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ASI Releases 2025 Counselor State of the Industry: Promo Trends, Tariffs and Tech

TREVOSE, PA – August 7, 2025

Distributors respond to economic pressures with resilience and innovation

“This year’s data-driven research doesn’t just chart numbers – it tells the story of how hard-working entrepreneurs are navigating marketing shifts to remain trusted marketing partners for their clients.” – ASI CEO Tim Andrews

The Advertising Specialty Institute® (ASI), the leading authority in the $26.6 billion promotional products industry, has released its highly anticipated Counselor State of the Industry, a comprehensive, data-driven analysis offering vital insights into the trends, challenges and opportunities shaping the future of promo.

Amid persistent financial headwinds, supply chain disruptions and steep import taxes, the 2025 report highlights an industry marked by agility and innovation. The latest analysis shows that while distributors reported average sales declines of 3.6% in Q1 and 3.2% in Q2 of 2025, many firms remain optimistic, adapting to tariff uncertainty through pricing strategies, diversified sourcing and value-added services.

“What stands out most in our findings is the determination and creativity of the suppliers and distributors driving this industry forward,” said Timothy M. Andrews, ASI’s president and chief executive officer. “This year’s research doesn’t just chart numbers – it tells the story of how hardworking entrepreneurs are navigating marketing shifts to remain trusted marketing partners for their clients. We’re proud to provide the tools and intelligence they need to stay strong, informed and competitive.”

For the first time, the ASI data team compared revenue growth and stock performance among publicly traded and private equity-backed firms on the Counselor Top 40 list – an annual ranking of the industry’s highest-earning companies – to their privately owned counterparts.

Among the standout data points from this year’s report:

  • 70% of suppliers raised prices in Q2 2025, primarily in response to tariffs.
  • 46% of distributors now offer company stores to clients, signaling increased demand for customized, tech-enabled solutions.

The 2025 Counselor State of the Industry is based on extensive surveys of distributors and suppliers across North America. Now in its 48th year, the State of the Industry remains the most authoritative benchmark for decision-makers in branded merchandise.

“The 2025 research report fills the need in our industry for the data that firms can and should use to benchmark their business and plan for growth in the year ahead,” said Nate Kucsma, ASI senior executive director of research.

Notable insights:

  • Sourcing shifts: Demand for Made-in-USA promotional products is rising. At the same time, suppliers are continuing to diversify sourcing away from China due to import costs.
  • Cybersecurity risks rise: Cyberattacks are hitting the promo industry hard – with 40% of top firms already impacted. Distributors and suppliers rank ransomware as a top concern heading into 2026.
  • AI in the promo space: Artificial intelligence is gaining ground as a tool for streamlining operations and enhancing efficiency – though integration with legacy systems and security remains a hurdle.
  • Industry consolidation accelerates: Major M&A deals like S&S Activewear’s (asi/84358) acquisition of alphabroder, backed by private equity, are reshaping the supplier landscape – narrowing supplier options, shifting pricing power and raising the stakes for smaller distributors.

“This year’s Counselor State of the Industry shows a market in motion, where disruption is the norm and innovation is lighting the path ahead,” said Editor-in-Chief C.J. Mittica. “The data makes one thing clear: Forward-thinking sales professionals aren’t just adapting – they’re finding new ways to lead.”

From pricing strategies to sourcing shifts and tech adoption, the 2025 Counselor State of the Industry delivers deep, actionable insights for promotional product companies and is available online.

Reporting provided by ASI Media Editors Sara Lavenduski, Theresa Hegel, Brendan Menapace and Hannah Rosenberger, with Managing Editor Joan Chaykin. Magazine design by Editorial Digital Art Director Hillary Glen and online design by Senior UI Designer Kathleen Fitzgerald. Michele Bell is ASI Senior Vice President, Content and Global Alliances.

For more information on the 2025 Counselor State of the Industry or numerous other market research reports, contact Nate Kucsma at [email protected].

About ASI
The Advertising Specialty Institute (ASI®, asicentral.com) serves a network of 25,000 suppliers, distributors and decorators in the $26.6 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.