Commercial Printers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 22,000 commercial printers in the US produce brochures, ads, books, packaging, business cards, and other output for clients. They are in the midst of a transition to digital technologies and electronic media.
Rapid Technological Change
The transition to digital technology has accelerated the rate of equipment change in the printing industry.
Weak Printing Demand
The commercial printing industry has seen falling demand for printed advertising materials caused by the shift to electronic media.
Industry size & Structure
The average commercial printer has fewer than 20 employees and generates $3.5 million in annual revenue.
- The industry consists of 22,000 firms with 278,900 employees, and revenue of $78 billion.
- Digital communications are replacing print for advertising, direct mail, magazines, books, and other business publications.
- Digital printing has reduced the barriers to entry for commercial printing. The new competition consists of quick printing companies and companies doing their own printing in-house.
- Industry-wide employment fell 15% from 2013 to 2022.
- Most firms are privately-held and 85% of firms have less than 20 employees.
- Large firms include RR Donnelley, Quad/Graphics, Transcontinental Printing, and Cenveo.
Industry Forecast
Commercial Printers Industry Growth
Recent Developments
Apr 16, 2024 - Weaker Industry Growth
- The commercial printing industry is expected to see negative sales growth this year and nearly flat annual sales gains over the next four years. The industry’s year-over-year sales increased by 8.5% in 2022 before dropping to 1.8% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to fall to -0.3 in 2024, then rise by 0.1% in 2025. The industry will then see weak average annual growth of about 0.1% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- More than 90% of marketing professionals with print marketing programs are utilizing strategic integration of their print and digital channels in 2024, according to the Print Impact Report by integrated communications firm R.R. Donnelley & Sons Company (RRD). Nearly a third of marketers surveyed said they planned to leverage AI in support of their print marketing campaigns, and another third said they were already using AI. Nearly 40% of marketing professionals said they use web-to-print technology, with the main advantages being reduced costs of on-demand printing, personalization and customization capability, more efficient workflow, and enhanced brand consistency. Senior Vice President of Growth for RDD’s Commercial Print division, Margo Yohner, said, “Modern marketers are prioritizing innovation to uphold print’s relevance and effectiveness as a tool within their omnichannel arsenals. Companies are not simply abandoning print; they're actively seeking ways to optimize its value.”
- US net media owner advertising revenues rose in the fourth quarter of 2023, marking the most robust quarterly growth in nearly two years, according to a March forecast by advertising firm MAGNA. Non-cyclical ad sales rose by 9.1% in Q4 compared to the same period in 2022. MAGNA updated its 2024 ad spending outlook to 9.2% growth from an earlier forecast of 8.4%. Pure play digital will continue to drive industry growth, as non-cyclical ad sales will rise 12% in 2024 and account for 72% of the advertising market. Direct mail, a key demand driver for commercial printing, is forecast to decline by 4% in 2024. However, MAGNA noted that direct mail has remained resilient despite significant cuts by some local media channels.
- In 2024, the global thermal printing market has an estimated value of $35.8 billion and the industry is expected to experience an average annual growth rate of 4.3%, reaching sales of $44.2 billion in 2029, according to a recent report by market research firm Smithers. Thermal printing uses heat to print human- and machine-readable images on plastic films and papers. Primary applications include labels, tickets, tags, receipts, records and others that require just-in-time printing of lot number, transaction data, or other crucial information. Ecommerce and related logistics are a key demand driver for thermal printing.
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