Key Takeaways
• New data from ASI Research shows distributor sales in the promo industry rose 5% in Q3 year over year, marking the strongest quarterly growth in over two years and signaling a potential recovery after a sluggish start to 2025.
• All distributor size categories saw Q3 growth – especially larger firms – yet rising costs and tariffs continue to pressure client budgets, particularly in manufacturing, and may potentially dampen spending in future quarters.
• While new tariffs were introduced in August, the relative stability compared to Q2’s chaotic trade environment encouraged end-buyers to move forward with delayed promo projects. Nearly half of distributors reported increased sales.
The promo industry is on the upswing again.
North America distributor sales grew 5% in the third quarter compared to the same three-month period last year, according to data from the just-released Distributor Quarterly Sales Survey from ASI Research. The increase marks the largest year-over-year quarterly sales jump for the industry in more than two years – a sharp contrast to the two consecutive quarters of declines that kicked off 2025.
The third quarter brought some level of economic stability after a dizzying array of tariff announcements rocked the industry during Q2.
Q3 did open with a new lineup of reciprocal tariffs, going into effect in August, but it lacked the back-and-forth uncertainty that marked April and May – a trend that may have led to end-buyers being more likely to pursue promo projects they’d been putting off. The Q3 survey was fielded before President Donald Trump threatened another round of skyrocketing tariffs on Chinese goods, but the industry, in large part, seems like it is more optimistic.
“It’s encouraging to see a substantial rebound this quarter after a challenging few months for promo back in the spring and early summer,” said Nate Kucsma, ASI senior executive director of research. “Hopefully, it’s an indicator of broader stability that will lead to continued growth in the fourth quarter and a strong finish for 2025.”
Read this full feature, complete with stats and data, on ASI Central.
