The promotional products industry is at a crucial moment. Growth is technically happening, but margins are razor thin and external pressures like inflation and tariff uncertainty are potentially putting margins at odds with that growth. According to PPAI’s bi-monthly survey, promo’s revenue grew in July and August by 0.7% compared to the same months in 2024.

  • With numbers tight, PPAI Research surveyed PPAI 100 distributors to get deeper insights into their perspectives on end-buyer priorities, trends and preferences.


“According to the data, distributors believe that a few key areas stand out as most valued among end buyers,” says Alok Bhat, market economist and research and public affairs lead at PPAI. “Speed, price and customization dominate. Sustainability is rising, but not yet universal.”

Alok Bhat headshot
“Speed, price and customization dominate among end buyers. Sustainability is rising, but not yet universal.”

Alok Bhat

PPAI’s Research & Public Affairs Lead

  • 68.8% of PPAI 100 distributors say end buyers are prioritizing faster turnaround and rush delivery. It is worth noting that tariff threats have loomed over 2025, putting a perceived urgency on orders from customers all the way down the supply chain. “Promo is increasingly expected to match e-commerce service levels,” Bhat says.
  • 64.6% claim that customization and innovation are top values for end buyers.
  • 60.4% of distributors say that end buyers are pressing on the issue of price sensitivity.
  • 33.3% note that end-buyer requests for sustainability and compliance-related products were given some level of priority.
  • Finally, only 14.6% cited brand safety/compliance as something valued by end buyers, suggesting that ESG is still a selective priority.

According to Karl Whiteside, managing director of Brand Addition, PPAI 100’s No. 16 distributor, the top three priorities ring true when it comes to end buyers, but the firm is continuing to see that for the right clients, sustainability has proven itself as something of a prerequisite.

“Speed, innovation and pricing are themes that we see and hear from our clients, but at Brand Addition we work with some of the world’s most respected brands and for them, none of that matters without sustainability and compliance,” says Whiteside. “That’s why we’re committed to delivering promotional solutions that are not only fast and innovative, but also responsible, safe and future-focused. This is where our clients really see the value and in our world brand reputation is always at stake.”

We believe the future of promotional marketing lies in balancing speed and creativity.”

Karl Whiteside

Managing Director, Brand Addition

Price Sensitivity Picks Up

With promo’s revenue growth hovering just above stagnation, it’s perhaps no surprise that distributors are reporting that more buyers are tightening their budgets, and very few are willing to ease that pressure. It would not be surprising if many of them were facing inflation and tariff pressures in their own industries.

  • More than half (55.3%) of distributors are reporting that end buyers have become more price sensitive compared to last year, leading to harder negotiations and stricter budgets.
  • 42.6% of distributors report that price sensitivity has gone mostly unchanged. Still, with inflation and tariffs in play, “same” ultimately still means a high scrutiny on cost.
  • Only 2.1% of distributors see end buyers easing up on price, underscoring just how rare premium flexibility has become in 2025.

“Price pressure is intensifying for most distributors,” says Bhat. “Even where it is unchanged, clients remain highly focused on cost, leaving little room to pass along rising expenses.”

ESG: The Precipice Of A Priority?

Distributors don’t seem to be in as wholeheartedly in agreement that ESG requests are an end-buyer priority the way they feel about a few other issues such as speed, pricing and customization. Still, according to Whiteside, it takes working within those priorities and still meeting sustainability requests to satisfy the buyers they are partnering with.

“Brand Addition is proud to lead the way in expanding our eco-friendly range and reducing environmental impact, upholding the highest levels of product safety, ethical sourcing and brand protection and supporting our clients to make informed decisions that align with their ESG goals,” Whiteside says. “We believe the future of promotional marketing lies in balancing speed and creativity.”

  • More than one-third of distributors (35.4%) ask about product origin, materials or ESG credentials in some projects, often when brand reputation is at stake.
Our clients who spend $100k or more a year typically ask more questions about product origin.”

Andrew Titus

President, Fully Promoted

“I agree with this statement when it comes to our larger enterprise clients,” says Andrew Titus, president of Fully Promoted, PPAI 100’s No. 51 distributor. “Our clients who spend $100k or more a year typically ask more questions about product origin.”

A select number (10.4%) called these inquiries “frequent,” and about half (54.2%) say these issues still come up rarely or never.

What Gets Cut First?

If you want to see the frustrating side of reduced budgets, you might look at how distributers perceive what gets cut first when those purse strings are tightened. Apparently, it is both quantity and quality that are sacrificed in some cases.

  • 60% of PPAI 100 distributors report that clients reduce order quantities first in order to stay within budget.
  • 51.1% say clients downgrade from premium to standard products to adjust to new pricing realities.
  • Only 11.1% are seeing clients cut back on customization or support services such as kitting or fulfillment, suggesting they value these things, even during times of reduced budgets.


“Buyers cut quantity and quality first but still expect service and customization to stay,” Bhat says.