TREVOSE, PA — North American promotional products distributors powered through economic uncertainty in 2025, posting 4.2% sales growth and pushing the industry to a record $27.7 billion, according to a new annual report from the Advertising Specialty Institute.
The results marked a strong rebound after early-year declines driven by tariff pressures and broader economic concerns. Industry sales surged late in the year, with fourth-quarter revenue climbing 5.1% compared with the same period in 2024, outpacing estimated U.S. real GDP growth of 1.9% for the year.
Industry leaders said adaptability was key to the turnaround.
“Last year was far from business as usual,” said Timothy M. Andrews, president and chief executive officer of ASI. “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 include branded items such as pens, apparel and drinkware used by businesses to promote their brands and strengthen customer and employee relationships.
The report found that nearly 90% of distributors raised prices in 2025, with average increases of about 11%, largely to offset higher import costs, particularly from China and India. While overall sales grew, ASI noted that much of the increase was driven by pricing rather than higher order volumes. More than half of distributors reported flat or declining sales, highlighting uneven underlying demand.
Larger distributors led the rebound. Companies with more than $5 million in annual revenue posted fourth-quarter growth of 9.3%, while smaller and mid-sized firms saw improvement later in the year as delayed orders moved forward. Distributors serving multiple industries outperformed peers, and investments in logistics, inventory management and fulfillment helped firms navigate ongoing supply chain challenges.
Confidence across the sector improved as the year closed. ASI’s Counselor Confidence Index, which measures distributor financial health and business optimism, rose to 92 in the fourth quarter. While still below the baseline of 100, the uptick signaled cautious optimism heading into 2026.
ASI said upcoming high-profile events, including the United States’ 250th anniversary and the FIFA World Cup in North America, are expected to drive additional promotional spending.
The Advertising Specialty Institute serves thousands of suppliers, distributors and decorators in the promotional products industry. Its flagship technology platform, ESP, manages the industry’s supply and marketing chain. More information is available at https://www.asicentral.com.
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