Global Reminder Items Industry Outlook

  • The global reminder items market was valued at $68–71.5 billion in 2017, and is growing at ~4 percent year-on-year.
  • The total global spend for promotional items is forecasted to be $76–78 billion by 2019 
  • The growth will be driven by the increasing focus of key end-user industries, like food, beverages and CPG, on the emerging markets 

commercial-and-reminder-items-market-size

  • Most of the growth in demand will be from the emerging markets in Asia and LATAM, in addition to the United States (US), Oceania and the Middle East 
  • In 2017-18, the global pharma industry commercial items’ spend contributed to less than three percent of the overall commercial items market, which valued at $1.6–2.1 billion and is expected to fall less than $1.5 billion by 2020

Global Reminder Items - Market Maturity

  • North America is the highest adopter of promotional items, with approximately 30 percent of the global spend, followed by Western Europe, with more than 27 percent of the total global spend. The maturity of both buyers and suppliers in these regions is high, due to the adoption of the latest technologies and trends by buyers 
  • In APAC, major buyers are increasing their footprint in an attempt to tap the large consumer base. They are followed by LATAM, where major buyers are starting to consolidate their demand regionally along with the North American spend

Global Reminder Items - Industry Trends

  • Mature markets are moving toward a centralized procurement strategy for reasons such as better supplier relationships and order management
  • Less mature buyers still follow a regional or local sourcing model, and hence, there is a lot of scope for improvement with respect to sourcing maturity
  • Being a fragmented supply market, service providers are increasingly looking forward to expand their service offerings and geographical reach. They are constantly in the process of acquiring new capabilities to increase their attractiveness to buyers 
  • Suppliers are also equipping themselves to provide other value-added services, like market-specific insights and value engineering

Global Reminder Items - Drivers and Constriants

Drivers

  • One of the most important growth drivers is the increase in value-added services like design inputs, relevant market inputs and value engineering; and spend/cost structure visibility provided by suppliers, which enables buyers to gain assurance and try new initiatives with regard to promotional/reminder items
  • Buyers are working towards reducing their environmental footprint; hence, the demand for sustainable promotional products is also on the rise as buyers attempt to attain a better brand value and image
  • According to recent studies, electronic gadgets are gaining more prominence and have become one of the important drivers of the promotional items industry. Hence, buyers are procuring gadgets like power banks, earphones, wearable technology, and other relevant bespoke electronic items in order to gain more prominence among consumers
  • The Australian marketers spend $1.5–2 billion a year on promotional products. Studies indicate that 91 percent of people have at least one promotional product in their kitchen and 74 percent in their offices
  • Rise in the demand for retail brand products being used as promotional merchandize since it deeply resonates with the younger target audience

Constraints 

  • Experts suggest that there is a lack of innovation in the industry. For example, polypropylene tote bags became a sensation eight years ago, and there has nothing been noteworthy since. It is also believed that one of the critical reasons for sluggish innovation is pricing pressures among the suppliers and manufacturers
  • Many countries are starting to ban plastics, which will become a major constraint in terms of sustainable raw material substitutes, resulting in increased overall costs
  • The pharmaceutical industry is strictly governed by codices and regulations, with respect to issuing promotional items to patients, healthcare professionals, etc. Therefore, the spend for the promotional items industry with regard to the pharmaceutical companies is slowly decreasing with just 2–3 percent of the total global spend