Yes, there is still a market for photo albums, because there is nothing sweeter than having a picture of your family. If a picture is online, there is a chance that that phone can be lost. If a picture is in your hand, you can look at it any time, anywhere. Scrapbooking is still big business.
I believe that there is still a market for photo albums. I think that a lot of people arre still willing to buy things like a photo albums. These people are usually the older generations and the less tech-savvy. I think such things do stil have a market but it isn't like it used to be before.
In the world we live in today, handling a piece of paper for important matters is uncommon and awkward. We've seen the alternative, and use it everyday: Facebook, e-mails, Skype, the list goes on. With more and more people carrying smaller and more versatile computers, it doesn't seem like it'll be long at all before "dead tree" is a format that people just don't deal in anymore.
I honestly don't believe there is a market left for photo albums. I have several photo albums full of photos I've seriously considered digitizing and saving on-line. Photo albums are big and bulky and I've had to carry them with me every time I move. I'd rather just have everything digitally saved, rather than toting around these big books of pictures.