The healthcare market remains one of the nation’s largest and fastest-growing sectors, driven by rising demand, technological innovation and demographic shifts. In 2024, total U.S. healthcare spending increased by 7%, reaching more than $5 trillion – about 18% of the country’s GDP. That, however, hasn’t translated into more promo sales, with the market’s merch spending declining from its pandemic-era highs. Healthcare is still the second-largest market for promo products, accounting for $2.2 billion in sales, according to the Counselor State of the Industry Report.

Major trends shaping the market include growth in non-acute care and home health, expansion of digital and health-tech services, and rising adoption of AI and analytics to improve efficiency and patient outcomes. Segments like healthcare software, data analytics and specialty pharmacy are slated for strong growth, with technology-enabled services expanding faster than traditional hospital care.

At the same time, the industry faces economic pressures from inflation-related cost increases, labor shortages and reimbursement challenges that have compressed provider margins as the share of Medicaid and Medicare enrollment grows with an aging population.

For distributor reps, it pays to pitch healthcare promo products to not only the large providers, but the adjacent businesses serving the industry – data/software companies, analytics and consulting firms, and hospices too. In this market, opportunities abound at the intersection of innovation and cost containment.

Product Pick

A sublimated lumbar pillow (PC4001) from Terry Town (asi/90913) can help transform a birthing room or treatment facility from a cold, sterile environment to a place of warmth and comfort.

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Terry Town Pillow
Product Pick

This coloring journal (JSCOL57) from Chameleon Like (asi/44558) includes six mini-pencils and 48 pages of coloring, dots and lined options – a thoughtful art therapy gift for patients undergoing treatment.

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Chameleon Like Journal
Danny Rosin

3 Distributor Tips

Danny Rosin, co-president of Brand Fuel (asi/145025) in Raleigh, NC, works with hospitals, health-tech companies, research institutions and healthcare recruiting firms.

1 Ask the right questions. Become an asset to busy healthcare teams by uncovering their needs efficiently. “Ask pointed questions to understand the audience demographics first – consider staff, physicians, researchers, donors, patients and families,” says Rosin. “Then consider: Does this idea reduce stress? Does it show appreciation? Improve safety or workflow? Deepen donor loyalty? Lead with the purpose versus the product.”

2 Focus on outcomes. Healthcare buyers care about results. They want to know how products will affect patient comfort, employee retention, donor engagement and community trust. Include case studies, data and outcome-driven solutions when pitching products and campaign ideas.

3 Prioritize safety and sensitivity. Healthcare environments are highly regulated, with stringent infection control requirements. “Think about antimicrobial materials, easy-to-clean items and HIPAA-sensitive communications,” says Rosin. “Compliance is also a major consideration for these clients.” Stay up-to-date with the most recent rules, especially for branded items that will be used in onsite operations.