Global Gift Card Market Overview, 2024-29

Global Gift Card Market Overview, 2024-29

The global gift card market has evolved into a dynamic and ever-expanding industry, with increasing popularity among consumers and businesses alike. These prepaid cards have become a staple in the retail and online shopping sectors, offering a convenient and versatile gifting solution. From birthdays to holidays and corporate incentives, gift cards cater to a wide variety of occasions, creating a seamless way for people to express their appreciation or provide flexible purchasing options. The market spans a diverse range of sectors, including retail, entertainment, dining, travel, and digital services, each contributing to the growing demand. Consumer preferences have shifted toward digital gift cards, as smartphones and online platforms make purchasing and gifting more accessible. Additionally, businesses have recognized the advantages of offering gift cards as part of loyalty programs, employee rewards, and promotional campaigns. The ease of use, wide acceptance, and ability to control spending have made gift cards a popular choice for people looking for practical yet thoughtful gifts. With the rapid growth of e-commerce, the global gift card market is poised for continued expansion, as more consumers embrace the convenience of digital and mobile gift cards.

According to the research report, “Global Gift Card Market Overview, 2024-29” published by Bonafide Research, the market is anticipated to cross USD 1300 Billion by 2029, increasing from USD 583.16 Billion in 2023. The market is expected to grow with a 14.87% CAGR from 2024 to 2029. The global gift card market is currently witnessing significant trends, including the rise of digital and mobile gift cards, which offer enhanced convenience and instant delivery. With the increasing adoption of mobile wallets and contactless payment methods, gift cards are becoming a preferred digital payment option. In response to consumer demand, many retailers are introducing personalized and branded gift cards, enabling customers to tailor their gifts to specific tastes. On the regulatory front, governments are implementing policies to enhance consumer protection, addressing issues such as fraud prevention and transparency in the use of gift cards. These regulations ensure that customers are safeguarded from misuse and that businesses remain compliant with financial standards. Technological advancements continue to shape the market, particularly with the integration of Artificial Intelligence (AI) to streamline customer experience and provide personalized recommendations. Blockchain technology is also being explored for its potential to increase security in digital gift card transactions. In terms of dominating players, large retailers such as Amazon, Walmart, and Visa have established themselves as key players in the gift card market. Additionally, digital platforms like Apple and Google have capitalized on the growing mobile gift card trend, further fuelling the market’s growth globally.

Market Drivers

• Growing Popularity of Digital Payments: The increasing preference for digital payments and mobile wallets has significantly contributed to the growth of the global gift card market. Consumers are opting for digital gift cards due to the convenience of instant delivery and ease of use across various online platforms. The adoption of mobile payment solutions, such as Apple Pay and Google Pay, enables customers to store and use digital gift cards effortlessly, further boosting their popularity as a gifting option.

Market Challenges

• Unused Balances and Expiration Dates: A significant issue in the gift card market is the occurrence of unused balances and expired cards. Consumers may forget to use their gift cards or leave small amounts remaining on the card, ultimately resulting in the value being wasted. Additionally, some gift cards come with expiration dates, further reducing their usability. This trend creates dissatisfaction among consumers and negatively impacts the overall perception of gift cards as a convenient gifting option.
• Competition from Alternative Payment Methods: Gift cards face strong competition from alternative payment methods, such as digital wallets, cryptocurrency, and peer-to-peer payment apps. As consumers increasingly embrace these new payment options, the demand for traditional gift cards may be affected. Furthermore, with digital wallets offering more comprehensive and versatile solutions, consumers may perceive them as more practical for making purchases or sending money, ultimately reducing the demand for gift cards in the market.

Market Trends

• Shift Toward Digital and Mobile Gift Cards: The gift card market is undergoing a significant shift from physical to digital and mobile gift cards. Digital gift cards are gaining popularity due to their immediate delivery, ease of use, and the rise of mobile wallet applications. Consumers are increasingly opting for digital gift cards as they offer enhanced convenience and can be used instantly for online shopping, providing a seamless experience across devices.

