2025 wasn’t easy for promo across the pond.

European distributors generated an estimated $14.83 billion in sales for the year, according to ASI Research’s just-released study of the continent’s promotional products market, a low single-digit increase from the prior year.

But much like in the North American market, distributors faced headwinds around economic uncertainty and geopolitical instability that left clients hesitant to spend in many cases, or at least more selective in their promo purchases.

$14.83 billion
Estimated size of the 2025 European promotional products market(ASI Research)

“In both the U.S. and Europe, the promo industry needs to reassert itself as necessary marketing spend, not discretionary,” said Nate Kucsma, ASI’s senior executive director of research, who led the study. “Promo has a unique ability to help brands connect with their customers, and this messaging must be hammered home to re-establish strong growth on both sides of the Atlantic.”

Additionally, this year-over-year increase was heavily influenced by notable upward revisions in ASI Research’s market estimates for the Netherlands and Poland compared to previous iterations of this study. Without these adjustments, overall figures would likely indicate that the European market contracted in 2025.

In this episode of Counselor Promo Insiders, ASI’s Michele Bell and Nate Kucsma share key findings from ASI Research’s fourth annual study of the European promo market.

Granted, there were marked differences in performance between individual countries. The general consensus was a more positive year for the Scandinavian nations, for example, as well as the United Kingdom, while two of Europe’s other top markets – Germany and France – flagged significantly.

But in an industry of optimists, there is always a belief in the continued resilience of promo.

“The industry is navigating through a challenging economic environment, but it continues to also demonstrate a remarkable resilience – but that doesn't necessarily mean we are growing at the moment,” said Michael Freter, a promo industry veteran and founder of the Global Executive Network. “Resilience means that we keep on going.”

Country by Country

This year’s study was the fourth iteration of ASI’s annual report on the European promotional products market, analyzing distributor sales in the United Kingdom, the 27 nations of the European Union and the additional countries of Iceland, Norway and Switzerland. ASI Research develops annual promo sales estimates for each country based on both extensive interviews with leaders in the U.K./European promo market and data on gross domestic product growth, population and other key economic factors.

ASI Research found an overall growth of about 1.8% for countries in the European Union specifically, bringing the estimated sales total to about $11.23 billion for 2025. That’s lower than the U.S.’s reported growth rate of 4.2% on the year, but that increase was at least partially due to tariff-induced price increases.

$11.23 billion
Estimated 2025 promotional products sales for the European Union(ASI Research)

One of the clear headline findings is the continued struggles of Europe’s largest promotional products market, Germany, where annual sales dropped for the third year in a row to $2.97 billion. That’s about a 1% drop from 2024’s sales figure, and about a 3.4% overall decline since 2022.

Ralf Uwe Schneider, managing director/CEO of German promo association Gesamtverband der Werbeartikel-Wirtschaft, said that Germany has yet to recover its full typical annual sales volume from before the COVID-19 pandemic. Instead, he estimated, the country is essentially operating at a deficit of more than 150 million euros – or about $171 million – from its 2019 volume.

“Buying promotional products is a lot about mood – and the overall mood in Germany has fallen dramatically,” Schneider said. “We’ve essentially lost 20 years of growth, and we haven’t kept up with inflation.”

$2.97 billion
Estimated 2025 promotional products sales in Germany(ASI Research)

What’s driving that decreased mood? The German car market, for one, has been flagging for the past several years amid increased global competition, particularly around EVs, and lingering impacts of the U.S. tariffs imposed in 2025. The continued Russia-Ukraine war has also escalated energy prices, which is a particular challenge for a nation whose economy is largely built on manufacturing.

“When the car industry goes down, the whole year may go down, because more or less most of the economy is dependent on the car industry,” said Kjell Harbom, the current president of The European Promotional Products Association. “They say that when Volkswagen coughs, the rest of the world gets pneumonia.”

“Buying promotional products is a lot about mood – and the overall mood in Germany has fallen dramatically.”Ralf Uwe Schneider, Gesamtverband der Werbeartikel-Wirtschaft

France, too, was among the countries most affected by the tough year in Europe, said Fred Misseri of SYNNEO, the largest distributor in the country.  ASI Research’s estimates suggest sales contracted around 1.5% in 2025, to about $1.65 billion.

Misseri said that the beginning of 2025 posed particular challenges for the French market, while the close of 2025 proved more promising for promo. Unlike Germany’s clear connection with the automotive industry, though, it’s difficult to pinpoint where exactly France’s main challenges stemmed from, given the disparate impact global factors had on the promo market throughout Europe.

“That doesn't mean global uncertainty, geopolitical conflicts, supply chain disruptions, or other external factors had no impact. They certainly did,” Misseri said. “But if international factors had accounted for, say, 80% of the challenges we faced in 2025, we would have expected to see a similar level of decline across most European markets—which simply wasn't the case.”

$1.645 billion
Estimated 2025 promotional products sales in France(ASI Research)

And Europe as a whole deals with more administrative challenges than the U.S., particularly around sustainability regulations and requirements in the European Union. The forthcoming “Digital Product Passport” regulations set to go into effect in the next few years, where textile products will be required to include information on factors like carbon footprint and waste generation, are just one example.

Many countries have also struggled with finding skilled workers, as well as managing moderate inflation and price increases fueled by geopolitical conflict and instability.

“All of that added together has made business quite challenging,” said Till Barth, the editor-in-chief of eppi Magazine, which covers the European promo market.

