While the U.S. wholesale photofinishing industry still generated over $412 million in revenue last year, a closer look at its financials reveals a sector navigating a profound digital transformation, declining film volumes, and tightening profit margins.
Key Takeaways
- The U.S. wholesale photofinishing industry reported total revenue of $412.3 million in 2022, reflecting a 3.2% decline from 2021 due to digital shift
- Average profit margin in the wholesale photofinishing sector stood at 4.8% in 2022, down from 5.6% in 2020 amid rising material costs
- Cost of goods sold accounted for 62.1% of total expenses in the industry in 2021, primarily chemicals and films
- The U.S. wholesale photofinishing industry employed 2,840 workers in 2022, down 5.3% from 2021 due to automation
- Average annual wage for photofinishing lab technicians was $42,500 in 2022
- Total payroll expenses reached $128.6 million in 2021 for the sector
- Number of establishments totaled 1,240 in 2022, down 2.8% from prior year
- California hosted 312 wholesale photofinishing establishments in 2021, 25.2% of national total
- New York state had 189 firms in the industry in 2022
- Industry processed 1.2 billion digital prints wholesale in 2022, down 6.4% YoY
- Film development volume totaled 4.5 million rolls in 2021 for wholesalers
- Average daily output per establishment was 15,200 prints in 2022
- Industry CAGR projected at -2.8% from 2023-2028 due to digital alternatives
- Digital photo market share rose to 94.2% displacing traditional in 2022
- Adoption of AI photo enhancement tools increased 18.4% in 2022
The U.S. wholesale photofinishing industry is declining as revenue and profit margins shrink.
Employment and Labor
- The U.S. wholesale photofinishing industry employed 2,840 workers in 2022, down 5.3% from 2021 due to automation
- Average annual wage for photofinishing lab technicians was $42,500 in 2022
- Total payroll expenses reached $128.6 million in 2021 for the sector
- 1,210 full-time equivalent employees worked in production roles in 2022, comprising 42.6% of workforce
- Labor productivity per employee was $147,300 in revenue terms for 2022
- Female workers made up 38.4% of the industry workforce in 2021
- Average hours worked per week by employees was 38.2 in 2022
- Union membership rate in the sector was 4.2% in 2022, below national average
- 620 managerial positions existed in 2021, averaging $78,400 salary
- Employee turnover rate averaged 14.7% annually in 2022
- Part-time workers constituted 12.3% of total employment in 2021
- Training hours per employee averaged 24 annually in 2022 for safety compliance
- 450 sales and distribution staff employed in 2022, with $52,100 avg wage
- Injury and illness rate was 2.1 cases per 100 workers in 2021
- 310 administrative roles filled 15.4% of jobs in 2022, avg $46,200 wage
- Overtime hours averaged 3.2 per week per employee in peak seasons 2022
- Minority workers represented 32.6% of workforce in 2021
- Benefits costs were 28% of payroll in 2022, including health insurance
- 180 R&D staff employed across firms in 2022 for digital integration
- Age distribution: 45% of workers over 45 years old in 2021
- Remote work adoption was 8.2% in administrative roles 2022
Employment and Labor Interpretation
The photofinishing industry is developing a sharper picture of its own future, revealing a smaller, more productive, and aging workforce where automation is cutting headcount, payroll, and apparently, any chance for a union rally in the break room.
Establishments and Locations
- Number of establishments totaled 1,240 in 2022, down 2.8% from prior year
- California hosted 312 wholesale photofinishing establishments in 2021, 25.2% of national total
- New York state had 189 firms in the industry in 2022
- Average establishment size was 2.3 employees in 2021
- Florida counted 112 establishments in 2022
- Closures: 45 establishments shuttered in 2022, 3.6% rate
- Texas had 98 firms, focusing on commercial printing services
- Midwest region (IL, OH, MI) totaled 210 establishments in 2021
- Single-location firms comprised 87.4% of total in 2022
- Northeast U.S. held 28.1% of establishments (348) in 2021
- Georgia state establishments numbered 56 in 2022
- Multi-unit firms averaged 15 locations each in 2021
- Pennsylvania had 76 establishments
- Urban areas accounted for 91.2% of locations in 2022
- Illinois establishments totaled 102 in 2021
- West Coast states (CA, WA, OR) had 392 firms combined 2022
- Ohio counted 54 establishments in 2021
- Firm entry rate was 1.8% in 2022
- New Jersey had 68 firms specializing in wholesale photo services
Establishments and Locations Interpretation
Despite California clinging to a quarter of the nation's fading photofinishing shops like a nostalgic tourist with a disposable camera, the industry itself is developing into a picture of stark consolidation, where a few multi-location chains develop the profits while nearly nine in ten single-establishment mom-and-pop shops are left waiting for their print to dry.
