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 to reach a value of nearly USD 57.39 billion by 2032. This growth underscores the increasing importance of PoSM in driving sales and enhancing brand visibility across various industries. In this blog post, we will delve into the key trends, market segmentation, regional analysis, market dynamics, and the competitive landscape of the PoSM market.
Market Overview
Point of sale materials (PoSM) are crucial tools used by brands and retailers to capture consumer attention and influence purchasing decisions at the point of purchase. These materials include a wide range of promotional items such as display stands, banners, posters, and shelf edge labels. The primary function of PoSM is to create an engaging shopping experience, promote new products, and boost sales.
In 2023, the global PoSM market was valued at USD 35.19 billion, reflecting its significant role in the retail and marketing sectors. As the market is projected to grow at a CAGR of 5.6% from 2024 to 2032, it is clear that PoSM will continue to be a vital component of marketing strategies across various industries.
Market Segmentation
By Type
Soft PoSM
Soft PoSM includes flexible materials such as banners, posters, and digital displays. These items are often used for temporary promotions and can be easily updated or replaced. The demand for soft PoSM is driven by their cost-effectiveness and versatility, making them popular choices for seasonal campaigns and new product launches.
Hard PoSM
Hard PoSM refers to durable materials like display stands, countertop units, and floor graphics. These items are designed for long-term use and are often used in high-traffic areas to attract attention. The market share for hard PoSM is substantial due to their durability and effectiveness in creating a strong brand presence.
By Application
FMCG (Fast-Moving Consumer Goods)
In the FMCG sector, PoSM plays a critical role in influencing consumer decisions. Brands use PoSM to highlight new products, special offers, and seasonal promotions, which can significantly boost sales. Market trends indicate a growing investment in innovative PoSM solutions to stay competitive in this fast-paced industry.
Food and Beverage
The food and beverage industry heavily relies on PoSM to enhance product visibility and drive impulse purchases. Items such as promotional stands, menu boards, and shelf talkers are commonly used. The market for PoSM in this sector is driven by the need to create an appealing and informative shopping environment.
Retail
In the retail sector, PoSM is essential for creating an engaging shopping experience. Retailers use PoSM to guide customers through the store, highlight key products, and promote special offers. The market trends in this sector show a shift towards digital PoSM solutions, which offer greater flexibility and interactivity.
Pharmaceutical
The pharmaceutical industry uses PoSM to provide essential product information and promote health-related campaigns. Items such as informational displays, shelf edge labels, and counter-top units are commonly used. The market for PoSM in this sector is growing as companies recognize the importance of effective in-store communication.
Others
Other applications of PoSM include electronics, automotive, and home goods. In these sectors, PoSM is used to highlight product features, promote special offers, and create a cohesive brand experience. Market trends indicate a growing demand for customized PoSM solutions to meet specific industry needs.
Regional Analysis
North America
North America is a leading market for PoSM, driven by the high adoption of innovative marketing strategies and a strong retail sector. The region is expected to continue its growth trajectory, supported by technological advancements and a focus on enhancing customer experience.
Europe
Europe represents a significant share of the PoSM market, with a strong emphasis on sustainability and eco-friendly materials. The region's growth is fueled by the increasing demand for high-quality and visually appealing PoSM solutions.
Asia Pacific
The Asia Pacific region is experiencing rapid growth in the PoSM market, driven by expanding retail sectors in countries like China and India. The rising middle-class population and growing consumer spending are key factors contributing to the market's growth in this region.
Latin America
Latin America is emerging as a promising market for PoSM, with increasing investments in retail infrastructure and marketing. The region's growth is supported by a growing awareness of the importance of effective in-store promotions.
Middle East and Africa
The Middle East and Africa region is witnessing steady growth in the PoSM market, driven by the expansion of the retail sector and increasing consumer demand. The region's market dynamics are influenced by the adoption of modern retail formats and a focus on enhancing customer experience.
Market Dynamics
SWOT Analysis
Strengths
- High effectiveness in driving sales and enhancing brand visibility
- Versatility and adaptability of PoSM solutions
Weaknesses
- High production costs for customized PoSM solutions
- Limited lifespan of certain PoSM materials
Opportunities
- Growing demand for digital and interactive PoSM solutions
- Increasing investment in sustainable and eco-friendly materials
Threats
- Intense competition among market players
- Rising costs of raw materials
Porter’s Five Forces Analysis
Competitive Rivalry
The PoSM market is highly competitive, with numerous players vying for market share. Companies are investing in innovative and customized solutions to stand out in the market.
Threat of New Entrants
The barriers to entry in the PoSM market are moderate, with new players entering the market driven by the growing demand for PoSM solutions.
Bargaining Power of Suppliers
Suppliers of raw materials for PoSM hold significant power, influencing production costs and pricing strategies.
Bargaining Power of Buyers
Buyers have considerable bargaining power due to the availability of numerous PoSM providers and the ability to negotiate for customized solutions.
Threat of Substitutes
The threat of substitutes is low, as PoSM remains a unique and essential component of in-store marketing strategies.
Key Indicators for Demand
- Increasing consumer spending and retail activities
- Rising demand for innovative and visually appealing PoSM solutions
Key Indicators for Price
- Fluctuating costs of raw materials
- Technological advancements in production processes
Competitive Landscape
The PoSM market features several key players, including companies specializing in both soft and hard PoSM solutions. Major players are focusing on expanding their product portfolios and enhancing their market presence through strategic partnerships and acquisitions.
FAQs
Q: What are Point of Sale Materials (PoSM)? A: Point of Sale Materials (PoSM) are promotional items used at the point of purchase to influence consumer behavior and drive sales.
Q: What is driving the growth of the PoSM market? A: The growth is driven by increasing consumer spending, expanding retail sectors, and the demand for innovative marketing solutions.
Q: Which regions are leading the PoSM market? A: North America, Europe, and the Asia Pacific are leading the PoSM market, with significant growth also expected in Latin America and the Middle East and Africa.
Read Also:
World’s Top 8 Companies in the Global Shrimp Market
Top 6 Companies Leading the Global Tissue Paper Market
Top 4 Leading Companies Explored by EMR for Luxury Yachts Market Across the World
