The new playbook for event gifting and recognition.
By Angela Kryhul
As budgets tighten and expectations rise, rewards and recognition are entering a more strategic era. The Incentive Research Foundation’s Industry Outlook for 2026 reveals how organizations across Canada and the United States are rethinking gift cards, merchandise and event gifting.
Smarter Spending
Of the 400 organizations surveyed for the report in North America and Europe, the majority said they would increase their non-cash rewards budgets during 2026 with nearly two-thirds anticipating more participants receiving incentives.
The catch? Per-person spending by organizations in North America is declining. Average spend per participant dropped from $921 to $866, signaling a clear shift: programs are expanding their reach while carefully managing costs.
For sport organizations, this reinforces a familiar reality—while gift cards, merchandise and event gifting remain central to engagement strategies, recognition must stretch further and deliver clear value.
Gift Cards Still Rule
Gift cards remain the most widely used reward type in North America, accounting for 30% of total program allocation. Nearly 70% of organizations surveyed expect their use to increase in 2026.
What’s driving that growth? Flexibility and choice. Brand-specific gift cards continue to dominate, while open-loop prepaid cards are declining. Average gift card values are also climbing, reaching an average denomination of $193 in North America.
One notable shift is where branded gift cards are being spent. Dining gift cards are now the most popular category (54%), surpassing online-only retailers (50%) for the first time in several years. Apparel and clothing gift cards are also gaining ground, suggesting recipients are gravitating toward practical indulgences they might not otherwise purchase.
Gift cards remain the most widely
used reward type in North America,
accounting for 30% of total
program allocation.
Merchandise is More Intentional
Merchandise remains a powerful differentiator, especially when programs want recognition to feel personal and memorable.
In North America, 84% of organizations use merchandise rewards as a participant incentive and more than half plan to increase their use in 2026.
Spending per merchandise reward has jumped sharply, with average per-instance spend now at $276, nearly $100 higher than in previous years. This suggests fewer items, but better ones.
Event Gifting Reimagined
Event budgets are under pressure from rising hotel, venue and food-and-beverage costs. While more than half of North American organizations expect event-gifting budgets to increase in 2026, only 10% anticipate growth beyond inflation.
Organizations are moving away from traditional swag bags and toward fewer, more appealing gifts integrated into the event experience. Marketplace-style selections, activity-based gifting and in-room surprises are replacing one-size-fits-all handouts.
Locally sourced gifts are also gaining traction, an especially relevant insight for destination marketing organizations and Canadian hosts looking to highlight place, meaning or sentimental impact, while controlling shipping costs.
The Takeaway
The 2026 outlook is clear: rewards and gifting aren’t about spending more, they’re about spending smarter.
Whether recognizing volunteers, motivating staff or creating memorable event experiences, success will come from intentional design, meaningful choices and a sharp focus on what truly resonates with participants.
Published March 2026
