2024 is off to a strong start for promotional products companies on both sides of the Atlantic, and industry firms are generally optimistic about the year ahead.

That was a key theme to emerge from the first-ever quarterly webinar from PromoAlliance, the strategic partnership between ASI in the United States, PSI in the European Union and Sourcing City in the United Kingdom. The alliance acts with a unified commitment to promote networking and a sharing of industry knowledge and data on a global level.

Held March 18, “The Global Promo Industry: An Overview of Sales, Growth Trends & Emerging Markets” webinar featured promo industry leaders Tim Andrews, President & CEO, ASI; Petra Lassahn, Director, PSI; David Long, CEO & Executive Chairman, Sourcing City; and moderator Michele Bell, VP of Editorial, Education & Special Events, ASI.

The aim of the webinar, which PromoAlliance leaders plan to hold each quarter going forward, was to provide insights on trends, challenges, opportunities, industry sentiment/performance and other important topics from both North American and European perspectives for promo – an industry in which firms are increasingly interested in conducting cross-continental businesses.

The industry leaders discussed sales, outlook and other topics in the approximately 45-minute-long webinar. Watch the full recording above.

2024 Starts Positively & the Outlook Is Upbeat

ASI, PSI and Sourcing City are all leaders in organizing major promo trade shows in their respective geographic markets. The webinar began with a discussion of how early-year trade shows fared, as these can be a barometer for the industry. The good news is that, well, the news is good.

The ASI Shows in Orlando and Fort Worth saw increased attendance in both exhibitors and attendees in 2024 compared to the prior year, Andrews reported. In the post-pandemic world, distributors and suppliers were eager to get together in person for networking, socializing and uncovering everything from new products to potential mutual opportunities, he said.

Andrews pointed to polling at ASI Fort Worth that showed two-thirds of distributors expect their 2024 sales to be “much higher” than last year. In 2023, Andrews shared, North American promo product distributors collectively increased sales, on average, by 1.2% to $26.1 billion – a new annual record despite the relatively anemic percentage rise, according to the Distributor Quarterly Sales Survey from ASI Research.

“We’re seeing a lot of great activity to start the year in North America,” Andrews said.

$26.1 Billion
The record-setting annual sales tally from North American promotional product distributors in 2023.(ASI Research)

There was also positive sentiment in the European Union, a supranational political and economic union of 27 nations, the largest of which economically is Germany.

PSI hosts the biggest industry trade show in the market in its home nation of Germany. This year, attendance in terms of exhibitors and visitors increased from 2023, Lassahn shared. Also notable: Certain large-sized suppliers that sat out the previous year’s PSI Show in favor of attending smaller regional shows returned in 2024. About 50% of PSI attendees come from outside Germany, including other European countries and North America.

$12.48 Billion
Annual promo distributor sales in the United Kingdom and European Union in 2022, according to ASI Research. A figure for 2023 is due out later this year.(ASI Research)

Lassahn noted that PSI polling shows that, across Europe, promo businesses expect average annual sales growth in 2024 of 4.5%. “The mood is optimistic for the upcoming financial year,” she said, but noted that research also showed that only 49% of EU promo companies are satisfied with their margins – a partial consequence of inflationary pressures.

Merchandise World, the U.K.’s largest promo trade show, experienced its highest post-pandemic attendance this January, said Long, whose Sourcing City co-organized the event. Sign-ups for the year’s second Merchandise World, to be held in September, are already trending well ahead of 2023. About 20% of exhibitors were from outside the U.K. at the January show – again, a stat that speaks to the growing internalization of the merch market.

4.5%
Average annual sales growth anticipated by promo companies in the European Union for 2024.(PSI)

Long noted that Sourcing City research shows that U.K. promo market sales rose 4.2% in 2023; this figure does not account for the full scope of apparel revenue, leaving out sales of branded clothing by textile printers, specialist clothing resellers, distributors that buy directly from clothing suppliers, and suppliers that sell direct to end-users.

Long asserted that the upcoming 2024 Summer Olympics in Paris, the European Football championship that starts in June and other major events, including elections, all should help accelerate business for promo companies.

“There are positive vibes throughout,” said Long.

4.2%
Average collective year-over-year sales growth in the United Kingdom’s promo industry.(Sourcing City)

The Sustainability Impetus

During the discussion, the industry leaders emphasized the paramount importance that sustainability-related concerns and developments are having in the European and North American promo industries, saying they’re not just a trend but rather a movement that will only grow.

Long shared that tried-and-true products like pens and drinkware continue to be popular in the U.K. market, but noted that what’s crucially important now to distributors’ customers is that those products are made in a manner that’s verifiably earth-friendly and socially responsible.

“Everything is focused on environmentally friendly,” he added.

Tim Andrews, ASI; Petra Lassahn, PSI; David Long, Sourcing City

Andrews credited Europe for being steps ahead of North America in terms of progress on sustainability. Still, he said it will be increasingly important for suppliers in the U.S., Canada and Europe to even more deeply understand their supply chains; this will allow for documentation and making the information available to distributors and their end-buyers in a manner that’s transparent and shows true sustainability action. Doing so will help kibosh claims of greenwashing – and root out unethical operators who make false assertions of eco-friendliness.

Being able to verify “green” narratives around products and operations could become especially important in the European Union, where the body’s continental government is considering legislation that would legally compel traceability requirements on products to combat greenwashing. Lassahn noted that it’s not a given when and how the legislation will come into play, but as currently envisioned it would likely “be a lot of work and cost a lot of money” for suppliers that are keen to present products as sustainable.

Promo Across Borders

The global promo executives also discussed developments that have them excited or concerned.

Lassahn shared that she feels a mix of both emotions regarding artificial intelligence. While much remains to be seen regarding AI’s impact on promo, she wonders if the technology could be used to help facilitate advancements in personalized product recommendations, analyzing market/trend data, and innovations in product development.

Long also mentioned AI as a point of focus, noting it could be wonderful for certain industries (medical technology) and potentially terrifying for others (military). “AI-washing” – false claims about artificial intelligence’s usage in a system or product – could be a challenge, too, he speculated. Long further said that some of his top concerns relate to geopolitical events and political turmoil and how these could affect not just promo but the world more broadly.

While acknowledging concerns about AI and geopolitics, Andrews said he’s heartened to have witnessed encouraging developments on the global stage – including North American promo’s gradual but ongoing sourcing shift away from being entirely reliant on China for manufacturing of products, as well as growth in distributors and suppliers serving clients across national borders and continents.

To the latter point: The three promo leaders agreed that if you want to do business in a different country, it’s important to understand the cultural and business mores of the market, to network extensively there (trade shows can help), and to have actual feet on the ground in the nation in which you’re eager to transact.