More newspapers and magazines will go out of business next year as online media becomes increasingly popular with advertisers, according a senior Federation of Thai Industries (FTI) official.
The commercial printing sector, including newspaper and magazine businesses, is expected to contract by 5% next year as advertising budgets for print media is increasingly directed to online media, says FTI vice-chairman Kriengkrai Thiennukul.
"Over the past few years, commercial printing has been slowing down and next year it will not be a good year for commercial printing because advertising is going to online businesses, which are booming," he said.
Security printing, including cheques and passports, also continues to trend downwards as the e-payment system has already been implemented and the service is expected to be popular, reducing the need for security printing.
Mr Kriengkrai said commercial printing comprises 45% of the printing sector, while packaging business is 55%. The total market value of the commercial printing and packaging sector is 300 billion baht.
Mr Kriengkrai said the packaging sector will continue to grow by 5-6% next year, thanks to growing e-commerce and food business.
"Business will remain sluggish, commercial printing is expected to slow down, but the packaging sector will continue to grow," he said.
He said the FTI expects the overall Thai economy, as well as the global economy, to be better than this year, reducing the contraction in commercial printing.
Mr Kriengkrai said Thai food industry is expected to grow by 8% next year to reach one trillion baht in market value. The rise in food production and export are expected to increase demand for several food packages.
The rising number of foreign tourists will also lend support to packaging industries, particularly small and medium enterprises, which produce small handicrafts, food and beverage packages, he said.
In contrast, Mr Kriengkrai said the improving digital technology and the popularity of social networks such as Facebook will reduce demand for commercial printing and put more printing businesses out of business in the coming years.