United Kingdom Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Market Size and Forecast; Spend Analysis by Digital / e-Gift Card, Retail and Corporate Consumers, Top Retailers, Distribution Channel, Occasions, Reta

United Kingdom Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Market Size and Forecast; Spend Analysis by Digital / e-Gift Card, Retail and Corporate Consumers, Top Retailers, Distribution Channel, Occasions, Retail Sectors, Function (Open Loop, Closed Loop), City Type, and Demographics – Q2 2024 Update


According to PayNXT360, gift card industry in the country is expected to grow by 7.7% on annual basis to reach US$10.8 billion in 2024.

The gift card industry in United Kingdom will continue to grow over the forecast period and is expected to record a CAGR of 6.0% during 2024-2028. Gift card market in the country will increase from US$10.1 billion in 2023 to reach US$13.7 billion by 2028.

The UK gift card sector is experiencing significant growth and innovation, driven by strategic partnerships and promotional initiatives from major retailers like Marks & Spencer and Tesco. Regulatory measures ensure consumer protection through clear terms, manageable expiry conditions, a cooling-off period for online purchases, and guidelines for lost or stolen cards. This evolving landscape underscores the sector's commitment to enhancing customer experience and adapting to market demands.

Key Developments in the Gift Card Sector in the United Kingdom

Numerous important product launches in the gift card sector have recently occurred in the United Kingdom, reflecting the growing demand and innovation within the market.

Product Launches and Innovations

Marks & Spencer and Runa Partnership: Marks & Spencer reported a significant increase in gift card revenue, attributed to its partnership with Runa, a digital value payments infrastructure provider. This collaboration has enabled Marks & Spencer to streamline its ordering process and expand its customer base, resulting in a 245% surge in gift card revenue in 2023.

Tesco's Christmas Gift Card Initiative: As part of its efforts to support customers amid the cost-of-living crisis, Tesco launched a promotional campaign offering £1 million in gift cards to Clubcard members. This initiative included a contest where customers could win vouchers to cover holiday shopping expenses, enhancing customer engagement and driving store traffic.

Strategic Partnerships

Marks & Spencer and Runa Partnership: Marks & Spencer reported a significant increase in gift card revenue, attributed to its partnership with Runa, a digital value payments infrastructure provider. This collaboration has enabled Marks & Spencer to streamline its ordering process and expand its customer base, resulting in a 245% surge in gift card revenue in 2023.

Pandora's B2B Gift Card Program: In late 2023, Pandora launched a digital gift card program specifically for corporate gifting, collaborating with InComm Payments. This initiative allows businesses to purchase gift cards for employees or clients, available exclusively through the InComm Connect B2B platform, with values ranging from £20 to £200.

Regulatory Changes

Consumer Protection Regulations: The UK continues to enforce consumer protection laws that govern the sale and use of gift cards. Businesses are required to provide clear terms and conditions (T&Cs) for gift cards, which must be easily accessible to consumers. This includes information on how the gift card can be redeemed, its expiry date, and any limitations on its use. Ensuring clarity in T&Cs helps prevent disputes and protects consumer rights.

Expiry Dates: While there is no specific law mandating expiry dates for gift cards in the UK, retailers can set their own terms. However, these expiry conditions must be clearly communicated to consumers at the point of sale and on the gift card itself. If no expiry date is specified, the retailer may face claims for breach of contract if they refuse to accept the card after a reasonable period.

14-Day Cooling-Off Period: Consumers purchasing gift cards online are entitled to a 14-day cooling-off period during which they can cancel the purchase, provided the gift card has not been used. This policy aligns with broader consumer rights regulations in the UK, allowing consumers to change their minds about online purchases.

Liability for Lost or Stolen Cards: Under UK regulations, businesses are not required to refund lost or stolen gift cards. However, companies are encouraged to provide clear guidelines on how to handle such situations, which can enhance customer trust and satisfaction.

These regulatory measures reflect a commitment to protecting consumers in the gift card market, ensuring they have clear information and fair terms when purchasing and using gift cards in the UK.

Gift card market in 2023 was driven a wide range of factors, which supported growth across retail and corporate segments. The primary factors included growth of ecommerce, increased adoption to incentivize employees working remotely, digital gifting, and initiatives undertaken by government, hospitality, and travel industries to revive growth.

This report provides a detailed data centric analysis of gift card market, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of gift card market dynamics, market size and forecast.