Closed-loop gift cards, which can only be used at specific retailers or chains, have emerged as the leading card type in the global gift card market.

Closed-loop gift cards, which can only be used at specific retailers or chains, have emerged as the leading card type in the global gift card market. One of the primary reasons for their dominance is the loyalty they generate for both consumers and businesses. Retailers have tapped into the immense potential of closed-loop cards by offering them as part of promotions, special discounts, or exclusive rewards programs. This creates a sense of value and exclusivity, encouraging consumers to spend more at those specific stores or online platforms. The price range for low-cost closed-loop cards has also contributed to their success. These affordable options provide consumers with a practical and budget-friendly gifting solution, making them highly popular for a wide range of occasions such as birthdays, holidays, and even corporate gifting. With a price range that appeals to most consumers, low-cost closed-loop cards offer a great deal of flexibility. They cater to different market segments, from small-scale shoppers to those seeking simple, yet meaningful, gifts. Moreover, closed-loop cards offer retailers a unique opportunity to increase brand loyalty. When consumers purchase these cards, they are more likely to return to the brand in the future, as they are already tied to that particular retailer. This form of targeted spending not only helps retailers secure repeat customers but also drives repeat sales, making closed-loop cards a highly effective tool in building brand equity and increasing consumer engagement.

Retail establishments are by far the leading end users in the global gift card market.

Retail establishments are by far the leading end users in the global gift card market. Retailers have long recognized the power of gift cards to drive sales, increase customer loyalty, and enhance the overall shopping experience. With their broad appeal across different demographics, gift cards are a perfect fit for both online and brick-and-mortar retail environments, offering a flexible payment solution that benefits both businesses and consumers alike. For retailers, gift cards serve as a powerful marketing tool. They not only generate immediate revenue when sold but also bring customers back into the store or website. The flexibility of gift cards encourages repeat purchases and higher transaction amounts. Gift cards can be used for almost any product or service, allowing customers to choose exactly what they want, while simultaneously pushing them toward higher-end options or new categories. Moreover, retailers can introduce new customers to their brand through gift cards, as the recipients often have no prior loyalty to the store but are encouraged to visit due to the card’s value. Additionally, retail establishments use gift cards to streamline gifting during holidays or special events, making them an easy go-to solution for consumers looking to purchase presents. With the continued growth of e-commerce, the online retail segment has especially benefited from digital gift cards, which offer instant delivery and more convenient purchasing options. This adaptability to both in-store and online shopping environments has solidified the role of retail establishments as the primary end-user of gift cards, driving the global market’s steady expansion.

North America stands out as the leading region in the global gift card market due to a combination of factors including high consumer demand.

North America stands out as the leading region in the global gift card market due to a combination of factors including high consumer demand, advanced technological infrastructure, and widespread adoption across various sectors. The market in this region is characterized by a strong preference for both physical and digital gift cards, with consumers continuously seeking convenient and flexible gifting solutions. One of the key drivers of North America's dominance in the gift card market is the region’s robust retail sector. Major retailers, both in physical stores and online, extensively offer gift cards as part of their marketing and sales strategies. Brands like Amazon, Walmart, and Target leverage gift cards to drive customer loyalty and repeat purchases, making them a staple in the shopping experience. The ease of purchasing and redeeming gift cards, combined with their broad acceptance, has made them an essential part of consumer transactions. In addition, North American consumers are increasingly adopting digital gift cards due to the rise of mobile payments and e-commerce. With the widespread use of smartphones and mobile wallets, such as Apple Pay and Google Pay, digital gift cards offer consumers the convenience of instant purchases and gifting. This growing trend toward digital cards aligns with North America's technologically advanced landscape, where mobile commerce continues to rise. Corporate gifting is another significant contributor to North America's leading position in the global gift card market. Companies regularly use gift cards as part of employee reward programs, loyalty initiatives, and incentives, contributing to their widespread usage. This trend is further amplified by the region's thriving economy, with businesses seeing gift cards as an effective tool for boosting engagement and improving brand loyalty. With its strong retail infrastructure, technological advancements, and growing adoption across sectors, North America remains the dominant force in the global 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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