Mixed Outlook for Corporate Incentive Gifts in 2026

The Incentive Research Foundation’s Industry Outlook for 2026: Merchandise, Gift Cards and Event Gifting reveals a mix of optimism and emerging challenges for North American and European incentive buyers. Economic and financial confidence among organizations is high, with more than 90 percent of respondents in both regions expressing a positive outlook for the year ahead. However, the research also reveals flat budgets, increasing costs, competing priorities and shifts in spending patterns.

The study of 400 North American (U.S. and Canada) and European (France, Germany, Italy, Spain, Sweden and U.K.) professionals who organize employee rewards and recognition programs, sales incentive programs and channel rewards programs was conducted in August and September 2025  

"Incentive programs are important tools for businesses, particularly during challenging economic times. The number of program participants is projected to increase in 2026, despite flat budgets and rising costs," said Stephanie Harris, IRF president. "Program owners are approaching 2026 with a strategic mindset, carefully managing costs while aligning rewards with organizational objectives and participant preferences."

Key findings from the study include the following:

• While most budget increases are expected to keep pace with the rate of inflation, 65 percent of North American programs and half of European programs expect growth in the number of participants receiving a non-cash incentive.
• Gift cards are the most widely used reward, with 70 percent of North American organizations and more than half of European organizations anticipating increases in gift card use.
• For gift card types, dining was the most popular, followed by online-only retailer cards.
• Merchandise spend is on the rise. In Europe, the average per-instance spend has increased $85 over last year. North American merchandise spend is nearly $100 more than previous years.
• Event gifting is impacted by budget pressure, with only 10 percent of planners anticipating budget increases that will outpace inflation.
• Gift cards have become the most widely used event gift, overtaking merchandise in both North America and Europe.
• In North America, 62 percent of organizations expect their program technology budgets to increase, and in Europe, 63 percent anticipate growth.