Unlocking the Power of Procurement Intelligence in Video Post-Production Services Sourcing

The video post-production services category is anticipated to grow at a CAGR of 13% from 2023 to 2030. Technological advancements such as AI, machine learning, and AR and VR have transformed the way videos are edited post-production. Automating post-production tasks such as arrangements of visual and audio, color correction, adding visual effects, and finishing touches are reshaping the video content creation and distribution. Technologies such as virtual reality, 360-degree video, machine learning, and artificial intelligence are expected to play crucial roles in this category. Additionally, the shift in consumer preference towards mobile-first video and the rising importance of social media platforms as distribution channels are driving the growth in the category.

Real-time editing and collaboration are likely to boost over the forecast period. The rising cloud-based platforms and high-speed internet enables video editing teams to work remotely and collaborate on projects in real-time. This helps them to improve their productivity while enhancing the efficiency. Real-time editing enables instantaneous feedback, allowing a more creative and dynamic process.

Artificial Intelligence (AI) has impacted various industries, including video production. It has been advantageous to various production aspects, such as automated editing, image upscaling, and noise reduction. AI-powered algorithms can process vast amounts of data, making production tasks more efficient and cost-effective. It also enables to be more creative and flexible with respect to content creation and innovative kinds of storytelling. Additionally, with a rising focus on personalized content, service providers are increasingly moving towards tailoring media experiences to individual viewers. Dynamic metadata and adaptive editing techniques will enable customizing videos based on different preferences and languages.

Order your copy of the Video Post-Production Services Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

The category is fragmented in nature. To obtain a competitive edge, key players in this industry are offering innovative services such as product/brand videos, social media videos, and animations. For instance, companies such as Levitate offer motion graphics, remote recording, multi-language editing, script writing, and isometric animation services. These additional offerings set them apart from competitors in the industry. Moreover, companies like Runway AI, Inc., are also helping service providers by offering AI-driven editing tools that help in achieving editing teams’ creative vision.

Film production companies and advertising agencies seeking video editing services often have a good understanding of the post-production process. This can give them more negotiating power in terms of pricing and service expectations. Switching costs between post-production service providers would be relatively low, especially if the services are similar. This can increase the bargaining power of buyers. However, high-quality video, unique and creative editing, and specialized services can lower their power.

Staff salary, IT and software costs, office rent, utilities, and editors' training costs are some of the key cost components in providing video post-production services. Other costs include IT maintenance costs, advertising and marketing costs, and travel costs. Video editing can cost, on average, USD 50 - 150 per hour. Software costs include expenses incurred for purchasing editing software and tools. Service providers usually charge per hour price. The price of rendering a 2-minute video can be around USD 30 to USD 75 per hour. The prices depend on the editing effects, duration of the process, and other factors.

Under sourcing intelligence, service providers have a complete in-house team of specialists in each field of editing, such as adding visual effects, animations, audio adjustments, color corrections, and experts for finishing touches. Video production companies carry out complete tasks from script writing to shooting, editing, and distribution. On the other hand, buyers such as film production houses, businesses, and organizations outsource their editing services, such as shooting and editing advertising videos, making animations, and other services.

For instance, companies such as Apple, Amazon, Calamos Investments, PayPal, and many more companies outsource content creation services to BottleRocket Media. Training internal employees with new technologies in editing can be challenging for companies, and hence, they prefer outsourcing the services. Japan, China, and India are the preferred countries for sourcing services. Japan's post-production industry is highly competitive due to technological advancements, access to skilled talent, and the presence of well-known animation studios offering a range of services, from editing to visual effects, sound mixing, and color grading. China and India, on the other hand, have low-cost benefits due to cheap labor, production costs, and high-quality video production.

Browse through Grand View Research’s collection of procurement intelligence studies:

• Social Media Management Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Web Hosting Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Video Post-Production Services Procurement Intelligence Report Scope

• Video Post-Production Services Category Growth Rate: CAGR of 13% from 2023 to 2030

• Pricing growth Outlook: 5% - 6% (annual)

• Pricing Models: Hourly pricing, competition-based pricing

• Supplier Selection Scope: Cost and pricing, past engagements, productivity, geographical presence

• Supplier selection criteria: Types of video production, technology/software used, quality, expertise in editing videos, years in services, regulatory compliance, and others.

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Key companies 

• SPARKHOUSE

• Bottle Rocket Media

• Casual

• Levitate

• Blue Chalk Media

• Indigo Production

• Lambda Films

• Gardner Productions

• MBRELLA Films

• VeracityColab

• Kyro

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

LDPE Procurement Intelligence: Driving Innovation in Procurement

The LDPE category is expected to grow at a CAGR of 4.63% from 2023 to 2030. The increasing demand for sustainable packaging materials in the polymers and plastics industry is driving the growth of low-density polyethylene. One of the emerging trends is the increasing preference for biobased polymers in LDPE. Packaging waste has unavoidably increased as e-commerce has grown. There is a growing focus on recycling LDPE, HDPE, and plastic waste to create new recycled high-performance LDPE pellets or films. There is an increase in vendor partnerships and collaborations to utilize advanced recycling processes to reduce the CO2 emissions generated during the production of these polymers.

