Global VMFF Industry Outlook

  • The global VMFF market was estimated at $73 billion in 2018
  • Asia, North America, and Europe are high maturity markets, with China, India, the US, and the UK being the key demand countries
  • The top three industries that contribute to the VMFF market are retail, CPG, and FBT

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Global VMFF: Market Maturity

  • VMFF is gaining prominence across markets, due to the consistent growth in retail
  • Major end users are retail, CPG, and FBT companies

Global VMFF: Industry Trends

  • With continued growth of the retail industry, suppliers around the globe are improving their service offerings and expanding their geographical presence to meet buyers’ evolving needs for consolidation
  • With continued growth of the retail industry, suppliers around the globe are improving their service offerings and expanding their geographical presence to meet buyers’ evolving needs for consolidation

Global VMFF: Drivers and Constraints

  • With the growth in organized retail across emerging markets and rise in technology-based innovation, there will be a rise in the investment in retail stores, which would further increase the spend on VMFF
  • Rise in the adoption of technology by suppliers and improved service portfolio & market access will be the major growth drivers in the matured markets as well as the emerging markets

Drivers:

Integrating technology

  • Development of the latest technological tools to improve the store experience will drive the consumption of VMFF products and services in both the developed and emerging markets

Bundled solutions

  • Higher usage of VMFF services brings in the opportunity for bundled solutions, which are provided by suppliers in the developed markets. Using these services, buyers can save considerable costs

Declining technology costs

  • Due to the reduced costs of technology, same investment is giving better yields, and therefore, buyers and suppliers are increasingly showing interest toward technology-enabled services and products

Constraints

Rise in e-commerce retail

  • Consumers may increase their purchase online, and this may result in reduced investment in traditional retail stores, which could further impact the VMFF industry

Retail stores: Closure

  • Many of the reputed brands have closed hundreds of stores in recent years, due to unprofitability. This is expected to directly impact the demand for visual merchandising materials and services