Merchandising Unit Industry Analysis in United States

United States Merchandising Unit Industry Outlook from 2023 to 2033

Sales of merchandising unit across the United States are estimated to be valued at US$ 1,327.8 million in 2023 and US$ 2,225.6 million by 2033. Over the assessment period, the demand for merchandising unit in the United States is predicted to rise at a CAGR of 5.3%. In 2022, the United States merchandising unit business revenue totaled US$ 1,265.1 million and is set to exhibit a y-o-y growth of 4.6% in 2023.

Key Segments and their Statistics

• Shopping malls are anticipated to be the dominant end users, accounting for around 28.6% of value share in 2023. This is due to the rising usage of merchandising unit in shopping malls for increasing sales and promoting new products. However, the hotels & resorts segment is expected to witness a higher CAGR of 6.8% through 2033.
• The free-standing merchandising unit segment is expected to hold a revenue share of 55% by 2033, exhibiting a CAGR of 5.1% over the forecast period. On the other hand, the demand for wall-mounted merchandising unit is predicted to increase at a higher CAGR of 6.3% between 2023 and 2033.

United States Merchandising Unit Business Overview

The United States merchandising unit business revenue is projected to expand 1.7X through 2033. This is due to the rapid expansion of the retail sector in the country, rising retail sales, and the growing emphasis on visual merchandising.

Merchandising unit are expected to serve as dynamic business tools that engage customers, drive conversions, and enhance brand visibility through effective presentation, promotional displays, and seamless purchase pathways. These are becoming powerful business tools by conveying brand messages, product benefits, and promotional offers, thereby driving their demand.

They are increasingly being installed at shopping malls, hotels, retail stores, airports, and other places to showcase products. The growing adoption of merchandising unit in these places is expected to boost their sales and push the total revenue.

2018 to 2022 United States Merchandising Unit Industry Outlook Vs. 2023 to 2033

Sales of merchandising unit in the United States grew at a CAGR of 3.1% during the historical period. Total revenue in the country reached around US$ 1,265.1 million in 2022. Over the assessment period, merchandising unit demand in the United States is anticipated to increase at a 5.3% CAGR.

In recent years, the utilization of merchandising unit has witnessed a significant upsurge, particularly across airports and shopping malls. This can be attributed to the increasing footfall across top-tier malls in the country, as well as the persistent growth in the number of customers who prefer air travel owing to the lower costs.

Retailers are increasingly using a single, expansive merchandise unit to advertise all their brands. This strategy aims to optimize space utilization and provide a comprehensive array of brands and products under one location.

The integration enables cross-promotional opportunities and shared business initiatives that mutually benefit all involved stakeholders. Moreover, it is cost-effective from a retailer's perspective, especially in high-rent spaces or prime real estate locations with accessibility issues.

For instance, Stella McCartney, a United States-based firm, employs this multiple-store merchandising unit strategy to showcase a diverse range of products within a singular merchandising space. This approach not only minimizes resource use but also enhances the shopping experience for customers by offering a wide assortment of products and brands, all within one conveniently located destination.

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Other Factors Pushing the Demand for Merchandising Unit in the United States

• Expansion of the organized retail sector and increasing retail sales
• Rising interest in visual merchandising
• Growing need for efficient and attractive product displays
• Rise of e-commerce
• Continuous innovation in retail merchandising equipment
• Increasing investments in branding and marketing by companies
• Surging popularity of corrugated cardboard-based merchandising unit

Key Trends in the United States Merchandising Unit Business

• Integration of digital elements such as interactive displays, augmented reality, and digital signage to enhance overall shopping experience
• Growing usage of sustainable and eco-friendly materials
• Rising popularity of pop-up stores is expected to create opportunities for leading merchandising unit suppliers

Semi-annual Update

Insight into Sub-regions Impacting Merchandising Unit Sales in the United States

Rising Number of Retailers Driving Sales in North East Region

The Northeast region is poised to dominate the United States retail merchandising unit business in the forecast period. The general populace across several states in the North East boasts of higher disposable income, which consequently results in an increasing proportion of affluent consumers.

