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North American Promotional Products Industry Grows 4.2% in 2025 to Record $27.7 Billion

TREVOSE, PA – January 21, 2026

“The strong finish to the year underscores the resilience of this industry.” – ASI CEO Tim Andrews

Strong fourth-quarter sales helped distributors overcome early-year declines, tariff pressures and economic uncertainty, according to new research from ASI.

North American promotional products distributors posted 4.2% sales growth in 2025 over 2024, according to a newly released annual sales report from the Advertising Specialty Institute® (ASI), the leading authority in the $27.7 billion promo industry.

The year ended on a high note, with fourth quarter (Q4) sales rising 5.1% over the same period in 2024. This marked the strongest quarter of the year and a dramatic turnaround after two consecutive quarters of declining sales early in 2025, ASI research found.

“Last year was far from business as usual,” said Timothy M. Andrews, president and chief executive officer of ASI. “Distributors faced persistent economic uncertainty, tariff-related challenges and pricing pressures, yet they adapted by diversifying their client bases, expanding services and leaning into their role as trusted partners. The strong finish to the year underscores the resilience of this industry.”

While topline growth was solid, ASI cautions that higher pricing played a significant role. Nearly 90% of distributors reported raising prices during 2025 to offset higher import costs, particularly tariffs affecting key sourcing markets such as China and India. For those who increased prices, the average rise was about 11%.

“Overall, a sales gain of more than 4% is strong,” said Nate Kucsma, senior executive director of research at ASI. “But when most distributors raised prices by more than that amount, and inflation was around 2.7% in 2025, it suggests that underlying business activity was uneven.”

In total, 47% of distributors reported higher sales for the year, while more than half said revenue was flat or declined, highlighting the uneven nature of 2025. Still, half of distributors ended the year with Q4 growth, the highest percentage since mid-2023, helping fuel cautious optimism heading into 2026.

Second-Half Momentum Highlights Industry Adaptability
According to ASI, nearly all distributor size categories – except large firms – achieved their best quarter in Q4. Extra-large distributors with more than $5 million in annual revenue led the pack, averaging 9.3% growth. Smaller firms, which struggled earlier in the year, also rebounded as delayed orders moved forward and client confidence improved.

Distributors with clients spread across multiple industries tended to outperform, staying resilient even when some sectors, such as housing and food-related businesses, experienced slower demand in 2025. Investments in logistics, inventory management, and fulfilment also helped distributors manage uncertainty and deliver on client commitments despite global supply chain challenges.

Confidence Improves, but Remains Below Baseline
Industry sentiment strengthened late in the year. ASI’s Counselor Confidence Index, which measures distributor financial health and optimism, rose to 92 in Q4, up seven points from midyear lows as tariff conditions stabilized and clients gained clarity for planning.

Despite the improvement, the index remains below the baseline of 100, signaling caution as distributors balance growing confidence with ongoing concerns about pricing, margins, and broader economic pressures.

Looking ahead, ASI highlights major 2026 events – including the World Cup hosted by Canada, the U.S. and Mexico – as potential drivers of promotional spending. Distributors are also monitoring political uncertainty, ongoing tariffs, and additional price increases from decorators and suppliers.

“Distributors are entering 2026 with more confidence than they had early last year, but nothing is guaranteed,” Kucsma said. “Success will continue to depend on flexibility, client diversification, and delivering value.”

ASI will continue tracking industry performance through its quarterly research and economic indicators, providing distributors and suppliers with timely insights into sales trends, sentiment and the evolving promotional products marketplace.

For more info on industry sales or additional ASI research reports, contact Nate Kucsma at [email protected].

About ASI
The Advertising Specialty Institute (ASI®, asicentral.com) serves a network 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 entire supply and marketing chain. ASI also produces award-winning digital and print content, live events and educational programs that enable companies in 48 countries to be more efficient, productive and profitable. The ASI media and research team delivers trusted, business-critical data, insights and news, while the ASI Learning Network offers members dynamic, on-demand education, from industry fundamentals to advanced tools like AI and ESP+. The company, family-owned since 1962, is proud to have been consistently ranked among the “Best Places to Work” in Philadelphia and Bucks County, PA.