Scope

Total Spend on Gifts in United Kingdom
• By Consumer Segment (Retail and Corporate)
• By Product Categories (13 Segments)
• By Retail Sectors (7 Segments)

Gift Card Market Size by KPIs across Consumer Segments in United Kingdom
• Gross Load Value
• Transaction Value
• Unused Value
• Average Value Per Transaction
• Transaction Volume
• Average Value of Card Purchased
• Number of Cards

Gift Card Market Size by Consumer Segment in United Kingdom
• Retail Consumer
• Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)

Digital Gift Card Market Size in United Kingdom
• By Retail Consumer
• By Retail Purchase Occasion
• By Corporate Consumer
• By Corporate Purchase Occasion
• By Company Size

Gift Card Market Size by Retail Consumer in United Kingdom
• By Functional Attribute
• By Occasion
1. Festivals & Special Celebration Days
2. Milestone Celebration
3. Self-Use
4. Other
• Value by Purchase Channel

Gift Card Spend by Consumer Behavior and Demographics in United Kingdom
• Consumer Purchase Behaviour
• Gift Card Buyer by Age Group
• Gift Card Buyer by Income Level
• Gift Card Buyer by Gender

Gift Card Market Size by Corporate Consumer in United Kingdom
• By Functional Attribute
• By Occasion
1. Employee Incentive
2. Sales Incentive
3. Consumer Incentive
• By Scale of Business

Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in United Kingdom
• Food & Beverage
• Health, Wellness & Beauty
• Apparel, Footwear & Accessories
• Books & Media Products
• Consumer Electronics
• Restaurants & Bars
• Toys, Kids, and Babies
• Jewelry
• Sporting Goods
• Home & Kitchen Accessories & Appliances
• Travel
• Entertainment & Gaming
• Other

Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in United Kingdom
• Ecommerce & Department Stores
• Restaurants & Bars
• Supermarket, Hypermarket, Convenience Store
• Entertainment & Gaming
• Specialty Stores
• Health & Wellness
• Travel

Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in United Kingdom
• Gift Card Online Sales
• Gift Card Offline Sales
• 1st Party Sales
• 3rd Party Sales
• Sales Uplift

Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:

Tesco Plc
Associated British Foods Plc
Next Plc
J Sainsbury Plc
Wal-Mart Stores Inc
TJX Cos Inc, The
Wm Morrison Supermakets Plc
Amazon.com IncReasons to buy

• Comprehensive comprehension of the dynamics of the gift card and incentive card markets: Recognise the opportunities in the market, the main drivers and trends, and the five-year projection for gift and incentive cards in United Kingdom.

• Create strategies tailored to the market: To create your gift card strategy, identify growth categories and target particular opportunities across consumer segments and occasions; evaluate important trends and risks unique to your market.

• Learn about the attitudes and behaviours of consumers in United Kingdom: Increase ROI by understanding how consumer attitudes and behaviours are evolving. With gift cards, you may obtain comprehensive information about retail spending for both corporate and retail customers.

• Six key performance indicators (KPIs) provide a comprehensive view: the quantity of cards in circulation, load value, unused value, average purchase value, average value per transaction, and transaction value.

• Distribution channel insights: Recognise the differences in gift card sales across online and offline channels as well as between first-party and third-party sales.


