Gift Cards Market - Global Gift Cards Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030 - (By Type Coverage, By Merchant Coverage, By Price Range Coverage, By End User Coverage, By Geographic Coverage and By Company)

Gift Cards Market - Global Gift Cards Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030 - (By Type Coverage, By Merchant Coverage, By Price Range Coverage, By End User Coverage, By Geographic Coverage and By Company)

Gift Cards Market Poised for Remarkable Growth, Estimated to Reach US$1,897.5 Billion by 2030, with a CAGR of 10.5%

The global gift cards market is set to experience exceptional growth, projected to surge from the US$818.2 billion achieved in 2022 to an estimated US$1,897.5 billion by the end of 2030. This robust expansion is expected to be underpinned by a substantial CAGR of 10.5% during the period from 2023 to 2030.

Evolving Consumer Preferences Fuel Gift Cards Market
The gift cards industry is witnessing a surge in growth driven by changing consumer preferences, enhanced convenience, and versatility. Although gift cards made their debut in the mid-1990s, they gained significant traction in the early 2000s and have been on a continuous growth trajectory ever since. This growth can be attributed to several factors. Firstly, gift cards empower recipients to choose their desired products or experiences, elevating the gifting experience. Secondly, the proliferation of e-commerce and digital payments has facilitated the adoption of electronic gift cards, making them readily accessible and usable online. Moreover, businesses recognize the strategic value of gift card programs in boosting sales, attracting new customers, and fostering brand loyalty. The gift cards market has not only adapted to evolving consumer behavior but has also capitalized on emerging trends, positioning it as a dynamic and consistently expanding sector within the retail and finance industries.

Key Findings from the Report
• The increasing use of gift cards by online retailers, traditional retailers, and businesses as an effective means of enhancing customer satisfaction will be a primary driver of market growth.
• The gift cards market is poised to witness approximately 2.3 times expansion between 2023 and 2030.
• Technological advancements, including personalized designs, mobile wallet integration, and blockchain-based solutions, are key factors elevating the growth prospects of the gift cards market.
• The highest demand for gift cards is expected to come from the Business-to-Consumer (B2C) sector.
• Restaurants and discount stores are set to remain dominant in driving demand for gift cards.
• North America is expected to maintain its leadership position in the gift cards industry throughout the forecast period.

Driving Factors
Perception of Gift Cards as Unique and Thoughtful Gifts Grows
A gift card is a prepaid card holding a specific monetary value that can be used to make purchases at designated retailers, online stores, or businesses. Gift cards are popular for gifting purposes, allowing recipients to select their preferred products or services within the specified value. They eliminate the challenge of choosing the perfect gift, as recipients can use the stored funds as they wish. Gift cards do not typically allow for cash withdrawals and may have an expiration date. Retailing companies find gift cards to be a promising way to boost sales, enhance customer loyalty, and increase brand awareness. The increasing awareness of mobile wallets, coupled with the growing prevalence of e-commerce activities, is expected to drive global demand for gift cards. Rewards and incentives are additional factors expected to boost gift card demand.

Consumer Preference for Gift Personalization
Gift cards are categorized into three major types: open loop, closed loop, and e-gifting. In 2022, closed loop gift cards accounted for over 40% of the market share. Closed loop gift cards are tied to specific brands and can foster customer loyalty while driving foot traffic to the issuing stores. They are commonly used for special occasions, holidays, and personal gifting.

In recent years, the expansion of e-commerce, particularly on smartphones, and the adoption of e-gift incentive policies by many companies have led to increased demand for e-gift cards. The demand for e-gift cards is projected to grow at a CAGR of 11% between 2023 and 2030.

Key Market Segments
Restaurants and Discount Stores Dominate Gift Card Consumption
In 2022, the global gift cards market reached over US$800 billion, with restaurants being the most popular choice, accounting for over 30% of the market. Gift cards have long been a crucial strategy for restaurants to increase publicity, customer loyalty, referrals, and engagement with customers. Changes in lifestyle and the proliferation of restaurant chains in developing economies are expected to boost gift card sales.

Discount stores represent another major segment contributing to the global gift cards market, generating revenue of over US$200 billion in 2022. Increased urbanization, digital adoption, and changing consumer preferences are expected to drive gift card sales through discount store merchants.

B2C Sector Leads in Generating Demand
In 2022, the B2C segment accounted for more than three-quarters of the total gift cards market. Post-pandemic, B2C sales experienced growth primarily driven by in-store purchases. Although a majority of B2C purchases are made directly from retailers and gift card issuers in physical stores, the past few years have seen a decline in these popular channels. The growing popularity of digital channels is expected to drive this segment over the next few years.

B2B is another key segment in the global gift cards market. This segment is primarily driven by consumer expenditure through workplace programs and the value of gift cards received as part of loyalty, rewards, and incentives. B2B channels continue to be essential for the industry and offer merchants the opportunity to strengthen their market position and generate significant revenue.

Growth Opportunities Across Regions
North America Takes the Lead
In 2022, North America accounted for more than 45% of the global gift cards market, with the United States being a significant contributor. The United States has a strong gift card culture, with occasions such as religious holidays, birthdays, weddings, and anniversaries driving demand. Post-pandemic, the demand for e-gifting has accelerated, thanks to increased e-commerce activities and greater use of gift cards among millennials.

Europe Captures a Significant Position
In Europe, the shift of consumers toward omnichannel gift cards has led to strategic collaborations among stakeholders. Rising e-commerce and m-commerce activities, coupled with growing demand from the corporate sector, are expected to boost the gift cards market. Gift cards offer convenience to both buyers and recipients, allowing recipients to choose their preferred products. Countries such as Germany, the UK, France, and Italy are expected to exhibit impressive growth rates in the coming years.

Asia Pacific Poised for Rapid Growth
Asia Pacific is predicted to be the fastest-growing region for gift cards. Rapid economic growth, a growing population, increasing urbanization, and technological advancements are expected to propel the gift cards industry in the region. Countries such as India, China, Thailand, Vietnam, and Indonesia are among the fastest-growing markets in the gift cards industry. Higher smartphone penetration and the adoption of digital payment systems have facilitated the use of digital gift cards in the region.

Competitive Landscape Analysis: Gift Cards Industry
Strategic Collaborations to Unlock the Full Potential of Digital Gift Cards

A majority of players in the gift cards market focus on local/domestic as well as regional markets. Companies are actively pursuing strategic collaborations to expand their presence across regions. Key players in the global gift cards market include Amazon, Edenred, Apple, Best Buy, and Blackhawk.

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