WEYMOUTH, Mass. — Although sales of photo kiosks and digital minilabs were down slightly in 2004, the number of people printing at retail is up, driving further growth in retail digital print volumes. 2004 represented a gap year in terms of equipment sales, as the market absorbed the heavy installations in 2003 when major-chain photofinishers sought to equip all of their stores with digital labs and photo kiosks. Nevertheless, growth is up again in 2005, as many of the mid- and low-volume retailers that were not quite ready to invest in new hardware during 2004 are now coming on board.
According to InfoTrends/CAP Ventures' new forecast report, sales of photo kiosks are projected to grow by 9 percent in 2005. Some retailers are beginning to outfit their stores with more than one kiosk to avoid lines and long waits for customers. Meanwhile, digital minilab sales are also expected to grow over the five-year forecast period, fueled by replacement sales, decreased prices and new innovations.
Consumers are clearly responding to advertising ventures that are designed to drive them back to the store for prints. According to InfoTrends/CAP Ventures' studies, only 14 percent of digital camera owners who printed photos had ever made prints at a retail location in 2003. This figure increased to 33 percent in 2004. InfoTrends/CAP Ventures forecasts that 26 percent of total digital photo prints will be produced at retail in 2005, up from 19 percent in 2004.
"Both photo kiosks and minilabs have the opportunity to expand into new locations," said Ed Lee, director of U.S. consumer services at InfoTrends/CAP Ventures. "As the market advances, expect to see kiosks in public spaces outside of retail stores. At the same time, changes in user needs will drive the opportunity for new types of minilabs, such as those that can profitably deliver lower-volume, more customized output."
Fujifilm remains the No. 1 player in the digital minilab market, while Kodak is still the leading photo kiosk vendor in terms of market share of the installed base.
