Executive Summary

This report presents an analysis of the UK photographic services market which encompasses film developing and processing services, and professional photographic services. The report concentrates on the consumer market for both these services.

The photographic services market was worth £506m in 1994, taking a 33.5% share of the overall consumer photographic market. Between 1990 and 1994, the value of the market fell by 3.1%, although some recovery took place in 1994 after 3 years of declining sales.

A number of factors have caused this reduction in demand for photographic services. Firstly, during the recession, the number of tourism trips taken by UK residents fell. Secondly, there has been a long-term decline in the number of weddings, a major occasion for family snapshots. The growing household penetration of camcorders has also impacted on traditional camera use. The result has been a decline in the number of films purchased, from 92 million in 1990 to 84 million in 1994, and a subsequent decline in film processing.

Film processing is by far the largest sector of the market with estimated sales of £410m in 1994. Retail outlets, such as chemists, grocers and specialist photographic goods shops, account for the largest share of the film processing market with 56% of all value sales in 1994. However, their share has fallen in recent years. Mail order film processing has also seen its share fall from 40% in the mid-1980s to just 22% in 1994. The main reason for these declining shares has been the spread of the minilab and the development of specialist film processing outlets.

A feature of the market in recent years has been the development of additional services such as posters, enlargements, and novelty items such as photo jigsaws, greeting cards, and tablemats. A number of High Street outlets are also moving into the professional photographer's territory by offering studio and portrait sitting facilities.

The wholesale film processing sector is characterised by many small companies with under ten employees. However, the top five processors account for over 90% of all the work done.

In 1995, Key Note is expecting the recovery started in 1994 to continue. Sales are forecast to increase by 4.2% to reach £527m. Over the next 5 years, the healthiest growth should be in the film processing sector producing forecasted sales of £473m in 1998.

More Information

  Denotes a required field.