12%
Forecasted compound annual growth rate in healthcare services and technology (HST) from 2022 to 2027 – the fastest-growing sector in healthcare.
Healthcare is one of the largest and fastest-growing industries in the world – and technology innovation is a big reason why. Healthcare companies on the rise include those specializing in tech-driven solutions like wearable devices, mobile apps for mental health, and AI-powered diagnostic tools; businesses providing in-home care for the aging population; and companies focused on chronic disease management. In 2024, nearly 40% of Americans had at least one chronic disease and 41% had two or more chronic diseases, according to CDC data. The need for care is high – and rising.
State government health agencies and insurance companies are casting a wide net in their member recruitment processes, particularly in states like California, which has one of the most comprehensive public health insurance programs in the country. Add in the equipment providers and businesses that fall under the health and wellness category, and it’s no surprise that healthcare promo products ranked second for branded merch sales (when it notched $2.7 billion, according to Counselor’s 2024 State of the Industry report) every year in the last decade – except for 2020 when it finished first.
The ad money reflects the enormity of this market: The U.S. healthcare advertising expenditure is forecasted to grow from $22.4 billion in 2022 to $29.2 billion in 2028, per the IMARC Group, a market research firm with headquarters in New York City. It’s important to pay attention to the latest laws and regulations in your state and position yourself as a strategic partner to businesses as their needs and requests change.
One thing to keep an eye on is layoffs at major hospitals and universities as the federal government withdraws key grants through cuts to the National Institutes of Health. While that may impact a swath of organizations, the healthcare industry overall will remain a top destination for promo sales.
Product Pick
Consider this bamboo aromatherapy diffuser (101596-231) for medspas or cosmetic surgery offices that aim to create a relaxing, high-end atmosphere for clients electing expensive procedures.
Product Pick
This fold-over card holder (4110) in various colors can be used for safe keeping of medical information, business cards, credit cards and bus passes.
3 Distributor Tips
Rosalind Robe Boukis, CEO of Advertising Magic (asi/111425) in Walnut Creek, CA, has seen her business in the healthcare sector nearly double from last year. Her clients span hospitals, medspas and several county healthcare agencies.
1 Embrace bilingual branding. In states with a large population of residents who speak different languages, it’s effective to create branded messages that are culturally relevant as well as accurately translated. Advertising Magic has found success in creating branded school kits with English and Spanish messaging for county health agencies. “The kits contain backpacks, lunch boxes and pencil pouches for the kids to take home and share with their parents, who may be looking for health coverage,” says Boukis.
2 Bright design can improve outreach. Health insurance companies used events as a major outreach strategy in 2024. “Clients are setting up in cafeterias at tech companies and other large employers, and they’re going through product like crazy,” Boukis says. “Recently, one client had 14 events in a week – and they’re asking for really bright, eye-catching artwork to stand out to this design-oriented crowd.”
3 Don’t forget the elective markets. Cosmetic surgery is a profitable branch of healthcare that’s worth pursuing. Medspa clients provide high-end gifts with purchase, while laser and equipment manufacturers are known for marketing to doctors using luxury items like branded champagne buckets and glasses. “People are spending thousands of dollars on one purchase,” says Boukis, “so the branded items are always luxury for this crowd.”