The promotional products industry reached a record high last year, with promo distributors increasing sales collectively by 1.8% year over year to $26.6 billion, according to ASI Research.
And optimism for 2025 is strong. The Counselor Confidence Index, which has been measuring distributor financial health and business optimism for nearly a quarter of a century, has a projected reading of 105. For context, the index has a baseline reading of 100, which it hit in the fourth quarter of 2024 – the first time it’s reached or surpassed that mark since the third quarter of 2023.
One of the key strengths of promo is perhaps how ubiquitous it is. Just about every market – from banks to schools to construction – needs logoed items and apparel to outfit staff, give to customers, and boost brand awareness.
If you’re a wide-format producer looking to break into promo, but you’re unsure of where to find potential clientele, here’s a rundown of the top five markets in promo, with vital statistics and actionable tips to help get started.
EDUCATION
Education is the top market in promo, with $3.6 billion in sales, according to Counselor magazine’s 2024 State of the Industry (SOI) report. In fact, 60% of education end-buyers who use promo say that it’s very important to their marketing strategy, according to ASI Research.
Popular Promo Categories for Education
1. Bags: 55% of education end-buyers say they’ve purchased logoed bags, and it makes sense. Perhaps it’s a college giving out drawstring backpacks stuffed with important pamphlets and other goodies for prospective students. Or a high school sports team distributing logoed gym bags to student-athletes. Whatever the reason, bags are functional items with a highly visible canvas for logos and other branding.
2. Blankets/Towels: 40% of education end-buyers say they’ve purchased blankets or towels. Fuzzy blankets are a winning spirit item, keeping fans in the bleachers cozy while they cheer on their chosen team.
3. Buttons/Badges/Lanyards/Stickers: 35% of education end-buyers say they’ve purchased this category. Lanyards with pouches to hold student IDs are still very prevalent on college campuses, for example.
4. Calendars: 35% of education end-buyers say they’ve purchased promo calendars. A custom calendar – with important events marked throughout – are an essential for busy parents of school-age children.
Selling Tips
1. Mix in premium items with budget-friendly basics. This goes for elementary schools especially. Parents may be unwilling to shell out extra cash on youth tees when they know their children are likely to grow out of them quickly, but a proud parent probably also wants to rep the school with branded merch in adult sizes.
2. Educate yourself on college licensing. There’s ample opportunity for custom apparel and other branded merch on college campuses, whether it’s supporting the growing Name, Image and Likeness (NIL) market fueled by college athletes or providing gear for sororities and fraternities. But many schools outsource trademark and licensing responsibilities to companies like Collegiate Licensing Co. or Affinity Licensing, so learning to navigate those organizations is often imperative to success.
3. Don’t forget about alumni. Targeted social media ads or a strategic email campaign can help distributors reach out to college alums with special offers and limited-edition merch.
HEALTHCARE
Healthcare is the second-largest promo market, with $2.7 billion in sales, and 95% of healthcare end-buyers who use promotional products say they’re satisfied with the ROI they receive from such items.
What goals do healthcare buyers have with promo?
-Thanking employees and customers (77%)
-Increasing brand awareness (70%)
-Increasing sales (63%)
-Increasing loyalty (60%)
-Generating leads (40%)
Healthcare end-buyers purchased more health and safety products (34%) than any other end-buyer segment surveyed by ASI Research.
Selling Tips
1. Consider printing opportunities. Hospitals and health clinics have ample need for custom printing. Directional signage helps patients get where they need to be, and informational posters and brochures explain treatments or postsurgical care.
2. Focus on employee wellness. Wellness programs are increasingly popular among companies, as a way to keep talent engaged, healthy, and happy. Branded gifts like drinkware, yoga mats, or loungewear can be part of tiered rewards for participants in such programs.
3. Tune in to telehealth. Since the pandemic normalized digital medicine, this health market niche has been on the rise. Telehealth companies often turn to branded desktop items (perhaps a sticky note cube, or a bamboo phone stand/charger) to help stay top of mind.
