Asia-Pacific Gift Card Market Outlook, 2029

Asia-Pacific Gift Card Market Outlook, 2029

The APAC Gift Card Market has seen significant growth in recent years, driven by shifting consumer behaviours and an increasing preference for digital solutions. With the region’s rapid adoption of smartphones, internet services, and e-commerce platforms, gift cards have emerged as a popular alternative to traditional gifting methods. These prepaid cards offer convenience and flexibility, making them a top choice for personal gifting, corporate rewards, and promotional offers across various industries. As APAC countries become more digitally connected, there is a noticeable increase in the usage of gift cards in retail, entertainment, and travel sectors. The market is also benefiting from the rise in disposable income in key countries such as China, India, and Japan, where consumers are increasingly opting for cashless transactions. Gift cards in the APAC region are available in both physical and digital formats, with digital versions gaining significant traction due to their ease of use and ability to be delivered instantly. Furthermore, gift cards are widely recognized as a preferred choice for corporate incentive programs, making them an essential component of the employee rewards landscape. This trend is particularly evident in countries like Australia and Singapore, where businesses are actively integrating gift card rewards into their human resource strategies. As the market continues to evolve, the demand for innovative and personalized gift card offerings is expected to grow, alongside an increase in cross-border gift card usage within the region.

According to the research report ""Asia-Pacific (APAC) Gift Card Market Outlook, 2029,"" published by Bonafide Research, the APAC Gift Card market is anticipated to grow at more than 16.42% CAGR from 2024 to 2029. The APAC Gift Card Market has been shaped by several emerging trends, regulatory developments, and technological advancements in recent years. Digital gift cards, in particular, are becoming increasingly popular across the region, with many consumers opting for e-gift cards due to their convenience and speed of use. In response to this demand, retailers are enhancing their digital offerings, integrating more diverse payment options, and providing personalized experiences to customers. Government policies in various APAC nations have supported the growth of the market by promoting digital payment ecosystems and encouraging cashless transactions. Initiatives that promote financial inclusion and streamline electronic payments are contributing to the growing acceptance of gift cards as a reliable payment tool. For example, regulations in countries like India and China are driving the adoption of digital wallets and electronic transactions, which, in turn, boost the usage of gift cards. Technologically, advancements in mobile wallets and e-commerce platforms have made it easier for consumers to purchase and redeem gift cards. Contactless payment systems are also gaining momentum, making it more convenient for users to shop or gift through digital platforms. While there are several players in the APAC gift card space, some companies dominate the market by offering diverse gift card options and establishing strong partnerships with retailers and service providers. Companies such as Alibaba, Amazon, and various regional payment platforms have been instrumental in driving the market’s growth. These companies leverage their vast e-commerce platforms to offer a wide range of gift card options, further contributing to the popularity and acceptance of gift cards across APAC.

Market Drivers

• Corporate and Employee Reward Programs: Gift cards have become an essential component of corporate reward programs in the APAC region. Companies use gift cards as incentives for employee performance, recognition, and motivation. These cards offer flexibility and personalization, which makes them ideal for corporate gifting. With businesses focusing on improving employee satisfaction and engagement, the demand for gift cards as part of incentive schemes has grown significantly. Additionally, gift cards are also used in loyalty programs, encouraging repeat business and customer retention, thus driving their market demand. Market Challenges
• Limited Acceptance in Some Regions: While gift cards are growing in popularity, their acceptance is still limited in some APAC countries, particularly in rural or less-developed areas. The lack of infrastructure for digital payments and cashless transactions in certain regions hampers the widespread adoption of gift cards. Many smaller retailers may not have the technology or payment systems in place to accept gift cards, limiting their appeal in these markets. Expanding acceptance and awareness of gift cards remains a challenge for the market’s growth in such regions.

Market Trends

• Personalization and Customization: Personalization is becoming an important trend in the APAC gift card market. Consumers are increasingly seeking gift cards that can be customized with personal messages, designs, or even specific amounts. Retailers are responding by offering more flexible and personalized gift card options, allowing customers to tailor their purchases to individual preferences. This trend is particularly popular for corporate gifting and special occasions, where customized gift cards enhance the gifting experience and increase consumer satisfaction.

In the APAC Gift Card Market, closed-loop cards, particularly in the low-price range, have emerged as one of the most dominant segments.

