ASI's 2025 Counselor State of the Industry Report Unveils Key Market Trends

ASI's 2025 Counselor State of the Industry Report

On August 7, 2025, the Advertising Specialty Institute® (ASI), a prominent figure in the $26.6 billion promotional products sector, published the 2025 Counselor State of the Industry report. This annual document offers an in-depth analysis of market trends, emerging challenges, and the technological landscape impacting the industry today.

Industry Landscape and Economic Challenges

The report is now in its 48th year and emphasizes the need for suppliers and distributors to adapt quickly to a landscape marked by uncertainty, including supply chain disruptions, increasing tariffs, and escalating cybersecurity threats. Despite facing an average sales decline of 3.6% in the first quarter and 3.2% in the second, many organizations have put strategic measures in place, including altering pricing strategies, diversifying their sources, and investing in technological advancements to bolster their operations.

Key Findings from the Report

Among the numerous insights revealed in the report, several trends particularly stand out:

1. Price Increases Driven by Tariffs: 70% of suppliers reported having to raise their prices in response to import taxes, reflecting the growing pressure on manufactures from governmental trade policies.
2. Rise of Company Stores: The data indicates that 46% of distributors are now offering company stores, a significant increase compared to previous years. This shift highlights the evolving preferences of businesses and their desire for efficient promotional solutions.
3. Increased Focus on U.S. Sourcing: There has been a renewed demand for domestically produced promotional items as companies strive to minimize their dependence on Chinese imports. This trend is indicative of broader changes in global sourcing and supply chain strategies.
4. Growing Cybersecurity Concerns: The report highlights that 40% of leading promotional product companies have fallen victim to cyberattacks, with ransomware topping the list of concerns for the upcoming year.
5. Adoption of Artificial Intelligence: Distributors are increasingly looking towards AI to enhance their operational capabilities, though they also face challenges in integrating these technologies. The report notes that for distributors using AI, the most prevalent application is in the creation of creative copy.
6. Market Consolidation: Mergers and acquisitions, particularly led by private equity, are reshaping the supplier landscape. A notable example includes SS Activewear's acquisition of alphabroder.

Timothy M. Andrews, the President and CEO of ASI, commented on these trends, stating, "This year's data shows an industry moving forward through innovation, resilience, and smart strategy. Our report delivers the tools and insights that help promo businesses grow stronger, even in uncertain times.”

Furthermore, for the first time, ASI performed a comparative analysis of revenue and stock performance among the Counselor Top 40 companies. This includes insights into public, private equity-backed, and privately held firms, offering a comprehensive view of business performance and leadership strategies.

Nate Kucsma, ASI's Senior Executive Director of Research, echoed these sentiments, noting that the 2025 State of the Industry provides essential benchmarking data that allows businesses in the promotional products field to make more informed decisions amidst a rapidly changing market landscape.

The full 2025 Counselor State of the Industry report is accessible at ASICentral.com/research for further insights into industry trends and data.

About ASI

ASI is not only the largest membership organization in the promotional products industry, serving over 25,000 suppliers and distributors, but it also provides critical news, research, education, and a suite of media and technology tools such as ESP® to help enterprises thrive in the global market.