Promo Insiders: The Data Behind Promo’s Uneven Second Quarter
ASI’s Nate Kucsma and Hannah Rosenberger break down the promotional products industry’s 2.5% second quarter sales growth – and why some distributors thrived while others struggled.
Amid continued inflation and other business pressures, the promo industry accelerated to 2.5% year-over-year growth in the second quarter.
For Nate Kucsma, ASI’s senior executive director of research, that finding is a sign the industry is starting to push through some of the challenges it has faced over the past year – though the path to a strong upward trajectory is far from clear.
“The promo market as a whole doesn’t necessarily need good news or bad news to thrive, right?” Kucsma said. “I mean, don’t get me wrong – good news is great to help the industry thrive. But what I really feel it needs is a level of continuity.”
In this week’s episode of Promo Insiders, Kucsma and Counselor Data Analytics Editor Hannah Rosenberger break down the key findings from ASI Research’s most recent quarterly sales survey, including insights on how that “wait and see” mindset has impacted sales and how some distributors are building success amid uncertainty.
Key Takeaways
• Counselor’s Hannah Rosenberger and ASI Senior Executive Director of Research Nate Kucsma break down ASI’s latest quarterly sales survey, examining what drove the promotional products industry’s 2.5% year-over-year sales growth in Q2 and what it could mean for the rest of 2026.
• Overall industry growth was modest but encouraging. Sales increased 2.5% compared to the same quarter last year – a stronger showing than Q1 – but the headline number masks a highly uneven quarter, with nearly equal shares of distributors reporting sales increases and decreases.
• Success increasingly depended on client mix, company size and target markets. Distributors serving growing sectors – such as AI companies – or benefiting from major events often outperformed peers serving slower-moving markets. Larger distributors also generally outperformed smaller firms.
• America250 generated less business than many expected. While some distributors benefited from patriotic-themed promotions, nearly three-quarters reported little or no impact.
• The outlook for the second half of 2026 remains cautiously optimistic. Despite ongoing uncertainty, Kucsma expects business activity to strengthen as year-end spending accelerates.