Impact of Pandemic on Stationery Product Market in the US
Posted: Sep 15, 2021
The stationary industry is almost 10 billion USD in market size in the USA. Once entirely the domain of retailers with brick-and-mortar shops, the internal competition created by online enterprises has boosted sales thanks to easy availability, better pricing models, and transparent comparisons online.
But on the other hand, digitization has introduced a significant other. The rapid increase in electronic communication has come about at the cost of traditional stationery paper products.
Electronic communication will continue to erode the base of paper-based products, and the industry is set for a.6 percent decline year or year. The decline is attributed to digitalization, but this is not entirely true as the roaring pandemic is responsible for an overall reduction in sales of products. Virtually all commercial segments have been badly hit, and in spite of universal vaccination, the battle is far from over.
Frequent lockdowns and closure of most of the industrial enterprises, closure of small businesses, and resultant job losses in this pandemic have thwarted inwards cashflows leading to an appreciable loss of business and family incomes. The consumer is the best spender, and when the buying power decreases the impact on the economy is negative. The decline though palpable cannot be attributed to digitization alone, the pandemic is the significant other.
Thus, the pandemic is a major contributor to year-on-year decline besides the impact of communication going digital. Nevertheless, with the opening up of diverse marketing channels, and the addition of products pertaining to wide spectrum technologies, the scope of products sold through land-based stationary retail outlets, online stores, general merchandise, and specialty stores is increasing. This diversity is bound to fetch a compensatory measure by increasing the consumption of stationery paper products in the US.
The increased availability has been further boosted by innovative designs and remarkable new-age product development. This is attracting consumers towards the traditional stationery products in new garb.
Thus, for the pessimistic analysts the battle, by all means, is evenly poised. The post covid boost will come through a flow of fresh enthusiasm and energy, and it will certainly reflect upon the product sales in the US.
The highest sales pitch has been recorded in the year 2007 at 11.6 billion dollars in the last decade before a significant decline came about it has been further affected by covid 19 in the year 2019 onwards.
Albeit the market size growth will be sluggish nevertheless the sales will touch 24 billion USD a shade higher than the peak achieved during the last decade.
However, the sales will climb steadily up to 2031 due to the absence of pandemic and high-income levels. Due to higher spending power, the CAGR is expected to grow by 4 percent in this period as compared with the CAGR of 2% during the year 2016 to 2020.
Export-oriented economies like the US will be the major beneficiaries of the upwardly mobile education sector in developing countries. The school and college education sector are the key drivers of sales with more and more institutions lining up to educate the burgeoning masses. The major boost is expected from countries in the AFPAC especially India and China as they increase budgetary allocation to enhance primary, secondary, and tertiary education programs.
Domestic sales will increase in the US as well in this period. The key market driver will be the higher-income groups purchasing high-value stationery products online.
In spite of rapid digitization, the need for the physical maintenance of records, large-scale use of treated paper for electronic devices will sustain growth in the corporate sector, and thus improve domestic sales. At the same time demand for old-age products like staplers, files and folders, paper sheets and rolls, notebooks, pens, and pencils will stabilize thwarting the decline experienced during the pandemic.
Uday writes often on Indian wildlife especially about the tigers. He works as a naturalist and is fond of travel. Uday also provides search engine optimization service and website contents in English.