1 About this Report
1.1 Summary
1.2 Methodology
1.3 Definition
1.4 Disclaimer
2 United Kingdom Total Gift Spend Analyzer
2.1 Total Spend on Gift by Value - Market Size and Forecast, 2019-2028
2.2 Total Spend on Gift by Volume - Market Size and Forecast, 2019-2028
2.3 Total Gift Spend Market Share Analysis by Consumer Segment, 2019-2028
2.4 Gift Spend Market Size and Forecast Analysis by Product Category, 2019-2028
2.5 Gift Spend Market Share Analysis by Product Category, 2019-2028
2.6 Total Gift Spend Market Size and Forecast Trend Analysis by Retail Sector, 2019-2028
2.7 Total Gift Spend Market Share Analysis by Retail Sector, 2019-2028
3 United Kingdom Retail Consumer Gift Spend Analyzer
3.1 Retail Consumer Spend on Gift - Market Size and Forecast, 2019-2028
3.2 Retail Consumer Gift Spend Market Analysis by Volume, 2019-2028
3.3 Retail Consumer Gift Spend Market Size and Forecast Analysis by Product Category, 2019-2028
3.4 Retail Consumer Gift Spend Market Share Analysis by Product Category, 2019-2028
3.5 Retail Consumer Gift Spend Market Size and Forecast Trend Analysis by Retail Sector, 2019-2028
3.6 Retail Consumer Total Gift Spend Market Share Analysis by Retail Sector, 2019-2028
4 United Kingdom Corporate Consumer Gift Spend Analyzer
4.1 Corporate Consumer Spend on Gift - Market Size and Forecast, 2019-2028
4.2 Corporate Consumer Gift Spend Market Analysis by Volume, 2019-2028
4.3 Corporate Consumer Gift Spend Market Size and Forecast Analysis by Product Category, 2019-2028
4.4 Corporate Consumer Gift Spend Market Share Analysis by Product Category, 2019-2028
4.5 Corporate Consumer Total Gift Spend Market Size and Forecast Trend Analysis by Retail Sector, 2019-2028
4.6 Corporate Consumer Total Gift Spend Market Share Analysis by Retail Sector, 2019-2028
5 United Kingdom Gift Card Spend Analyzer
5.1 Gift Card Spend Market Size and Forecast, 2019-2028
5.2 Gift Card Spend Market Analysis by Transaction Value and Volume, 2019-2028
5.3 Gift Card Spend Market Analysis by Avg. Value and Unused Value, 2019-2028
5.4 Gift Card Spend Market Share Analysis by Consumer Segment, 2019-2028
5.5 Gift Card Spend Market Share Analysis by Functional Attribute, 2019-2028
5.6 Digital Gift Card Spend Market Size and Forecast, 2019-2028
6 United Kingdom Digital Gift Card Spend Analyzer
6.1 Digital Gift Card Market Size and Forecast, 2019-2028
6.2 Digital Gift Card Penetration by Occasion, 2019-2028
6.3 Retail Consumer Digital Gift Card Market Size and Forecast, 2019-2028
6.4 Retail Consumer Digital Gift Card Spend Market Share Analysis by Occasion, 2019-2028
6.5 Corporate Consumer Digital Gift Card Market Size and Forecast, 2019-2028
6.6 Corporate Consumer Digital Gift Card Spend Market Share Analysis by Occasion, 2019-2028
6.7 Corporate Consumer Digital Gift Card Spend Market Share Analysis by Company Size, 2019-2028
6.8 Large Enterprise Segment Digital Gift Card Spend Analysis, 2019-2028
6.9 Mid-Tier Segment Digital Gift Card Spend Analysis, 2019-2028
6.1 Small Scale Segment Digital Gift Card Spend Analysis, 2019-2028
7 United Kingdom Gift Card Spend Share by Demographics and Purchase Behaviour
7.1 Gift Card Spend Share by Age, Income, and Gender, 2023
7.2 Digital Gift Card Spend Share by Age, Income, and Gender, 2023
7.3 Gift Card Consumer Purchase Behaviour, 2023
7.4 Corporate Consumer Gift Card Spend by Company Type, 2023
8 United Kingdom Retail Consumer Gift Card Spend Analyzer
8.1 Retail Consumer Gift Card Spend Market Size and Forecast, 2019-2028
8.2 Retail Consumer Gift Card Spend Market Share Analysis by Occasion, 2019-2028
8.3 Retail Consumer Gift Card Spend Market Share Analysis by Functional Attribute, 2019-2028
8.4 Retail Consumer Digital Gift Card Spend Market Size and Forecast, 2019-2028
9 United Kingdom Retail Consumer Gift Card Spend Analysis by Functional Attribute, 2019-2028
9.1 Retail Consumer Gift Card Spend Market Size and Forecast - Open Loop vs. Closed Loop, 2019-2028
9.2 Retail Consumer Open Loop Gift Card Spend Market Size and Forecast, 2019-2028
9.3 Retail Consumer Closed Loop Gift Card Spend Market Size and Forecast, 2019-2028
9.4 Retail Consumer Average Value of Gift Card Purchased by Functional Attribute, 2019-2028
