TREVOSE, Pa., Feb. 7, 2024 /PRNewswire/ — Distributor sales of promotional products reached new heights in 2023, with $26.1 billion in sales, according to the latest analysis from the Advertising Specialty Institute® (ASI), the leading technology, marketing and information provider in the promo industry.
Distributors demonstrated resilience with a 1.2% year-over-year sales boost, with the total annual tally surpassing the industry’s previous record of $25.8 billion, first set in pre-COVID 2019. The growth rate moderated from 2022’s robust 11.4% and falls below the broader U.S. gross domestic product (GDP) growth of 2.5% in 2023. Despite the tempered pace, the promo industry maintains its upward trajectory, showcasing stability amid changing economic landscapes.
“The positive momentum, fueled by an increasingly robust economy, positions the promo products industry for continued growth and exciting prospects in 2024,” said ASI CEO Timothy M. Andrews.
Promo products – a.k.a. swag (Stuff.We.All.Get) – are items like T-shirts, water bottles, mugs and pens imprinted with logos to market a company, product, achievement or event, or thank clients or employees, and typically given away for free. ASI helps buyers and sellers of promo products connect and grow.
According to ASI’s sales analysis, the latter half of 2023 saw a deceleration in growth, with larger industry distributors especially struggling. The fourth quarter underscored this trend, reporting a nominal 0.1% year-over-year sales increase for all distributors. Although the quarter marked the 11th consecutive period of growth, the extent of the increase was the most subdued among the post-pandemic recovery phases, reflecting the industry’s nuanced journey through evolving market conditions.
Various factors, including inflation, marketplace uncertainty, recession fears among corporate buyers, and geopolitical tensions, influenced promo investment in 2023, particularly in Q4, promo executives told ASI.
Mid-sized distributors, with annual revenue between $250,000 and $1 million, experienced the most significant collective gain last year at 3.1%. Notably, 53% of these distributors achieved full-year sales growth, leading among different revenue categories.
Nearly half (46%) of large distributors (revenue between $1 million and $5 million) and 43% of extra-large distributors (over $5 million in revenue) saw revenue drop. Extra-large distributors grew annual sales by the smallest of margins – just 0.1% on average.
ASI surveyed distributors in January 2024 about Q4 and 2023 sales performance to determine results.
About ASI
The Advertising Specialty Institute (ASI®; asicentral.com) serves a network of 25,000 suppliers, distributors and decorators in the $26.1 billion promotional products industry.
SOURCE Advertising Specialty Institute
Originally published at https://www.prnewswire.com/news-releases/swag-sales-increase-to-26-1-billion-setting-new-record-302056660.html
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