Hot off the press: Increasing advertising budgets will promote demand for industry products

The Promotional Products industry expanded over the five years to 2018. Revenue is generated through the distribution of specialty advertising on everyday items such as mugs, magnets, calendars and t-shirts. Industry operators do not manufacture these products; instead, they purchase products from manufacturers and then print and customize them with a client's advertising message or brand. The advertising sector as a whole, including the promotional products industry, has experienced growth during the five-year period as a result of an increase in corporate profit, spurring higher advertising expenditure. Demand for industry services is strongly linked to the marketing budgets of business clients...purchase to read more.

Industry Statistics & Market Size
Revenue
$24bn
Annual Growth 13-18
2.5%
Forecast Growth 18-23
Profit
Employment
392,820
Businesses
26,413
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Continued growth in corporate profit and total advertising expenditure will boost industry demand
  • The prevalence of integrated marketing campaigns primarily aids the industry’s largest operators
  • Most drivers of industry revenue are expected to experience solid albeit slower growth
  • Industry Report - Industry SWOT Analysis Chapter

    The Promotional Products industry is in the mature stage of its life cycle. Industry value added, which measures the industry's contribution to the overall economy, is expected to grow at an annualized rate of 2.1% over the 10 years to 2023. Comparatively, US GDP is only expected to grow marginally faster at an annualized rate of 2.2% during the same 10-year period. Typically, growth in line with US GDP is indicative of an industry in the mature phase of its life cycle. The industry's products and services experience wholehearted market acceptance and are an integral part of most businesses' advertising budgets. Therefore, as the economy experiences widespread growth, industry revenue follows suit, growing at a similar pace...purchase to read more.

    Additional Insights for the Promotional Products Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Promotional Products Industry are

  • Proximity to key markets
  • Prompt delivery of promotional items to clients
  • Ability to clearly specify requirements to suppliers
  • IBISWorld analysts also discuss how external factors such as Total advertising expenditure and Number of businesses in the Promotional Products industry impact industry performance..

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    What's in this report

    What is the Promotional Products Industry?

    Companies in this industry design and distribute promotional products (e.g. key chains, magnets and pens). They also provide a variety of advertising-related services, including sign lettering and window dressing. This industry does not include advertising agency services, public relations agency services, media-buying agency services, media representative services, display-advertising services, direct-mail-advertising services or marketing consulting services.

    Industry Products
  • Customization and distribution of promotional products
  • Custom sign fabrication and lettering services
  • Product or merchandise demonstrations
  • All other services
  • Industry Activities
  • Advertising specialty (e.g. key chain, magnet and pen) distribution services (except direct mail)
  • Merchandise demonstration services
  • Display lettering services
  • Sign lettering and painting services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total advertising expenditure
  • Number of businesses
  • Corporate profit
  • Demand from retail trade
  • Investor uncertainty

  • Current Performance
  • Strong demand
  • Integrated marketing
  • Industry structure and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Sustained demand despite uncertainty
  • Manufacturers emerge as competitors
  • Growth in participation and employment
  • Table: Promotional Products Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Promotional Products Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets & Grocery Stores
  • Women's Clothing Stores
  • Advertising Agencies
  • Trade Show and Conference Planning
  • Concert & Event Promotion
  • Colleges & Universities
  • For-Profit Universities

  • Key Selling Industries
  • Computer & Packaged Software Wholesaling
  • Drug, Cosmetic & Toiletry Wholesaling
  • Men's & Boys' Apparel Wholesaling
  • Office Stationery Wholesaling
  • Sporting Goods Wholesaling
  • Women's & Children's Apparel Wholesaling

  • Products & Services
  • Customization and distribution of promotional products
  • All other services
  • Custom sign fabrication and lettering services
  • Product or merchandise demonstrations
  • Chart: Promotional Products Industry Products and Services Segmentation

  • Demand Determinants
  • Advertising expenditure
  • Special events

  • Major Markets
  • Manufacturing sector
  • Retail operators
  • All other clients
  • Health and medical businesses
  • Professional and technical services
  • Hospitality sector
  • Financial and Insurance sector
  • Real estate professionals
  • Chart: Major Market Segmentation for the Promotional Products Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Promotional Products

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Promotional Products Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Promotional Products Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Promotional Products Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Total US advertising expenditure (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Advertising Specialty
  • An item branded with an organization's logo.
  • Below-The-Line Promotion
  • Nonmedia communication or advertising that is niche focused and highly measurable.
  • Blank
  • A generic product prior to any branding or customization.
  • Economies Of Scale
  • The increase in efficiency of production as the number of goods being produced increases.
  • Traditional Media
  • Mass-distributed news and entertainment across major media, such as TV, newspapers, magazines, radio and the internet.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Promotional Products Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Promotional Products industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Promotional Products:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Promotional Products market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Promotional Products, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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