2026 State of the Industry: Healthcare Surges, T-Shirts Stay No. 1 as Promo Market Shifts Create New Opportunities

Trevose, PA – August 20, 2026

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Landmark ASI research turns industry data into strategies

for distributors and suppliers to compete and expand

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Healthcare is surging. T-shirts still rule. Some longtime markets are losing ground. And across the promotional products industry, economic pressure, AI, changing buyer behavior and a new approach to sourcing are reshaping where distributors can find growth.

Among the headline findings of the 2026 Counselor State of the Industry report: Healthcare was the biggest gainer among top sectors that distributors sell to, increasing its share of industry sales by two percentage points. Construction gained one point, while education, financial/insurance and manufacturing each rose 0.8 points. Real estate saw the largest decline, losing 1.1 points of market share.

On the product side, T-shirts remain the industry’s number-one category. But aside from that familiar leader, buying patterns are shifting. Drinkware declined for the second consecutive year, writing instruments dropped 1.3 percentage points and practical, lifestyle-oriented categories including housewares/tools and blankets/towels gained ground.

The ASI research report reveals where the promotional products market is headed and the actions distributors and suppliers can take to compete more effectively. Now in its 49^th year, the comprehensive research from the Advertising Specialty Institute^® (ASI) combines survey data from hundreds of distributors and suppliers and expert analysis to provide practical ways companies can find new business and protect profits in today’s market.

“What excites me about this industry is how much opportunity there is to rethink what’s possible,” said ASI CEO Ashish Mittal. “The State of the Industry data gives us a window into where business is moving, but the real value comes from how our members use those insights – to build stronger client relationships, try new technology and find smarter ways to compete. ASI is here to help everyone move faster and turn possibilities into results.”

Big Shifts in Promo’s Top Markets

The size of the market shifts is notable. Promo’s leading sectors typically move by mere tenths of a percentage point, but the latest changes represent hundreds of millions of dollars in industry sales.

For distributors, that makes the findings a prospecting map – signaling where business is gaining momentum and helping sales teams identify markets worth targeting.

The shifts also underscore the value of diversifying across client sectors. For distributors, understanding which sectors are proving resilient – and which are bending to economic pressures – can help them decide where to spend more sales time without relying too heavily on any one market.

T-Shirts Lead, but the Product Mix Is Changing

Several shifts beneath the product leader could spark new ideas for promo companies.

For salespeople, the findings are a reason to look beyond categories that have traditionally dominated orders. Expanding into products that complement a client’s existing program – from lifestyle merchandise to packaging and fulfillment – can help salespeople deliver campaign ideas that address more of the client’s goals, instead of simply filling the next order.

Research Designed To Drive Action

This 2026 Counselor State of the Industry is deliberately forward-looking. With everything from tariffs to changing buyer expectations now part of everyday business, the report identifies numerous practical approaches business owners and entrepreneurs can put to work to succeed in any challenging business environment.

For distributors, the research explores how to protect client marketing spend by connecting promo directly to ROI and putting AI to work on everyday tasks. It also examines ways to capitalize on print on demand and build deeper relationships with trusted suppliers.

For suppliers, the State of the Industry looks at how companies can rethink sourcing amid tariffs and disruption while dealing with hiring challenges, rising costs and margin pressure. It also explores how they can become indispensable as distributors narrow their vendor networks.

The report also provides snapshots across revenue classes, allowing firms to benchmark their performance with similarly sized businesses and consider changing their priorities as they scale.

Go deeper into the findings on the Promo Insiders podcast, where Counselor’s editors unpack surprising shifts in promo’s top markets and how tariffs affected industry companies.

“The more I learn about this industry, the more energized I am by what’s ahead,” Mittal said. “There’s so much creativity here and technology is opening doors that didn’t exist before. I see a real chance for ASI to help our members work smarter, win more business and push the industry forward using hard data from our many research reports. We’re just getting started.”

Read the national award-winning 2026 Counselor State of the Industry report.

For more information on ASI research, please contact Senior Executive Director of Research Nate Kucsma at [email protected]. Find more industry news and research at asicentral.com/news and asicentral.com/research.

About ASI

The Advertising Specialty Institute^® (ASI, asicentral.com) is the premier technology, marketing and information provider in the $27.7 billion promotional products industry. The ASI flagship platform ESP+ connects tens of thousands of distributors and suppliers through a powerful, all-in-one system for product discovery, sourcing, presentations and online stores. Family-owned since 1962, ASI also delivers trusted industry news, research, shows, events and education designed to help companies succeed.