Packaging Design Services Procurement Category Market Research Report Now Available from IBISWorld - KAIT-Jonesboro, AR-News, weather, sports

Packaging Design Services Procurement Category Market Research Report Now Available from IBISWorld

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Low market concentration, low price volatility, high product specialization and a low availability of substitutes typify the market for packaging design services. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Packaging Design Services to its growing collection of procurement category market research reports.

Los Angeles, CA (PRWEB) August 20, 2014

Low market concentration, low price volatility, high product specialization and a low availability of substitutes typify the market for packaging design services. These factors foster a buyer power score of 3.1 out of 5, indicating a moderate level of buyer power. This level of buyer power suggests buyers and suppliers have an equal amount of leverage during negotiations, according to IBISWorld business research analyst Kayley Freshman-Caffrey.

First, few substitutes exist for packaging design services. Buyers need to either procure them from an outside firm or manage the process in-house. This latter option is ill advised for most buyers because the majority of buyers do not have the expertise needed to develop a functional design. For this reason, most buyers have to hire an external company to create their packaging design, which constrains their ability to leverage alternatives to negotiate lower prices.

High product specialization exacerbates this issue. Packaging design requires specialized knowledge of design techniques and technical packaging standards, meaning buyers must choose from a limited selection of well-qualified suppliers, Freshman-Caffrey says. Additionally, designs vary among firms; if a buyer prefers a particular design, they must work with the supplier that developed that design.

On the other hand, low market concentration prevents the top suppliers from dominating the market. Low market concentration nurtures high competition, benefiting buyers by compelling suppliers to keep their prices within market norms. By restricting the degree to which suppliers change their prices each year, low market share concentration encourages low price volatility.

Unisource Worldwide Inc., Xpedx, TricorBraun Inc. and Berlin Packaging LLC, the top four suppliers of packaging design services, collectively earn 20.6% of market revenue, signifying low market share concentration. Low capital intensity, along with the geographic distribution of firms, supports low market concentration. First, capital intensity is low because the most expensive equipment suppliers require is computers, which are low capital investments. This low capital intensity eases a new firms ability to enter the market by empowering them to begin offering their services without collecting prohibitively large amounts of debt. Secondly, the expansive distribution of firms throughout the country allows new businesses to join the market by settling in areas with limited competition, thus giving new firms some protection from more powerful competitors. For more information, visit IBISWorlds Packaging Design Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of packaging design services. Service providers work with clients to conceive a packaging design, shape and size for a particular product. The supplier then creates the design for the packaging, which the buyer can use to get the packaging produced. This report excludes packaging production and other design services, such as photocomposition, graph and silkscreen design.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorlds procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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