Printer toner has reached a buyer power score of 3.3 out of 5, causing the market analyst to update its procurement report.
Benzinga reported that a movement toward digital file storage and sharing, over printing, has reduced demand for toner. High specialisation of cartridges has kept prices up, according to IBISWorld analyst Michelle Hovanetz.
The Recycler reported in October last year that procurement costs were rising, with IBISWorld’s report then updated in this latest release. Buyers that regularly print documents are said to continue to be deterred from remanufactured or refilled replacements for OEM cartridges owing to concerns over print quality. Volatile oil and iron ore prices are affecting toner as well, as plastic and iron oxide are major parts of toner production.
Despite this, high profit margins on toner mean suppliers’ prices are somewhat cushioned from these fluctuations. Stable prices are helpful to buyers as they can budget for future payments.