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. PoSM, which includes various promotional materials used at the point of sale to attract customers and stimulate purchases, plays a crucial role in marketing and sales strategies across multiple industries. This blog post delves into the market segmentation, regional analysis, market dynamics, and competitive landscape of the PoSM market, providing insights and forecasts for the period from 2024 to 2032.

Market Segmentation

By Type

1. Soft PoSM Soft PoSM includes items such as posters, banners, and flyers. These materials are typically flexible, lightweight, and easy to update, making them ideal for short-term promotions and seasonal marketing campaigns. The market share for soft PoSM is substantial due to its cost-effectiveness and versatility. Trends indicate a growing preference for eco-friendly and recyclable materials in this category.

2. Hard PoSM Hard PoSM encompasses more durable items like stands, fixtures, and display units. These materials are designed for long-term use and provide a sturdy platform for product display and customer interaction. Hard PoSM is favored in high-traffic retail environments where durability and robustness are essential. Innovations in design and materials are driving growth in this segment, with an increasing focus on modular and customizable units.

By Application

1. FMCG (Fast-Moving Consumer Goods) In the FMCG sector, PoSM is crucial for driving impulse purchases and brand visibility. Items like shelf talkers, wobblers, and end-cap displays are commonly used to attract attention to products. The sector is expected to continue its strong demand for PoSM, driven by competitive marketing strategies and the need for constant brand reinforcement.

2. Food and Beverage The food and beverage industry relies heavily on PoSM to promote new products, special offers, and seasonal items. From eye-catching refrigerated displays to branded shelving units, PoSM helps in enhancing the shopper's experience and boosting sales. Market dynamics in this segment are influenced by consumer trends towards health, sustainability, and convenience.

3. Retail Retail environments utilize PoSM to create engaging shopping experiences and guide customers through the store. From window displays to in-store signage, these materials help in product navigation and promotional messaging. The retail sector's continuous evolution, with the integration of digital PoSM and interactive displays, is anticipated to drive significant growth.

4. Pharmaceutical In the pharmaceutical industry, PoSM is used to provide information about products, promote new medications, and enhance brand recognition. Pharmacy counters and healthcare stores often feature PoSM like product information stands and digital screens to educate customers. The segment's growth is propelled by the increasing demand for over-the-counter (OTC) drugs and wellness products.

5. Others Other applications of PoSM include automotive showrooms, electronics stores, and hospitality venues. These sectors use a variety of PoSM to enhance customer engagement and drive sales. The versatility and adaptability of PoSM make it valuable across diverse industry verticals.

Regional Analysis

North America

North America holds a significant share of the PoSM market, driven by the robust retail sector and high consumer spending. Innovations in retail technology and the growing adoption of digital PoSM are key factors contributing to market growth in this region.

Europe

Europe's PoSM market is characterized by a strong focus on sustainability and design. The region's stringent environmental regulations and consumer preference for eco-friendly products are driving the demand for recyclable and biodegradable PoSM materials.

Asia-Pacific

The Asia-Pacific region is expected to witness the fastest growth in the PoSM market, fueled by rapid urbanization, expanding retail networks, and increasing disposable incomes. Countries like China, India, and Japan are major contributors to the market's expansion.

Latin America

In Latin America, the growing retail sector and rising consumer awareness are boosting the demand for PoSM. Market growth is supported by economic development and the proliferation of modern retail formats.

Middle East & Africa

The Middle East and Africa region is experiencing steady growth in the PoSM market, driven by the expanding retail infrastructure and increasing investments in the tourism and hospitality sectors.

Market Dynamics

SWOT Analysis

• Strengths: The PoSM market benefits from its versatility and ability to enhance brand visibility and sales.
• Weaknesses: High costs associated with high-quality and durable PoSM can be a barrier for smaller businesses.
• Opportunities: Growing e-commerce and the integration of digital PoSM present significant growth opportunities.
• Threats: Economic downturns and fluctuating raw material prices pose potential risks to market stability.

Porter’s Five Forces Analysis

1. Threat of New Entrants: Moderate, due to the need for substantial investment in design and manufacturing capabilities.
2. Bargaining Power of Suppliers: High, especially for specialized and high-quality materials.
3. Bargaining Power of Buyers: Moderate, as large retailers and brands can negotiate better terms.
4. Threat of Substitutes: Low, given the unique value proposition of PoSM in driving in-store engagement.
5. Competitive Rivalry: High, with numerous players vying for market share through innovation and competitive pricing.

Key Indicators for Demand

• Increasing consumer spending and the growth of the retail sector are primary demand drivers.
• Seasonal promotions and product launches also significantly boost the demand for PoSM.

Key Indicators for Price

• Raw material costs and production technologies influence PoSM pricing.
• Market competition and consumer preferences for sustainable materials also affect pricing strategies.

Competitive Landscape

Major Market Players

Key players in the PoSM market include companies like DS Smith Plc, Smurfit Kappa Group, and Sonoco Products Company. These companies are investing in innovative designs and sustainable materials to stay competitive.

Recent Developments

• Mergers and Acquisitions: Strategic mergers and acquisitions are helping companies expand their market presence and capabilities.
• Product Innovations: The introduction of digital PoSM and interactive displays is revolutionizing the market, offering new ways to engage customers.