So much for the whole world going digital: It turns out we’re still very much a nation of pencil pushers.
Yes, the writing tool that we all remember from childhood is holding its own even in an era when so many of us turn to computers and smartphones to do most of our communication and note-taking. Just ask any parent who has to buy a boatload of pencils during the current back-to-school shopping season.
And while pencil production in the U.S. has dwindled over the years as manufacturing shifts overseas, the demand for those imports from such countries as China, Mexico and India suggests a market that looks to remain strong.
Trade data supplied to MarketWatch by the Writing Instrument Manufacturers Association shows that a key import category encompassing pencils and similar writing tools has grown by 17% from 2008 to 2022 — to a whopping figure of roughly 3.7 billion units annually. In short, a lot of pencils.
David Baker, executive director of the association, noted that some years are stronger than others for U.S. pencil sales — the market took a bit of a hit in 2021 during the COVID pandemic when many schools went remote — but there’s no sign of weakening overall.
The market is on track for continued growth, according to a research report from Precision Business Insights. It projects sales increasing at an annual rate of 7.7% through 2028.
The reason the pencil, a writing tool that dates back centuries and typically consists of graphite encased in wood, is not only able to survive but flourish has much to do with who uses them. Namely, children.
People in the industry note that pencils continue to be the essential, easy-to-use writing tool for grade schoolers, especially from the kindergarten level up to fourth grade.
“Pencils are so foundational at a young age,” said Steve Boyea, president of sales and marketing for the North American division of the Dixon Ticonderoga Company, the pencil brand perhaps most associated with the classic yellow-colored No. 2 model. (Dixon is now owned by F.I.L.A. Group FILA, -0.95%, an Italian conglomerate.)
And as the population of children in the U.S. grows — from 63.6 million in 1990 to 73.1 million in 2020, according to government and other data — that pretty much explains the growth in the pencil market, experts say.
““Technology has not replaced the need for traditional core classroom staples.””
Not that digitization hasn’t crept into the world of learning. Consider that starting next year, the SAT, the key college-entrance exam that high-school students take, will be done online, with no need for pencils on test day.
Tia Frappoli, president of the office-supplies practice for market researcher Circana, also noted that the use of digital tools “accelerated and peaked” during the pandemic and that many teachers plan to continue embracing such technology in the future. But she said the fact that pencils have held their own from a sales perspective speaks to their resilience.
“Technology has not replaced the need for traditional core classroom staples,” Frappoli said.
Pencil companies are also doing their part to make pencils, well, cool.
Tennessee-based Musgrave Pencil Company, one of the few surviving American manufacturers, has rolled out everything from scented pencils to ones with colorful designs (think dinosaur-themed models) over the years. They also have funky erase toppers that “add flash and appeal,” said Scott Johnson, the company’s president.
Tennessee-based Musgrave Pencil Company sells a variety of some of its most popular items.
Musgrave Pencil Company
The company also finds ways to address the adult market, since pencils are still used in many professions. A case in point: Musgrave has developed a dowel-shaped pencil that’s popular with carpenters.
Musgrave also works with companies to design pencils that can be imprinted with logos or messages. Johnson calls the pencil “the world’s smallest billboard” and added that “it’s an attractive medium as a promotional item.”
The company’s growth formula appears to be working: Johnson said sales are up 10% year-to-date.
It’s possible that an aspect of the pencil industry’s resiliency is about rebuking the digital realm, industry insiders say. Call it the Luddite’s revenge — or just the idea that holding a writing tool between your fingers has a certain intrinsic (and nostalgic) appeal that typing away on a computer or phone can don’t offer.
At least that’s how Caroline Weaver, a pencil fanatic who once ran a New York City store devoted to the writing instrument, sees it. She said she embraces the pencil for many reasons. Among them: the tactile feel of using it and the “unique freedom” that comes with having a built-in eraser.
Weaver added that today’s grown-up pencil users are a proud, analog-minded bunch.
“People are using analog tools not because they have to, but because they want to,” she said.