In 2023, sales of merchandising units across the United States are estimated at US$ 1,327.8 million, with projections indicating a surge to US$ 2,225.6 million by 2033. Throughout the assessment period, the demand for merchandising units in the United States is expected to increase at a Compound Annual Growth Rate (CAGR) of 5.3%. This forecast underscores the growing significance of merchandising units in retail environments, reflecting evolving consumer preferences and the need for effective product display and promotion strategies. As the retail landscape continues to evolve, merchandising units play a crucial role in driving sales and enhancing brand visibility.
The free-standing merchandising unit segment is expected to retain its dominance during the forecast period. It will likely hold a value share of 55.4% in 2023. On the other hand, the wall-mounted segment is projected to witness a higher CAGR of 6.3% through 2033.
Merchandising units serve as dynamic marketing tools to engage customers, drive sales, and enhance brand visibility through enhanced presentation, promotional displays, and streamlined purchase processes. As a result, their demand is predicted to rise steadily.
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The robust growth of the food service sector across the United States is a key factor propelling the demand for merchandising units. According to the United States Department of Agriculture, the food service and food retailing sector grew at around 10% y-o-y in 2022. This, in turn, is expected to boost sales of merchandising units as they are widely used in this sector.
Key food retailers and food service companies are consistently increasing their spending on advertising and marketing initiatives, which include investments in merchandising units and kiosks. This will likely boost revenue in the United States.
For instance, McDonald’s invested around US$ 2 billion in advertising expenses in the United States alone in 2022. The company has also been consistently increasing its promotional spending, capitalizing on the rising instances of impulse buying across the country.
Other players, such as Burger King and Subway, are also ramping up investments in advertisements, consequently driving the merchandising unit business forward. Rising consumer spending and increasing emphasis on visual merchandising are expected to drive demand for merchandising units in the country. Similarly, innovation in merchandising units and expansion of the organized retail sector will likely bolster sales of merchandising units.
Business Growth Drivers:
- Economic Expansion: Overall economic growth typically translates to increased consumer spending, which benefits the merchandising unit industry. When consumers have more disposable income, they are more likely to purchase non-essential items, driving sales for merchandisers.
- E-commerce Growth: The proliferation of e-commerce platforms has significantly expanded the reach of merchandising units. Companies operating in this space can tap into a broader customer base, reduce overhead costs associated with brick-and-mortar stores, and leverage data analytics for targeted marketing and personalized shopping experiences.
- Technological Advancements: Advancements in technology have revolutionized the way merchandising units operate. From inventory management systems to point-of-sale solutions and customer relationship management tools, technology streamlines operations, enhances efficiency, and improves the overall customer experience.
- Changing Consumer Preferences: As consumer preferences evolve, merchandising units must adapt by offering innovative products, personalized services, and omnichannel shopping experiences. Businesses that can anticipate and respond to shifting trends are poised for growth within the industry.
- Supply Chain Optimization: Efficient supply chain management is critical for merchandising units to ensure timely delivery of goods and minimize costs. Companies that invest in optimizing their supply chains through automation, data analytics, and strategic partnerships can gain a competitive edge and drive growth.
Industry Restraints:
- Economic Uncertainty: Economic downturns, recessions, or fluctuations in consumer confidence can significantly impact consumer spending habits and, consequently, the revenue of merchandising units. Uncertainty surrounding trade policies, geopolitical tensions, or natural disasters can also disrupt supply chains and increase operational costs.
- Competition: The merchandising unit industry is highly competitive, with numerous players vying for market share. Intense competition can lead to price wars, eroding profit margins, and making it challenging for smaller players to compete with larger retailers or e-commerce giants.
- Regulatory Compliance: Compliance with various regulations, including labor laws, product safety standards, and environmental regulations, adds complexity and costs to operations within the merchandising unit industry. Failure to comply with these regulations can result in fines, legal liabilities, and damage to reputation.
- Rapid Technological Changes: While technological advancements present growth opportunities, they also pose challenges for merchandising units, particularly smaller businesses with limited resources. Keeping pace with evolving technology requires ongoing investments in infrastructure, staff training, and cybersecurity measures.
- Consumer Behavior Shifts: Changes in consumer behavior, such as the growing preference for sustainable products, ethical sourcing, or online shopping, can pose challenges for traditional merchandising units. Businesses must stay attuned to these shifts and adapt their strategies accordingly to remain relevant in the market.
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Key Takeaways from the Report-
- The United States merchandising unit business revenue is expected to reach US$ 1,327.8 million in 2023.
- Demand for merchandising units in the United States will likely rise at a 3% CAGR through 2033.
- Total merchandising unit sales in the United States are projected to total US$ 2,225.6 million by 2033.
- By type, the free-standing segment is estimated to hold a prominent value share of 4% in 2023.
- Based on end-users, the shopping malls segment is anticipated to account for a share of around 26% by 2033.
- North East region is projected to account for a share of 4% in 2023.
“The United States retail sector is having a significant impact on the demand for merchandising units and is poised to continue expanding throughout the estimated period. Key manufacturers are focusing on providing innovative solutions to stay ahead of the competition,” – says a lead analyst at Future Market Insights (FMI).
Corrugated Cardboard-based Merchandising Units Presenting New Opportunities
In recent times, consumers have been actively preferring products and brands that demonstrate a commitment to sustainability. A survey conducted by the World Wildlife Fund (WWF) reveals that over 70% of consumers in the United States prefer sustainability after the COVID-19 pandemic.
Manufacturers are responding to this trend by using corrugated cardboard, which is considered an eco-friendly option, in their merchandising units. This choice resonates with the growing number of environmentally-conscious consumers and simultaneously influences a positive brand perception.
Several manufacturers, such as Smurfit Kappa, WestRock, and International Paper, have been updating their portfolios of corrugated-based merchandise displays. Manufacturers can adopt a similar strategy to increase their customer footprint across the country.
Competitive Landscape
- Smurfit Kappa
- International Paper
- WestRock
- DS Smith Plc
- Cart King International
- Siffron Inc.
are a handful of the key merchandising unit manufacturers. Frank Mayer and Associates, Inc., Creative Display Now, Tilsner Carton Company, and Nemco Food Company are also notable players in the United States. The Tier 1 players in the business hold 20% to 25% of the total United States merchandising unit business.
Key players are implementing organic and inorganic strategies to boost their sales and expand their global footprint. These include new product launches, usage of sustainable materials, acquisitions, partnerships, mergers, and collaborations. For instance,
- In May 2022, Smurfit Kappa announced the acquisition of WestRock to create a new global packaging company.
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United States Merchandising Unit Industry Analysis by Category
By Type:
- Wall Mounted
- Free Standing
- On Wheels
By End-users:
- Airports
- Shopping Malls
- Subway Stations
- Commercial Space & Institutions
- Residential Community
- Hotels & Resorts
- Other (Stadium, Parks)
By Sub-region:
- North East
- South West
- West
- South East
- Mid-West
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer, Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 5000 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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