Rewards and recognition programs are poised for a strong 2026, with just over 70% of North American organizations and 60% of European organizations anticipating budget increases for their programs, according to the Incentive Research Foundation’s Industry Outlook for 2026: Merchandise, Gift Cards and Event Gifting.

Of course, branded merchandise rewards continue to be integral in personalizing recognition programs.

“Incentive programs are important tools for businesses, particularly during challenging economic times,” said IRF President Stephanie Harris. “The number of program participants is projected to increase in 2026, despite flat budgets and rising costs.”

During this past August and September, the IRF collected 400 responses to the 2026 Industry Outlooksurvey.

  • Each respondent was a full-time industry professional who provides or manages gift card and/or merchandise incentive programs as part of a non-cash reward and recognition strategy.
  • Responses were split evenly amongst North America and Europe, targeting a variety of industries in Canada, the United States, France, Germany, Italy, Spain, Sweden and the United Kingdom.


Incentive programs are important tools for businesses, particularly during challenging economic times.”

Stephanie Harris

President, Incentive Research Foundation

Merch Incentives Are On The Rise

As the second most prominent reward type in North America (trailing only gift cards), merchandise is included as a participant incentive by 84% of organizations, according to the survey. More than half (54%) expect to increase merch rewards in the coming year.

  • While European programs offer merch rewards less frequently (70%), nearly half (46%) anticipate increasing their use in 2026.


Meanwhile, merchandise spending is also on the rise. In North America, the average per-instance spend has climbed to $276, nearly $100 higher than in previous years, the survey says.

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European programs report an average of €306, up €74 over the same period. On-site gifts follow a similar trend, increasing per-instance spend from $170 to $243 in North America and from €233 to €295 in Europe.

  • Popular merch reward categories in North America include apparel, food gifts and electronics.
  • European programs favor similar categories, with food gifts in the lead.


Event Gifting Suffers  

Event gifting has been impacted by overall budget pressure, including increasing costs for hotels and food and beverage.

While approximately 58% of North American organizations and 54% of European organizations expect their event‑gifting budgets to increase in 2026, only about 10% in each region anticipate increases that will outpace inflation, according to the survey.

  • Average per-person event spending is declining, from $649 to $397 in North America and from €876 to €408 in Europe, even as the per-instance spend on merchandise increases as noted above.


“Incentive program owners are approaching 2026 with a strategic mindset, carefully managing costs while aligning rewards with organizational objectives and participant preferences,” Harris said.