XS
SM
MD
LG
XL

How Paint Nights and Coloring Books Boost Office Supply Sales

Tapping into your creative side can be good for your mental and fiscal health. Learn which companies are benefiting from paint nights & adult coloring books.

Print
https://tickertapecdn.tdameritrade.com/assets/images/pages/md/Coloring book: How paint nights and grownup coloring books are boosting office supply sales
2 min read

As grownups tap into creativity with paint nights and coloring books for adults, a few industries are benefiting.

Paint nights, coloring books, back-to-school supplies, and the handmade market are supporting office supply companies as more adults are embracing crafting and buying art supplies, according to the global information company The NPD Group. This is also carving out new opportunities for the office supplies industry, they said.

The group said coloring and art supplies have become more than a $1.1 billion market, with in-store and online sales growing over $75 million combined in 2015. The growth is driven by art and craft paper, paint, and painting supplies.

“The handmade movement will continue to gain momentum, especially as more consumers place added focus on health and wellness, creative outlets, and a do-it-yourself approach to projects,” said Leen Nsouli, office supplies industry analyst for NPD. “Social crafting networks will continue to expand, providing consumers the opportunity to simultaneously socialize and craft.”

Coloring Is Not Just for Kids

Step inside any office supply store and displays of paints and coloring books are often featured prominently, right alongside traditional office needs like ink cartridges and staplers. A recent CNN story reported that some of Amazon’s (AMZN) bestselling books are adult coloring books. The story said part of the interest in these books is driven by adults who want to unplug from being online and find a new way to relax.

Relaxation is also behind the rise of “paint nights.” These experiences started popping up around the U.S. several years ago when bars and restaurants started hosting informal painting sessions. During these nights, an instructor typically walks amateur artists through creating a canvas-based painting. Students often have a paintbrush in one hand and glass of beer or wine in the other. Once socializing and painting are completed, students take their masterpieces home.

Pretty as a Picture?

Although the handmade market and crafting surge is boosting sales of supplies like paints, pens, pencils, crayons, paper, and coloring books, investors might want to stick with coloring in the lines, so to speak.

Although major office supply companies like Staples (SPLS) and Office Depot (ODP) are stocking these products and may be seeing a pickup in sales in this category, it still represents only a fraction of their total sales. Like most physical stores, these companies are experiencing increasing competition from online shopping, and their shares took a hit earlier this year after a hoped-for merger fell through. Although Bank of America has a buy rating on Staples, saying it’s underperforming, the other few analysts that watch the stock have it rated as a neutral or hold. Analysts also have a mixed view of shares of Office Depot.

ACCO Brands (ACCO), which makes several types of business and crafting supplies, and The Michaels Companies (MIK), a craft supply store, may have more vibrant outlooks based on the surge in paint nights and adult coloring books. Zacks Research lists ACCO as a buy, and MIK as a strong buy.

ACCO’s products are sold both in stores and online, and unlike other brick-and-mortar retailers, Michaels is generally shielded from online competition, analysts said. So if you’re looking to add some color to your portfolio and find a way to unwind after a long day at work, you might consider looking deeper into the trends driving adults to create art.

A Colorful Palette of Stocks Awaits

Want to learn more about stocks potentially benefiting from adult creativity? Screener tools can help you find and put stocks to the test.

Call Us
800-454-9272
adChoicesAdChoices

Market volatility, volume, and system availability may delay account access and trade executions.

Past performance of a security or strategy does not guarantee future results or success.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.

Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request.

The information is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.

TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2018 TD Ameritrade.

Scroll to Top