According to the Canadian Sales Volume Study, the branded merchandise market reached $2.03 billion CAD in distributor sales in 2025, which translates to approximately $1.46 billion USD.
- This study, a collaboration with Promotional Products Professionals of Canada and underscoring PPAI’s commitment to strategically expanding its international research leadership, is in its third year.
Those who have followed the Canadian Sales Volume Study in its first two years may notice this is a significantly larger sales figure than what was revealed in 2024. This increase is not indicative of uncharacteristically massive year-over-year growth. Rather, as this study has grown in its third year, so has its available data and market coverage. In other words, the Canadian branded merch market is bigger than previously realized.
- If the first two years of the Canadian Sales Volume Study represented an important first step in collaboration and establishing a critical baseline for the country’s market, this most recent study should serve as the new benchmark for branded merch sales in the country. Any future comparisons should be made against this figure.
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PPPC President and CEO Jonathan N. Strauss says that, with each year that this study is refined, more useful data can be gleaned beyond the headlining sales number. Canadian distributors and suppliers – as well as international firms doing business in the region – can reference or begin conversations using this information.
“The $2.03 billion CAD estimate provides an important new benchmark for understanding the Canadian branded merchandise market and the significant role our industry plays across the country,” says Strauss. “Beyond the topline number, this research gives our members meaningful Canadian-specific insights into changing customer demand, sourcing, sustainability, e-commerce and emerging business opportunities. Together with PPAI, we’re committed to continuing to strengthen this research and provide our members with the data and insights they need to continue to compete and grow.”
Jonathan N. Strauss
President & CEO, PPPC
The study also helped clarify a current trend within the Canadian market: A significant portion of sales are concentrated among larger distributors. From a data perspective, this makes it all the more important to gain insights from all the most relevant distributors in order to create the most accurate picture of the broader sales landscape within the country, as PPAI Research has continued to do as the study has grown.
- To that point, you’ll notice in the graph below that more than 90% of sales volume was made up of distributors who generate over $1 million (CAD) in revenue annually and the majority of that came from distributors who generate more than $2.5 million (CAD) annually.
“Canada may look similar to the U.S. branded merchandise market on the surface, but its market structure and demand dynamics are distinct,” says Alok Bhat, market economist and PPAI’s research and public affairs lead. “Sales volume is highly concentrated among larger distributors, while the business remains strongly relationship-driven, with demand anchored by sectors such as construction, education and business services.”
Alok Bhat
Market Economist and Research & Public Affairs Lead, PPAI
The full study with additional insights and data points is available to Professional-tier members who have access to PPAI Premium Research.
A Few Key Findings
The data also revealed that sourcing is becoming more diversified within the Canadian market. As the graph below shows, 16.6% of distributor sales were made up of non-industry suppliers. This comes out to $337.6 million CAD.
- Perhaps just as notable as that 16.6% is the fact that nearly 8 out of 10 respondents claimed to use non-industry suppliers. Customer request was the leading reason.
- When Canadian distributors went outside of the industry for suppliers, local manufacturers and artisans were the most commonly used sources.
Online sales continue to steadily rise in the Canadian market, making up 17.7% of total sales volume.
- More than half (58%) of Canadian distributors said digital marketing and e-commerce platforms significantly or moderately increased their sales in 2025.
Canadian distributors are making sustainable merchandise a meaningful share of the region’s market. More than one-fifth (21.7%) of distributor sales were made up of sustainable products, accounting for $441 million CAD.
Percentage of Sustainable Products Sales, Canadian Market, 2025:
- Nine out of 10 Canadian distributor respondents said that they sold sustainable merch.
- About one-third of distributors claimed demand increased in 2025, while the majority described it as steady.
Technology adoption has been relatively timid in Canada, as market sales have seemingly grown without a rush toward rapid adoption of new technologies. This leaves opportunities to build on successes with deliberate and intentional utilization of certain applications.
- Only 35% of Canadian distributors reported integrating technologies such as AI, AR or VR into their marketing or selling operations.
- Among those options, utilizing AI for customer insights was the most common use of these types of technologies.
The data reveals a noteworthy gap between 2026 expectations concerning sales and profit. In other words, a high percentage of Canadian distributors assume that distributor sales will increase in 2026 than expect profits will increase, as shown in the graph below.
- The gap between the two is not drastic, but as you can see, more than half of distributors predict increased sales, while less than half predict increased profits, which is at least a notable data comparison.
- One could argue this reflects the importance of cost management, pricing and margins as growth opportunities are present in the Canadian market now and in the near future.
To read the full report and see deeper insights into data such as sales volume by industry and more advanced breakdowns, check out PPAI’s Premium Research.