In the APAC Gift Card Market, closed-loop cards, particularly in the low-price range, have emerged as one of the most dominant segments. Closed-loop cards are gift cards that can only be redeemed at specific retailers or within a defined network, making them a preferred choice for both consumers and businesses. These cards provide a sense of security, as they limit fraud risks by restricting usage to a particular store or platform. This is especially important in the digital age, where concerns about security and unauthorized transactions are rising. The low-price range of these closed-loop cards further boosts their appeal. As consumers in the APAC region increasingly seek affordable and convenient gifting solutions, low-value gift cards become an accessible choice. These cards cater to budget-conscious consumers who want to give gifts without exceeding a certain spending limit. Retailers are also more inclined to offer closed-loop cards in this price range, as they encourage repeat purchases and enhance customer loyalty. Additionally, low-value cards can be easily integrated into promotional and loyalty programs, benefiting both businesses and consumers. In APAC countries where gift-giving is culturally significant, such as Japan and South Korea, closed-loop cards in the low-price range are commonly used for personal gifts, corporate rewards, and incentives. This segment's growth is driven by consumer preference for localized, secure, and easy-to-use gift cards that offer a personalized shopping experience, thus cementing its position as the leading segment in the APAC gift card market.

Retail establishments have proven to be the leading end user in the APAC Gift Card Market, largely due to their ability to effectively leverage gift cards as a tool for customer acquisition.

Retail establishments have proven to be the leading end user in the APAC Gift Card Market, largely due to their ability to effectively leverage gift cards as a tool for customer acquisition, retention, and enhanced sales. The retail sector, which spans a wide range of industries, including fashion, electronics, and groceries, has capitalized on the popularity of gift cards to attract more customers and increase foot traffic. Gift cards allow consumers to purchase products with flexibility, making them a convenient option for both personal use and gift-giving occasions. Retailers benefit from gift cards by ensuring repeat business, as many customers redeem their cards in-store or online for future purchases. The prepaid nature of gift cards also provides cash flow benefits for retailers, as they receive the funds upfront before the consumer redeems the card. Additionally, gift cards serve as effective promotional tools, especially during peak seasons such as holidays or special sales events, driving higher sales volume and expanding customer bases. Another key factor contributing to the dominance of retail establishments in the APAC gift card market is the increasing trend of omni-channel shopping. Consumers can purchase and redeem gift cards across both online and physical retail channels, giving them a seamless shopping experience. In countries like China and India, where retail shopping is increasingly shifting to e-commerce, retailers have adapted by integrating digital gift card offerings into their online platforms. This adaptability has helped retail establishments remain at the forefront of the APAC gift card market.

China has emerged as the most dominant player in the APAC Gift Card Market, driven by a combination of rapid economic growth, a highly digital-savvy population.

China has emerged as the most dominant player in the APAC Gift Card Market, driven by a combination of rapid economic growth, a highly digital-savvy population, and an ever-expanding retail ecosystem. The country’s vast consumer base, which is increasingly inclined towards digital payments, has fueled the widespread adoption of gift cards, both physical and digital. With over 1.4 billion people, China’s population is a significant driver of the market, as consumers increasingly prefer gift cards for convenience, personalization, and ease of use. One of the key factors contributing to China’s leadership in the APAC gift card market is the country’s embrace of digital payment systems. With platforms like Alipay and WeChat Pay, which boast hundreds of millions of active users, the popularity of mobile wallets and digital payments has transformed China into one of the world’s most advanced cashless societies. As mobile payments gain traction, digital gift cards have become a preferred method of gifting, especially during key holiday seasons such as Chinese New Year and Singles' Day. Furthermore, the retail landscape in China is vast and diverse, with a mix of traditional brick-and-mortar stores and e-commerce giants like Alibaba and JD.com. This omnichannel approach has enabled gift cards to thrive, as they can be used both in-store and online. Retailers and online platforms actively promote gift cards as part of loyalty programs, seasonal promotions, and corporate incentives, further increasing their penetration into the market. China’s expanding middle class and rising disposable income contribute to the market’s growth. As consumers have more spending power, they are more inclined to purchase gift cards for personal use or gifting. The country’s growing trend of digital and physical gift card adoption has solidified China’s position as the leading country in the APAC Gift Card Market.

Considered in this report
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Gift Card Market with its value and forecast along with its segments
• Region & country wise Gift Card market analysis
• Application wise Gift Card distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Card Types
• Closed -Loop Card
• Open-loop Card

By Price Range
• High
• Medium
• Low

By Sale Channel
• Offline
• Online

By End User
• Retail Establishment
• Corporate Institution

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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