Current State in the Greeting Card and Stationery Markets

Current State in the Greeting Card and Stationery Markets

The market for greeting cards is a tough one in today's environment with consumers having so many faster, easier and in many cases cheaper ways to send a greeting. Times have gotten even tougher as a result of the current recession, with consumers looking to cut spending anywhere they can.

The market for greeting cards reached $12,067 million in 2008 on a 2.03 percent compound annual growth rate (CAGR) from 2002 to 2008, slower than growth in the overall $21.9 billion stationery market which posted a healthier 3.02 percent CAGR in the same period.

Many cultural trends are afoot that are changing consumers' demand for greeting cards, but one thing is for certain. The business of selling traditional greeting cards is only going to get harder as consumers turn to newer, faster and better communications alternatives.

In a tough market, the competition is getting even tougher as leading retail brands -- American Greetings, Carlton Cards and Papyrus-- consolidate and leading greeting card and stationary brands -- Schurman Fine Paper's wholesale division and Recycled Greetings -- consolidate under American Greetings' leadership.

Testifying to the tough market out there, the Wall Street Journal headline for 6-24-09 reads "American Greetings' 1Q Earnings Down 25% On Store-Sale Loss…Revenue fell 3.6% to $412.9 million."

By

Pamela N. Danziger