For every $1 spent on branded merchandise in the United States, approximately $0.61 is retained in the domestic economy.
That’s one of the main takeaways from the global economic impact study that PPAI commissioned from Oxford Economics, an independent global advisory firm. The study examines the size and economic footprint of branded merch across the full value chain, moving beyond the traditional distributor sales measures that have long served as important industry benchmarks.
It’s an important finding because branded merch operates through a global supply chain. A product may be manufactured in one country, sourced or decorated in another and ultimately distributed and activated somewhere else.
Therefore, the economic value doesn’t begin and end with manufacturing. In the U.S., substantial value is created through sourcing, suppliers, decoration, customization, distribution, retail, buyer relationships and other downstream services.
Alok Bhat
Director of Research & Public Affairs, PPAI
The structure of the U.S. market makes that clear. Oxford’s underlying model shows that approximately:
- 69% of direct U.S. branded merchandise GDP is downstream
- 21% is midstream
- 10% is upstream manufacturing
The employment picture reinforces the same point. The U.S. branded merchandise industry directly supports about 584,000 jobs, including approximately 389,000 downstream jobs, 141,000 midstream jobs and 54,000 upstream jobs. Learn more in this deep dive of the $174 billion U.S. branded merch market.
“The 61-cent finding is one of the most important insights from this study because it helps show what sits behind the product,” says Alok Bhat, market economist and director of research and public affairs at PPAI.
Comparing Country To Country
The global comparison makes the story even more interesting.
One of the strongest findings from the study is that the same branded merch industry creates economic value very differently from market to market.
What stands out: The U.S. is heavily downstream, reflecting its role as the world’s largest branded merch demand market and the importance of distribution, sourcing, decoration and buyer relationships.
Mexico shows almost the opposite profile. About 65% of direct merch GDP is upstream, reflecting its importance in manufacturing blank products and decorating merch for both its domestic market and other markets, particularly the U.S.
Canada sits between those two models, with 45% downstream, 18% midstream and 37% upstream, showing a considerably larger production footprint than the U.S.
Germany also combines a substantial consumer market with a meaningful manufacturing base, with 55% of direct GDP downstream and 31% upstream.
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The United Kingdom and Ireland, as well as Australia and New Zealand are much more downstream-oriented. Australia and New Zealand are particularly notable, with 76% of direct GDP downstream and only 8% upstream, reflecting relatively limited domestic manufacturing.
India is nearly evenly divided between downstream activity and manufacturing, while China is overwhelmingly upstream, with approximately 89% of direct merch GDP generated through manufacturing.
China helps illustrate the global nature of the story especially well. It accounts for about $25 billion in domestic merch spending, yet the sector supports approximately $78 billion in Chinese GDP because China plays such an important manufacturing and supply chain role for demand around the world.
Putting Your Role Into Perspective
Behind every item is an economic ecosystem that can include:
- manufacturing
- sourcing
- decoration
- customization
- warehousing
- distribution
- retail
- fulfillment
- buyer relationships
Different markets specialize in different parts of that chain, and each layer creates measurable economic value.
This helps put PPAI members’ roles into perspective. A supplier sourcing and decorating merchandise, a distributor developing a program, a decorator adding customization or a company managing fulfillment isn’t simply moving a product through the system. Those activities are part of the economic value being created.
WATCH: PPAI, Oxford Economics Break Down Global Study Findings
It also gives important context to global sourcing because where a product is manufactured and where its economic value is created aren’t necessarily the same thing.
“Branded merchandise is a global industry, but a significant share of the economic value generated by U.S. demand is created here through suppliers, decorators, distributors, retailers and the people who bring these programs to life,” Bhat says.
“When we look across markets, we also see how interconnected this industry really is, with different countries playing different roles across manufacturing, sourcing, decoration and distribution. That full ecosystem is something our industry should understand and take pride in.”
- After months of assessment, Oxford Economics estimates that the branded merchandise sector supported $472.3 billion in global GDP in 2025.
- Individual countries’ results can be explored at a microsite created for the research: PPAI.org/economicstudy.
- The full Branded Merchandise Global Market Report is available for Premium Research subscribers.
