Point of Sale Materials (PoSM) Market: Trends, Growth, and Future Outlook (2024-2032)

The global point of sale materials (PoSM) market size reached a value of almost USD 35.19 billion in 2023. The market is further expected to grow at a CAGR of 5.6% between 2024 and 2032, reaching nearly USD 57.39 billion by 2032. This growth underscores the increasing importance of PoSM across various industries, including FMCG, food and beverage, retail, and pharmaceuticals. In this blog post, we'll explore the key trends, market dynamics, and future outlook for the PoSM market, providing a comprehensive overview of what lies ahead.

Market Overview

Point of sale materials (PoSM) play a crucial role in influencing consumer behavior at the point of purchase. These materials include a wide range of promotional tools such as displays, posters, banners, and stands that are strategically placed in retail environments to attract customers and encourage impulse buying. The global PoSM market is a vital component of the advertising and marketing ecosystem, driving brand visibility and sales growth.

In 2023, the PoSM market was valued at USD 35.19 billion, reflecting its significant role in modern retail and marketing strategies. The projected growth to USD 57.39 billion by 2032 at a CAGR of 5.6% indicates a robust demand for these materials across various sectors. Key drivers of this growth include the expanding retail industry, technological advancements in printing and design, and the increasing focus on enhancing customer experiences in-store.

Market Segmentation by Type

The PoSM market can be broadly categorized into two types: soft PoSM and hard PoSM.

Soft PoSM

Soft PoSM refers to materials that are generally flexible, lightweight, and easy to distribute. Examples include promotional flyers, posters, and banners. These materials are typically used for short-term promotions or seasonal campaigns. The market share for soft PoSM is substantial due to its cost-effectiveness and ease of production. Trends in soft PoSM are driven by advancements in digital printing, which allows for high-quality, customized materials to be produced quickly and efficiently.

Hard PoSM

Hard PoSM includes more durable materials such as displays, stands, shelves, and signage. These are often used for long-term installations in retail environments. Hard PoSM is essential for creating a strong brand presence in stores and enhancing the overall shopping experience. The market for hard PoSM is growing as retailers invest in innovative and interactive displays that capture customer attention and drive sales. The durability and aesthetic appeal of hard PoSM make it a preferred choice for high-impact promotions.

Market Segmentation by Application

PoSM materials are utilized across various industries, each with unique requirements and trends.

FMCG (Fast-Moving Consumer Goods)

In the FMCG sector, PoSM materials are crucial for brand differentiation and product visibility. Given the highly competitive nature of the FMCG market, companies rely heavily on PoSM to influence consumer decisions at the point of purchase. The use of vibrant, eye-catching displays and promotional materials helps FMCG brands stand out on crowded shelves.

Food and Beverage

The food and beverage industry is another major user of PoSM materials. From supermarket aisles to fast-food outlets, PoSM plays a key role in driving impulse purchases and promoting new products. The trend towards healthier eating and sustainable products has also led to an increased focus on eco-friendly PoSM materials within this sector.

Retail

Retail is the backbone of the PoSM market, with applications ranging from department stores to boutiques. Retailers use PoSM to enhance the shopping experience, highlight promotions, and create themed displays. The rise of e-commerce has also influenced the retail PoSM market, with a growing emphasis on in-store experiences that cannot be replicated online.

Pharmaceutical

In the pharmaceutical industry, PoSM is used to educate consumers about products and ensure compliance with regulatory requirements. Pharmacists often use PoSM materials to provide information about over-the-counter medications and health supplements. The growing focus on health and wellness is driving demand for PoSM in this sector.

Regional Analysis

The PoSM market is geographically diverse, with key regions contributing to its growth.

North America: The largest market for PoSM, driven by a strong retail sector and high consumer spending.

Europe: A mature market with a focus on sustainability and innovation in PoSM materials.

Asia-Pacific: The fastest-growing region, fueled by rapid urbanization and a booming retail industry.

Latin America: Emerging market with significant potential due to increasing retail activities.

Middle East & Africa: Growing demand for PoSM in the expanding retail and FMCG sectors.

Market Dynamics

SWOT Analysis

Strengths: High demand across various industries, technological advancements, and the ability to drive sales.

Weaknesses: Dependence on economic conditions and the environmental impact of PoSM materials.

Opportunities: Growth in emerging markets, sustainable PoSM solutions, and integration with digital technologies.

Threats: Increasing competition and regulatory challenges related to environmental concerns.

Porter’s Five Forces Analysis

Competitive Rivalry: High, due to the presence of numerous players offering a wide range of PoSM products.

Bargaining Power of Suppliers: Moderate, as suppliers of raw materials have some influence over pricing.

Bargaining Power of Buyers: High, with retailers and brands having significant control over purchasing decisions.

Threat of New Entrants: Moderate, as new players can enter the market with innovative solutions.

Threat of Substitutes: Low, as PoSM remains a unique and essential part of the retail environment.

Key Indicators for Demand and Price

Demand: Driven by retail expansion, marketing strategies, and consumer behavior.

Price: Influenced by raw material costs, production technologies, and market competition.

Competitive Landscape

The PoSM market is highly competitive, with major players continuously innovating to maintain their market positions. Key companies are investing in advanced printing technologies, sustainable materials, and creative design solutions to meet the evolving needs of their clients. Recent mergers, acquisitions, and partnerships are shaping the competitive landscape, with companies striving to expand their global reach and enhance their product offerings.