Interest in Pride-related promotional products has declined at the same time as major U.S. companies shift their corporate strategy away from outward support of Pride month.

The number of ESP searches for products related to Pride and the LGBTQ+ community between January and June – the timeframe to order products ahead of Pride month – was at its lowest since 2021, and has declined each of the last two years, according to an ASI Research analysis of ESP data.

Between January and June of this year, searches for Pride-related items had decreased more than 50% from their peak in 2023 during the same timeframe. Keywords in this aggregate include terms like “LGBT” and “Pride month” that are explicitly Pride related, rather than just rainbow-decorated products.

Jo Gilley, former CEO of Counselor Top 40 distributor Overture Promotions (asi/288473), says a majority of sales teams at the company saw a decline in client spending on Pride-related promo this year, but attributed it to tighter budgets rather than a decreased interest in supporting the LGBTQ+ community.

“It’s kind of interesting the nuances,” she says. “One customer has had an annual parade order for four years and canceled their order this year. One customer became a parade sponsor and bought for the first time, and one really large company actually expanded their order.”

Year-over-year sales in May were slow or stagnant for most suppliers or distributors amid economic uncertainty, according to ASI Research; about half of promo companies reported a decline in sales in May compared to the same time last year. In addition, Q1 industry sales for distributors were down 3.6% year over year. (ASI Research will release its Q2 industry findings later this month.)

Kristina Davis, senior sales account executive at Counselor Top 40 distributor Deluxe (asi/316203), also noticed a slight decline in Pride-themed promo interest, mainly from companies who bought Pride-specific swag for Pride events.

“With the current economic environment regarding tariffs and just overall strain on people’s budgets, they’re not putting their budget towards Pride-specific items,” she says.

It’s possible, she adds, that brands are still supporting Pride, but using their regular branded merch rather than allocating funds for rainbow-bedecked products.

Fluctuating Corporate Support for Pride

After a dip in 2020 during the COVID-19 pandemic, ESP searches for LGBTQ+ or Pride-related promo surged amid a public push for companies to voice their support for social movements. Pride events, which are often opportunities for companies to hand out promo, reached new attendance levels after 2020 and started spreading to suburban and rural areas. Major brands like Lego, Vans and Coach released new Pride-themed merch after the pandemic, and rainbow-hued branding was pervasive throughout the month of June.

But in 2023, companies drew criticism for their support of social movements. Target received backlash for its Pride collection, including threats to its employees. Its collection, which featured apparel, toys and accessories from LGBTQ+ designers, was later pulled from several stores after incidents of vandalism. The same year, Bud Light lost its position as the top U.S. beer brand after customers boycotted because of the company’s partnership with transgender influencer Dylan Mulvaney.

In 2024, Target stopped selling its Pride collection in all stores, and this year, it has scaled back Pride displays at some locations, according to reports. Other brands like Walmart, Home Depot and Constellation Brands (the parent company of Corona) began disclosing legal risks from DEI and environmental, social and governance (ESG) initiatives to investors in their annual regulatory filings this year.

Pelin Geyik, a doctoral researcher at Aalto University who studies how cultural dynamics shape consumer experiences, says while there’s an incentive for companies to cater collections or merch for Pride because of the LGBTQ+ community’s buying power, they also may face backlash with changing cultural dynamics.

“Companies now face a double-edged sword: they risk consumer boycotts no matter their stance, and must also navigate increasing political pressure in today’s climate,” she says.

In an April poll from Gravity Research surveying leaders of major U.S. corporations, close to 40% of respondents said they planned to reduce Pride-related engagements this year. None reported intentions to increase activities. But internal initiatives and partnerships supporting the LGBTQ+ community largely remain intact, according to the poll.

Most respondents said the reason for their change in Pride engagement was due to pressure from the new presidential administration. Since taking office in January, U.S. President Donald Trump has issued a series of executive orders aimed at dismantling diversity, equity and inclusion programs – many of which include the LGBTQ+ community.

Alison Kemper, an associate professor at Toronto Metropolitan University who studies ESG issues in corporate strategy, says the Trump administration’s actions have caused companies to weigh whether outward support for the LGBTQ+ community like Pride-specific collections is worth it.

“Corporate sponsorship [of Pride events], especially in the United States, is a mechanism for legitimation,” Kemper says. “But I think that there are a significant number of companies that had conversations that were like, ‘Do we have more to lose by pulling out or more to lose by staying in this community?’”

‘A Way To Celebrate’

Despite a shift away from Pride investment at some major corporations, 70% of American consumers say brands offering Pride collections or Pride-specific merch have positive or neutral impact on their buying decisions, according to a May survey from GLAAD.

Ben Greene, an LGBTQ+ advocate and speaker, says there’s still widespread support for the LGBTQ+ community and Pride month. If anything, he adds, decreased corporate interest can be attributed to companies stopping the practice of rainbow washing, or disingenuous support during Pride month to capitalize on the LGBTQ+ community. Even as certain sponsors have withdrawn support from Pride parades, many companies have doubled down on diversity and inclusion, he adds.

“There’s still been a tremendous amount of support,” Greene says. “It just looks a little different than it did last year.”

Monica Maglaris, co-founder of certified women- and LGBTQ-owned contract decorating shop Liberty Print Co., says promo can promote inclusivity and diversity “by showing fear and division are not American values.”

Gilley echoes this sentiment. At Overture, the company has three flags outside its building: one for Illinois, one for the United States and a rainbow Pride flag that stays up year-round.

The former CEO says symbols like that, including Pride-themed promo, can be a way to increase a sense of belonging.

“It’s a way,” she says, “to celebrate, to say to your customers ‘I see you’ and celebrate who you are.”