SOURCE Advertising Specialty Institute

TREVOSE, Pa., Jan. 20, 2026 /PRNewswire/ -- North American promotional products distributors posted 4.2% sales growth in 2025, reaching a record $27.7 billion, according to an annual report from the Advertising Specialty Institute® (ASI), 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% over Q4 2024. By comparison, U.S. real GDP growth was estimated at 1.9% in 2025, highlighting the promo sector's relative resilience.

"Last year was far from business as usual," said Timothy M. Andrews, ASI president and CEO. "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."

Promotional products are branded items like pens, apparel or drinkware typically given away free to promote businesses, build brand awareness and strengthen customer and employee relationships.

Nearly 90% of distributors raised prices by an average increase of 11%. to offset higher import costs, particularly from China and India. While overall sales grew 4.2%, much of this growth reflected pricing rather than additional order volume. Over half of distributors reported flat (18%) or declining (35%) sales, showing that underlying business activity was uneven.

Extra-large distributors with more than $5 million in annual revenue led Q4 growth at 9.3%, 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. 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 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 (ASI®, asicentral.com) 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 and marketing chain.

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