IRF's 2023 Incentives Industry Outlook Positive for North America and Europe

Washington, DC (December 13, 2022): The Incentive Research Foundation’s Industry Outlook for 2023: Merchandise, Gift Cards and Event Gifting reports an optimistic outlook for 2023 despite continuing challenges to the global economy. With a critical focus on attracting and retaining talent, businesses consider non-cash incentive programs to be a valuable tool to motivate a changing workforce.

“The 2023 Industry Outlook provides a bullish view of the non-cash incentive industry both in North America and Europe. Budgets for merchandise, gift cards, and event gifts all increased in 2022, and are expected to rise even further in 2023,” said Stephanie Harris, IRF President. “With stubborn inflation and ongoing workforce challenges, non-cash incentives are considered more valuable and impactful than ever.”

The IRF surveyed 543 industry professionals, with 239 coming from North America and 304 originating from Europe. Tracking key metrics over thirteen 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 2023: Merchandise, Gift Cards and Event Gifting include:

Optimism is High

• In North America, overall incentive budgets are expected to increase by 44% in 2023, with merchandise increasing 44% and gift cards 48%.
• In Europe, overall incentive budgets are expected to increase by 52% in 2023, with merchandise increasing 50% and gift cards 55%.
• The average per-person spend is 650 Euros in Europe and $1060 in North America.
• 50% of North American respondents believe high inflation increases the value of non-cash incentives, compared to 23% who believe inflation makes non-cash incentives less valuable.

Merchandise Spending is Up

• The average value of a North American merchandise reward is $191, and the European average merchandise value is 152 Euros.
• In Europe, the most common merchandise gifts are electronics (51%), clothing (45%) and office accessories (44%).
• In North America, clothing apparel (66%), logoed brand merchandise (56%) and food gifts (53%) have the highest prevalence.

Gift Card Use to Increase in 2023

• 62% of North American and 50% of European respondents anticipate an increase in gift card spending in 2023.
• The median gift card amount for both North Americans and Europeans is 100 (dollars/Euros).
• Europeans were much more likely to use gift card vouchers, while North Americans were much more likely to use open-loop cards.

Event Gifting Growth

• The North American average spend per attendee was $263, and European average spend per attendee was 221 Euros.
• Europeans place a much higher priority than North Americans on attendee preference, which is a priority that increased significantly since last year.
• Sponsorships increased as a priority for event gifts as 30% of North Americans rated it a top priority for selection.

To view or download a copy of the full report, please visit the Industry Outlook for 2023: Merchandise, Gift Cards and Event Gifting webpage.

The release of the IRF’s Industry Outlook for 2023: Merchandise, Gift Cards and Event Gifting was supported by PPAI

PPAI operates The PPAI Expo, the promotional products largest trade show; provides the leading promotional products safety and compliance program; offers a prestigious professional development and certification program; and publishes industry trade journals and periodicals. The multibillion-dollar industry includes wearables, writing instruments, calendars, drinkware and many other items, usually imprinted with a company’s name, logo or message. 90% of promotional product recipients remember the name of the advertiser on a product. 85% of the recipients do business with the advertiser on a product.

Founded in 1903, the Promotional Products Association International (PPAI) is the world’s largest not-for-profit association serving more than 14,000 corporate members of the $22+ billion promotional products industry, which is comprised of more than 40,500 businesses and a workforce of more than 533,000 professionals.