What’s Ahead in 2026

Cloud Dancer: A fantasy many have of dancing on top of white, puffy, soft clouds. Or the name of Pantone’s color for 2026.

In 2025, the Pantone Matching System (PMS!) company chose PMS 1230 or Mocha Mousse as the color of the year. In hindsight, the brown tinge kinda reflects what the year felt like for many of us! Their color for 2026 is Cloud Dancer, which is basically white.

White is an absence of color, so are they trying to tell us this coming year is going to be colorless? If true, that’s probably the least of the worries for hustlers as 2026 continues to smack us in the face with multiple challenges, along with opportunities.

As I look into my crystal ball, doing my best Johnny Carson as the Great Carnac, here’s what I see in 2026 for those of us hustling to grow our businesses.

Tariffs: What a ride this year has been as tariffs have disrupted almost every industry in a myriad of ways. It’s forced companies to rethink their supply chains and look for suppliers in countries with lower tariffs and duties to mitigate the increased costs. Some companies have cut expenses, including staff, to keep margins stable while others have increased prices rather than absorb the increases. The Supreme Court will weigh in on whether the tariffs are legal and their decision in mid-2026 will impact most every industry and force companies  to evaluate supply chain agility and pricing models. While the argument for tariffs can be compelling, the reality is they’ve put a strain on companies struggling to mitigate cost increases and on consumers who were already dealing with inflation, wage stagnation, and less money in their pockets. Smart companies are using these challenges to re-evaluate how they do business and put plans into place to temper the effects of long-term tariffs. Being proactive, no matter what the Supreme Court decides next year, will keep you ready to pivot on a dime. 

Artificial Intelligence (AI): The hype over AI has been all over the board. From destroying the world to mass layoffs to being a savior for small and large businesses alike. For those who were around when the Internet arrived for the masses (mid to late 1990’s), the themes were similar. As is usually true with new technology, the Internet made the world more connected and more competitive while also creating massive opportunities for fraud (spam) and turning social media into a drug for the masses. It’s said, nearly 70% of large suppliers in the promo industry are using AI for production, planning, quoting, order management, and workflow automation. Within smaller companies, AI is being used to design graphics, help design website content, segment customer groups to deliver targeted content and ads, as well as keeping tabs on inventory and choosing suppliers based on specific criteria. Like it or not, AI is here to stay, so learning to use it effectively will be increasingly more important to deliver value added products and services. 

End-users are being more cautious: Buyers of promotional products and other commodities are being much more vigilant in what and where they spend their shrinking budgets on. Instead of buying large quantities of a less expensive product as handouts, they’re choosing to buy smaller quantities of more useful items, oftentimes retail brands, to give to select clients. The emphasis now is on sustainable products, although the higher costs associated with using recycled materials can be a deal breaker.  Another area end-users are being drawn to is personalization of higher-end products along with more subtle branding. Instead of giving a backpack with a logo plainly visible, companies are ordering nicer products in smaller quantities. The branding is more subtle along the lines of tone-on-tone or in areas that may only be apparent to the users. Personalizing with the recipients’ names is also becoming more popular with the logic being they create a stronger emotional connection between the brand and recipient. 

Functionality is King/Queen: It used to be companies were content to buy thousands of cheap trinkets and trash as handouts. Those days are over as recipients expect to be given products that are functional and serve a purpose rather than trashed. Tech products are one of the most sought after giveaways including power banks, charging cords, bluetooth accessories, wireless speakers, flash drives, and webcam covers. Apparel continues to be one of the top product categories for Millennials, Gen Z and Gen X and reusable drinkware and water bottles are sought after for their sustainability and functionality. While digital marketing, through videos and social media, continues to be the dominate way to reach audiences, seven in ten marketers use branded merch to raise brand awareness and build relationships. Functional products, especially from well-known brands, will continue to thrive as brand marketers look for ways to capture the imagination and loyalty of customers. 

Mergers and acquisitions will continue: Perhaps the biggest news in 2025 in the promotional products world was the acquisition of apparel company AlphaBroder by S&S Activewear. The $3.6 billion supplier ranks #2 in the industry, only behind SanMar, also an apparel distributor. It’s likely these M & A’s will continue into 2026 as suppliers look for ways to add to their portfolio while working to contain costs and find efficiencies. With interest rates dropping, inflation seemingly under control, and AI rearing its head, companies are eager to find businesses that compliment and add to their existing product lines. The industry now stands at $26 billion in annual sales and is expected to continue increasing 3-5% in the coming years. Private equity firms see dollar signs in our industry and are looking to expand their holdings on both the supplier and distributor sides next year.

As we head into yet another new year, now is the time to plan for the challenges and opportunities on the horizon. Evaluate your supply chain to balance tariffs, reliability, and costs. And learn to use AI to up your game in marketing (videos and ads), customer outreach, (emails), and operations (streamlining order processing and inventory control). While AI is still in its infancy, those who don’t get onboard, even in small ways, will be left behind.

Promotional products are finally getting the recognition they deserve as strategic marketing tools. Gone are the days of trinkets and trash (for the most part) as companies look for high perceived value, functionality, sustainability, and creativity. The trend for 2026 is to bring value, meaning, and quality over quantity. Choose products and promotions that will earn the right to be a part of your customers’ lives. 

Oh, and make sure to do some cloud dancing in the coming year. Perhaps you’ll find your own Cloud 9 and even some silver linings!