Hopeful. Optimistic. Growth. Cautious. Unpredictable. These are the keywords provided by promo products distributors in an Advertising Specialty Institute (ASI) survey when asked for one word to describe their expectations for 2026, after a good year with solid year-over-year growth as a market segment.
The responses, as seen in the word cloud graphic above, were probably not so different than how many in the active lifestyle market would respond, although “uncertain” and “tariffs” would certainly warrant space near the top.
North American promotional products distributors posted 4.2 percent sales growth in 2025, reaching a record $27.7 billion, according to an annual report from ASI, which claims to be the “leading authority on the $27+ billion promotional products industry.”
“After early-year declines caused by economic uncertainty and tariff pressures, the industry finished strong, with fourth-quarter sales rising 5.1 percent over Q4 2024,” ASI noted in its report. “By comparison, U.S. real GDP growth was estimated at 1.9 percent in 2025, highlighting the promo sector’s relative resilience.”
ASI President and CEO Timothy Andrews said in the release of 2025 data that the year was far from business as usual.
“Distributors faced persistent challenges but adapted by diversifying client bases, expanding services and leaning into their role as trusted partners. The strong finish to the year underscores the resilience of this industry,” he said.
ASI noted that the promotional products covered in the survey report refer to branded items such as pens, apparel or drinkware, typically purchased by a company or brand and then given away free to promote businesses, build brand awareness and strengthen customer and employee relationships.
Nearly 90 percent of distributors said they raised prices by an average of 11 percent last year to offset higher import costs, particularly from China and India. While overall sales grew 4.2 percent, much of this growth reflected pricing rather than additional order volume, as has been the case in other retail segments, such as footwear and apparel. Over half of distributors reported flat (18 percent) or declining (35 percent) sales, responses that ASI believes reveal uneven underlying business activity.
ASI said extra-large distributors, those with over $5 million in annual revenue, led Q4 growth at 9.3 percent year-over-year, while smaller and mid-sized firms rebounded later as delayed orders moved forward. Distributors serving multiple industries outperformed peers, and investments in logistics, inventory management and fulfillment helped firms navigate supply chain challenges.
“Industry confidence also improved, with the Counselor Confidence Index from ASI, which measures distributor financial health and business optimism, rising to 92 in Q4. Although still below the baseline of 100, the increase signals cautious optimism heading into 2026,” ASI reported. “High-profile events such as the U.S. 250th anniversary and the FIFA World Cup in North America are expected to further drive promotional spending.”
ASI said it will “continue tracking quarterly trends and economic indicators, providing distributors and suppliers with timely insights into sales, sentiment and the evolving promotional products marketplace.”
The Advertising Specialty Institute serves a network of thousands of suppliers, distributors and decorators in the $27.7 billion promotional products industry. The company’s flagship product, the technology platform ESP, manages the industry’s supply chain and marketing.
Image courtesy ASI
