The promotional products world has had smoother months. May 2025 didn’t exactly bring the fireworks, but don’t cue the sad trombone just yet. While sales dipped, optimism is quietly making a comeback. Here’s what’s going on in our quirky, ever-evolving industry:
📉 Sales in May? Kinda Sluggish.
If you felt like May was slower than usual, you weren’t imagining things. Around half of suppliers and distributors reported lower sales compared to the same time last year. Yes, it was a bit of a “meh” moment for many in the biz.
But before you start panic-printing stress balls, let’s look at the bigger picture.
📈 Confidence is Crawling Back
Despite the slowdown, industry confidence is rebounding, and that’s a big deal. A 90-day pause on steep China tariffs and some legal clarity around product regulations seem to have lifted spirits. In fact, supplier confidence for full-year 2025 sales jumped from 75 to 88 on ASI’s optimism index. Distributors are feeling better too, climbing to 79 from 73.
In short, we’re not out of the woods yet, but we’re no longer lost in the fog.
💸 Tariffs = Price Hikes (Surprise, Surprise)
Let’s talk about the elephant in the room: tariffs. Over 70% of suppliers and nearly two-thirds of distributors have raised prices because of them. More than a third of suppliers have had to bump prices by over 10%. And while most distributors didn’t go that far, no one’s immune to the squeeze.
If you’ve been wondering why that tote bag costs a bit more this year, now you know.
🔮 The Outlook: Cautious but Upbeat
Here’s the silver lining: half of suppliers now believe their sales will grow in 2025. That’s a big leap from just a month ago, when only 32% felt that way. Tariffs are still a wild card, but the outlook is better than it has been in months.
That said, about 46% of suppliers and 49% of distributors still worry that if tariff pressure returns in full force, sales could dip again.
So, What Does This Mean for You?
If you’re in the promotional products space, here’s your takeaway:
- Expect some pricing volatility. Tariff-based increases are real, and they may stick around.
- Keep an eye on the global stage. Politics and trade policies are shaping product costs more than ever.
- Stay flexible and creative. Clients still want great branding tools. They just might need help navigating the new pricing landscape.
Final Thoughts
The promo industry hit a few speed bumps in May, but it’s far from stalled. While the market is adjusting to higher costs and uncertain tariffs, confidence is quietly rebuilding. So hang tight, keep innovating, and remember: in this business, resilience is always in style.
