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Modest Growth Predicted for Digital Minilabs and Photo Labs In Wide Format

By Lee, Ed
Publication: Imaging Business
Date: Saturday, October 1 2005

There are several emerging trends in the photo market that we see driving growth for different areas of the business that we cover at InfoTrends/CAP Ventures.

More and more consumers are printing their digital photos at a retail store and as a result retail

photo printing will account for over one-third of the total digital photo print volume in 2006. Digital minilabs will produce the majority of prints in retail.

However, the sales of digital minilabs have been in decline for the past couple of years.Two of the main factors behind the decline are the fact that big box retailers such as Wal-Mart and Costco are fully saturated with digital minilabs that they just purchased a few years ago and only a few of the second tier mid-to-low volume retailers are ready to invest in an expensive digital lab. Small sales growth is expected for 2006.The growth will come from replacement sales of aging minilabs and continued competitive pressures on retailers to offer digital photo printing services. Overall, we see digital minilabs growing 7%.

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