Distributor Sales Volume | Must Read What Part Did Sustainable Products Play In The Rise? Most of the promo world would agree that sustainable products are going to continue to play an increasingly important role in the industry’s future. With longer-lasting, sustainable products often coming at a higher price point, it’s an important area to watch in the Sales Volume Estimate survey going forward. Indeed, 2022 sales of sustainable products increased 19.8% from 2021 to just under $3 billion. This accounted for 11.2% of the industry’s total sales. Almost all large distributors (97%) reported to have sold sustainable products in 2022, while 82% of small distributors used this market, a slight uptick from 2021. These numbers show progress for the industry. The $1.5 billion of sustainable products sold by large distributors surpasses 2019’s report, and it is especially promising that small distributors are keeping pace, accounting for $1.3 billion. One might expect our industry’s largest companies to lead in terms of sustainability initiatives – they have the resources to take chances and have a larger publicfacing brand reputation to consider. But the fact that the 2022 numbers approach a near 50/50 split in sustainability numbers between small and large companies suggest that smaller companies want to do the right thing for the environment and are finding it profitable. (See Figure 6.) A skeptic might see promo’s record-breaking total sales numbers and point toward inflation’s role in these statistics, and they would have a fair point. However, the Sales Volume Estimate’s promising sustainability numbers are a good counterpoint to that caveat. If promo companies are committed to selling longer-lasting, higher-quality products at higher price points – and clients and end users continue to value them – then that should continue to bolster total sales numbers. Another Record Year in 2023? With numbers way up in 2022, optimism about the future isn’t hard to find in the Sales Volume Estimate survey. Of the distributors who participated, nearly 70% expect even higher sales in 2023, meaning we could be living through another record year. Large distributors are especially hopeful about the current year, with 89% of them expecting higher sales, compared to 64% of small distributors claiming such confidence. (See Figure 7.) How The Study Was Conducted To compile the 2022 Estimate of U.S. Distributors’ Promotional Products Sales for PPAI, the survey (collected by third-party research firm Relevant Insights on behalf of PPAI) was distributed via email to both PPAI member and nonmember promotional consultant companies. The sample was drawn from PPAI and UPIC (Universal Promotional Identification Code) lists. The top 50 distributors were also reached by phone to make sure their information was included in the analysis, as the omission of any distributor with a large volume of business could distort the statistics. Dig Deeper PPAI conducts the Sales Volume Estimate for the benefit of its members. It paints an interesting and valuable snapshot of the state of the industry, but different points will be of differing value to each company. Visit myppai.org/benefits/research to view the full report. Mora is the principal of Relevant Insights. Figure 7 Distributors' 2023 Sales Predictions Greater Than 2022 Same As 2022 Less Than 2022 Distributor Cos. Under $2.5 Million Distributor Cos. Over $2.5 Million All Distributor Companies 64% 2022 Prediction 64% 2022 Prediction 89% 2022 Prediction 68% 27% 8% 86% 13% 1% 68% 25% 7% Figure 6 Percentage Of Sustainable Promotional Products Sales, 2019-2022 Under $2.5 Million Over $2.5 Million 2022 2021 2020 2019 13% 13% 13% 12% 10% 9% 11% 11% PPAI • APRIL 2023 • 69
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