Figure 1 10-Year Industry Performance 2023 $26,094,912,163 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 $26.1 In Billions 2023 2017 2015 2019 2021 2014 2018 2016 2020 2022 $20 $20.8 $21.3 $23.3 $24.7 $24.2 $19.6 $22.1 $25.5 2023 Industry Sales Report | Must Read (Editor’s Note: Since 1965, PPAI’s Distributor Sales Volume Estimate has been the most trusted, directionally accurate measure of the size of the U.S. promotional products market and trends in the industry. Selected charts displayed in this article are taken from the full report, available to members at PPAI's Professional membership tiers – Silver, Gold and Platinum. Last year, when the 2022 Distributor Sales Volume Estimate was published, it was a cause for celebration. For the first time ever, the promotional products industry accounted for $25 billion in revenue and, even with plenty of factors to attribute to that number, it was a record that showcased promo’s tremendous growth and economic recovery. The 2023 Distributor Sales Volume Estimate shows that last year’s promo revenue topped $26 billion in revenue. While another record year in total revenue, it represents a modest growth rate over the previous year. The results reflect similar trends reported on by PPAI Research’s bi-monthly survey. While 2023’s revenue total is nothing to sneeze at and shows the large presence that the promotional products marketplace holds, promo professionals might not be popping champagne. The growth rate for 2023 was 2.24% and did not outpace the rate of inflation, which has not dipped below 3% since March 2021 according to the Consumer Price Index report. “Promo’s revenue totals in 2023 show that the industry is healthy, but growth has tapered off since 2022’s explosive returns,” says Alok Bhat, market economist and research lead at PPAI. Source: PPAI 2023 Sales Volume Estimate Figure 2 Market Share by Distributor Size, 2014-2023 Over $2.5 Million Under $2.5 Million 2023 2017 2015 2019 2021 2014 2018 2016 2020 2022 50 56 52 55 56 58 57 53 54 54 50 44 46 46 48 45 44 42 43 47 “Business strategy will be important going forward and capitalizing on upward trends is advisable.” The Sales Volume Estimate also tracks the measured progression of several promo industry trends over the past year. These include larger distributors’ capture of a slightly larger share of sales than they did in 2022, and the continued climb in prominence of online sales and sustainable products in the market. For more than 50 years, PPAI has been collecting, analyzing and reporting distributor sales, and this study is the most definitive and comprehensive of its kind in the industry. It is a valuable resource for understanding the current landscape for promotional products companies and as a potential tool in any attempt to try to prepare for the future. Key Findings As mentioned above, in 2023, the promotional product industry demonstrated a 2.24% growth rate over 2022. While positive, this is a significant step back from 2022’s growth rate of 15.6% and 2021’s growth rate of 12.5%. Growth has slowed, but it’s worth noting that those two years were part of a recovery from the 2020’s revenue totals, which was an outlier year due to the effects of the COVID-19 pandemic on the market. PPAI • APRIL 2024 • 37
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