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 user 2005-01-17 at 10:30:00 am Views: 73
  • #11328

    CANADA ,Consumables market worth more than $1 billion in 2004
    Over $1 billion worth of ink, toner and dot matrix cartridges were sold in Canada last year, according to a new study.

    The 2004 Consumables Market in Canada, recently published by , reveals that vendors, third parties and remanufacturers collected
    more t
    han $1.2 billion on sales of ink, toner and dot matrix cartridges.

    This meant that revenues were up 10 per cent compared with 2003. ERC had expected the market to soften considerably, believing that the inkjet market would flatten out in 2004 and beyond. However, shipments of inkjet and inkjet MFP printers rose 21 per cent last year.

    New applications are driving the demand for inkjet products, according to the research firm. Among the biggest is that consumers are purchasing inkjet multifunction printers (MFPs) at an incredible rate. Shipments of ink MFPs approached 928,000 units in 2003 compared with sales of just 376,000 the previous year. Initially ERC believed that consumers were simply purchasing MFP products rather than their single function inkjet siblings. However, when the tally for 2003 was in, shipments in the year were down just 160,000 units from the total of 1.5 million units in 2002.

    Bill Fournier, ERC’s senior printer analyst and author of the consumables report, stated that two trends were identified as the reason for the continued strong growth in the inkjet market. “First, consumers were purchasing MFPs as office products rather than printers. That is to say, MFPs were an inexpensive way to bring copying, faxing and even scanning into the household or SOHO environment.”

    “Next, it would appear that the long anticipated mass adoption of home photography through photo printers was underway”.

    Given these two trends, the inkjet market showed strong growth rather than slowing down. Furthermore, combined sales of laser products including single function units, MFP versions and colour offerings were strong. Shipments of lasers were up almost 14 per cent in 2004, somewhat stronger growth than ERC had anticipated.

    ERC expects overall revenues to rise by seven per cent in 2005 and six per cent in next year, and then five per cent over the following two years. The result is that the consumables market should be worth more than $1.5 billion in 2007.

    Leading the way in revenue last year was inkjet cartridges at approximately $636 million. Toner was close behind at $578 million. Ink is expected to maintain the lead through to 2007.

    Total inkjet cartridges shipments exceeded 20.2 million units in 2004 – up 29 per cent from the previous year. By contrast inkjet cartridge revenues were up just 13 per cent. The primary reason for the discrepancy was the shift toward products that utilize individual colour cartridges rather than multi-colour units. Again, this is somewhat tied to the increasing adoption of photo printing.

    Another factor was the increasing share held by 3rd party products and to a lesser extent what the industry calls CIPRA companies. CIPRA is a national association of remanufacturers of toner cartridges and generic products such as inkjet refill kits that directly services end-users.

    While overall inkjet revenues grew 13 per cent in 2004, third party sales were up 74 per cent and CIPRA sales up 56 per cent compared with 2003. Given that individual colour cartridges are less expensive as are competitive non-vendor offerings, it is not surprising to see significantly lower revenue growth compared with unit shipment growth.

    On the toner side, colour is beginning to play a greater role, although revenues are still much smaller than for black toner. In 2004, black toner generated $509 million compared to just $69 million for colour toner. Nonetheless, colour was up by 20 per cent compared to just six per cent for black. In 2007, black toner is expected to generate $602 million in sales while colour sales will rise to $118 million.

    The consumables report investigates printer consumables and projects market growth through 2007. The report also examines market share performance of printer vendors and third party suppliers in terms of unit shipments and revenues in addition to channels of distribution.