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Greeting Cards & Other Publishing in the US

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Greeting Cards & Other Publishing in the US WWW.IBISWORLD.COM Greeting Cards & Other Publishing in the US May 2019 1 Sending condolences: Industry revenue is expected to contract as external competition grows This report was provided to Emerald Expositions (2134005483) by IBISWorld on 08 October 2019 in accordance with their license agreement with IBISWorld IBISWorld Industry Report 51119 Greeting Cards & Other Publishing in the US May 2019 Tanvi Kumar 2 About this Industry 16 International Trade 31 Regulation and Policy 2 Industry Definition 17 Business Locations 31 Industry Assistance 2 Main Activities 2 Similar Industries 19 Competitive Landscape 32 Key Statistics 3 Additional Resources 19 Market Share Concentration 32 Industry Data 19 Key Success Factors 32 Annual Change 4 Industry at a Glance 19 Cost Structure Benchmarks 32 Key Ratios 22 Basis of Competition 33 Industry Financial Ratios 5 Industry Performance 23 Barriers to Entry 5 Executive Summary 23 Industry Globalization 34 Jargon & Glossary 5 Key External Drivers 7 Current Performance 25 Major Companies 9 Industry Outlook 25 Hallmark Cards Inc. 11 Industry Life Cycle 26 American Greetings Corporation 27 CSS Industries Inc. 13 Products and Markets 13 Supply Chain 29 Operating Conditions 13 Products and Services 29 Capital Intensity 14 Demand Determinants 30 Technology and Systems 15 Major Markets 30 Revenue Volatility www.ibisworld.com | 1-800-330-3772 | [email protected] WWW.IBISWORLD.COM Greeting Cards & Other Publishing in the US May 2019 2 About this Industry Industry Definition This industry comprises publishers that calendars, coloring books, yearbooks and primarily publish greeting cards in print more. This industry excludes newspaper, or electronic form. Some companies also magazine, book, directory, map, atlas, publish products such as postcards, database and music publishers. Main Activities The primary activities of this industry are Greeting card publishing Art print publishing Calendar publishing Catalog (i.e. mail order or store merchandise) publishing Clothing pattern publishing Coloring book publishing Diary and time scheduler publishing Discount coupon book publishing Postcard publishing Yearbook publishing The major products and services in this industry are Business, trade and professional publications Consumer publishing Greeting cards sold in boxed sets Single greeting cards Other Similar Industries 45322 Gift Shops & Card Stores in the US This industry retails a range of gifts, gift wrap, novelty merchandise, souvenirs, greeting cards, party supplies and seasonal and holiday decorations. 51111 Newspaper Publishing in the US This industry produces and distributes print newspapers. Companies that solely publish online news are excluded from this industry. 51112 Magazine & Periodical Publishing in the US This industry produces and distributes magazines and other periodicals. Operators gather, write and edit articles and sell and prepare advertisements for print or electronic publication. 51113 Book Publishing in the US Operators carry out the design, editing and marketing activities necessary for producing and distributing books. These establishments may publish books in print, electronic or audio form. Provided to: Emerald Expositions (2134005483) | 08 October 2019 WWW.IBISWORLD.COM Greeting Cards & Other Publishing in the US May 2019 3 About this Industry Additional Resources For additional information on this industry www.bea.gov Bureau of Economic Analysis www.greetingcard.org Greeting Card Association www.publishers.org The Association of American Publishers www.census.gov US Census Bureau IBISWorld writes over 1000 US industry reports, which are updated up to four times a year. To see all reports, go to www.ibisworld.com Provided to: Emerald Expositions (2134005483) | 08 October 2019 WWW.IBISWORLD.COM Greeting Cards & Other Publishing in the US May 2019 4 Industry at a Glance Greeting Cards & Other Publishing in 2019 Key Statistics Revenue Annual Growth 14–19 Annual Growth 19–24 Snapshot $4.6bn -2.2% -2.0% Profit Wages Businesses $357.4m $800.4m 709 Revenue vs. employment growth Consumer spending Market Share Hallmark Cards 30 4.0 Inc. 20 3.5 40.4% 3.0 10 American 2.5 Greetings 0 Corporation % change % change 2.0 -10 19.0% 1.5 -20 1.0 Year 11 13 15 17 19 21 23 25 Year 12 14 16 18 20 22 24 Revenue Employment SOURCE: WWW.IBISWORLD.COM p. 25 Products and services segmentation (2019) 4.1% Key External Drivers Business, trade and professional publications External Competition for 4.3% the Publishing industry Other 12.5% Consumer spending Greeting cards sold in boxed sets Demand from gift shops and card stores Demand from book stores Number of children 54.6% Single greeting cards aged nine and younger 