The region also boasts of a larger number of retailers in comparison, who extensively invest in merchandising unit to stand out from the competitive retail sector across the region. This is expected to stimulate sales of merchandising unit across the North East region during the forecast period.

Rising Popularity of Pop-up Shops Driving Demand in the Western United States

The Western region of the United States is set to witness a considerable CAGR during the estimated period. As per the latest United States merchandising unit industry analysis, demand for merchandising unit in the Western United States will likely rise at a CAGR of 6.8% throughout the forecast period. This is attributable to the expansion of the retail sector, increasing consumer spending, and surging popularity of pop-up stores.

Western region is also witnessing rapid economic growth along with a constant flow of tourism. Such factors are expected to contribute to the growing demand for merchandising unit across the region during the assessment period.

Category-wise Insights

The below section shows the free-standing segment to retain its dominance based on merchandising unit type. It is poised to thrive at 5.1% CAGR through 2033. By end-user, the shopping malls segment is anticipated to account for a prominent share, exhibiting a CAGR of 4.2% between 2023 and 2033.

Attractive Features of Free-standing Merchandising Unit Fueling their Demand

Based on type, free-standing merchandising unit are anticipated to hold a significant value share of around 55.4% by 2033. Over the assessment period, sales of free-standing merchandising unit in the United States are expected to soar at a CAGR of 5.1%. This can be attributed to the rising adoption of free-standing merchandising unit (FSDUs) across diverse end-use sectors due to their multiple benefits.

Free-standing variants of merchandising unit are set to be utilized to increase product visibility and promote brand impact at the point of purchase. They would allow retailers the freedom to place them anywhere in a store, which makes it easy to change the layout as needed. This is especially useful in large retail stores, where the layout requires frequent changes.

Free-standing merchandising unit can be placed anywhere in the retail store, which makes them highly sought-after types among end-users. They are a versatile and effective means to promote products and boost sales. The growing usage of free-standing unit by retailers and manufacturers to increase product visibility, raise brand awareness, drive impulse purchases, and increase sales will likely boost the target segment.

Adoption of Merchandising Unit Remain High in Shopping Malls

The shopping mall segment is estimated to dominate the United States merchandising unit business with a share of around 28.6% in 2023. It is poised to exhibit a CAGR of 4.2% between 2023 and 2033, generating lucrative revenue in the target business. Shopping malls mainly utilize retail merchandising unit that display a brand’s product offerings, encourage impulse purchases, and provide opportunities for cross-promotions.

Several shopping malls across the United States have witnessed a resurgence in customer traffic in recent years, especially in top-tier malls, where footfall has increased by over 10% in 2022, as compared to pre-COVID levels. This trend is further driving investments in merchandising unit as brands attempt to capture the new generation of offline shoppers.

Merchandising unit also allow shopping malls to increase their footfall and sales, promote new products and brands, and create a more dynamic and engaging shopping experience for their customers. As a result, the demand for retail merchandising unit in the shopping malls segment will continue to rise steadily through 2033.

Competitive Landscape

Key manufacturers of merchandising unit are concentrating on increasing their production capacity to meet the demand from end users in the United States. The landscape is highly competitive, with several key players dominating the field. Prominent companies in the report include Smurfit Kappa, International Paper, WestRock, DS Smith Plc, Cart King International, Siffron Inc., and Frank Mayer and Associates, Inc.

Recent developments in the United States Merchandising Unit Business

• In July 2023, Orbus Visual Communications, one of the most prominent manufacturers of visual communications solutions, announced the launch of the MODify Retail Merchandising System for tradeshows, events, retail sector, and workplace interiors.
• In December 2022, WestRock completed the acquisition of Grupo Gondi.

Scope of the Report

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