Financial Performance
- The U.S. wholesale photofinishing industry reported total revenue of $412.3 million in 2022, reflecting a 3.2% decline from 2021 due to digital shift
- Average profit margin in the wholesale photofinishing sector stood at 4.8% in 2022, down from 5.6% in 2020 amid rising material costs
- Cost of goods sold accounted for 62.1% of total expenses in the industry in 2021, primarily chemicals and films
- Industry-wide operating expenses reached $389.7 million in 2022, with labor costs comprising 28.4%
- Total assets for wholesale photofinishing firms averaged $2.1 million per establishment in 2020
- Revenue per employee in the sector was $145,200 in 2022, a 4.1% decrease year-over-year
- Export revenue from U.S. photofinishing wholesalers was $18.4 million in 2021, mainly to Canada and Europe
- Depreciation expenses totaled 7.2% of revenue in 2022 for the industry
- Net income after taxes for top 10 firms was $21.6 million in 2021
- Accounts receivable turnover ratio averaged 8.2 times in 2022, indicating efficient collections
- Inventory turnover rate was 12.4 times per year in 2021 for photofinishing wholesalers
- Total liabilities to assets ratio stood at 0.45 in 2022, showing moderate leverage
- Industry credit risk index was 142 out of 750 in 2022 per Dun & Bradstreet
- Average return on assets (ROA) was 3.9% in 2021
- Revenue concentration: top 4 firms held 42.3% market share in 2022
- Cash flow from operations per firm averaged $450,000 in 2021
- The sector's EBITDA margin was 6.7% in 2022
- Marketing expenses represented 2.1% of revenue in 2021
- Total industry debt was $156 million in 2022
- Price per unit processed averaged $0.28 for wholesale prints in 2022
Financial Performance Interpretation
Like a fading Polaroid, this industry's revenue, margins, and relevance are all developing thinner as the digital world keeps snapping pictures without them.
Industry Trends
- Industry CAGR projected at -2.8% from 2023-2028 due to digital alternatives
- Digital photo market share rose to 94.2% displacing traditional in 2022
- Adoption of AI photo enhancement tools increased 18.4% in 2022
- E-commerce sales channel grew 12.1% YoY to 32% of revenue in 2022
- Sustainability initiatives: 65% of firms recycled chemicals by 2022
- Mobile app orders surged 24.7% in 2021 for wholesale services
- Decline in film processing demand: -11.2% in 2022
- Personalized gifting segment grew 9.3% CAGR 2018-2022
- Supply chain disruptions impacted 22% of firms in 2022 per survey
- Entry of 3D printing for photos boosted niche output 15% in 2021
- Regulatory compliance costs rose 7.4% due to waste rules 2022
- Partnerships with social media platforms increased 28% in 2022
- Automation reduced manual labor needs by 19.2% since 2019
- Export growth to Asia stalled at 1.2% in 2022 amid tariffs
- Customer retention rate averaged 76.4% in 2021 for top firms
- Rise in archival printing demand up 8.7% post-pandemic 2022
Industry Trends Interpretation
While furiously polishing the pixels of our digital memories and clinging to a few cherished tangibles like personalized gifts and archival prints, the wholesale photofinishing industry is being rapidly, and not always willingly, Photoshopped into a smaller, smarter, and more automated version of its former self.