24.5% Consumer publishing p. 5 SOURCE: WWW.IBISWORLD.COM Industry Structure Life Cycle Stage Decline Regulation Level Light Revenue Volatility Low Technology Change Medium Capital Intensity Low Barriers to Entry Medium Industry Assistance Low Industry Globalization Medium Concentration Level Medium Competition Level High FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 32 Provided to: Emerald Expositions (2134005483) | 08 October 2019 WWW.IBISWORLD.COM Greeting Cards & Other Publishing in the US May 2019 5 Industry Performance Executive Summary | Key External Drivers | Current Performance Industry Outlook | Life Cycle Stage Executive Summary Over the five years to 2019, the Industry profitability has experienced proliferation of paperless substitutes has downward pressure as its downstream dampened revenue for the Greeting markets have increasingly been Cards and Other Publishing industry. characterized by online retailers rather Many industry products, such as greeting than brick-and-mortar businesses. For cards, day planners and calendars, have example, large-scale e-tailers, such as increasingly been rendered obsolete as Amazon.com Inc., have become key more consumers prefer digital distributors for publishers, enabling this alternatives, aided by the ubiquity of the downstream market to negotiate low smartphone. Additionally, many of the costs for industry products. Industry consumers that purchased greeting cards profit is expected to account for 7.7% of for holidays and birthdays in the past revenue in 2019, a drop from 8.5% in now reach out to their friends and family 2014. Furthermore, industry revenue is via social media. Moreover, as many expected to decline an annualized 2.2% over the five years to 2019 to $4.6 billion, including a projected 1.6% The industry will likely continue to struggle decline in 2019 alone. To remain afloat, to generate revenue due to mounting many publishing companies have focused on creating or licensing their external competition products, thereby reducing their reliance on distributors. downstream markets have consolidated, Over the five years to 2024, the such as brick-and-mortar book store industry will likely continue to struggle to retailers, the industry has grappled with generate revenue due to mounting fewer retailers selling industry products external competition. As a result, revenue on their shelves. In response, many for the industry is forecast to decline an publishing companies have consolidated annualized 2.0% during the outlook as well, enabling some industry players to period, dropping to $4.2 billion. Many reduce their operational costs, increase publishing companies will consolidate, production volumes or integrate similar enabling these industry operators to brands to enhance their product secure superior contracts with portfolio. In addition, industry downstream markets. For example, some consolidation has strengthened some publishing companies will expand their publishing companies’ ability to negotiate portfolio of electronic greeting cards and favorable contracts with downstream cater to nontraditional downstream suppliers and artists. markets, such as clothing retailers. Key External Drivers External Competition for has hastened the shift toward companies the Publishing industry that solely provide digitally based Although the Greeting Cards and Other substitutes. External competition is Publishing industry includes companies expected to intensify in 2019, posing a that publish both print and electronic potential threat to the industry. products, it does not include companies that solely publish their products Consumer spending digitally. Consumers are increasingly able A rise in consumer spending may lead to to access alternatives to industry products more consumers purchasing high-cost on their mobile phones and tablets, which greeting cards, such as interactive Provided to: Emerald Expositions (2134005483) | 08 October 2019 WWW.IBISWORLD.COM Greeting Cards & Other Publishing in the US May 2019 6 Industry Performance Key External Drivers greeting cards. Furthermore, revitalized store consolidation has caused the continued discretionary spending among consumers complete liquidation of some stores, such incites businesses to purchase mail order as Borders Group Inc., resulting in an catalogs from industry publishers. oversupply of stocked items. Therefore, Consumer spending is expected to fewer book stores have required greeting increase in 2019, representing a potential cards and other industry products. opportunity for the industry. Demand from book stores is expected to decrease in 2019. Demand from gift shops and card stores Gift Shops and Card Stores industry Number of children aged products include greeting cards, art nine and younger prints, posters, calendars and postcards. Children are major recipients
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