Key Findings As previously mentioned, the promo industry saw growth of 2.63% in 2024. Although down drastically from 2022’s growth rate of 15.6% and 2021’s growth rate of 12.5% – which were recovery periods from 2020’s pandemic loss – this is slightly higher than 2023’s 2.24% growth. This growth boosted total industry sales to $26.78 billion, up slightly from 2023’s $26.09 billion in sales. A notable trend this year is the rise of nonindustry suppliers. “Distributors are increasingly diversifying their sourcing strategies, with $4.3 billion (16% of total sales) coming from outside traditional networks,” Bhat says. “Distributors are leveraging a wider range of sourcing options to meet evolving client needs.” Must Read | PPAI U.S. Distributor Sales Volume Estimate Company Size Comparisons Large U.S. distributors – classified as those with annual sales over $2.5 million – were responsible for 54% of the industry’s sales volume (see Figure 2). These distributors made $14.4 billion in 2024. Conversely, small distributors (under $2.5 million) accounted for 46% of the industry’s sales volumes, making $12.4 billion. Both small and large distributors saw modest increases in their sales volumes compared to 2023, with growth rates of 2.49% and 2.75%, respectively (see Figure 3). Fig. 1 | Ten-Year Industry Performance Fig. 2 | Market Share by Distributor Size Fig. 3 | Annual Estimate of U.S. Distributor Sales in 2024 vs. 2023 55% 56% 58% 57% 54% 54% 52% 56% 53% 54% 20.8 21.3 23.3 24.7 24.2 19.6 22.1 25.5 26.1 26.8 2015 2019 2017 2021 Under $2.5 Million Over $2.5 Million 2023 2016 2020 2018 2022 2015 2019 2017 2021 2023 2016 2020 2018 2022 2024 2024 Billions in sales 2015-2024 45% 44% 42% 43% 46% 46% 48% 44% 47% 46% Distributor Company Size 2024 Sales Volume 2023 Sales Volume Total Difference Median Annual Growth Rate (%) Under $2.5 million $12,376,292,733 $12,075,896,471 $300,396,262 $350,000 2.49% $2.5 million or over $14,404,538,624 $14,019,015,692 $385,522,932 $7,750,000 2.75% Total $26,780,831,357 $26,094,912,163 $685,919,194 $510,000 2.63% 34 • APRIL 2025 • PPAI
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