Office Supplies Sales Expected To Stay Soft Through 2026
Sales of office supplies in the U.S. are expected to decline in 2024 as continued economic pressures will negatively impact the purchase habits of the product segment’s key customers, according to a new report from Circana.
The Future of Office Supplies report is projecting a 4.9% drop in office supplies sales this year, with unit and revenue declines expected to soften to less than 2% through 2026.
“Even as some businesses encourage a return to the office, hybrid work schedules have become the new norm across most of the United States,” said Ben Arnold, industry advisor, Office Supplies with Circana. “As a result, people are now buying office supplies for themselves that they previously relied on their offices to provide. Brands and retailers must stay attuned to these evolving consumer needs to deliver value in this changing landscape.”
As economic pressures persist, value will continue to be a crucial factor in office supply purchases into the foreseeable future. Data from Circana shows that the average selling prices have decreased by nearly 2% this year. Factors impacting this drop include private label brand growth, a continued shift to online retail, and a dynamic promotional environment.
A growth opportunity for office supply retailers is the rise of digital creators and the do-it-yourself trend that is boosting interest in coloring and art supplies. Traditional products for productivity and creation are still right-sizing from the heights of the pandemic, but digital creation has taken off — there has been a 36.4% increase in digital point-and-shoot camera sales year to date, Circana said.
The back-to-school season also remains a key time for office supplies sales, but there is increased competition with technology products as consumers and school systems refresh their products. In Q3 2024, office supply revenue is forecasted to fall by 2.6%, showing improvement from Q3 2023 when sales were down 5%.
“Growth opportunities still exist and will continue to emerge in the office supplies sector,” said Arnold. “It’s essential for brands and retailers to align their products with the evolving needs of consumers regarding size and price point, as well as making the connection between traditional supplies and the trends resonating most.”
