2011 Hot Markets : Demand for Print to Rise
To accompany the victuals are No. 6-ranked beverages ($448B, +11 percent; with $10.7B to print, +8 percent) and No. 17-ranked food service ($748B, +5 percent; with $5.2B to print, +2 percent). Downstream acquisitions of their respective bottlers by Pepsico (+40 percent) and Coca Cola (+12 percent) will dramatically increase market concentration and pricing power; good for metal decoration, screen, outdoor and POS/POP.
Expect more event-driven and "spontaneous" viral marketing such as those of Red Bull (+18 percent), which are rich in large-format, sublimation and litho print. Similar celebration initiatives by wines and spirits producers, and distributors such as Diageo (+20 percent), are pouring up demand with new flavored offerings.
The only flat category is beers/malt beverages, with declines at giant Budweiser (-3 percent) as hundreds of micro-brewers take share from the mass producers. The latter, which are everywhere, are increasing litho label and carrier spends, as well as outdoor and in-store POS/POP.
Meanwhile, full-service restaurants and take-away shops, especially the independents, are starving for diners and will survive only with print promotion and loyalty programs. Fast-food operators, led by McDonald's (+10 percent), are serving up new and more nutritious items, and are increasing FSI, in-store and outdoor print.
The three foods/beverages sectors, combined, will consume 15.6 percent of total print in 2011, concentrated in the Midwest, Northeast and Southeast.
Banking/insurance ($3.64T, +4 percent; with $13.4B to print, -3 percent) will continue as the No. 2 print depositor. Commercial banking re-branding of Wachovia will likely make Wells Fargo (+7 percent) the biggest sector buyer in 2011. Signage, decor and all forms of sheetfed and web printing will top six figures per location.
Debiting the sector are more than $5T in under/non-performing "assets" that are yet to be marked-to-market. Credit card migration to debit cards will charge up direct mail solicitation when, and if, consumer sentiment rises and debt aversion decreases.