Sales by Product Categories And Industries As was the case in recent years, apparel was the most commonly sold promotional product category by a healthy margin, making up more than a quarter of all sales. Drinkware once again came in second. (See Figure 6) The range of industries buying promotional products showed a diversity of markets that promo is reaching. Business services (B2B) led the pack with education and healthcare rounding out the top three. (See Figure 7) 2024 Expectations A majority of distributors (63%) are bullish about their sales going up in 2024. That number jumps to 78% when it comes to large distributors. (See Figure 8) However, the share expecting higher profits this year is lower. Among all distributors, 57% predict higher profits in 2024, with 68% of large companies anticipating profit growth. (See Figure 9) Among distributors who do expect positive profit growth in 2024, many are basing their predictions on increased business development efforts and investment in advertising and marketing to bring new customers. Only 3% forecast better economic conditions in the current year. (See Figure 10) Of those who are expecting less profit in 2024 (8% of distributors), the economy was the most common reason behind their prediction. Additionally, more than one in 10 of this group (11%) cite plans to scale down their business for their 2024 profit expectations. (See Figure 11) How The Study Was Conducted PPAI’s Annual Estimate of Distributors’ Sales figures is based on an independent email/mail survey of industry distributors (including PPAI members and non-members) conducted from December 2023 to January 2024 by Relevant Insights LLC, an independent market research firm. In addition, a census of the largest firms was also undertaken. Responses projected across the entire distributor population combine sales for small distributors (under $2.5 million) and large distributor firms (over $2.5 million) to determine the total promotional products dollar volume. Dig Deeper PPAI conducts the Sales Volume Estimate for the benefit of the promotional products community. The full portal is available and open to read in further detail for members at PPAI's Professional membership tiers – Silver, Gold and Platinum It paints an interesting and valuable snapshot of the state of the industry, but different points will be of differing value to each company. 2023 Industry Sales Report | Must Read Figure 10 Figure 11 Top 10 Reasons To Expect Profit Increase in 2024 Top 10 Reasons To Expect Profit Decrease in 2024 Figure 8 Distributors 2024 Sales Predictions Less than 2023 Same as 2023 Greater than 2022 30% 60% 2024 Profit Expected To Be ... 18% 78% Over $2.5 Million Under $2.5 Million 28% 63% All Distributors 10% 4% 9% New business development 16% Advertising and marketing efforts 10% Year-to-date sales 10% Experience and company history 9% Increased sales force 6% Improvements in business practices 4% Uncertain economic outlook 19% Scaling down business 11% Reduced customer budgets 8% One-time order that won't repeat 8% Customer feedback 7% Change in pricing / Better margins 4% Customer feedback 3% Better business environment / economy 3% Returning clients / Increased sales from existing clients 3% Increased costs 5% Year-to-date sales 5% Lost customers 4% Competition 4% Experience and company history 4% Auping is a news editor at PPAI. Mora is the principal of Relevant Insights. Figure 9 Distributors 2024 Profit Predictions Less than 2022 Same as 2022 Greater than 2022 36% 55% 2024 Profit Expected To Be ... 29% 68% Over $2.5 Million Under $2.5 Million 35% 57% All Distributors 9% 3% 8% Figure 7 Sales Volume Distribution by Industry Business Services (B2B)..............11.6% Education............................................. 10.3% Healthcare..............................................8.9% Construction..........................................7.1% Financial ...................................................7.1% Manufacturing.....................................6.7% Retail...........................................................5.9% Food & Beverage...............................5.2% Non-Profit/Not-For-Profit..........4.9% Government..........................................4.2% Insurance.................................................3.2% Technology.............................................2.9% Entertainment......................................2.7% Transportation.....................................2.6% Energy, Utilities & Waste Treatment...............................2.6% Agriculture..............................................2.1% Real Estate...............................................1.9% Recreation / Team Sports.............1.8% Oil & Gas...................................................1.8% Fitness........................................................1.8% Recreation / Leisure..........................1.7% Lodging......................................................1.4% Telecommunications........................1.1% Other..........................................................0.6% PPAI • APRIL 2024 • 39
RkJQdWJsaXNoZXIy NzU4OQ==