PPB June 2021

Sales By Industry Promotional product sales also declined across most industries. Sales to the business services (B2B) industry, which had emerged as the most active buyer of promotional products in prior years, declined drastically in 2020. Taking its top spot was, not surprisingly, the health care industry with a four-percent increase in sales, most likely due to PPE sales. However, these four industries also saw an uptick in sales during 2020: Retail (57 percent) Recreation/team sports (44 percent) Food and beverage (14 percent) Media and publishing (7 percent) Projections For 2021 After a tumultuous year, most distributors are understandably cautious when making their predictions for 2021. Many hope to see an economic recovery by mid to end of the year, but their uncertainty is palpable as it is still unclear as to when events and large gatherings will come back to prior years’ levels. About one in two distributor companies that participated in the 2020 survey say they expect higher sales and profits for 2021, especially among large distributors (see Figures 11 & 12 ). When asked about how 2020 started, more than 60 percent of distributors said they had expected higher sales and profits for the year. In contrast, many distributors were still experiencing the negative impact of the COVID-19 pandemic at the beginning of 2021 (when this survey was conducted), and fewer say they are expecting positive grow in sales or profit this year. Read more about what distributor principals are saying about their sales over the past year and what they see for 2021 in the story starting on page 43. FEATURE | PPAI Exclusive Research: 2020 Distributor Sales Volume Estimate Figure 11: Distributors Expecting Higher Sales In 2021 ALL DISTRIBUTORS SMALL DISTRIBUTORS (<$2.5M) LARGE DISTRIBUTORS (>$2.5M) SALES INCREASED SALES DECREASED 62% 55% 56% Methodology: BehindThe Facts To compile PPAI’s 2020 Estimate of U.S. Distributors’ Promotional Products Sales, the survey was distributed via email to both PPAI member and nonmember promotional consultant companies. The top 50 distributors were also reached by phone to ensure their information was included in the analysis since omission of any distributor with a large volume of business could distort the statistics. Data from prior research conducted by PPAI and PPAI’s database were also used in the sales volume estimation. Figure 12: Distributors Expecting Higher Profits In 2021 ALL DISTRIBUTORS SMALL DISTRIBUTORS (<$2.5M) LARGE DISTRIBUTORS (>$2.5M) SALES INCREASED SALES DECREASED 54% 50% 51% GetThe Full Report Additional data and charts, including top-selling product categories and programs, are available for PPAI members at www.ppai.org/members/research. A member log-in is required. For questions on this report, email Keith Vincent, director of marketing at KeithV@ppai.org. Michaela Mora is principal of Relevant Insights, LLC. A-R-T / Shutterstock.com. . 42 | JUNE 2021 |