European imaging market faces falling prices & soft demand

Recent analysis from CONTEXT indicates a slowdown in the European imaging market as price pressures persist into the second quarter of 2025.

According to CONTEXT, which compiles distribution sell-out data across Europe, the imaging sector experienced a robust start to the year with a 7.1% rise in year-on-year unit sales and a 1.8% increase in revenue during the first quarter. However, this momentum waned in April and May, with the market now affected by lower average selling prices, seasonal trends, and reduced trading activity around the Easter public holidays.

Rémi Gaudin, Business Data and Market Analyst at CONTEXT, stated: "Q1 traditionally sees an uptick in activity as vendors close out their financial years, but this often results in a softer April. This year, Easter Monday fell in Week 17, significantly disrupting trading across Europe. We observed a steep 29% decline in unit sales and a 27% drop in revenue, and this negative trend has continued in the rolling four-week average."

CONTEXT's data suggest that several product categories are being affected by falling prices. Laser multi-function printers (MFPs) have maintained comparatively steady performance, whereas laser single-function printers (SFPs) have experienced considerable price erosion. The analysis shows that the average selling price of laser MFPs has decreased by 5.1% since April 2023, while laser SFPs have seen a near 10% decline over the past two years.

Commenting on the impact of declining prices, Gaudin remarked: "Price declines helped boost volumes throughout 2024, but the downward trend shows no signs of slowing. The market now faces a difficult question: how much lower can prices go before vendors and distributors hit unsustainable levels?"

The shift in the inkjet printer segment has been another notable trend. Where devices once relied on higher prices, manufacturers are now prioritising unit growth over margin. CONTEXT's analysis points to a strategic shift as vendors become increasingly willing to sacrifice profit margins to drive higher sales volumes, a development with potential to alter the competitive landscape if sustained.

Geographical variation across the continent has also been observed. Spain recorded high growth during the first quarter but saw its pace reduce in subsequent weeks. Germany and France have shown performance levels broadly consistent with those of 2024, while Italy and Poland have on occasion outstripped their 2023 results. The United Kingdom has registered a stable performance matching the previous year's trajectory.

Particular attention has been paid to the market for refillable ink tank printers, which previously contributed significantly to revenue growth. In May, segment revenues climbed by 3.4%, though unit sales declined by 1%. CONTEXT attributes this shift mainly to falling demand in Germany and Poland, even as Italy and Spain display some signs of new growth.

On the significance of this trend, Gaudin said: "This could signal a broader shift in buyer preferences away from higher-priced hardware. Refillable ink tanks have been essential to revenue growth, so any sustained slowdown would be significant."