For small distributors—companies reporting less than $2.5 million in annual sales—average sales peaked at $470,000 in 2018, then dipped in 2019 to $422,000 and rolled slightly to $424,00 amid the initial pandemic year of 2020. In 2021, however, the group’s average sales dropped to $409,000. The promotional products industry’s increase in overall sales volume is likely attributed to an increased return to normalcy from 2020, which was more greatly affected by pandemic lockdowns. Demand for personal protective equipment decreased in 2021, and the sales of traditional promotional products picked up. For more than 50 years, PPAI has been collecting, analyzing and reporting distributor sales, and this study is considered the most definitive and comprehensive of its kind in the industry, useful in understanding the current landscape for promotional products companies and as a potential tool in any attempts to try to prepare for the future. For more than 50 years, PPAI has been collecting, analyzing and reporting distributor sales, and this study is considered the most definitive and comprehensive of its kind in the industry. Key Findings While it’s important to analyze where the increased sales come from, there is no denying that the industry as awhole did bounce back fromthe tumultuousness of 2020. Promotional products sales by distributors reached $22.1 billion in 2021, up 12.5% from2020’s $19.6 billion, which had been a sharp decline attributed to the first stage of the pandemic. See Figure 1. That $22.1 billion in sales is not quite on par with 2018 and 2019 sales totals, which both eclipsed $24 billion. It’s worth noting that while there were some returns to normalcy in 2021 when compared to 2020, the industry still contended with multiple new variants of COVID-19, various economic uncertainties and considerable worldwide supply chain delays. All told, 63% of distributors reported increased sales in 2021, which could only be said of 20% of distributors in 2020. Company Size Comparisons There was a sizable difference in growth between the large and small companies in 2021. In terms of sales volume, large distributors experienced a 24% increase. Meanwhile, smaller companies actually failed to reach 2020’s sales levels and saw a 0.46% decrease. See Figure 2. Figure 1: 10-Year Industry Performance 2017 2018 2019 2020 2021 2012 2013 2014 2015 2016 $25 B $20 B $15 B U.S. PROMOTIONAL PRODUCTS SALES VOLUME IN BILLIONS $21.3 B $23.3 B $24.7 B $24.2 B $19.6 B $22.1 B $18.5 B $19.8 B $20.0 B $20.8 B Distributor Company Size 2021 Sales Volume 2020 Sales Volume Total Difference % Increase/Decrease in Sales Volume Over 2020 Under $2.5 million $9,423,672,556 $9,466,975,349 -$43,302,793 -0.46% $2.5 million or over $12,654,262,859 $10,150,136,798 $2,504,126,061 24.67% Total $22,077,935,415 $19,617,112,147 $2,460,823,268 12.54% Figure 2: Annual Estimate of U.S. Distributor Sales in 2021 vs. 2020 2021 U.S. Distributors’ Promotional Products Sales Survey | FEATURE | JUNE 2022 | 15
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