number of broadband and mobile internet connections also facilitated consumer access to such websites, contributing to industry growth despite low consumer disposable income. Consequently, revenue is estimated to grow 21.0% annually on average to $1.9 billion during the five years to 2012, including 22.0% growth in 2012.
New technologies and diminishing costs per consumer are benefiting the industry's bottom line. Furthermore, industry firms developed and invested in process automation, which allowed them to reduce the industry's labor intensity, says Kaczanowska. This factor slowed employment growth to a 6.4% annualized rate to 3,600 people in the five years to 2012. Such cost-cutting measures contributed to profit expansion. Profitability was nonetheless hampered: Higher input prices, such as the rising cost paper, increased purchase costs. In addition, the industry's increased reliance on mechanical processes caused depreciation costs to rise. However, mechanical processes are becoming increasingly efficient, resulting in diminishing automation costs over time. Meanwhile, industry innovation is making customization easier and more fun for consumers, as well as enabling firms to offer a wider spectrum of products, which boosts their value to consumers. The Online Photo Printing industry has a low level of concentration. The largest players include Shutterfly and Snapfish. This percentage has risen rapidly over the past five years, mostly carried due Shutterfly increasing its market share. Numerous industry acquisitions have increased the company's market share. While most firms appear to be doing quite well, acquisitions are frequently occurring. If current trends continue and Shutterfly becomes larger, the industry could easily enter into a medium level of concentration.
During the next five years, technological advancements will continue to prop up industry expansion. Rising internet and mobile access will enable more consumers to print photos online, and industry marketing will attract consumers through social media and mobile applications. Industry players will add more customization options to their products and services, targeting consumers' specific tastes and locations. During the next five years, rising disposable income is also forecast to support industry revenue. Also, downstream demand from the Photography industry (IBISWorld report 54192) is also expected to escalate as professional photographers also offer their clients a wider variety of printed products, which they will increasingly obtain through industry services. As a result, revenue is projected in the five years to 2017. For more information, visit IBISWorld’s Online Photo Printing in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry offers photo printing services online. It does not include brick-and-mortar stores, such as Target and CVS. Online photo printing is different from digital photo printing. However, online photo printing is part of overall digital photo printing, since photos must be in a digital form to order prints online. Commercial web-enabled printing services are excluded from this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.