Business gift: Competition will increase, but rising ad spending will drive continued growth

Rising consumer spending and wider Canadian corporate profit margins boosted advertising budgets over the past five years, which increased demand for this industry's services. Nevertheless, industry revenue growth has been tempered by rising external competition over the past five years. Online cataloging, ordering and processing has made it easier for clients to go directly to manufacturers, bypassing industry operators altogether. However, the industry will benefit from a move toward integrated advertising campaigns, whereby promotional products are used in conjunction with other forms of advertising as part of a coordinated marketing campaign...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
1.7%
Forecast Growth 18-23
Profit
Employment
9,442
Businesses
5,209
Market Share of Companies

Industry Threats & Opportunities

  • Growth has been constrained by rising external competition, especially from online sources
  • Profit has been pressured by rising wage and depreciation costs
  • E-commerce will continue to enable customers to source products directly from manufacturers
  • Industry Report - Industry Locations Chapter

    The distribution of promotional products providers is heavily concentrated in Ontario, Quebec and British Columbia, together accounting for more than 80.0% of the industry’s operators. The distribution of industry operators and their facilities is largely the result of the geographic spread of the industry’s key downstream clients, including retail stores, which generally follow the distribution of Canada’s population.Ontario accounts for the largest share of the Canadian population. This factor, coupled with its proximity to key downstream markets including the United States, makes Ontario an attractive province for companies in the industry. Major players 4imprint, BD Advertising and Proforma all have offices in the province, exemplifying the region’s dominance in the industry. Add...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/contractors
  • IBISWorld analysts also discuss how external factors such as Number of businesses and Total advertising expenditure in the Promotional Products industry impact industry performance..

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    What's in this report

    What is the Promotional Products Industry?

    Operators in this industry provide promotional products, such as key chains, magnets and pens. They also offer a variety of advertising-related services, including promotional product distribution, sign lettering and window dressing. This industry does not include advertising services, public relations services, media buying services, media representation services, display advertising services, direct-mail advertising services or marketing consulting services. 

    Industry Products
  • Wearables
  • Desk and office accessories
  • Writing instruments
  • Drinkware, housewares and other home products
  • Sporting goods
  • General accessories
  • Industry Activities
  • Advertising specialty (e.g. keychain, 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
  • Number of businesses
  • Total advertising expenditure
  • Corporate profit
  • Demand from retail trade

  • Current Performance
  • Countervailing growth prospects
  • Industry structure and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Increased competition
  • Industry structure and profit
  • 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 in Canada
  • Advertising Agencies in Canada
  • Trade Show & Event Planning in Canada
  • Concert & Event Promotion in Canada
  • Colleges & Universities in Canada
  • For-Profit Universities in Canada

  • Key Selling Industries
  • Clothing & Clothing Accessories Wholesaling in Canada
  • Computer & Packaged Software Wholesaling in Canada
  • Office Stationery Wholesaling in Canada
  • Pharmaceuticals & Pharmacy Supplies Wholesaling in Canada
  • Sporting Goods Wholesaling in Canada

  • Products & Services
  • Wearables
  • General accessories
  • Desk and office accessories
  • Drinkware, housewares and other home products
  • Other
  • Writing instruments
  • Sporting goods
  • Chart: Promotional Products Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retail and professional services companies
  • Manufacturing companies
  • Other businesses
  • Other advertisers
  • Sales outside Canada
  • Governments, nonprofits and other public institutions
  • 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
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Promotional Products

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Promotional Products Industry

  • Industry Globalization
    Staples Inc.,
  • Table: Staples Inc. - financial performance

  • 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)
  • Number of fixed broadband connections (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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.
  • 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 market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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