Editorial / The challenges facing the graphic arts industry in France: a changing sector faced with consolidation

For more than a decade, the graphic arts industry in France has been undergoing significant change. The number of printing plants is steadily declining, while consolidation and rising costs are putting increasing pressure on companies. The sector does, however, seem to have found a certain stability, but the challenges are far from over.

According to a report by digitalprintexpert.de, the decline in the number of companies in France's graphic arts industry began in 2012. In the space of a decade, the sector has seen an average reduction of 3.5% in the number of printing plants, a rate slightly above the European average. This evolution is the result of various factors, including structural transformations and economic challenges.

Between 2012 and 2022, the number of companies fell from 6,300 to around 4,000. This decline reflects increasing consolidation within the industry, with smaller companies struggling to maintain competitiveness in a rapidly changing market. However, a rebound was observed in 2022, thanks in particular to the government aid that supported companies during the pandemic.

In France, the graphic arts industry is largely dominated by small businesses. In fact, over 80% of companies have fewer than 10 employees. These micro-businesses are particularly vulnerable to variations in production costs and printing volumes. This industrial fabric, which represents the bulk of market players, must continually adapt to survive in an increasingly competitive environment.

Only 2.8% of companies in the sector employ more than 50 people, below the European average, accentuating the concentration of smaller players in France. These structures are likely to be hardest hit by rising operating costs, particularly increases in energy and raw materials prices.

The pandemic has contributed to a temporary drop in company closures, thanks to the various financial aids put in place by the State. These subsidies have enabled a number of printing plants to stay afloat in 2020 and 2021, limiting the rate of failures in the sector.

However, this support will not last forever. With the end of subsidies, the sector anticipates a resumption of closures in the coming years. Market consolidation is likely to accelerate, as the most fragile companies struggle to absorb cost increases, particularly in energy and interest rates.

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