IDC Sees Decline in APEJ Printer Consumables Market for 3Q2013

According to an IDC press release dated December 17, 2013, the printer consumables market in the Asia/Pacific region, excluding Japan (APEJ),  declined 2.5% quarter-on-quarter and grew 0.1% year-on-year, reaching US $1,701.24 million in the third quarter of 2013.

The report shows third party brands reached nearly US$364 million, accounting for about 21% of the total value of the consumables market. Compatible or aftermarket brands in emerging economies like India and China contributed about 33% of the total value. However, IDC pointed out that compatible players contribute about 60% of the total units shipped.

IDC finds that the printer consumables market is stable or declining in mature markets such as, Australia, Korea and Taiwan. But, consumable shipments in developing countries, including India, Indonesia and Malaysia, have dropped due to a credit crunch, low GDP growth and seasonal factors.

As was revealed by IDC, third party vendors find it is easier to exploit the laser toner market. There are less legal hassles in the Asia Pacific region, as the income of most of the countries there remains low and they are mainly concerned about cost. Plus, third party products—which are introduced as compatible and refillable toner cartridges with DIY kits—are gaining favor in the market for their lower price.

However, IDC believes OEMs are aiming to increase their market shares as well. In addition to some OEMs signing MPS contracts, Ricoh has released refillable toner cartridges and “HP has urged aftermarket players to respect OEM’s intellectual property rights and not mislead and confuse customers”.

Pankaj Chawla, Research Manager for IPDS Research at IDC Asia/Pacific, added, “During the last year OEMs, primarily Epson and HP, have launched inkjet printers with economical cartridges, offering low cost per page. A shrinking price difference between OEM and third party ink cartridges for these printers has helped OEMs capture a greater share of the overall ink cartridge market. In ASEAN markets these low-priced cartridges now contribute approximately 50% to the total shipment of Epson ink cartridges.”