The future of gift card rewards and incentives in 2026

The market for gift and incentive cards in Europe has grown robustly in the last couple of years. Only in 2025, it was valued at $78.9B, equivalent to €73.4B^[1]. By the end of the decade, that number will break the $100B ceiling. But what is the future actually holding? And what trends rule the following years?

The Incentives Research Foundation has released a couple of reports on industry trends in Europe, so we will stick to the latter figures and discuss how giftmall evaluates those insights^[2][3]. Let’s see what the future holds for us, fellow gifters.

Optimistic future outlook

The overall mood is rather optimistic. When respondents look into the future, 89% of them are sure that their company will have strong financial performance next year^[2]. That said, when asked about the incentive programmes, 41% are unsure whether their company will keep the programmes afloat in 2026. For that same question, about a third of respondents said they are certain the programmes will increase. The rest of the respondents feel that the process will stay the same next year.

The numbers indicate that many people believe their companies may survive the tough times, but employee support might falter.

Incentive programmes are no longer perceived as a nice-to-have bonus. In 2026, they will be linked to retention, supporting engagement in distributed teams, and used as a tool for performance and loyalty. This explains why, even in times of uncertainty, these programmes are not disappearing.

Companies do not always increase their budgets, but they want to use more automation, choose multibrand solutions and strive to avoid situations where the bonus is not suitable or irrelevant.

Incentive options ranked by how much they are used

Incentive programmes are a big part of a company’s culture, as they help ensure employees stay motivated and perform better, as well as show that the employer cares for them. For incentive options that the respondents most frequently chose in that same study, 34% chose gift cards as the most universal option. Another quarter went with experiences, and the rest was spread between merchandise and incentive travel².

At the same time, executives from the top-performing companies choose gift cards as rewards 94% of the time, followed closely by point-based rewards^[3]. This indicates that best practices are usually like that – implement a points system and reward your employees with gift cards.

Interestingly enough, some people believe that gift cards may be slightly ‘boring’, as they do not offer any personal touches. However, if there is a way to personalise the greeting, it may become an even more popular option.

Another curious thought came with the event gifting. The most popular presents after events are gift cards, with 76% of respondents choosing them^[2]. Here, thematic vouchers look like a thoughtful and genuine move, and if the gift card is for food options after the event, it becomes even more valuable.

Managing bonuses and incentives is not for the weak

Incentive programme administration is a complicated process that requires dedicated employees, such as HR professionals and programme managers. IRF’s report says that most organisations administer their incentive programmes internally, with 79% doing so. They use internal tools and aren’t always willing to try external solutions because of their complexity.

There is a clear long-term trend towards these programmes being implemented across the companies’ core processes. Despite most businesses implementing programmes internally, among top performers, almost half rely heavily on so-called strategic partners for rewards tech^[3]. Our team has noticed that those companies usually seek tech solutions that allow them to manage rewards without additional operational load, effectively, easily and transparently.

The trends we see will only grow stronger

As the years go by, younger gifters and receivers emerge, and with them, the scenery changes. According to Blackhawk Network, more than half of gift cards purchased in 2024 were digital^[4]. Younger generations, like millennials and Gen Z, are both conscious of the environmental impact of physical cards and want to receive their purchase instantly via a messenger or email.

IRF’s report supports that notion, claiming that 43% of European buyers prefer online-only retailers. This trend is set to have a bright future as the world becomes increasingly digital every year.

In our experience, the key drivers of the market in the coming years will be not only the growth of digital formats, but also the demand for flexibility and control. Companies are increasingly looking for solutions that allow them to quickly scale reward programmes, adapt them to different countries and audiences and, at the same time, maintain transparent analytics.

Another important focus is the integration of rewards into daily business processes within HR, sales, loyalty and engagement platforms. Gift cards are no longer a one-time bonus but a part of a long-term motivation strategy. This is where we see the greatest value for customers and the direction for the industry’s further development.

There are main trends affecting the gift card industry in the coming years. If you are interested in the solutions we provide for incentive programmes, please reach out to us at [email protected].

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