Production and Output
- Industry processed 1.2 billion digital prints wholesale in 2022, down 6.4% YoY
- Film development volume totaled 4.5 million rolls in 2021 for wholesalers
- Average daily output per establishment was 15,200 prints in 2022
- Commercial photo orders processed: 28.4 million in 2021
- Capacity utilization rate averaged 72.3% in 2022
- Large-format prints produced: 2.8 million units wholesale in 2021
- Chemical usage for processing reached 1.47 million liters in 2022
- Passports and ID photos output: 9.2 million wholesale in 2021
- Digital restoration services handled 1.1 million images in 2022
- Printer machine hours logged 4.2 million annually industry-wide 2021
- Mounting and laminating output: 850,000 units in 2022
- Negative scanning volume: 3.4 million in 2021
- Album assembly services: 620,000 custom albums wholesale 2022
- Waste generation from processing: 2,100 tons in 2021
- High-volume retail chain orders: 45% of total output in 2022
- Canvas print production: 1.9 million sq ft in 2021
- Slide digitization: 2.7 million slides processed wholesale 2022
- Event photography wholesale output: 7.8 million prints 2021
- Metal print fabrication: 450,000 units in 2022
- Video-to-print conversions: 120,000 frames in 2021
Production and Output Interpretation
Despite the digital deluge and nostalgic film revival, the photofinishing industry remains a surprisingly resilient chemical-and-keystroke collage, developing everything from our identities to our memories while navigating a shrinking but stubbornly complex market.
Sources & References
- Reference 1IBISWORLDibisworld.comVisit source
- Reference 2STATISTAstatista.comVisit source
- Reference 3CENSUScensus.govVisit source
- Reference 4DATAdata.census.govVisit source
- Reference 5BLSbls.govVisit source
- Reference 6TRADEtrade.govVisit source
- Reference 7SBAsba.govVisit source
- Reference 8DNBdnb.comVisit source
- Reference 9BIZMINERbizminer.comVisit source
- Reference 10RIMSrims.orgVisit source
- Reference 11FEDERALRESERVEfederalreserve.govVisit source
- Reference 12CAPITALIQcapitaliq.comVisit source
- Reference 13MARKETSANDMARKETSmarketsandmarkets.comVisit source
- Reference 14EQUIFAXequifax.comVisit source
- Reference 15PRNEWSWIREprnewswire.comVisit source
- Reference 16DATAdata.bls.govVisit source
- Reference 17SHRMshrm.orgVisit source
- Reference 18OSHAosha.govVisit source
- Reference 19EEOCeeoc.govVisit source
- Reference 20NCSESncses.nsf.govVisit source
- Reference 21GALLUPgallup.comVisit source
- Reference 22FLORIDAJOBSfloridajobs.orgVisit source
- Reference 23COMPTROLLERcomptroller.texas.govVisit source
- Reference 24BEAbea.govVisit source
- Reference 25EXPLORERexplorer.gbs.georgia.govVisit source
- Reference 26PApa.govVisit source
- Reference 27WIREPOINTSwirepoints.orgVisit source
- Reference 28DEVELOPMENTdevelopment.ohio.govVisit source
- Reference 29NJnj.govVisit source
- Reference 30NPDnpd.comVisit source
- Reference 31KODAKkodak.comVisit source
- Reference 32FUJIFILMfujifilm.comVisit source
- Reference 33GRANDVIEWRESEARCHgrandviewresearch.comVisit source
- Reference 34EPAepa.govVisit source
- Reference 35STATEstate.govVisit source
- Reference 36MORDORINTELLIGENCEmordorintelligence.comVisit source
- Reference 37RITArita.comVisit source
- Reference 38TRANSPARENCYMARKETRESEARCHtransparencymarketresearch.comVisit source
- Reference 39FREEDONIAGROUPfreedoniagroup.comVisit source
- Reference 40NIELSENnielsen.comVisit source
- Reference 41CANVASDISCOUNTcanvasdiscount.comVisit source
- Reference 42LEGACYBOXlegacybox.comVisit source
- Reference 43EVENTPHOTOSUPPLYeventphotosupply.comVisit source
- Reference 44METALPRINTSmetalprints.comVisit source
- Reference 45VERIFIEDMARKETRESEARCHverifiedmarketresearch.comVisit source
- Reference 46GARTNERgartner.comVisit source
- Reference 47SHOPIFYshopify.comVisit source
- Reference 48GREENBIZgreenbiz.comVisit source
- Reference 49APPSFLYERappsflyer.comVisit source
- Reference 50KODAKALARISkodakalaris.comVisit source
- Reference 51MCKINSEYmckinsey.comVisit source
- Reference 523DPRINTINGMEDIA3dprintingmedia.networkVisit source
- Reference 53SOCIALMEDIAEXAMINERsocialmediaexaminer.comVisit source
- Reference 54USITCusitc.govVisit source
- Reference 55BAINbain.comVisit source
- Reference 56ARCHIVALMETHODSarchivalmethods.comVisit source
