Branded merch is often the first line item questioned when budgets tighten and the last one people can measure. That is changing. The past few months brought a wave of new research on how big the industry is, what people want, and where merch actually drives revenue.
We pulled together the branded merchandise statistics that matter most in 2026, grouped by topic, with a quick note on what each one means for your plans. Every number links to its source. Bookmark it for your next budget meeting, client pitch or planning session. We will keep adding to it as new research comes out.
Industry Size: Branded Merch Is Bigger Than Most Marketers Think
1. Americans spent $174 billion on branded merchandise in 2025. That figure comes from PPAI's Branded Merchandise Global Market Report, produced by Oxford Economics.
2. About $50 billion of that was promotional products, and $124 billion was licensed merchandise. Both halves matter. Promo is what companies give away. Licensed is what fans pay for.
3. Promotional product spend alone equals roughly 13% of estimated US ad spend. This is not a side budget. It is a major marketing channel.
4. The US accounts for 51% of global branded merchandise spend, which reached $338.3 billion. The industry supported 1.2 million US jobs.
5. Fandom retail is consolidating. Spirit Halloween's parent agreed to buy Hot Topic, BoxLunch and Her Universe, creating a portfolio of about 3,000 locations. Investors see merch as a scaled business.
What it means: When someone calls merch a "nice to have," these are the numbers to bring to the conversation.
Gen Z and Gifting Statistics
6. 78% of Gen Z are interested in screen-free gifts this holiday season, compared with 64% of all consumers, according to PwC's Holiday Outlook 2026.
7. 81% of Gen Z say they are prioritizing in-person activities over the holidays, and 63% say a shared meal matters more than a present.
8. 71% of Gen Z enjoy browsing in physical stores, versus 60% of consumers overall, per Retail TouchPoints' coverage of the PwC report.
9. Average holiday gift spending is projected at $708 per person, down only 2% from last year despite a sharp drop in consumer confidence.
10. Deloitte forecasts holiday retail sales of $1.70 to $1.71 trillion, up 4.0% to 4.8% year over year (Deloitte via PR Newswire).
What it means: Tangible, well-made gifts are exactly what younger audiences say they want. For practical ideas, see our guide to employee holiday gift ideas.
Brand Loyalty and Spending Behavior
11. Brand loyalty rebounded to 36% of US adults, led by 18 to 24 year olds at 46%. That comes from a CivicScience study of more than a million adults.
12. Emotional connection explains up to 90% of the variation in brand loyalty in the same study, far more than price or promotions.
13. Shoppers are trading up and down at the same time. NielsenIQ's A Tale of Two Consumers report describes a "barbell effect" where demand concentrates at premium and value tiers while middle-market products lose ground.
14. Gen Z spending is projected to reach $12 trillion globally by 2030, per the same NIQ report.
What it means: Discounting does not build loyalty. Feeling does. A gift or piece of merch that feels considered is one of the few marketing tools that works on emotion directly. It is the same principle behind a great employee welcome kit: the item says "we paid attention."
Merch Performance Benchmarks
15. Live event merch now averages $10.33 per attendee, up from $8.79 in 2023, according to atVenu's 2026 data.
16. About 21% of attendees buy merch, a share that has been flat since 2023. Growth is coming from higher spend per buyer, not more buyers.
17. The top three items account for 63% of gross merch sales. T-shirts make up 56% of units at a $37 average, and hats rank third at 5.5% of units.
18. Starbucks' viral Bearista cup sold out in under a day, and merch demand appeared in the company's comparable sales commentary. Starbucks then launched a dedicated online merch shop.
What it means: A tight, well-chosen lineup outperforms a big catalog. Fewer items, better made, is the pattern across every data set. Our post on swag budgets goes deeper on why.
Trends Shaping What People Want to Wear
19. A New York Knicks cap was the hottest fashion product in the world in Q2 2026, with search growth of 4,276% quarter over quarter, according to the Lyst Index. It ranked ahead of Chanel and Gucci.
20. Outdoor and athletic brands have the highest "heat" with US consumers, per L.E.K. Consulting's 2026 Brand Heat Index, a survey of about 6,000 consumers aged 14 to 55. Younger and female shoppers are more likely to favor newer brands.
What it means: Headwear and athletic-leaning pieces are where fashion and branded merch overlap most right now. That makes a well-made cap one of the safest bets in any merch program. We break down more of this in our guide to branded merch design trends.
A Note on Merch Statistics You See Online
Search for promotional product statistics and you will find hundreds of numbers repeated across blogs, often with no source or with a source that does not say what the blog claims. Some figures are years old. Others have been rounded up or reworded until they no longer match the original study.
Before you put a number in a board deck or proposal, click through to the original research. Check who ran the study, how many people were surveyed, and when. Every statistic in this post links to the research firm, association, company or news outlet that published it, so you can check it yourself.
It is also worth being clear about what the numbers measure. Industry size figures describe spending, not results. Survey data describes what people say they want, not always what they do. The strongest case for merch combines both: evidence that the channel is large and growing, and evidence that the specific items you choose line up with what your audience values.
How to Use These Branded Merchandise Statistics
Data only helps if it changes a decision. A few ways to put these numbers to work:
- In a budget request, lead with the $174 billion market size and the 13% of ad spend figure to position merch as a real channel.
- In a holiday gifting plan, use the PwC Gen Z findings to justify physical, quality-first gifts.
- In a swag store or event plan, use the atVenu benchmarks to argue for fewer SKUs and a stronger hero item.
- In a design brief, use the Lyst and L.E.K. data to push toward caps and athletic-inspired pieces.
For a framework that ties all of this together, read our guide to corporate merch strategy.
The Takeaway
The branded merchandise statistics for 2026 tell a consistent story. The industry is large, younger audiences want physical things, and quality beats volume every time. The companies getting results are not spending the most. They are spending on fewer items that people actually want to keep.
Want help turning these numbers into a plan? Talk to the Maisonette team.