Even as Canada continued to grapple with economic and trade uncertainty, end-buyers were asking for seasonal items and promo favorites in the third quarter of 2025.

That’s according to the latest data from ASI Research, which found that “pens,” “water bottle” and “cooler” took the top three spots for the most-searched terms in ESP by Canadian distributors in Q3.

Q3 2025 Top 10 ESP - Canada | Flourish

While “water bottle” made the top three in each month of the quarter, searches for “cooler” were high in July for late summer promotions, to be supplanted by “tote bags” and “lanyards” ahead of fall events.

Distributors in North America are generally optimistic for the fourth quarter, after a relatively busy Q3 despite economic headwinds. Indeed, a 5% year-over-year increase in the third quarter among North American distributors was the highest sales growth since 2023, according to just-released data from ASI Research.

“The third quarter was hopefully the turning point of 2025 for the industry, with overall increased North American sales and buyers willing to spend,” said Hannah Rosenberger, ASI’s data analytics editor. “But with lingering economic challenges in Canada specifically, there is still some hesitation, likely leading to more strategic spend on classic promo items and seasonal favorites.”

Among the terms with the highest year-over-year increases in search frequency were “clear fanny pack,” up 6,750% and bottle brand-name “Nalgene” (up 5,650%), which could signal a move away from heavier canvas totes and stainless-steel drinkware and toward lighter weight, smaller bags and sports bottles. “Pocket tee” searches surged 2,340% – T-shirts remained popular this year across the industry, with the added bonus of being more shielded from tariff turmoil so far thanks to a more diversified apparel supply chain.

Among the largest decreases in search were “stress ball” (down 68%), “magnets” (down 57%) and “travel mug” (down 53%).

Searches for “Nalgene” increased 5,650% year over year in Q3 2025 among Canadian distributors.(ASI Research)

Despite continued economic challenges – such as inflation, which ticked up between August and September, as well as high cost of living, tariff uncertainty and job market concerns – Canadian end-buyers are overall ready to spend ahead of the busy Q4 season. Sam Singh, president and CEO of certified B Corp Full Line Specialties (asi/199688), says employee appreciation, client gifting and event campaigns are back on the books, though customers are still budget-conscious.

“Buyers are being more strategic with higher-end brand-name goods in lower quantities instead of the traditional ‘brand-fill’ type merch to be distributed to the mass market,” says Singh. “They’re focusing more on initiatives that deliver a better ROI while building meaningful connections with their clients.”

Meanwhile, the “Made-in-Canada” movement that characterized much of 2025 has evolved – Singh says that, while Canadian-made items are still in demand when budgets allow, he’s noticed they’ve become more discerning about origin stories, regardless of where it was made.

“Buyers aren’t chasing the label alone,” he says. “They’re digging deeper into quality, transparency and traceable supply chains. ESG commitments and supplier diversity goals continue to play a role in those decisions, and as a certified B Corp, it’s important to our company’s values and culture that we bring these concepts to the forefront of our campaign proposals to the client.”

Aaron Moscoe, CEO of TPS Promotions & Incentives (asi/341409), says tariff uncertainty continues to affect consumer confidence in Canada, but budgets are remaining relatively steady as the industry heads into the year’s final quarter. Canadian-made and support for Canada-based employees and operations are still important to end-buyers, as are sustainable products like those with minimal packaging.

“The maturing of our industry’s supply chain is making these demands easier to cater to,” says Moscoe. “Customers are also gravitating towards products that have a functional, personal use, like home décor and houseware items.”

The trade conversation has been back in the news in recent weeks, with wood tariffs going into effect on Oct. 14 per the Trump administration, as well as an additional 100% tariff on Chinese goods heading into the U.S., expected Nov. 1. In addition, the U.S. Supreme Court will hear oral arguments next month on the legality of the Trump administration’s levies.

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