Will wide-format slow its growth spurt? So far, it’s showing no signs of doing so. The global market for large format printers alone (let alone the output) was estimated at $9.11 billion in 2023 and is projected to grow at a CAGR of 5.0% from 2024 to 2030.
The printer market is growing because demand is growing. In fact, one of the biggest markets for wide-format graphics, retail and dining, is on a growth spurt of its own. According to new data from Placer.ai, based on Placer’s 100 Retail & Dining Index, U.S. retail and dining foot traffic has grown nearly every month from June 2023 to May 2024, compared with the same period a year prior. All of those retail and dining establishments need wide-format graphics.
Additionally, Placer.ai reports…
- Physical retail will account for 83.7% of all U.S. retail sales this year, amounting to $6.234 trillion.
- Retail stores, including Bloomingdale’s, Whole Foods Market, and IKEA, are embracing smaller-format stores to draw foot traffic where consumers live and work.
- These localized shopping experiences are gaining further traction. For example, BJ’s Wholesale Club’s small-format location in Warwick, Rhode Island, outperformed its state and nationwide averages in four of the first five months of the year.
Notable from the Placer.ai data is the shift to smaller format locations. This means the potential, not just for more wide-format graphics, but for shorter, more customized runs. Instead of long runs of in-store signage, for example, this might mean the opportunity to create smaller runs more precisely tailored to the needs of local geographies and individual communities.
For shops offering wide-format capabilities, the message is simple: “Think local”!
Discussion
By Trevor Hansen on Oct 23, 2024
I appreciate the optimistic view of the growth in wide-format printing driven by growth in the retail and hospitality space, but I believe there's a potential oversight in assuming that this growth is purely demand-driven. It's possible that many print companies are entering wide-format printing not because wide-format volumes are rising, but as a response to declining narrow-format volumes. They may be seeking new revenue channels and the potential for higher margins, which could lead to market saturation, diluting prices and squeezing profitability, especially if overall print volumes don’t increase significantly.
By Kate Dunn on Oct 26, 2024
Many printing companies offer wide-format printing today, seeking alternative revenue sources to counteract the decline in small-format print volumes as Trevor points out. However, offering a "me too" product rarely achieves the desired end of profitable revenue growth. It's a red ocean strategy.
There are tremendous benefits of print across all segments as digital response rates decline and customer experience increases as a differentiator. Still, those benefits are rarely successful in a "me-too" scenario. Companies must help their customers understand where print helps and the results it can drive. Doing so is a sales and marketing strategy that helps generate demand rather than satisfy what already exists.
Discussion
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