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 blog post delves into the various aspects of the PoSM market, including market size, segmentation by type and application, regional analysis, market dynamics, and the competitive landscape.

Market Size and Growth Forecast

The PoSM market has seen substantial growth due to the increasing emphasis on enhancing customer experiences and driving sales through strategic marketing initiatives. The current market size of USD 35.19 billion is a testament to the critical role PoSM plays in various industries. With a projected CAGR of 5.6%, the market is set to grow significantly, reaching an estimated USD 57.39 billion by 2032. This growth is driven by factors such as technological advancements in PoSM materials, increased investment in retail infrastructure, and the growing importance of visual merchandising.

Segmentation by Type

Soft PoSM

Soft PoSM includes items such as posters, banners, and stickers. These materials are typically used for short-term promotions and are easily replaceable. The soft PoSM segment holds a significant share in the market due to its cost-effectiveness and flexibility in design and application. The trend towards digital and dynamic soft PoSM materials, such as digital screens and electronic displays, is further boosting this segment’s growth.

Hard PoSM

Hard PoSM comprises more durable materials like stands, displays, and mannequins. These are used for long-term in-store displays and are designed to be more robust and permanent. The hard PoSM segment is crucial for creating a lasting brand impression and is widely used in retail environments where durability and quality are paramount. Innovations in design and materials, such as eco-friendly and modular displays, are key trends driving this segment.

Segmentation by Application

FMCG (Fast-Moving Consumer Goods)

In the FMCG sector, PoSM plays a vital role in driving product visibility and encouraging impulse purchases. PoSM materials are strategically placed to capture consumer attention and influence purchasing decisions. Trends in this segment include the use of interactive and engaging PoSM materials that enhance the shopping experience.

Food and Beverage

The food and beverage industry heavily relies on PoSM to highlight promotions, new product launches, and seasonal offers. Effective PoSM materials in this sector can significantly boost sales and brand recognition. The adoption of vibrant and eye-catching PoSM designs is a notable trend in this segment.

Retail

Retailers use PoSM to create an engaging shopping environment that encourages customers to explore and purchase products. From window displays to in-aisle signage, PoSM materials are essential for effective retail marketing. The rise of omnichannel retailing and the integration of digital PoSM solutions are key trends in this segment.

Pharmaceutical

In the pharmaceutical industry, PoSM is used to educate consumers about products, promote over-the-counter medications, and provide information on health and wellness. Compliance with regulatory standards and the use of informative and clear PoSM materials are critical in this segment.

Others

Other sectors utilizing PoSM include automotive, electronics, and personal care. These industries use PoSM to enhance brand visibility and drive sales through targeted promotional campaigns.

Regional Analysis

North America

The PoSM market in North America is driven by advanced retail infrastructure and high consumer spending. Innovations in digital PoSM and a focus on enhancing customer experiences are key trends in this region.

Europe

Europe’s PoSM market is characterized by strong retail and FMCG sectors. The region’s emphasis on sustainability and eco-friendly PoSM materials is a significant growth driver.

Asia-Pacific

Asia-Pacific is the fastest-growing region in the PoSM market, fueled by rapid urbanization, increasing disposable incomes, and a burgeoning retail sector. The adoption of innovative PoSM materials and designs is prominent in this region.

Latin America

The PoSM market in Latin America is expanding due to growing retail activities and increased investment in marketing initiatives. The use of vibrant and culturally relevant PoSM materials is a notable trend.

Middle East & Africa

The Middle East & Africa region is witnessing growth in the PoSM market due to rising retail developments and increased focus on enhancing consumer experiences. The adoption of digital and interactive PoSM materials is driving this market.

Market Dynamics

SWOT Analysis

• Strengths: High impact on consumer purchasing decisions, versatility in application, and growing investment in retail infrastructure.
• Weaknesses: High costs associated with premium PoSM materials and potential environmental impact.
• Opportunities: Growth in emerging markets, advancements in digital PoSM technologies, and increasing demand for eco-friendly materials.
• Threats: Economic downturns affecting consumer spending and regulatory challenges in certain regions.

Porter’s Five Forces Analysis

• Competitive Rivalry: High due to numerous players in the market.
• Threat of New Entrants: Moderate, as significant investment is required for high-quality PoSM production.
• Bargaining Power of Suppliers: Low, given the availability of various raw materials.
• Bargaining Power of Buyers: High, as buyers have multiple options.
• Threat of Substitute Products: Low, as PoSM remains a critical component of in-store marketing.

Key Indicators for Demand

Factors influencing the demand for PoSM include the growth of the retail sector, increasing consumer engagement through innovative displays, and the rising popularity of experiential marketing.

Key Indicators for Price

Pricing trends in the PoSM market are influenced by the cost of raw materials, technological advancements, and the level of customization required by clients.

Competitive Landscape

The PoSM market is highly competitive, with key players focusing on innovation and customization to gain a competitive edge. Major companies in the market are investing in sustainable and digital PoSM solutions to meet evolving consumer preferences.