CONSTRUCTION
Coming in third, construction accounts for about $2 billion in sales, according to the 2024 SOI. Of the end-buyers who use promo, 98% say they’re satisfied with the ROI such items bring, and about two-thirds of construction end-buyers who use promo say it’s very important to their marketing strategy.
Popular Promo Categories for Construction
1. Caps/headwear: 68% of construction end-buyers say they’ve purchased this category. Protection from the elements is an important consideration for workers who are often outside.
2. T-shirts: 60% have purchased this category. T-shirts, the largest product category in promo, is a natural fit for the construction market. Consider tees in high-visibility shades, like safety green or orange.
3. Awards/trophies: 29% of construction end-buyers purchased items in this category. Recognizing employees for years of service and on-the-job safety with commemorative plaques is routine for many firms in this market.
Selling Tips
1. Offer a head-to-toe look for employees. Uniforms are key for many workers in the construction market, particularly electricians or HVAC technicians who have to enter people’s houses. Suggest that buyers add on caps and beanies branded with the company logo to ensure a cohesive, professional appearance.
2 .Get involved in the community. Showing up at ribbon cuttings, chamber breakfasts, and other local events will help you build relationships and increase your referral network.
3. Create webstores. Company stores where employees can shop for branded merch often using employer-provided credit can be an effective way to help construction firm clients with employee satisfaction and retention.
MANUFACTURING
Manufacturing ranks fourth among top promo markets, with $1.8 billion in sales, according to Counselor’s SOI report. Nearly all (95%) of manufacturing end-buyers who use promotional products say they’re satisfied with the ROI they receive. ASI Research also finds that end-buyers in this niche spend 28% of their marketing budget on promo.
What goals do manufacturing buyers have with promo?
-Increasing brand awareness (79%)
-Thanking employees and customers (72%)
-Increasing sales (69%)
-Increasing loyalty (62%)
-Generating leads (33%)
90% of manufacturing end-buyers who use promo purchased apparel in 2023.
ASI Research
Selling Tips
1. Become an expert at decals. Manufacturers need original equipment manufacturer (OEM) labels when selling their products. Decals with the right adhesive strength are important for warning labels, instructions and branding, according to promo distributors who target this market.
2. Invest in employee retention. Branded merch is a great way to help manufacturing clients keep employees happy – whether workers are receiving gifts for days on the job, days without incident, promotions or other achievements. High-quality promo helps signal belonging and loyalty.
3. Make it easy. The most important benefit a promo distributor can offer manufacturing clients is saving their precious time – at least that’s what 68% of end-buyers in this market say they want from their distributor. Look for opportunities to be a one-stop shop and remove steps in the ordering process to help streamline the buying experience.
FINANCE & INSURANCE
Rounding out the top five markets in promo is finance and insurance, which accounts for about $1.6 billion in sales, according to the Counselor SOI report. Nearly three-quarters of end-buyers in this market who use promo say it’s very important to their companies’ marketing strategy – the highest of any end-buyer market surveyed by ASI Research.
Popular Promo Categories for Finance and Insurance
1. Desk/office accessories: 51% of end-buyers in this market purchased items in this category. Phone-charging mats, cord organizers, desk calendars, and other office-friendly merch makes perfect sense for the white-collar workforce staffing banks and insurance companies.
2. Books/Cards/Postcards/Stationery/Gift Wrap: 38% of end-buyers in this market purchased various printed products. Maintaining a uniform branding strategy across all printed communications – whether internally to workers to externally to clients – is paramount.
3. Shirts (other than T-shirts or polos): 29% of end-buyers in this market made purchases in this category. Branded quarter-zips, button-downs, and other tops help bridge the gap between casual style and a professional appearance.
Selling Tips
1. Encourage year-round gifting. Though Q4 gifts are tried and true, people love to receive surprise gifts out of the blue – and it could help a financial client stand out from competitors vying for the same customers.
2. Look to specialty markets. Local credit unions and insurance companies that cater to specific groups have branded merch needs that might not yet be met. Do some research to find niches that could use your services.
3. Help foster loyalty. Financial institutions and insurance firms are always looking to build engagement with clients. Loyalty campaigns that include strategically selected branded merch collections can help build goodwill.
