Distributor Sales Volume | Must Read When PPAI Magazine published the findings of the 2021 Distributor Sales Volume Estimate, there was blunted optimism regarding promo’s recovery from the losses of 2020. The caveat was in the numbers: Small businesses seemed to be getting left behind. A year later, things are more than just looking up. The 2022 findings show a record year for promo, and the healthy return of small businesses played a part in that growth. Promotional products reached $25 billion for the first time ever. And average distributors have nearly evened the playing field on their larger corporate competitors. For 2022, distributorships reporting less than $2.5 million in revenue made up 46.8% of the total sales volume. One lesson seems clear from the most positive Distributor Sales Volume Estimate in recent years: There are more than enough promo sales to go around. More than that, the future of the industry once again appears secure in another key way: the surge of products sold on the grounds of their sustainability, which leapt nearly 20% from 2021 figures. As consumers increasingly demand products that will have minimal effect on the environment, promotional products distributors are finding answers and shaking off key criticisms of the industry. 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. Key Findings Perhaps the most significant number in the 2022 findings is the largest one. The total sales of promotional products reached $25.5 billion, surpassing sales from 2018 and accounting for the highest number in promo’s history. These numbers suggest that promo is no longer just rebounding. It’s growing. (See Figure 1.) The total sales numbers are a 15.6% increase over 2021 numbers, which were a 12.5% increase over 2020, a year of sagging performance in the face of COVID shutdowns. All told, 2018 is the only year on record that has produced even within $1 billion of the total promotional products sales reported for 2022. Company Size Comparisons In 2021, only 42.7% of promo’s total volume sales came from small businesses – companies reporting under $2.5 million in annual sales – a concerning trend coming out of a global pandemic in which it seemed conceivable that only the largest companies might survive. That trend changed course in 2022, with smaller companies reclaiming 46.8% of total volume sales. (See Figure 2.) Figure 1 Figure 2 10-Year Industry Performance Market Share by Distributor Size, 2013-2022 2022 $25,522,419,472 2021 $22,077,935,415 2020 $19,617,112,147 2019 $24,223,484,868 2018 $24,746,578,839 2017 $23,285,980,409 2016 $21,304,931,457 2015 $20,808,170,722 2014 $20,042,228,931 2013 $19,826,873,723 $19.8 2013 In Billions 2017 2015 2019 2021 2014 2018 2016 2020 2022 $20.0 $20.8 $21.3 $23.3 $24.7 $24.2 $19.6 $22.1 $25.5 49 51 50 50 56 44 54 46 52 48 55 45 56 44 58 42 57 43 53 47 Over $2.5 Million Under $2.5 Million Source: PPAI 2022 Sales Volume Estimate PPAI • APRIL 2023 • 67
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