Sales in the promotional products industry climbed 5.8 percent in 2017, according to the PPAI/ITR Economics fourth-quarter 2017 Market Outlook Report. Indicators point to continued growth for suppliers and distributors through 2018, but expansion should slow as the year progresses.
ITR Economics found the supplier’s member index annual growth rate climbed 3.5 percent in 2017, measured year over year. The economic research and consulting firm expects this growth trend to increase through the first half of 2018 before slowing during the second half of the year. It also projects a mild recession in 2019, pulling suppliers back 1.1 percent in 2019. The index should rebound in 2020, returning to growth of 5.8 percent.
Industry distributors registered growth of 6.8 percent in 2017. Like their supplier counterparts, distributors should see growth pick up in the first half of 2018 before slowing. ITR projects distributor growth of 4.8 percent in 2018 before a mild contraction of 0.9 percent in 2019. In 2020, distributor growth should return, projected at 7.5 percent.
The PPAI Market Outlook Report is a quarterly snapshot of the promotional products industry. The goal of the report is to provide insight into current business cycle trends that affect member companies, allowing members to make better business decisions to increase profitability and mitigate risk.
An executive summary of the PPAI/ITR Economics’ fourth-quarter 2017 Market Outlook Report is available on PPAI’s website. To access the full report, become a participant in PPAI’s quarterly Market Outlook Survey. Find out how by contacting Mo Das, PPAI market research manager, at MoD@ppai.org or 972-258-3058.
