Office Supply & Paper Wholesalers
Description
Companies in this industry distribute paper products and other office supplies. Major companies include Staples subsidiary Essendant, SP Richards (a subsidiary of Genuine Parts), and the distribution arms of retailers Office Depot and Staples (all based in the US), as well as Pelikan (Germany), Lyreco and Manutan International (France), and Spicers (UK and Australia).
The global office supplies market reached a value of almost $178 billion in 2024. The market is further expected to grow at a CAGR of 1.6% in the forecast period of 2025-2032 to attain approximately $199 billion by 2030, according to a report by Fortune Business Insights. Worldwide, countries with strong economies tend to have the highest number of office supply distributors. Developing countries where new businesses are being created, such as China and India, will attract more office supply distributors as demand for office products increases.
The US office supply and paper wholesale industry includes about 4,400 establishments (single-location companies and units of multi-location companies) with annual revenue of about $45 billion.
COMPETITIVE LANDSCAPE
Demand is closely tied to the level of business activity. However, workplace digitization is depressing demand for traditional office products. To compensate, SP Richards, Office Depot and other office products distributors are expanding beyond their traditional offerings, adding janitorial and breakroom supplies, among other products, and providing value-added services for customers.
The convenience and large economies of scale offered by ordering office supplies online from dealers such as fast-growing Amazon Business has resulted in e-commerce becoming the dominant ordering method in many countries, challenging traditional channels. Also, the US government's pending migration to an online purchasing platform for federal agencies has distributors, especially smaller businesses, concerned about an Amazon monopoly on government procurement given its sheer strength in e-commerce. The profitability of individual companies depends on merchandising and an efficient delivery system. Big companies have economies of scale in distribution because they can supply a wide range of products to the same customer. Small companies can compete successfully by distributing specialty products or providing superior customer service. The US industry is concentrated: the 20 largest companies generate nearly two-thirds of revenue.
Besides their online rivals, wholesalers may compete with their suppliers (office supply manufacturers), who may sell products directly to retailers or consumers. Wholesalers may also compete with their customers (office supply retailers), by selling directly to consumers themselves. In addition, mass merchandisers and warehouse clubs compete with wholesalers to sell office supplies to small businesses.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include general office paper, office supplies, labels, and greeting cards, which together account for about 80% of industry revenue. Toner and toner cartridges account for more than 15%. Office supply distributors may also offer furniture, cleaning supplies, breakroom supplies, and technology such as phones, shredders, and computer accessories. Distributors of computers are not included in the industry.
Big office supply retailers, such as Office Depot, buy products directly from manufacturers and also buy specialty items from big wholesalers. A large office supply chain may account for 10% or more of sales for a distributor. A large wholesaler, such as Essendant, may buy from 1,500 manufacturers, stock more than 180,000 items, and distribute to 30,000 resellers. Local retail outlets usually buy products from several wholesalers.
Many wholesalers serve several different market segments, selling to big contract customers, big non-contract customers, and smaller companies. Contract stationer sales are usually discounted substantially from manufacturers’ list prices. Contracts typically last several years. Operations for all suppliers are dominated by the logistics of moving large numbers of items to many customers. End-use customers expect rapid delivery, usually the next day, requiring distributors to maintain large inventories and operate a large delivery fleet.
Distributors may offer private-brand products to help resellers provide value-priced items to customers.
The global office supplies market reached a value of almost $178 billion in 2024. The market is further expected to grow at a CAGR of 1.6% in the forecast period of 2025-2032 to attain approximately $199 billion by 2030, according to a report by Fortune Business Insights. Worldwide, countries with strong economies tend to have the highest number of office supply distributors. Developing countries where new businesses are being created, such as China and India, will attract more office supply distributors as demand for office products increases.
The US office supply and paper wholesale industry includes about 4,400 establishments (single-location companies and units of multi-location companies) with annual revenue of about $45 billion.
COMPETITIVE LANDSCAPE
Demand is closely tied to the level of business activity. However, workplace digitization is depressing demand for traditional office products. To compensate, SP Richards, Office Depot and other office products distributors are expanding beyond their traditional offerings, adding janitorial and breakroom supplies, among other products, and providing value-added services for customers.
The convenience and large economies of scale offered by ordering office supplies online from dealers such as fast-growing Amazon Business has resulted in e-commerce becoming the dominant ordering method in many countries, challenging traditional channels. Also, the US government's pending migration to an online purchasing platform for federal agencies has distributors, especially smaller businesses, concerned about an Amazon monopoly on government procurement given its sheer strength in e-commerce. The profitability of individual companies depends on merchandising and an efficient delivery system. Big companies have economies of scale in distribution because they can supply a wide range of products to the same customer. Small companies can compete successfully by distributing specialty products or providing superior customer service. The US industry is concentrated: the 20 largest companies generate nearly two-thirds of revenue.
Besides their online rivals, wholesalers may compete with their suppliers (office supply manufacturers), who may sell products directly to retailers or consumers. Wholesalers may also compete with their customers (office supply retailers), by selling directly to consumers themselves. In addition, mass merchandisers and warehouse clubs compete with wholesalers to sell office supplies to small businesses.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include general office paper, office supplies, labels, and greeting cards, which together account for about 80% of industry revenue. Toner and toner cartridges account for more than 15%. Office supply distributors may also offer furniture, cleaning supplies, breakroom supplies, and technology such as phones, shredders, and computer accessories. Distributors of computers are not included in the industry.
Big office supply retailers, such as Office Depot, buy products directly from manufacturers and also buy specialty items from big wholesalers. A large office supply chain may account for 10% or more of sales for a distributor. A large wholesaler, such as Essendant, may buy from 1,500 manufacturers, stock more than 180,000 items, and distribute to 30,000 resellers. Local retail outlets usually buy products from several wholesalers.
Many wholesalers serve several different market segments, selling to big contract customers, big non-contract customers, and smaller companies. Contract stationer sales are usually discounted substantially from manufacturers’ list prices. Contracts typically last several years. Operations for all suppliers are dominated by the logistics of moving large numbers of items to many customers. End-use customers expect rapid delivery, usually the next day, requiring distributors to maintain large inventories and operate a large delivery fleet.
Distributors may offer private-brand products to help resellers provide value-priced items to customers.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
Pricing
Currency Rates
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