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 more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
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 - Starting a New Business Chapter

    This industry is predominantly composed of small operators that focus on market or product niches such as sports marketing or customizable coffee mugs, among others. This low concentration indicates that there are few barriers to entry, which has contributed to rising levels of enterprise formation in the current period. However, building relationships with reliable suppliers can take time and established operators may be able to obtain discounts for bulk and frequent purchases. As a result, these firms can pass savings onto clients; this can act as a barrier to entry as potential new operators will not be able to compete based on these prices. Therefore, while industry participation is relatively simple, gaining a substantial market share similar to industry leader Staples Inc., is...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
  • 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
  • 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 provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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