State of the Industry 2025 View all Stories

Distributors are united by their shared role in the promotional products industry, but the similarities often end there. The industry encompasses a vast array of businesses, from small local outfits to multimillion-dollar giants, and several distinct trends emerge as revenue grows, including increases in client retention, order size, international clients, company store offerings and AI usage. Use these snapshots of five different revenue classes to benchmark your company and see how it compares to industry averages.

Extra Small Distributors
($100K and Under in Revenue)

Top 5 Markets

1. Education

2. Construction

3. Nonprofit

4. Government

5. Associations & Clubs

Top 5 Products

1. T-Shirts

2. Caps/Headwear

3. Drinkware

4. Writing Instruments

5. Polos

0%

are currently using AI

0%

sell company stores to clients

Median Number of Clients Served

35

Percentage of Clients Retained

73%

0%

sell to customers outside the U.S. & Canada

Average Value of Orders

$945

Median Number of Orders

102

Top 3 Challenges

1. Increasing size of customer base

2. Remaining profitable under pressure to cut prices

3. Finding new product ideas to present to clients

Small Distributors
($100K+ to $250K in revenue)

Top 5 Markets

1. Education

2. Construction

3. Nonprofit

4. Manufacturing

5. Associations & Clubs

Top 5 Products

1. T-Shirts

2. Caps/Headwear

3. Drinkware

4. Polos

5. Writing Instruments

0%

are currently using AI

0%

sell company stores to clients

Median Number of Clients Served

54

Percentage of Clients Retained

81%

0%

sell to customers outside the U.S. & Canada

Average Value of Orders

$1,215

Median Number of Orders

202

Top 3 Challenges

1. Increasing size of customer base

2. Remaining profitable under pressure to cut prices

3. Retaining best customers

Medium Distributors
($250K+ to $1M in revenue)

Top 5 Markets

1. Education

2. Healthcare

3. Construction

4. Nonprofit

5. Manufacturing

Top 5 Products

1. T-Shirts

2. Polos

3. Caps/Headwear

4. Drinkware

5. Bags

0%

are currently using AI

0%

sell company stores to clients

Median Number of Clients Served

90

Percentage of Clients Retained

83%

0%

sell to customers outside the U.S. & Canada

Average Value of Orders

$1,442

Median Number of Orders

480

Top 3 Challenges

1. Increasing size of customer base

2. Remaining profitable under pressure to cut prices

3. Retaining best customers

Large Distributors
($1M+ to $5M in revenue)

Top 5 Markets

1. Education

2. Healthcare

3. Manufacturing

4. Technology

5. Restaurants/Travel/Lodging

Top 5 Products

1. T-Shirts

2. Polos

3. Drinkware

4. Caps/Headwear

5. Bags

0%

are currently using AI

0%

sell company stores to clients

Median Number of Clients Served

200

Percentage of Clients Retained

83%

0%

sell to customers outside the U.S. & Canada

Average Value of Orders

$1,871

Median Number of Orders

1,000

Top 3 Challenges

1. Increasing size of customer base

2. Remaining profitable under pressure to cut prices

3. Finding new ideas to present to clients

Extra Large Distributors
(Over $5M in Revenue)

Top 5 Markets

1. Education

2. Healthcare

3. Construction

4. Finance/Insurance

5. Manufacturing

Top 5 Products

1. T-Shirts

2. Drinkware

3. Caps/Headwear

4. Polos

5. Bags

0%

are currently using AI

0%

sell company stores to clients

Median Number of Clients Served

240

Percentage of Clients Retained

84%

0%

sell to customers outside the U.S. & Canada

Average Value of Orders

$1,814

Median Number of Orders

9,750

Top 3 Challenges

1. Increasing size of customer base

2. Remaining profitable under pressure to cut prices

3. Recruiting and retaining well-qualified employees

State of the Industry 2025 View all Stories