The promotional products industry started in the early 1900's. Merchants began to give calendars to their clients as gifts with printed logos of their companies. The intent was to promote or to remind their clients of their business while the gift item was being utilized.

Since then calendars continue to occupy a significant portion of the industry. It shares this field with writing instruments and bags, each having about 8% of the industry. The largest sector of promotional products is wearable's which occupies about 30% of the industry. This category is made up of T-shirts, uniforms, caps, hats, jackets and footwear. 50% of the industry is made up of wearable's, writing instruments, bags and calendars. Crystal awards are included in the category of recognition awards and trophies which is about 3.6% of the industry. These percentages may vary from year to year and the above represents the average of published figures in 2008 and 2009.

The promotional products industry traditionally has two major parties that represent the supply chain between the manufacturer of the products and the end buyer; these are the suppliers and distributors. The distributors play a very major role in selling the products from various suppliers to the end buyer. Suppliers offer a selection of products from the manufacturers and they sell almost exclusively to the distributors. A supplier will carry its products based on the company's knowledge, experience and connection with the manufacturer of the product. Usually it is called a line of products which that supplier is known for or specializes in. Distributors also have their experience in dealing with the suppliers in terms of their service, quality and some of the relationship can be strong and lasting.

Distributors can vary in size from a home-based mom-pop store to companies with hundreds of employees. About 50% of the business is done through companies with sales volumes over 2.5 million dollars a year. Most distributors and suppliers will join the Promotional Product Association International (PPAI), which is an organization that provides many vital services for the industry. They put out trade shows and collect and publish information pertaining to the business.

However, the above described structure has been affected significantly because of the use of internet. Many companies offer their products and service on the websites where the clients can bypass the middleman. It was estimated that close to 20% of the sales orders for the distributors have been accomplished through the use of websites.

The promotional product industry is a quintessential service business. It can thrive in many different combinations of products and skills, thus presents an enormous amount of opportunities for small businesses. The industry suffered in 2009-2010 somewhat because of downturn of the economy as a whole. In the long run, it will continue to grow. On the other hand, the new technologies such as the use of websites and the value of dollars inevitably will add more challenges to the industry here in the US.