CAP Ventures: European $24 Billion Communication Supplies Growth Continues at 6.5% to 2002.

LUTON, ENGLAND--(BUSINESS WIRE)--March 16, 1999--The total Western European communication supplies market was valued at US$24 billion in 1997 with expected growth over 5 years to 2002 to US$32.9 billion (CAGR 6.5%), according to market research released by CAP Ventures. This growth is occurring in spite of the increasing amount of electronic commerce, e-mail and other non-paper based communications. The findings are part of the annual forecast prepared by CAP Ventures, the leading consulting and research firm covering the communication supplies and document management industries.

Instead of decreasing the overall volume of paper and supplies consumed, e-commerce is increasing the overall potential for higher value supplies products. It is also redistributing the growth as paper continues to move from a print-copy-and-distribute basis to a distribute-and-print-locally basis. According to CAP Ventures' Senior Consultant Catherine Cresswell, "the wider distribution of information and knowledge over the Web is stimulating the overall availability of information while contributing to lower cost and higher functionality of personal peripherals. This is enabling users to output information in increasingly sophisticated hard copy formats", Cresswell said.

The media market for paper and transparencies was valued at US$13.9 billion in 1997, or about 58% of the total market. As the market continues to shift from higher value continuous forms and direct thermal fax papers to the lower valued cut sheet paper used in non impact printers, copiers and plain paper fax machines, growth in media value slows. By 2002, the total media market is expected to have grown by just 1.2% annually to US$14.9 billion. The relative decline in the thermal papers and continuous forms revenues masks the still strong growth forecast in the cut sheet paper and specialty media markets.

The marking materials revenue growth, on the other hand, is expected to climb from US$10.1 billion to US$18 billion by 2002 (12.1% CAGR). This growth in marking materials to 55% of the total by 2002 reflects not only the move to higher value toners and inks but the increasing quality and volume of marking materials being put down on each page. The increasing use of colour with its higher value and much higher coverage is a main contributor to this growth

These findings and others are included in CAP Venture's 1997-2002 Total Supplies Summary Market Forecast Report- February 1999, which is available to the company's clients.

Editor's Note: The First Annual CAP Ventures' European Converging Digital Peripherals and Supplies Conference will be held at the SAS Radisson St Helen's Hotel, Dublin, Ireland, 10-12 May, 1999.

CAP Ventures is the leading worldwide strategic consulting and market research firm serving the document software, electronic imaging, document management and digital printing and publishing industries. CAP Ventures provides technology advice and market insights for vendors, manufacturers and corporate users through custom and subscription consulting, market research, seminars, training, industry conferences, trade shows and publications. Website: http:\\www.capv.com UK Office: CAP Ventures Ltd., 38 Rothesay Road, Luton, Bedfordshire, UK LU1 1QZ