For those doing business in the promotional products industry, navigating the abnormal has become, well, normal. Each year this decade has brought a fresh set of challenges for both distributors and suppliers to overcome. In 2025, the defining issue has been clear: the U.S. government’s tariff strategy and the resulting economic ripple effects. The impact on the promo industry has been significant. Yet, rather than retreating in the face of adversity, merch companies are once again proving their resilience.
Suppliers and distributors don’t need rescuing – but they could always use a little help. That’s where our 2025 Counselor State of the Industry package comes in. Based on a comprehensive survey of hundreds of distributors and suppliers, this year’s report delivers a wealth of data on how the industry performed in 2024 and through the first half of 2025. The statistics – organized into distributor- and supplier-focused sections – are paired with firsthand insights from industry leaders on the key trends reshaping the business of promo.
Yes, 2025 has been a very tough year. But it can still be a successful one. Counselor’s annual package is here to help you make that happen.
Promo Industry Trends
The Short- and Long-Term Outlook
How will volatility impact four of the biggest industry-wide trends?
Top Products
Hot Items
The top product categories in promo remained stable but stand to be affected by market forces this year.
Top Markets
Market Correction
Little shifted last year, but the biggest sectors in promo are bound to be impacted in 2025.
Publicly Traded and Private Equity-Backed Companies
Public Interest
This ASI Research analysis compares their growth to Counselor Top 40 companies and compares publicly traded firm’s revenues to their stock performance.
Anti-Swag Sentiment
Fighting the Backlash
Being creative and consultative helps distributors overcome perceived negative sentiments toward promo.
Buyer Preferences
The Middle Ground
Distributors are spending smarter on client campaigns, aiming for the sweet spot of premium-feel promo at every price point.
Tariffs
Total Turmoil
From price increases to lagging sales, distributors are dealing with the fallout from the biggest issue of 2025.
Projects Taking Longer
The Hold Up
Onerous service agreements, growing client requirements – and oh right, tariffs – are causing projects to drag on and on.
Choosing Suppliers
Seeking Partners
Distributors may not be expanding their vendor list, but they are welcoming suppliers who communicate and keep their word.
Expanded Services
All Under One Roof
Distributors are finding ways to grow by expanding their offerings to capture and consolidate more of their clients’ spend.
Distributor Snapshots
Across the Spectrum
These snapshots identify key characteristics within five distributor revenue classes.
Sourcing
Reconsidering China
The impact of tariffs is accelerating a defined trend: suppliers expanding their overseas sourcing beyond just China.
Supplier Health
Feeling the Pinch
A multitude of factors – starting with the seismic impact of tariffs – are undermining the health of suppliers.
Made in USA
‘American’ Moment
Made-in-USA suppliers are enjoying an immense boost, but what does the future hold for domestic manufacturing?
Labor
Hired Help
A strong talent pool has eased hiring woes for suppliers seeking salespeople and office workers – but the prognosis is different on the warehouse floor.
Supplier Snapshots
Exploring the Differences
With these snapshots, find out what makes suppliers unique across four revenue classes.