To conduct this study, 500 industry professionals were recruited by an independent panel research firm, and 43 additional respondents from incentive groups and communities to complement the study panelists, distributed as follows:
| Country | Total | Percentage |
| USA | 187 | 34% |
| Germany | 58 | 11% |
| United Kingdom | 54 | 10% |
| Canada | 52 | 10% |
| Spain | 50 | 9% |
| Sweden | 49 | 9% |
| France | 47 | 9% |
| Italy | 46 | 9% |
Source: Industry Outlook 2023: Merchandise, Gift Cards, and Event Gifts. Incentives Research Foundation
European considerations are similar to North American ones with financial forecasts and public and stakeholder perceptions accounting for more than 80% of European respondents.
Source: Industry Outlook 2023: Merchandise, Gift Cards, and Event Gifts. Incentives Research Foundation.
In terms of the European Rewards Budget Outlook, we can see that more than half (52%) of Europeans expect an overall increase in their budgets and recognition, while 19% expect a decrease. Spending on gift cards and technology budgets have the most significant net increases by 2023 among Europeans.
Source: Industry Outlook 2023: Merchandise, Gift Cards, and Event Gifts. Incentives Research Foundation.
Compared to North America, Europeans are less likely to work with incentive companies and merchandising brand agencies.
Source: Industry Outlook 2023: Merchandise, Gift Cards, and Event Gifts. Incentives Research Foundation.
Direct partnerships with incentive companies and product brands have decreased significantly since last year.
Source: Industry Outlook 2023: Merchandise, Gift Cards, and Event Gifts. Incentives Research Foundation.
The average spend per person in Europe on non-monetary reward and recognition programs is €650. In this graph, 57% corresponds to gift cards from €1 to €250. The remaining 43% spend more than €250, compared to 58% of North Americans who spend more than the average of $250 per person on reward and recognition programs.
Source: Industry Outlook 2023: Merchandise, Gift Cards, and Event Gifts. Incentives Research Foundation.
Spending on gift cards has rebounded in Europe, after a decline in gift card usage last year, with those who spend more on gift cards outpacing those who spend less by a margin of (36% to 19%).
Source: Industry Outlook 2023: Merchandise, Gift Cards, and Event Gifts. Incentives Research Foundation.
As with gift items, Europeans plan to increase their gift card budgets in 2023, although the net increase will not be as large as in North America. Half expect to increase spending on gift cards, while 19% expect to reduce spending on gift cards.
Source: Industry Outlook 2023: Merchandise, Gift Cards, and Event Gifts. Incentives Research Foundation.
For the most part, the types of gift cards Europeans used in 2022 did not differ significantly from those in 2021. The only exception was gift vouchers, which increased from 51% to 66%. Europeans were much more likely to use gift card vouchers.
Source: Industry Outlook 2023: Merchandise, Gift Cards, and Event Gifts. Incentives Research Foundation.
As in North America, online retail cards recorded the strongest growth in Europe, rising from 45% to 54%. Coffee gift cards and department store cards also grew, ranking 2nd and 3rd as the most frequently used card categories in Europe.
Source: Industry Outlook 2023: Merchandise, Gift Cards, and Event Gifts. Incentives Research Foundation.
The average gift card amount for both North Americans and Europeans is $100 (dollars/euros).
The percentage of those who average $100 or less in gift cards is 55%, almost identical to last year’s 58% and very similar to the European percentage of 58%.
North America USD 1 – USD 100→ 55%
Europe €1-€100 → 58%
North America USD 100 median
European median €100
North American Median: USD 153
European Median €134
Source: Industry Outlook 2023: Merchandise, Gift Cards, and Event Gifts. Incentives Research Foundation.
Local sourcing of gift cards in North America increased from 65% in 2021 to 74%. In 2020, the percentage was 61%, while in the previous two years it was 69%, all within sampling error. In 2022 was the first year in which the percentage exceeded 70%. This percentage of Europeans obtained their gift cards from retail. While this percentage is still high, it is down quite a bit from the 2021 study, when 82% of Europeans purchased their own gift cards. purchased their own gift cards.
Source: Industry Outlook 2023: Merchandise, Gift Cards, and Event Gifts. Incentives Research Foundation.
In conclusion, more than half (52%) of Europeans anticipate an overall increase in their rewards and incentives budgets in 2023, while 19% anticipate a decrease. Gift card spending and technology budgets appear to have the largest net increases. In addition, partner or third-party engagement is forecast to continue to grow in 2023. The average spend per person in Europe on non-cash reward and recognition programs is €650 and 57% is on Gift cards from €1 to €250. Europeans are less likely to work with incentive companies and product brands compared to North America.
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