The Incentive Research Foundation's Industry Outlook for 2025: Merchandise, Gift Cards and Event Gifting reports a positive outlook for non-cash rewards in 2025 across both North America and Europe following a year of uncertainty for the incentives industry.
WASHINGTON, Dec. 17, 2024 /PRNewswire-PRWeb/ -- The Incentive Research Foundation's Industry Outlook for 2025: Merchandise, Gift Cards and Event Gifting reports a positive outlook for non-cash rewards in 2025 across both North America and Europe following a year of uncertainty for the incentives industry. North American economic optimism rebounds from near historic lows to 23%, signaling a stronger outlook for 2025. Economic optimism in Europe increased from 29% last year to 56% heading into 2025.
"North American spending was down in 2024, and incentive professionals were more cost-conscious when using gift cards, merchandise, and event gifts. However, in Europe, per-person spend showed positive growth, with increased use of mid- to high-value rewards," said Stephanie Harris, IRF President. "After an uneven year, the outlook for 2025 shows signs of improvement. We see high rates of economic optimism, budget increases, and anticipated increases in the use of merchandise, gift cards, event gifting, and experiential rewards."
The IRF surveyed 412 industry professionals, with 211 coming from North America and 201 originating from Europe. For the first time, the study incorporates input from channel programs and employee programs, which adds a broader perspective to the analysis. Tracking key metrics, 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 2025: Merchandise, Gift Cards and Event Gifting include:
- In North America, 59% of organizations expect an increase in their overall budgets for reward and recognition programs, marking a positive shift from 2024's financial outlook.
- A striking 74% of European respondents expect an increase in their overall rewards budgets, with only 6% anticipating reductions.
- Technology is a critical driver of growth, and investments in program technology are on the rise.
- Channel programs are spending more on non-cash rewards than employee programs in both North America and Europe.
- Merchandise / gift card program retention is increasing, with a steep decline in program discontinuations in 2024.
- A net increase in use of merchandise rewards in 2025 was reported by both Europe (57%) and North America (39%).
- Gift card values are increasing in Europe, with third-party providers favoring higher-value gift cards (€211 on average) compared to corporate entities (€179 on average).
- Both North America (65%) and Europe (77%) are anticipating increases in event gifting budgets.
- The design and implementation of incentive programs is driven by the company's financial forecast, according to over 90% of all respondents.
View or download a copy of the study at the Industry Outlook for 2025: Merchandise, Gift Cards and Event Gifting webpage.
The IRF's Industry Outlook for 2025: Merchandise, Gift Cards and Event Gifting was supported by IRF Research Advocacy Partner Maritz.
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, as well as businesses interested in improved performance.
Media Contact
Andy Schwarz, Incentive Research Foundation, (703) 651-8189, [email protected], www.theirf.org
SOURCE Incentive Research Foundation
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