One-third of PPAI 100 distributors report increased sourcing from non-industry or direct suppliers, according to the latest data from PPAI Research.
- Roughly half (52%) of PPAI 100 distributors see no shift, indicating that non-industry sourcing remains limited and opportunistic.
- 11% don’t source outside of industry suppliers at all, reinforcing that the traditional supplier network remains the backbone of the promotional products ecosystem.
As to why distributors work with non-industry suppliers, 60% cite access to product categories not readily available through traditional promo suppliers, especially retail-adjacent, lifestyle, tech and specialty items.
Furthermore, 79% report rising demand (significantly: 23%, moderately: 55%) for retail brands and premium products.
“Retail and premium products continue to gain traction, increasingly becoming a core part of end buyers’ expectations, especially in recognition, gifting and employee experience programs,” says Alok Bhat, market economist, research and public affairs lead at PPAI.
- Nearly half (47%) of PPAI 100 distributors work with non-industry suppliers because of better pricing – often leveraging direct import or manufacturer relationships to offset tariff-driven cost increases – and another 47% work with non-industry vendors due to client requests for consumer-name brands.
- 13% cite speed, using non-industry partners when direct manufacturers can ship faster or support quick custom runs.
Greener Pastures
It’s not just retail-forward merch on the rise – 40% of PPAI 100 distributors report growing demand (rapidly: 2%, gradually: 38%) for sustainable and compliant products.
- More than half (53%) see no major change, indicating that interest is present but not consistently translating into purchase volume.
“Interest in sustainable products is rising gradually, driven mainly by larger corporate clients and programs tied to ESG messaging,” Bhat says. “But real demand remains modest and is often limited by price sensitivity.”
Alok Bhat
Research & Public Affairs Lead, PPAI
Clients being unwilling to pay premium prices remains the biggest barrier (82%) to distributors offering more sustainable products.
- More than one-third (38%) say sustainable options are still limited within the categories or price points their clients prefer, especially in fast-turn and value-driven programs.
- Nearly a quarter (24%) face higher supplier or production costs, which makes it harder to position sustainable alternatives competitively.
- 22% point to certification or tracking requirements, especially when navigating diverse supplier capabilities.
The Future
Looking ahead to 2026, PPAI 100 distributors say the biggest growth drivers are expanding services, on-demand capabilities and new client programs.
Distributors see strong potential in enhanced e-commerce, creative services, global programs, live events and print on demand, supported by better processes, stronger tech stacks and fresh sales talent, according to the survey.
However, tariff volatility, rising costs and shrinking client budgets remain top concerns.
“Economic uncertainty, staffing constraints and dependency on a few key accounts continue to shape 2026 planning,” Bhat says.
