Companies who use non-cash incentives remain optimistic despite continuing to have to do more with less, according to a new survey of 400 incentive pros from North America and Europe by the Incentive Research Foundation (IRF).
The report, “Industry Outlook for 2026: Merchandise, Gift Cards, and Event Gifting,” found that more than 70% of North American and 60% of European programs expect budget increases in 2026. However, half of them will need to use the additional funding to make up for the rate of inflation; and only a quarter will see “true” budget increases on per-person spend.
So while many survey respondents — 93% of which were in-house corporate planners and 7% of which were agencies — appeared positive about the year ahead, their optimism “was tempered by flat budgets, increasing costs, competing priorities, and shifts in spending patterns,” according to the report.
A full 65% of North American respondents said they expect the number of participants receiving a non-cash incentive to grow in 2026; however, they also reported a slight decline in per-person expenditures. So although they will be extending the reach of their programs, they will need to carefully manage their spending, in addition to making up for increased costs created by inflation.
All of this has incentive pros nearing the end of their ability to “do more with less,” said Rachel McInnis, VP of solution strategy at Maritz. “Yet, there’s optimism in the way that organizations are doubling down,” by focusing on fewer but higher-value gifts, adjusting participation levels, and putting more focus on intentional design.
Gift Cards a Mixed Bag
Nearly 70% of the North American organizations and just under 60% of the European organizations surveyed said they anticipate a moderate or significant increase in gift card use in the coming year.
That’s due in part to the economy, said McInnis. “When there’s economic uncertainty, that extra flexibility that you get from gift cards becomes even more valuable.”
The data revealed a trend of gift cards being used to cover everyday expenses. Andy Schwarz, VP, content and communications at the IRF, sees that as a reflection of the current economic reality for much of the workforce.
“For the first time in years, dining gift cards have become the most popular choice in North America, which really highlights how employees are balancing using their reward for essential needs with small moments of indulgence.”
Some industries have been harder hit by budget constraints than others. McInnis reported that in 2025, Maritz saw many layoffs among clients in the tech industry. “So when you have fewer people overall, that’s going to impact your incentive program.”
Conversely, Anne Jetter, strategic sales & buyer relations executive at SB Collectiv, reported more new gift card business from the banking, financial services, and healthcare industries.
Whatever the industry, “2026 will reward companies that balance disciplined spending with collaborative relationships,” said Chris Johnson, director, global events, travel & sports partnership at Land O’Lakes. As external conditions become more unpredictable, strong relationships with DMCs, DMOs, technology providers, and specialized partners are essential. “It’s not about doing more with less; it’s about doing the right things with the right partners.”
