PPAI study shows branded merchandise supports $170 billion in US economics

Branded merchandise is a significant contributor to the United States economy, supporting $170.2 billion in United States GDP, 1.2 million American jobs, and $37 billion in tax revenues in 2025, according to a study commissioned by Promotional Products Association International (PPAI). The research also finds that Americans spent $174 billion on branded merchandise, making the U.S. the world’s largest market and accounting for 51% of global spending.

Conducted by an independent global advisory firm, Oxford Economics, the Branded Merchandise Global Market Report is said to be the first comprehensive effort to measure the industry from end to end, from manufacturing and decoration to distribution, retail, e-commerce, fulfillment, marketing, and brand activation.

Among the study’s key findings, the United States is the world’s largest branded merchandise market, contributing to:

• $174 billion in spending on U.S. branded merchandise, representing approximately 51% of global branded merchandise spending
• $170.2 billion to the U.S. GDP.
• 1.2 million U.S. jobs supported by the branded merchandise industry
• $37 billion in U.S. tax revenues; enough to fund the entire 2025 budget of the state of Georgia
• For every $1 spent on branded merchandise in the U.S., 61 cents of economic activity is retained domestically

Globally, branded merchandise also makes an impact, including:

• $338.3 billion was spent on branded merchandise globally in 2025, including $108.6 billion in promotional products and $229.7 billion in licensed merchandise.
• The industry supported $472.3 billion in global GDP, equivalent to approximately $1 of every $250 of worldwide economic output.
• Branded merchandise supported 11.9 million jobs worldwide, including 4.1 million directly within the industry.
• The economic activity generated by the sector supported $141.3 billion in global tax revenues — roughly the same as the entire Swiss federal budget.

“Branded merchandise is deeply woven into the U.S. economy and the way American organizations connect with employees and customers,” said Drew Holmgreen, president and CEO of PPAI. “This research shows the scale behind those connections. From manufacturers and decorators to distributors, marketers, retailers and fulfillment partners, branded merchandise supports 1.2 million American jobs and generates economic activity in communities across the country.”

The US leads the global market

In the United States, $174 billion was spent on branded merchandise in 2025, including $50 billion in promotional products and $124 billion in licensed merchandise. The resulting $170.2 billion GDP contribution represented approximately 0.6% of U.S. GDP, or about $1 in every $180 of U.S. economic activity.

For additional context, traditional promotional-product spending alone was equivalent to roughly 13% of estimated U.S. advertising spending in 2025, illustrating the scale of branded merchandise within the broader marketing economy.

Measuring the global ripple effect of branded merchandise

A distinguishing feature of the report is its examination of the industry through three channels of economic impact, demonstrating how activity generated by branded merchandise extends well beyond the businesses that directly create and sell the products.

• Direct impact: Economic activity generated by the companies that manufacture, source, decorate, distribute, and deliver branded merchandise. This channel contributed approximately $160.3 billion in GDP, 4.1 million jobs, and $62.3 billion in tax receipts.
• Indirect impact: Economic activity generated throughout the industry’s supply chain as businesses purchase materials, packaging, logistics, technology, equipment, and other goods and services. This supported an additional $174.2 billion in GDP and 4.8 million jobs.
• Induced impact: Economic activity generated when people employed by the branded merchandise industry and its suppliers spend their wages throughout the broader economy. That activity supported another $137.8 billion in GDP and 3 million jobs.

The analysis revealed that the branded merchandise industry has a global GDP multiplier of 2.95, meaning that for every $1 million in GDP generated directly by the industry, an additional $1.95 million was supported elsewhere in the global economy.

Expanding the definition of branded merchandise

The findings also broaden the definition of branded merchandise beyond traditional promotional products. The study includes licensed merchandise, apparel and workwear, retail-branded goods, creator merchandise, print-on-demand and e-commerce products, recognition gifts, and merchandise used in marketing, events and brand activations. What unites them is their role as tangible expressions of a brand.

“This expanded view of branded merchandise matters for marketing, advertising and HR leaders,” said Drew Holmgreen, CAS, president, and CEO of PPAI. “Physical products have become a powerful way for organizations to build brand affinity, recognize employees, strengthen culture and connect with customers. Whether supporting a marketing campaign, an employee engagement strategy, or a live event, branded merchandise creates tangible connections between organizations and the people who matter most to them.”