Still, that’s not to say there aren’t some bright spots for promo. John Lynch – the American founder of Kraków, Poland-based Lynka, part of Counselor Top 40 supplier Vantage Apparel (asi/93390) and one of Europe’s leading supplier decorators of apparel and accessories – says that Poland has been growing its market share steadily over the past few years. That’s partially because it was a notably smaller segment to begin with, but many Europe-based suppliers do still have their production or manufacturing facilities in the Eastern European nation.

On a larger scale, Sourcing City, the U.K.-based promo industry service provider and one of ASI’s international partners through PromoAlliance, reported an estimated 8% growth on the year for the U.K. market (England, Scotland, Ireland and Wales) in totality. Granted, at least some of that growth was due to higher prices rather than strictly increased business activity, but Sourcing City Managing Director Jason Grenham says he’s optimistic that the market remained stable despite the uncertainty of 2025. He attributes the U.K.’s comparative stability to the country’s economy being more service-driven, rather than more manufacturing-oriented like Germany.

$2.26 billion
Estimated 2025 promotional products sales in the United Kingdom(ASI Research)

“If you take out increased prices, the U.K. market still probably showed small growth – which I think is a good sign,” Grenham said. “Certainly last year was a tough year, but I think a lot of the U.K. market came out of it pretty well.”

Counselor Top 40 supplier Goldstar (asi/73295), specifically, reported significant success in the U.K. market, as well as growth in Switzerland and the Benelux (Belgium, Luxembourg and the Netherlands) region.

“Our European market is exceeding expectations,” said Heather Smartt, Goldstar's global head and a member of Counselor's Power 50 list of the most influential people in promo.

Goldstar is just one example of U.S.-based promo firms that have built up a presence in Europe throughout the past several years. Smartt attributes the supplier’s success in the region to both successfully diversifying throughout different European nations, and also understanding that doing business in Europe isn’t the same as operating in the U.S. Cultural and regulatory differences – including but not limited to those around sustainability – mean that “copy/pasting” an existing U.S. business model isn’t the key to success.

That’s why acquiring European companies, especially on the distributor side, has become a go-to strategy for U.S. firms to gain a foothold on the continent. Last week, Counselor Top 40 distributor Geiger (asi/202900) announced it had snapped up two more German distributors, GF Werbemittel and Pro-promotion, on top of its long list of international acquisitions, just as one example.

“It’s very hard for an American company to come over here without an acquisition and do it right,” agreed Lynch.

Shifting Demand

Tighter budgets and economic uncertainty have also shifted how European end-buyers are spending, promo pros say. Price-consciousness has led to trimmed down orders in many cases, and companies are planning events and spend closer to execution than they used to.

Harbom hasn’t noted as big of a shift in what people are buying – it’s how they’re buying.

“They almost buy the same products, but you don’t buy 500 pieces, you buy 466 because that’s what you need,” Harbom said. “You don’t put 34 on the shelf anymore. It’s more exact orders.”

Smartt, for example, noted that order counts have gone up, but order value has gone down as clients order fewer quantities.

Lex van den Bosch, founder and former operations manager at Netherlands-based supplier Allgifts, said that the growth of e-commerce promo companies is a big contributing factor to this trend, as these firms have made it easier to buy in smaller quantities.

“People will still continue to purchase just enough to get through the next two or three months, not knowing exactly what is happening both at home and abroad,” Grenham added. “I think we’re certainly in a position where a lot of end-users are just being wise with their budget. It’s a case of ‘Rather than spending it all now, let’s just spend it as we need it.’”

Of course, there are marked differences by country here, as well. Lynch noted that while many top markets – including Germany, France, Spain and Italy – remain highly price-sensitive, he’s noticed a shift in many others toward lower quantities of higher quality goods. Kitting and the experience of receiving the promo item have grown in importance for these clients, he said.

“It’s a case of ‘Rather than spending it all now, let’s just spend it as we need it.’”Jason Grenham, Sourcing City

“They really carefully consider what they’re going to do with the budget that they have,” Barth added. “Let’s do something really good that is functional, that stays with the recipient for a long time – and that’s maybe better.”

The first half of 2026 certainly hasn’t brought about a resounding dose of optimism or a sudden industry rejuvenation, with conflict in Iran affecting fuel prices and lead times for many European countries more directly than it did for the U.S. market. Uncertainty remains, especially in the markets that already struggled in 2025.

But, once again, there are still bright spots. Grenham, in the U.K., noted a particular – if a bit unexpected – confidence in the promo market so far in 2026, with several of Sourcing City’s larger members having a strong start to the year.

“Everyone is a little hesitant about purchasing, and they’re keeping an eye on their budgets just because of the markets and everything,” added Smartt. “But from my perspective, I see it moving in a more positive path.”

“From my perspective, I see the industry moving in a more positive path.” Heather Smartt, Goldstar (asi/73295) 

If 2025 was a year of stagnation, Freter hopes 2026 is a year of stabilization for the European market – with an eye on more substantial growth in 2027. He sees the current moment as a major turning point for the industry as promo fights for its place in marketing budgets, even as those budgets tend to be slashed in times of economic uncertainty.

Promo isn’t an essential for company function in the same way that paying staff salaries or purchasing product is, says Schneider. But the key to helping solidify its place as not the first budget to get cut is providing clear, measurable ROI for clients that demonstrates the impact that promo does have.

“The winners will not be the guys who sell more types of products,” Freter said. “The winners will be who delivers more value.”