PPAI Magazine April 2025

PPAI U.S. Distributor Sales Volume Estimate | Must Read PPAI U.S. DISTRIBUTOR SALES VOLUME ESTIMATE Modest Growth In 2024, But Reasons For Optimism Remain U.S. distributors are more hopeful for 2025, even in the face of tariff threats and economic uncertainty. Read about other findings from the annual survey. By Arianna Johnson 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 online to members at PPAI’s Professional membership tiers – Silver, Gold and Platinum. U.S. DISTRIBUTOR SALES reached $26.8 billion last year, according to PPAI’s 2024 Distributor Sales Volume Estimate, released in mid-February. The latest version of PPAI’s long-running study shows another year of modest growth for the industry as it continued to navigate macroeconomic headwinds, such as supply chain disruptions and high interest rates. While 2024’s growth rate of 2.63% was slightly higher than 2023’s rate of 2.24%, it still failed to outpace 2024’s annual inflation rate of 2.9%, according to the Consumer Price Index report. Looking ahead to 2025, U.S. distributors are optimistic. Nearly two-thirds (65%) expect sales growth, especially large distributors. More than half of U.S. distributors are also expecting higher profits, suggesting they’re adapting their strategies to capitalize on market opportunities and optimize margins. Of course, that optimism should be tempered due to the expansion of tariffs on imports, inflation and overall economic uncertainty. “The promo industry grew 2.63% in 2024, reaching $26.78 billion, despite economic pressures and ongoing tariff uncertainty,” says Alok Bhat, market economist, research and public affairs lead for PPAI. “Distributors are adapting through digital expansion, sustainability and diversified sourcing. While challenges remain, 65% expect sales growth in 2025, signaling strong industry resilience.” 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 bigger share of sales than they did in 2023, and the continued rise in prominence of sustainable products in the sector. For 60 years, PPAI has been collecting, analyzing and reporting U.S. distributor sales. This annual study, prepared by independent research firm Relevant Insights, is the most definitive and comprehensive of its kind in the industry. It’s 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. PPAI • APRIL 2025 • 33

RkJQdWJsaXNoZXIy NzU4OQ==