Opportunities and challenges for envelopes in 2018 – industry insight

Opportunities and challenges for envelopes in 2018 – industry insight

Envelopes have been around for years, we all know that. But what does the future hold for envelopes?

Here’s Brett Hopper, Director of Opus Envelopes Ltd, to tell us more about what lies in-store for envelopes across 2018.

 

The envelope industry is looking forward with guarded optimism to 2018, for the following reasons:

Opportunities

We think Direct Mail envelope volumes will continue with a modest growth in 2018, as marketeers continue to realise it offers value for money, based on the fact that an attractive full colour printed or coloured envelope, will almost always get opened by the recipient.

This is in stark contrast to the majority of emails, which tend to get “junked”, because people don’t have the time to read them, or are worried that they may contain a virus.

Healthy increase

We think All Board envelope volumes will continue to show a healthy increase, as the growth in on-line shopping shows no signs of slowing down, and these envelopes are used to make sure the goods reach the customer without being damaged.

There will also be an increase in printed and coloured envelopes in this sector, as envelope manufacturers respond to companies asking for these type of envelopes to “stand out”, in the same way as full colour printed and coloured paper envelopes do.

Trans-pro

We think Transactional-Promotional (Trans-pro) envelope volumes will hold up well, as utilities, credit card companies, media companies, and banks etc, will continue to realise that if they can get another company to include a promotional leaflet in with their bills and statements that go out, that company will get valuable exposure, and will help to pay for the mailing.

We think targeting will continue to be a feature of most mailings now, because of the increased data that is now available to all companies. It means that a targeted mailing, ensures that the envelope nearly always reaches the people where they can get the best return on investment.

Challenges

The price of paper will continue to rise in 2018 because of the weak pound, and the fact that paper is becoming more difficult to obtain, because the paper mills can get a better price for their product in other European countries.

We expect to continue to see a small decline in the number of mailings that companies do, as the low prices that digital communications offer, are seen as an alternative to traditional mailings.

Brexit

The uncertainty that has been caused by Brexit, continues to be a challenge to the business world, and the envelope industry is no different.

Our industry continues to be diverse and flexible, and is well-placed to capitalise on the opportunities, and meet the challenges head on.