Staying strong – How the branded merchandise market remains resilient
If, like us, you’re not that keen on listening to what feels like never-ending negative news around the UK economy and the outlook for 2025, you’ll be pleased to know that businesses are booming when it comes to branded merchandise!
The 2023 figures from Sourcing City showed that the UK market had bounced back from Covid, and despite recent uncertainty, the industry grew yet again in 2024.
Thanks to the demand for branded merchandise from businesses like yours, the overall promotional product market grew by another 4.2% (on par with 2023)- up £49.7m and fast approaching the £1.25 billion mark!
This is largely down to the adaptability of businesses in evolving economic conditions, as well as the innovation of suppliers and distributors in offering a far wider range of products, with a key focus on technological advancements as well as increasingly sustainable features.
But what were the key drivers and trends, and what can we expect this year?
Market performance fuelled by major events
Key national and international events like the General Election, Olympics, and the Euros, all drove demand for promotional products last year.
Seasonal buying trends went out the window as a result too, with February being the most popular month for order enquiries compared to March last year. October, April and surprisingly, July, followed in second, third and fourth place.
Top branded products
In terms of the most in-demand products, the following items topped the charts yet again, but with spend in some product groups increasing more than 20%:
Top 5 product groups for 2024 were…
- Eco friendly ideas – c.£133m up 17%
- Exhibition giveaways – c.£119m up 17%
- Desk gifts – c.£110m up 14.5%
- Drink related – c.£102m up 19%
- Travel related – c.£94m up 22%
Top 5 products for 2024 were…
- Bag – c.£103m up 21%
- Pen – c.£84m up 13.5%
- Sports drink bottle – c.£56m up 8%
- Travel mug – c.£60m up 28%
- Jotter – c.£56m up 33%
This supports our own customer demands for practical, high-use products, but with a sustainability spin.
Sustainability: No longer optional
Eco-friendly products have moved from a niche trend to an industry standard. Sustainable materials, ethical sourcing, and certifications like FSC, GOTS, and Fairtrade are now expected by customers and need to be verified by businesses.
Customers want proof of sustainability, not just claims, and brands investing in genuinely sustainable products will gain trust and long-term customer loyalty.
The number of UK suppliers has increased 2.2% in the last 12 months too, which is a big tick in the box for those businesses who prioritise domestically sourced products.
At etc. Branding, we continue to provide our customers with quotes for more sustainable alternatives every time and have seen a huge uptake in ordering these options over their original product idea or suggestion.
The future looks bright: the future looks branded!
Looking ahead, the promotional merchandise industry is set to thrive, due to the continued value that businesses see from branded products.
We expect more distributors to enter the market, as they did this year, and smaller independent distributors like us to grow, pushing the boundaries of turnover thresholds as they focus on better quality of both service and products.
Other factors likely to shape the sector in the coming year include:
- AI & personalisation – More brands are using AI-driven tools to create hyper-personalised promotional products.
- Resale & limited editions – More companies are treating branded merchandise as sellable items rather than just giveaways.
- Smarter ordering strategies – Businesses will focus on forward planning and bulk orders to maximise cost effectiveness.
- Demand for Digital Product Passports (DPPs) – EU regulations will require full transparency in product supply chains by 2030, impacting how brands approach sustainability and the support they need from distributors to stay compliant.
It’s fantastic to see that branded merchandise continues to be a valuable marketing tool, even in uncertain economic conditions. Companies that innovate and focus on sustainability, strategic purchasing, customer needs and value-driven products are set to thrive.
