In this market, value growth consistently exceeds that of volume, as many consumers are willing to trade up to more expensive, higher-quality cards.
Manufacturing continues to prove more profitable than wholesale and retail distribution.
Although publishing may be more profitable, the supply structure is extremely fragmented, with only a handful of publishers claiming a significant share of the market. The share of these leading companies grew in 1998, after a flurry of acquisitions in what was described as a predatory atmosphere. The activity culminated in the two US market leaders, American Greetings and Hallmark Cards, strengthening their hold on the UK market. Nevertheless, continuing pressure is exerted on such specialist retailers and High Street multiples by the growing participation in the market of the grocery chains. The market is thus one of maturity, in which considerable rationalisation has taken place and any domestic growth occurs largely at the expense of competitors.