Industry Research June 2026 | White Paper Series

Sourcing City Publishes The Merch Ecosystem

A data-driven map of where promotional products sits within the broader global branded merchandise economy

Sourcing City has published its second industry white paper: a detailed analysis of the promotional products sector within the larger, rapidly converging global merch economy.

The paper maps the full merch ecosystem across five interconnected player clusters, from demand generators and content creators through to promotional product distributors, fulfilment networks and aggregator platforms, and traces the flow of value from brand intent to decorated product.

Drawing on the latest data from ASI Research, the Sourcing City UK and Ireland Market Report 2025, and a range of independent market sources, the paper sizes the opportunity across the US, UK and Europe and examines the structural forces reshaping the industry.

Key Findings

$27.7bn

US market 2025

Fifth consecutive record, +4.2% YoY

$14.24bn

European market 2024

UK: $2.096bn, up 4%

$42bn+

Combined US + Europe

Promotional products market

The paper argues that promotional products is not a subset of the broader consumer merch economy. It is structurally distinct: B2B-embedded, compliance-driven, with higher order values and longer client relationships than consumer-facing merch platforms can replicate.

“We wanted to put real data behind what most people in the industry already sense intuitively. Promotional products is not a niche. It is a $42bn industry sitting at the centre of a much larger and rapidly converging merch economy.”

Alistair Mylchreest, Strategy Director, Sourcing City

Where Two Worlds Converge

The paper identifies a significant convergence taking place between traditional promotional products and consumer merch. Brands are increasingly seeking to serve both channels from the same supply chain. Creators and gaming communities need B2B-grade fulfilment reliability behind consumer-facing storefronts.

The platform that bridges these two worlds, the paper concludes, occupies the most valuable position in an addressable market that runs well into the hundreds of billions.

Why the Aggregation Layer Wins

The paper examines the value chain in detail, explaining why the aggregation layer, the distributor or platform that owns the brand relationship, curates supply and manages compliance, captures the highest margin and represents the most defensible business model in the ecosystem.

Read the full white paper

The Merch Ecosystem

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Free to read and share at sourcingcity.co.uk/whitepapers

Sourcing City Industry Research Series 2025/26

No. 01 — Every Second Counts No. 02 — The Merch Ecosystem