2015 Hot Print Markets Analysis: Target Verticals That Fit Your 'Sweet Spot'

This year is a turning point for print with a slight increase in nominal revenues to US$196B (+Packaged Foods ($1.233T, +5 percent; with $17.4B to print, +2 percent) will slim down over-extended “brand-widths.” Fewer offerings and less shelf space will disappoint late arrivals to this slowing down, No. 1 buyer of both print packaging and advertising materials. The only segments fattening up are fresh packaged (+8 percent) and pet foods (+7 percent). Roll flexo will be appetizing for variable-shrink, portion-control, aseptic, water-soluble and even edible packaging, while static stacked litho labels and cartons go stale. Increasingly, foreign producers are locating here bringing exotic new-category brands. These will “offset” attritions among the traditional food firms. Digitally-produced containers with local personalization, anti-tampering features and in-line formation will be practical and cost-effective for premium products in upscale markets. Nestlé Co. US (+14 percent) is best positioned in this sector.

Overlapping are No. 8 Beverages ($488B, -3 percent; with $10.5B to print, 0 percent) and No. 11 Food Service ($910B, +6 percent; with $7.0B to print, +13 percent). Drinks are leaking across all categories except teas and coffees (+4 percent). Starbucks (+16 percent) and Keurig Green Mountain (+14 percent) alone will perk up print at nearly US$0.5B during 2015. Mainstream distilled/fermented beverages (0 percent) are sobering to a decline in per-capita consumption to less than 2 gal./year. Oregon is the big 1.32-times exception, thanks to its largest-in-the-United States concentration of micro-breweries.

The so-called Big-Beer-3 are aggressively swigging up “craft” brands among the 2,800 independents whose local sourcing of labels, cartons, closures and promotional items will gradually tap out.

Pepsico (+12 percent) is best positioned to re-carbonate the soft drinks (-2 percent) segment with mid-to-low-calorie platforms in its juice and water brands, and by introducing more craft sodas and protein-infused beverages. Coca-Cola (-4 percent) is losing the most fizz as carelessly acquired drink brands go flat. Therefore, Coke’s regional bottlers will be taking control of brand and promotion allocations to the benefit of nearby printers with large-format litho, digital, screen and diecutting/assembly. Red Bull (+9 percent), with 1/50th of the beverage space, will continue as the largest buyer of everywhere-held, event-related merchandise and signage.