A monthly digest for merchandise buyers: what changed in the promotional products industry, where it comes from, and what it means for your next order.
A monthly digest for merchandise buyers: what changed, where it comes from, and what it means for your next order.
Key takeaways
- The U.S. promotional products market is at a record $27.1 billion but grew only 1.3% in 2025, and most of that growth was price, not volume.
- Distributors raised prices by an average of 11% in 2025 and decorators expect 5% to 15% more in 2026, so quotes are worth locking early.
- Sustainability requests are now mostly compliance requests: a third of suppliers report more demands for testing, PFAS and ESG documentation.
- European suppliers are pushing 24-hour decoration on stock items, and U.S. buyers should expect the same option to spread.
Industry Watch is a short monthly page. Each item gives what happened in our own words, why it matters if you buy branded merchandise, and where the information comes from. We do not reproduce the source material; the links go to the publishers.
1. A record year in dollars, a flat year in units
PPAI's 2025 U.S. Distributor Sales Volume Estimate puts distributor sales at $27.1 billion, up 1.3% on 2024 and below inflation. Online sales are 26.3% of the total; retail-brand merchandise reached about $6 billion; sustainable products $3.8 billion. PPAI's own economist summarized the year as distributors selling more but making less, with tariffs, freight and client budget cuts squeezing margins.
For buyers: a flat budget now buys fewer pieces. PPAI's separate trend research shows 60% of buyers cut quantity first when money is tight and only 11% cut customization, which is the right instinct. (Full breakdown: The U.S. Promo Industry in Numbers.)
2. Prices rose 11% and are expected to rise again
ASI's Counselor State of the Industry, published in January, reports North American distributor revenue of $27.7 billion, up 4.2%, and finds that 88% of distributors raised prices in 2025 by an average of 11%. Decorators surveyed expected further increases of 5% to 15% in 2026. The gap between ASI's growth figure and PPAI's is mostly price and geography, not a disagreement about the market.
For buyers: ask for quotes early in the planning cycle and ask how long a quote is held. A reorder against artwork already set up is cheaper than a first order, so repeating a program beats reinventing it.
3. Tariff language is becoming standard in quotes
Among larger U.S. distributors, roughly six in ten named tariffs and duties as the top pressure on 2025 margins, ahead of freight and client budget cuts, according to PPAI's sales volume report. Suppliers across the industry adjusted sourcing and pricing during the year, and many now state their duty assumptions on quotes rather than absorbing changes silently.
For buyers: read the quote's tariff clause before signing. A good quote says what happens if duties change between order and delivery; a vague one leaves you to find out on the invoice.
4. Sustainability is now a documentation request
PPAI's January trend report finds that only 33.3% of distributors say clients regularly ask for sustainable options, yet 34.4% of suppliers report increased requests for documentation, testing, PFAS disclosure and ESG materials. Requests cluster in bags, apparel and drinkware. State PFAS restrictions and packaging producer-responsibility laws continue to phase in through the late 2020s.
For buyers: if your procurement or ESG policy will ask for paperwork, ask the supplier at the quote stage which documents exist for the item. (Checklist: Sustainability Is Now Paperwork.)
5. Europe's trade show set the pace on speed and traceability
PSI 2026 in Düsseldorf drew about 600 exhibitors and 9,735 trade visitors, with textiles the most sought-after category. Three themes ran through exhibitor reporting: 24-hour decoration on stock items as a market expectation, digital product passports that record origin, materials and carbon footprint, and direct-to-object digital printing. The show moves to Cologne from 2027.
For buyers: fast decoration on stock items is coming to more suppliers; ask for the real production time, not only the shipping time, and ask for a proof of the decorated item. (Method choice: How to Choose a Decoration Method.)
6. What the year's best campaigns had in common
PPAI's 2026 Pyramid Awards recognized 18 client programs, from an 830%-over-projection product-launch kit to a 45,000-piece year-end employee gift tied to a conservation cause. The winners share a pattern: a defined moment, a matched product set, an experience attached to the object, and a result decided before the order.
For buyers: decide the number you want to move before you decide the product. (Five patterns: What Award-Winning Promo Campaigns Have in Common.)
7. Consumers still keep what they are given
PPAI's Product Power 2026 study of more than 5,000 U.S. consumers found that 83% feel valued when they receive a promotional product, 73% use logoed drinkware every day, and 65% keep items they like for six months or longer. A separate March survey of more than 300 employees found that a quality tumbler is the single most-wanted item in a welcome kit.
For buyers: put drinkware first in any kit, and choose the decoration that survives a dishwasher. (Spec: New-Hire Welcome Kit: The Six-Item Base.)
What this means for your next order
- Quote early, hold the artwork. Prices are moving up; setup paid once is reused on every reorder.
- Ask two questions on every quote: how tariff changes are handled, and which compliance documents exist for the item.
- Buy fewer, better, faster. Durable items, decorated to last, on realistic production times, outperform larger runs of forgettable ones.
Request a quote with your next program, or contact us with a procurement policy you need to quote against.
Frequently asked questions
How often is Industry Watch published?
Monthly, at the start of the month, covering research, regulation and trade-show developments relevant to buyers of branded merchandise.
Where do the numbers come from?
Published research and reporting from PPAI, ASI and PSI, plus state regulatory announcements. Each item links to its source; we summarize in our own words and add our reading of what it means for buyers.
Are promotional product prices going up in 2026?
Industry surveys point that way: distributors raised prices an average of 11% in 2025 and decorators expected a further 5% to 15% in 2026, driven by tariffs, freight and compliance costs.
Sources
- PPAI Research, "PPAI Sales Volume Estimate," PPAI Magazine, March 2026: https://www.ppai.org/media-hub/
- ASI, Counselor State of the Industry 2026, January 2026: https://www.asicentral.com/
- PPAI Research, "2026 New-ish Trends" (including "Sustainability Is Growing In Tandem With Compliance Demands"), PPAI Magazine, January 2026: https://www.ppai.org/media-hub/
- PSI 2026 show reporting, PSI Journal 3/2026 and PSI Network: https://www.psi-network.de/
- PPAI, "Inspiring Client Promotions: PPAI's 2026 Pyramid Awards," PPAI Magazine, March 2026: https://www.ppai.org/media-hub/
- PPAI Research, "Product Power 2026": https://www.ppai.org/media-hub/
- Custom Ink, "Welcome Kit Research," press release, March 12, 2026: https://www.customink.com/
Ready to Put This Into Practice?
Published per-unit merchandise prices are binding at the listed quantity tiers. Decoration or imprint, applicable setup, rush-production, and shipping charges are confirmed in your written quote.
Request a Quote
