Commercial Print Services Industry Cost Drivers – Providers Are Employing Cost-Savings Strategies to Improve Their Margins | Day One Analysis Report, 2020 – 2027| Grand View Research, Inc.

Grand View Research, Inc.
According to new study by Grand View Research, Over 75% of the overall commercial print services industry is taken by the geographically mature industries (like North America, Western Europe, China, Japan, and Korea).

Procurement Outlook

The difference between personal printing and commercial printing is the volume and the types of printing done. Commercial printing services are classified into four types. These are offset lithography, digital, large format, LED UV printing. Digital and large format printing are two of the most commonly used commercial printing services. Commercial printing is used in almost all sectors. From coupons to business cards to marketing and promotional materials like flyers and banners, all such products use commercial printing extensively.

Demand Outlook

The global market for commercial print services was valued at USD 736 billion in 2020. The industry is expected to show a modest growth rate of 0.7% CAGR between 2020 and 2027 to reach USD 773 billion by 2027. The primary reason for the low growth rate of the industry is its matured nature. Geographically, North America, several European and APAC industries like China, Japan, and Korea have already reached industry maturity. Over 75% of the overall commercial print services industry is taken by the geographically mature industries (like North America, Western Europe, China, Japan, and Korea). In fact, due to the proliferation of digitization, the commercial print services industry is expected to decline in some of the mature industries like North America and some parts of Western Europe. The progression in the industry will be led by Latin America and some of the Asian countries where commercial print services are yet to reach their maturity and there is still a requirement for physical printed products, which are otherwise circulated digitally in the mature industries.

Grab your copy, or request for a free sample of the “Commercial Print Services Industry Procurement Intelligence Report, published by Grand View Research” for In-depth details regarding supplier ranking and selection, sourcing, and pricing criteria & strategies.

Cost Drivers

While the overall industry is expected to demonstrate low growth, commercial print service providers are employing cost-savings strategies to improve their margins. One of the primary cost savings strategies is employed while procuring the major raw material, i.e. paper. The industry is moving towards a forward buying paper strategy and using recycled paper in several instances. Several companies are proving value-added services like mailing, fulfillment, graphic designs, and several other add-on services which would aid them to deliver innovative services to their customers. Since the industry has reached maturity in several regions with costs having been fixed over a period of time, the only measure to increase bill value is to provide bundled services and include add-on services which would increase the margins a supplier could earn.

Apart from focusing on the main ingredient and providing bundled services, several suppliers are also changing the method of ink. One of them is using soy ink instead of the traditional petroleum-based ink. Using soy ink is helps the suppliers market themselves as eco-friendly which helps build their brand image. While this is not a cost driver, in particular, measures like this help companies increase their market share and provide top-of-the-mind recall.

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.

Our services include (not limited to):

Market Intelligence involving – market size and forecast, growth factors, and driving trends
Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Browse through Grand View Research’s collection of procurement intelligence studies:

• Chlorine Industry Procurement Intelligence – The global chlorine production is valued at ~100 million MT in 2020 and it is expected to grow at a CAGR of more than 4% from 2021 to 2027 due to rising demand from the pharmaceutical and agrochemical industries and the increasing demand for PVC from the construction industry. APAC is the leading regional market and accounted for more than 50% of the total market volume in 2020. Increasing construction spending in China, India, Indonesia, and Thailand is expected to drive the regional market during the forecast period. The region is also expected to witness the fastest growth rate of 5% over the forecast period due to the high demand for chlorine from the construction and chemical industry.

• Chromatography Resins Industry Procurement Intelligence –  The cost components of procuring natural resins and synthetic resins are different. Natural resins are typically extracted from trees like pines and firs. Hence, the processing cost plays a huge role in determining the cost of natural resin production. Whereas, synthetic resins are manufactured industrially via the process of polymerization with help of a chemically processed source of Naphtha, a residual part of crude oil. In this case, the cost of raw material is the key cost component of resin production. Synthetic resin production costs largely depend on the availability of raw materials and crude oil prices.

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