10 United Kingdom Retail Consumer Gift Card Spend Analysis by Occasion
10.1 Retail Consumer Gift Card Spend Market Share Analysis by Occasion, 2019-2028
10.2 Retail Consumer Gift Card Spend Market Size and Forecast - Festivals & Special Celebration Days, 2019-2028
10.3 Retail Consumer Gift Card Spend Market Size and Forecast - Milestone Celebration, 2019-2028
10.4 Retail Consumer Gift Card Spend Market Size and Forecast - Self-Use, 2019-2028
10.5 Retail Consumer Gift Card Spend Market Size and Forecast - Other, 2019-2028
11 United Kingdom Corporate Consumer Gift Card Spend Analyzer
11.1 Corporate Consumer Gift Card Spend Market Size and Forecast, 2019-2028
11.2 Corporate Consumer Gift Card Spend Market Share Analysis by Occasion, 2019-2028
11.3 Corporate Consumer Gift Card Spend Market Share Analysis by Functional Attribute, 2019-2028
11.4 Corporate Consumer Digital Gift Card Spend Market Size and Forecast, 2019-2028
12 United Kingdom Corporate Consumer Gift Card Spend Analysis by Functional Attribute
12.1 Corporate Consumer Gift Card Spend Market Size and Forecast - Open Loop vs. Closed Loop, 2019-2028
12.2 Corporate Consumer Open Loop Gift Card Spend Market Size and Forecast, 2019-2028
12.3 Corporate Consumer Closed Loop Gift Card Spend Market Size and Forecast, 2019-2028
12.4 Corporate Consumer Average Value of Gift Card Purchased by Functional Attribute, 2019-2028
13 United Kingdom Corporate Consumer Gift Card Spend Analysis by Occasion
13.1 Corporate Consumer Gift Card Spend Market Share Analysis by Occasion, 2019-2028
13.2 Corporate Consumer Gift Card Spend Market Size and Forecast - Employee Incentive, 2019-2028
13.3 Corporate Consumer Gift Card Spend Market Size and Forecast - Sales / Channel Incentive, 2019-2028
13.4 Corporate Consumer Gift Card Spend Market Size and Forecast - Consumer Incentive, 2019-2028
14 United Kingdom Corporate Consumer Gift Card Spend Analysis by Company Size
14.1 Corporate Consumer Gift Card Spend Market Share Analysis by Company Size, 2019-2028
14.2 Corporate Consumer - Large Enterprise Segment - Gift Card Spend Market Size and Forecast, 2019-2028
14.3 Corporate Consumer - Mid-Tier Segment - Gift Card Spend Market Size and Forecast, 2019-2028
14.4 Corporate Consumer - Small Scale Segment - Gift Card Spend Market Size and Forecast, 2019-2028
15 United Kingdom Corporate Consumer Gift Card Spend Analysis by Company Size X Functional Attribute
15.1 Large Enterprise Segment Gift Card Spend Market Share Analysis by Functional Attribute, 2019-2028
15.2 Mid-Tier Segment Gift Card Spend Market Share Analysis by Functional Attribute, 2019-2028
15.3 Small Scale Segment Gift Card Spend Market Share Analysis by Functional Attribute, 2019-2028
16 United Kingdom Gift Card Spend Analysis by Distribution Channel
16.1 Closed Loop Gift Card Spend Market Size and Forecast by Distribution Channel - Online vs. Offline, 2021-2028
16.2 Retail Consumer Closed Loop Gift Card Spend Market Size and Forecast by Distribution Channel - Online vs. Offline, 2021-2028
16.3 Corporate Consumer Closed Loop Gift Card Spend Market Size and Forecast by Distribution Channel - Online vs. Offline, 2021-2028
16.4 Gift Card Spend Market Size and Forecast by Online Distribution Channel - 1st Party Sales vs. 3rd Party Sales, 2021-2028
17 United Kingdom Gift Card Spend Analysis by Retail Sector
17.1 Gift Card Spend Market Size and Forecast by Retail Sector, 2019-2028
17.2 Total Gift Card Spend Market Share Analysis by Retail Sector, 2019-2028
17.3 Sales Uplift by Retail Sector, 2023
18 United Kingdom Retail Consumer Gift Card Spend Analysis by Retail Sector
18.1 Retail Consumer - Gift Card Spend Market Size and Forecast by Retail Sector, 2019-2028
18.2 Retail Consumer Gift Card Spend Market Share Analysis by Retail Sector, 2019-2028
19 United Kingdom Corporate Consumer Gift Card Spend Analysis by Retail Sector
19.1 Corporate Consumer - Gift Card Spend Market Size and Forecast by Retail Sector, 2019-2028
19.2 Corporate Consumer Gift Card Spend Market Share Analysis by Retail Sector, 2019-2028
20 United Kingdom Closed Loop Gift Card Market Share Analysis by Top Retailers, 2023

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