The promotional products industry has grown at a frenetic pace over the past 5 years, and market research shows this growth is likely to continue until 2020.
Over the past 5 years, the US promotional products industry has grown by 2.7% to reach revenue of 18 billion in 2019, according to IBIS World.
In the same timeframe, the number of businesses offering corporate gifts has grown by 2%, which has contributed to the revenue growth in this industry. For the streak to continue in 2019 and beyond, it’s important for business owners to know which promotional products are trending, and how their demand is likely to change in the next few years.
Major Trends in the Promotional Products Industry
The ongoing global campaign for the importance of Green Economy and Sustainable Development has facilitated the demand for certain promotional products that blend with the “going green” theme.
To that end, the market has seen a rise in the demand for eco-friendly products. Consumers have been switching to eco-friendly products that are not only biodegradable but also manufactured sustainably. According to a recent ASI impressions survey, nearly 70% of consumers say they prefer to keep promotional products that are environmentally friendly.
To meet the demand for sustainable products, business owners are opting for eco-friendly giveaways. Good Things promotional bags are one example where you can provide a reusable alternative to your customers. Other great eco-friendly promotional items include recyclable drink bottles, notebooks and so on.
Another category of products that have seen an increase in demand include tech promotional products. In a world that is ruled by technology, and where 25% of the world’s population are millennials, businesses are opting for promotional products that are of interest to the younger generation. This has facilitated demand for certain tech products.
Promotional items such as wireless earphones and headphones are portable and lightweight, but most importantly, they provide a great way to show a brand’s logo with a digital imprint. Moreover, tech products like earphones are millennials and generation Xs’ favorites. The demand for such products is expected to rise in the future.
Other promotional products whose demand is expected to rise to keep up with the younger generation’s appetite include sports & fitness items. Brand’s that appeal to the growing population of healthy living enthusiasts are bound to stand out. Yes! That old school drink bottle will never run out of fashion. Other giveaways in this category include wearables, hats, yoga mats, etc.
Research Data Roundup: The Numbers Behind Promotional Products
The promotional products industry is currently valued at over $20 billion, according to data from the Promotional Products Association International (PPAI).
According to the report, wearables are the most popular promotional items with a whopping 35% of sales involved, of which 28% are apparel (picture that custom T-shirt). Drinkware comes in second with 8.4% product sales, followed by writing items at 6.6 % and tech items at 5.6%.
The reason behind the high demand for promotional products is that they make it easy for consumers to remember a brand, and leaves a great first impression. According to PPAI, 90% of consumers say they remember a brand because of a promotional item they received.
What are your thoughts concerning the impact of promotional products on a brand’s bottom line? Share with us in the comments section below.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes.