$1.9B $1.8B $2.3B $2.2B 2015 2016 2017 2018 2019 2020 2021 2022 6 4 2 0 ($ bn) Retail Branded Product Sales Contribution To Distributor Business, 2018-2025 ■ Under $2.5M ■ Over $2.5M $2.1B $2.3B $2.1B $2.8B $2.3B $2.9B $2.6B $3.4B $2.4B $2.9B $2.1B $2.2B $3.7B $5.4B $4.4B $4.5B $4.5B $4.9B $5.3B $6.0B 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. These distributors generated $14.6 billion in 2025. Conversely, small distributors (under $2.5 million) accounted for 46% of the industry’s sales volumes, making just over $12.5 billion. This split remained largely unchanged from prior years, indicating a stable industry structure. With increased mergers and a greater presence of private equity across many industries, it can be seen as a sign of an industry’s good health that smaller companies have not lost ground over the past few years. Margin pressures were reported among small and large companies. Both small and large distributors saw modest increases in their sales volumes in 2025 with growth rates of 1.31% and 1.29% respectively. Growth In Retail Branded Products One of the most clear and apparent growth signals in the data is the move toward retail branded products, reflecting a shift toward higher-value items, even if it means sacrificing quantity. In fact, growth in this sector far outpaced industry growth overall, led mostly by large distributors whose retail-branded sales grew by 15.9% (compared to 10.3% among distributors under $2.5M). In total, retail branded product sales reached an estimated $6 billion. For many distributors this shift reflects margin protection rather than volume explosion, as buyers favor perceived value items. Bhat considers this a demand shift as opposed to a short-term trend, as buyers prioritize value, quality and brand recognition. “Buyers are choosing better products, not just cheaper ones,” Bhat says. Distributor Company Size 2025 Sales Volume 2024 Sales Volume Total Difference Annual Growth Rate (%) Under $2.5M $12,538,624,993 $12,376,292,733 $162,332,260 +1.31% Over $2.5M $14,590,357,172 $14,303,538,624 $185,919,548 +1.29% Total $27,128,982,165 $26,780,831,357 $348,250,808 +1.30% 45% 55% 46% 54% 44% 56% 48% 52% 47% 53% 46% 54% 42% 58% 44% 56% 43% 57% 46% 54% 46% 54% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100 75 50 25 0 ($%) Market Share By Distributor Size, 2015-2025 ■ Under $2.5M ■ Over $2.5M PPAI • MARCH 2026 • 39 PPAI Sales Volume | Must Read
RkJQdWJsaXNoZXIy NzU4OQ==