In total, promo’s revenue reached $26.09 billion in 2023. Taking a macro-perspective, this shows promo revenue has grown by $6 billion over a 10-year period. (See Figure 1) Company Size Comparisons One year ago, we were talking about the strides made by small businesses – companies reporting under $2.5 million in annual sales – an encouraging trend after the hit such distributors took in the initial stage of the pandemic. In 2023, the share of total sales by small distributors took a slight dip to 46.3% (down from 46.8%). Large distributors (over $2.5 million) captured $14,019,015,692 of the industry sales volume – a 53.72 percent share. It should be noted that the large-company segment also includes large franchise distributors that report for their franchisees. Sales from smaller distributors as a group amounted to $12,075,896,471. (See Figure 2) Changes in sales volume showed high variability in 2023. Within the small distributor segment, companies with sales between $250K and $500K experienced the greatest sales growth, while distributors at each end of that segment saw a decline in sales. (See Figure 3) The average revenue for the small distributor segment slightly increased to $524,722 in 2023, up from $519,043 in the previous year, indicating steady performance within this cohort. (See Figure 4). The significant increases in 2022 and 2023 could potentially be a result of consolidation among the smaller parts of the industry, with distributors buying out their competitors’ books of business following challenges exacerbated by the pandemic. Online Sales In 2023, online sales – which include transactions completed through online stores or distributor websites – amounted to $5.03 billion ($5,027,614,753), making up 19.3% of the promotional products industry’s total sales. In 2023, 81% of large distributors and 58% of small distributors reported engaging in online sales. Sustainable Products Continue To Rise In 2023, sales in the sustainable products category, which includes items recognized for their eco-friendly attributes at various stages of their lifecycle – from production and usage to disposal – reached an estimated $3.09 billion. (See Figure 5) Accounting for 12.2 percent of the promotional products industry’s total sales, the sustainable products segment saw an 8% increase from 2022’s figure of approximately $2.86 billion, underscoring a growing consumer preference for environmentally responsible options. Must Read | 2023 Industry Sales Report Figure 3 Segmenting Industry Sales By Company Size 2018-2023 2023 $26.1 +2.2% 1.6 2.1 2.9 5.4 14.0 2022 $25.5 +3.3% 1.7 1.7 2.9 5.8 13.6 2019 $24.2 +26.2% 2.0 2.0 2.3 4.3 13.6 2018 $24.7 -2.6% 1.8 1.7 2.6 4.9 13.8 2021 $22.1 -6.2% 1.8 1.8 2.4 3.4 12.7 2020 $19.6 +3.2% 1.8 1.5 2.6 3.6 10.2 <$250K $250K -$500K $500K-$1M $1M-$2.5M $2.5M+ Over $2.5M Under $2.5M In Billions Figure 4 Sales Average Mean By Under $2.5 Million Distributors 2014-2023 2016 2021 2014 2019 2017 2022 2023 2015 2020 2018 449,835 409,477 430,563 422,465 430,912 519,043 524,722 417,846 423,943 469,833 431K 418K 450K 431K 470K 519K 525K 422K 424K 409K Figure 5 2019 2020 2021 2022 2023 10% 11% 11% 11% 9% 13% 13% 13% 12% 12% Percentage of Sustainable Promotional Products Sales 2019-2023 Figure 6 Sales Volume Distribution by Product Category Wearables / Apparel..................26.1% Drinkware............................................10.3% Bags/Travel...........................................7.9% Caps/Hats.............................................7.2% Wearables/Fashion Accessories.......................................... 5.0% Writing....................................................4.5% Technology...........................................4.2% Office....................................................... 3.5% Event......................................................... 3.3% Awards.................................................... 3.3% Automotive.......................................... 2.6% Recreation............................................ 2.3% Buttons & Badges........................... 2.2% Date & Time........................................ 2.0% Labels........................................................ 1.8% Food & Beverage.............................. 1.8% Cards......................................................... 1.7% Packaging............................................... 1.7% Home / Kitchen.................................. 1.5% Personal. ................................................. 1.4% Health & Beauty................................ 1.4% Magnets. ................................................. 1.0% Games & Toys....................................0.7% Pet..............................................................0.6% Jewelry....................................................0.4% Other......................................................... 1.4% 38 • APRIL 2024 • PPAI
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