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Digital Photo Processing in the US
Mintel, May 2006, Pages: 83
In this report, we analyze the digital photo processing industry, which has been created alongside the advent and mainstream adoption of digital cameras, and has resulted in a sea change in photo development, as the industry attempts to adapt to the transition from film processing to digital image photo development.
Digital camera unit sales have grown from 4.5 million to 20.5 million during 2000-05, and consumers are capturing more images than ever before. However, this has not translated into prints. According to this proprietary research, three in five respondents who develop or print their digital images reported that they sent their digital photographs to others via e-mail and 13% report use of an online photo printing service to share their photos. Thus, while the number of digital prints increased more than 1,500% from 2000, this was not enough to compensate for the corresponding decline in film prints. To compound matters, the average price to print a digital image online and at retail has dropped precipitously.
In a market marked by increasing competition among home, retail, and online printing, retailers have been able to grow their share of the digital printing market by increasing the availability of retail printing options—such as in-store kiosks and mini-labs—and by stressing the quality, cost savings and convenience that come through using their services. Shedding light on the evolution in consumer distribution channel options, this exclusive consumer research reveals significant differences with respect to why consumers print at home but not at store, and why consumers print at a store but not at home. The report also focuses on the growth and consumer usage of alternative photo media options, such as photo calendars and greeting cards.
Estimated at $895 million in 2005, retail and online sales of digital photo processing services registered growth of more than 1,000% from 2001-05. This takes into account only prints purchased from retailers and online, and does not include the cost of home printing.
This report covers the retail and online sales of digital photo processing services. The costs and methods of home printing are also discussed in relation to retail and online processing. Traditional film prints are outside the scope of this report.
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