Companies such as Dow Chemical and DuPont, for instance, are focusing on creating packaging materials that can be recycled from the very beginning. For instance, Dow Chemical has been P&G's external business partner since 2019. Recently, in June 2023, P&G China partnered with Dow Chemical to create environmentally sustainable e-commerce packaging, the “air capsule” which uses 40% less material compared to other traditional packaging. This will enable customers to close the loop on packaging waste.

In 2022, in terms of LDPE consumption, Mainland China was the leading country, accounting for 30 – 35% of the total share, followed by Western and Central Europe. 2022 saw LDPE account for 22% of the total demand for polyethylene. The combined demand for LDPE and LLDPE accounted for 56% of the total demand for polyethylene in 2022. Between 2019 and 2022, the highest producers of polyethylene worldwide were the U.S., China, the Middle East, and a few Western European countries.

Changes in the prices of energy also have a significant impact on the total cost of LDPE production. This is because, in many cases, the production of high-pressure co-polymers that utilize LDPE can increase energy consumption which in turn can increase the total cost. Machinery is another vital factor in cost considerations. For instance, a single cavity for injection molding can range between USD 3,000 - 6,000, whereas multi-cavity machines can cost as high as USD 90,000 depending on the scale of production capacity. Both injection molding and extrusion molding technologies are very mature, and suppliers mainly focus on cost reduction, increasing plant scale, and product enhancements.

Order your copy of the LDPE Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Suppliers are increasingly focusing on sustainability, recycling initiatives to meet environmental, social, governance (ESG) standards, and various other parameters. A few instances of recent supplier developments are:

• In October 2023, LyondellBasell purchased a 50% ownership of Rodepa Vastgoed B.V. The acquiree specializes in recycling plastic waste. The latter is De Paauw Sustainable Resources’s holding company/firm. Netherlands-based Rodepa’s primary activity is in the procurement, processing, and trading of waste plastic packaging from post-consumer and post-industrial sources. As a part of Lyondell’s integrated hub strategy, the deal is aimed to increase Lyondell’s feedstock of plastic waste. As a result, this would help Lyondell expand the manufacturing and product offerings of its “CirculenRecover” business line.

• In June 2023, AFA Nord and LyondellBasell joined forces to establish a 50:50 joint venture. The main objective is to recycle waste from flexible secondary packaging after sales. LLDPE and LDPE waste will be converted into superior recycled plastic materials for use in flexible packaging by the newly formed JV company, LMF Nord GmbH. It will construct a mechanical recycling plant in Northern Germany and produce 26,000 tons of recycled LLDPE and LDPE grades. Early 2025 is anticipated to be the start of production.

• In May 2023, Dow Chemical entered into a long-term partnership with New Energy Blue in the North American region. The main aim is to use renewable agriculture waste like corn stalks and leaves, to produce bio-based ethylene. As part of carbon reduction efforts, the products made will be used across recyclable applications such as packaging, transportation, and footwear. Under the deal, a new plant will be developed in Mason City, Iowa. It will produce 275,000 tons of corn stover annually. The facility will also produce large quantities of second-generation ethanol and clean lignin which will then be transformed into bio-based feedstock.

LDPE Sourcing Intelligence Highlights

• The LDPE category is consolidated. The top eight to twelve players dominate the category and account for between 40 – 50% of the total share. However, regionally in China, the industry is currently fragmented.

• The threat of new entrants is moderate to low as companies need a high initial investment to launch a polymer or petrochemical-related product. The threat of substitutes is currently moderate as there is a rise in bio-based polymers. One of the key substitutes available in the market is also LLDPE.

• The largest cost components in this category are raw materials, labor, energy, equipment and machinery.

• In the Asia Pacific and the Middle East region, some of the significant producing countries of polyethylene are Japan, Thailand, Qatar, Saudia Arabia, and the U.A.E. In terms of domestic production, China produced 25.3 million tons of ethylene in 2022. 

Browse through Grand View Research’s collection of procurement intelligence studies:

• Lab Chemicals Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• HVAC Systems Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

List of Key Suppliers 

• The Dow Chemical Company

• LyondellBasell Industries N.V.

• SABIC

• Chevron Phillips Chemical

• BASF SE

• ExxonMobil Corporation

• LG Chem Ltd

• Westlake Corporation

• Formosa Plastics Corporation

• China Petroleum & Chemical Corporation (Sinopec)

• INEOS AG

• Dupont De Nemours Inc.

LDPE Procurement Intelligence Report Scope 

• LDPE Category Growth Rate: CAGR of 4.63% from 2023 to 2030

• Pricing Growth Outlook: 10% - 12% (Annually)

• Pricing Models: Volume-based, contract-based, spot-price based

• Supplier Selection Scope: Cost and pricing, past engagements, productivity, geographical presence

• Supplier Selection Criteria: Production capacity, grade types, LDPE characteristics (temperature, density and melt index), ASTM methods, operational capabilities, quality measures, certifications, data privacy regulations, and others

• Report Coverage: Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions