Price Forecast: Promotional Products

Categories : Category Insights
  • Tags : Marketing | Price of Promotional Products | Market Characteristics | Market Intelligence

Recent Price Trend - Promotional Products


Average prices for promotional products have risen at an estimated annualized rate of 1.0% from 2014 to 2017 partially due to input cost growth. As the prices of major promotional product inputs, including apparel, textiles and writing utensils, have increased, distributors have been pressured to compensate for these costs by raising the prices of the products they sell to buyers.

The other key component that has boosted product prices during the period has been demand growth. Total advertising expenditure has been growing during the period, indicating higher demand for advertising and promotional products. Additionally, an increase in the number of businesses indicates a larger pool of promotional product buyers. Rising demand for specialty items has therefore alleviated competitive pressure on distributors, allowing them to raise prices at a slightly faster rate. However, the large number of distributors in the market has kept competition high, limiting price growth.

Furthermore, price fluctuations have varied based on product type. For example, the average price of customized USB flash drives, a popular promotional product, has plummeted during the past three years because innovations in technology have made USB flash drives easier and cheaper to produce. Alternatively, prices for another popular item, customized pens, have risen steadily due to price inflation. Ultimately, the prices for individual promotional products have been affected more by price trends for specific product types rather than by the overall trend in the price of promotional products.

Although the prices of different types of advertising specialties have not necessarily moved in line with market-wide trends, buyers have benefited from low price volatility on average. Most product prices, including USB flash drive prices, have not fluctuated greatly from year to year. As a result, buyers have been able to accurately budget for purchases and procure promotional products as needed without worrying about major price changes. Additionally, low price volatility has allowed buyers to reduce the additional expenses caused by excess inventory.

 



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