Sourcing City, a media and marketing outlet serving the promotional products market in the UK, announced that the sector grew its revenues by 8.6% in 2013. With revenues in the UK and Ireland markets reaching a total of 830.4 million pounds (about $1.4 billion), the Sourcing City data shows that promotional products sales there have grown every year since 2010. However, the region has not yet fully recovered to its pre-recession annual revenue total of 917 million pounds in 2008.
Sourcing City reports, though, that the market is primed for more growth in 2014, as it prepares to capitalize on some major events this year. “Recent press reports have stated that the UK advertising market is set to have its best year since the pre-recession days of 2008,” Sourcing City said in a statement. “This is driven by the solid indicators for economic recovery, and we also have the World Cup in Brazil to look forward to boosting our marketplace. The latest IPA Bellwether report found that advertisers raised their budgets for a fifth quarter in a row in the final three months of 2013.”
Alistair Mylchreest, CEO of Sourcing City, believes the market performed so well in 2013 because client budgets have finally loosened. “Major blue chip companies, who had been hording cash, started to invest, and that started with marketing,” he said. “Pleasingly, promotional products as a cost-effective medium have reaped the rewards.”
Distributors in the region are also forecasting growth for the promotional products sector in the UK for 2014, as it builds on the momentum built over the past few years. “I sense a more optimistic view of 2014 is felt by the majority of suppliers and distributors than there has been in the last three to four years,” said Chris Lee, CEO of distributor firm Brand Addition and the winner of Counselor’s International Person of the Year award in 2013. “I imagine high-margin sectors such as technology and health and beauty leading the way but expect the majority of sectors to build upon the solid platform developed over 2010-2013.”