The Incentive Research Foundation's Industry Outlook for 2024: Merchandise, Gift Cards and Event Gifting reports a generally positive outlook, with overall rewards budgets continuing to increase in both North America and Europe. Expectations are levelling out compared to the optimism directly following the pandemic, as incentive professionals are challenged by economic uncertainty, rising costs, and a tight labor market.
WASHINGTON, Dec. 14, 2023 /PRNewswire-PRWeb/ -- The Incentive Research Foundation's Industry Outlook for 2024: Merchandise, Gift Cards and Event Gifting reports a generally positive outlook, with overall rewards budgets continuing to increase in both North America and Europe. Expectations are levelling out compared to the optimism directly following the pandemic, as incentive professionals are challenged by economic uncertainty, rising costs, and a tight labor market.
"The Industry Outlook for 2024 provides good news about growth of incentive program budgets and use of merchandise, gift card, and event gifting. But there are some indicators that incentive professionals are proceeding with caution," said Stephanie Harris, IRF President. "As uncertain economic conditions continue, we see organizations taking a more measured approach to budgets. However, the drop in program cancellations makes it clear that these programs are producing value for companies globally."
The IRF surveyed 402 industry professionals, with 193 coming from North America and 209 originating from Europe. Tracking key metrics over fourteen years, the study provides trends in economic optimism, budgets, and award types for incentive programs.
Key findings, benchmarks, and year-over-year comparisons reported in Industry Outlook for 2024: Merchandise, Gift Cards and Event Gifting include:
- North American budgets for 2024 see a net increase of 37%. European budgets are also up, with 48% expecting to increase spending in 2024.
- Following a considerable jump between 2021 and 2022, North American per-person spend has increased only slightly, from $1,060 in 2022 to $1,090 in 2023.
- Just over half (52%) of European respondents expect an increase in the number of award earners in 2024.
- There are fewer program cancellations, with only 20% of North American respondents cancelling a program in 2023, down from 37% in 2022. European stakeholders reported a similar positive trend with cancellations at 29%, down from 48% in 2023.
- The average value of a North American merchandise reward is $177, down from $191 last year. The European average merchandise reward value has increased from €152 to €174.
- For gift cards, North America respondents foresee a 42% net increase, with Europe reporting a 37% net increase.
- The top event gifts in both North America and Europe are nationally recognized branded merchandise, local products, and gift cards.
To view or download a copy of the report, visit the Industry Outlook for 2024: Merchandise, Gift Cards and Event Gifting webpage.
The IRF's Industry Outlook for 2024: Merchandise, Gift Cards and Event Gifting was supported by IRF Research Advocacy Partners Seiko and Tumi.
About the IRF:
The Incentive Research Foundation (TheIRF.org) funds and promotes research to advance the science and enhance the awareness and appropriate application of motivation and incentives in business and industry globally. The goal is to increase the understanding, effective use, and resultant benefits of incentives to businesses that currently use incentives and others interested in improved performance.
Media Contact
Andy Schwarz, Incentive Research Foundation, +1 703 556 7160, [email protected], www.theirf.org
SOURCE Incentive Research Foundation
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