BALTIMORE, Md. — The North American photo kiosk market is poised to continue its growth streak, thanks largely to the emergence of the diverse gifting and creative product mix, reports Frost & Sullivan.
With an anticipated compound annual growth rate of 57 percent through 2013, the gifting and creative mix could well increase its share of all transactions to 20 percent by 2013.
For these levels of growth to be achieved, industry leaders in both the vendor and retail markets must work toward increasing customer awareness of the photo kiosks and their growing product mixes.
New analysis from Frost & Sullivan, U.S. Photo Kiosk Markets, reveals that this market earned revenues of $2.15 billion in 2006 and estimates this to reach $13.0 billion in 2013.
"Retailers no longer battle for the meager profits earned from the traditional 4x6 prints, but focus their efforts on encouraging customers to create lasting souvenirs in the form of photo-books, calendars and other image enhanced keepsakes,†said Rufus Connell, Frost & Sullivan's information & communications technologies vice president.
Besides offering consumers an additional means to print and share their images, the gifting and creative product mix provides retailers a significantly better ROI than the 4x6 prints. Vendors too have taken note, and innovative software and improved workflow now are helping consumers take advantage of the ever-growing possibilities that exist beyond traditional photo kiosk use.
However, the industry is not without its challenges, the biggest of which is how to get the consumers to print a greater percentage of the images captured on digital cameras and also camera phones. According to the PhotoImaging Manufacturers and Distributors Association, less than 20 percent of images captured on these devices are printed. Frost & Sullivan is of the opinion that this is the single biggest restraint to the photo kiosk industry and expects this to be a formidable obstacle over the next few years.
"Having said that, the emerging gifting and creative market could gradually change this trend," Connell said. "Since the trend today is to not share our photos by print, but to share them through e-mail or on computer screens, photo merchandise will be seen as an attractive and effective way to both share and preserve our images."
