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, Distribution Channel, Occasions, Retail Sectors, Ope

According to PayNXT360, gift card market in United Kingdom is expected to grow by 8.3% on annual basis to reach US$11,873.3 million in 2025.

The gift card market in the country experienced robust growth during 2020-2024, achieving a CAGR of 9.3%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 7.3% during 2025-2029. By the end of 2029, the gift card sector is projected to expand from its 2024 value of USD 10,962.1 million to approximately USD 15,746.8 million.

This report provides a detailed data-centric analysis of the gift card sector in United Kingdom, covering market opportunities and risks across consumer segments (retail and corporate); product categories; retail sectors; and store formats. With over 100+ KPIs at the country level, this report provides a comprehensive understanding of gift card market dynamics.

It offers a comprehensive analysis of market dynamics in the gift card sector, segmented by digital and e-gift card sales, distribution channels, key occasions, demographic trends, and market share statistics of leading retailers. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Key Insights

The UK gift card industry is undergoing rapid transformation, driven by digital innovation, corporate engagement, sustainability efforts, and shifting consumer preferences toward experiences. The increasing adoption of digital gift cards reflects the growing need for convenience and seamless integration with loyalty programs. In parallel, businesses are embracing gift cards to boost employee morale and retention, fueling corporate demand.

Sustainability has become a key focus, with both digital and eco-friendly physical cards becoming essential for retailers aiming to align with environmentally conscious consumers. Additionally, the popularity of experience-based gift cards is reshaping the market, encouraging collaborations between retailers and service providers. These evolving trends are expected to shape the industry further, offering new opportunities for growth and innovation in the coming years.

Digital Gift Cards Surpass Physical Formats
• Digital gift cards have become more prevalent than physical ones in the UK, now accounting for over half of the market share.
• The convenience of instant delivery and the integration of digital gift cards into loyalty and rewards programs have contributed to their increased adoption.
• The preference for digital gift cards is expected to grow, driven by ongoing technological advancements and consumer demand for seamless gifting solutions.

Corporate Utilization of Gift Cards for Employee Rewards
• Businesses are increasingly adopting gift cards as a method to reward and incentivize employees, reflecting a shift in corporate recognition strategies.
• Gift cards offer flexibility and are appreciated by employees, making them an effective tool for boosting morale and retention.
• The corporate demand for gift cards is anticipated to rise, with firms leveraging them for various incentive programs, thereby expanding the market.

Emphasis on Sustainability in Gift Card Production
• There is a growing focus on producing gift cards using sustainable materials, such as recycled plastics and digital formats, to reduce environmental impact.
• Consumer awareness of environmental issues is prompting retailers to adopt eco-friendly practices, including offering digital gift cards and using sustainable materials for physical cards.
• Sustainability initiatives are likely to become standard in the industry, with increased adoption of digital gift cards and environmentally friendly materials enhancing brand reputation and meeting consumer expectations.

Growth in Leisure and Experience-Based Gift Cards
• There is a notable increase in gift cards for leisure and entertainment, with sales in this sector rising year-over-year.
• Consumers are prioritizing experiences over material goods, seeking memorable activities. Gift cards for dining, entertainment, and travel cater to this demand.
• The preference for experiential gifting is anticipated to grow, leading to more partnerships between retailers and service providers to offer diverse experience-based gift cards.

Competitive Landscape of the UK Gift Card Market

The UK gift card market is evolving rapidly, with increased competition, new partnerships, and technological advancements driving both consumer and corporate adoption. Traditional players such as Marks & Spencer, Tesco, and Amazon continue to hold significant market positions, while recent entrants like Raise and initiatives by fintech firms such as Klarna are reshaping the competitive landscape. The market is expected to intensify over the next 2-4 years, with digital solutions becoming the norm and corporate partnerships playing a crucial role in driving growth. Sustainability initiatives will gain momentum, and further consolidation may occur as companies strive to expand their offerings and strengthen market share. Retailers and service providers that effectively innovate and adapt to these trends will likely secure a competitive edge in the evolving landscape.

Current Market Dynamics
• The UK gift card market has witnessed robust activity, driven by increased competition, corporate demand, and innovations in digital and experiential gift cards.
• Traditional players such as supermarkets, department stores, and online platforms continue to hold significant market share. However, new entrants and tech-focused partnerships are reshaping the market landscape, particularly in the B2B and digital segments.
• The market is evolving rapidly with both consumer and corporate segments adopting gift cards for convenience, employee rewards, and sustainability-focused gifting.

Key Players and Market Share
• Marks & Spencer (M&S): Strengthened its position through a partnership with Blackhawk Network, launching a B2B gift card platform to target corporate clients.
• Tesco: Implemented targeted promotional campaigns offering free gift cards to Clubcard holders, enhancing customer engagement during key periods.
• Amazon: Remains a dominant force in both B2B and B2C segments, providing versatile gift card options integrated with its broader e-commerce offerings.

Recent Launches and Partnerships
• Top Cashback and Tillo: Expanded the TopGiftCards platform, enabling users to earn cashback when purchasing gift cards, thereby increasing its reach and value proposition.
• Raise's UK Expansion: Raise, a major gift card marketplace from the U.S., entered the UK market, broadening access to discounted gift cards and promoting exchange-based gifting.
• Pandora and InComm Payments: Launched a digital corporate gift card program to capture demand in the B2B market for premium gifts.
• Klarna's Gift Card Store: Klarna entered the UK gift card market by launching a digital storefront offering cards from various major retailers.
• Moonpig: Faced setbacks in the experiential gifting sector, leading to a write-down in its gift card and experience business arm, reflecting difficulties in the discretionary spending category.

Anticipated Market Evolution (Next 2-4 Years)
• Digital gift cards will likely dominate as consumer expectations for instant, flexible gifting continue to rise.
• More retailers and fintech companies will target corporate partnerships to drive sales, particularly in employee rewards and loyalty programs.
• Retailers will accelerate efforts to offer environmentally friendly options, aligning with growing customer demand for sustainable products.
• Further consolidation is expected, with established players seeking acquisitions to strengthen their competitive positioning and broaden their offerings.

Scope

This report provides in-depth, data-centric analysis of gift card industry in United Kingdom through 100+ tables and 280+ charts. Below is a summary of key market segments:

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

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

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

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

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

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

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

United Kingdom Gift Spend by Product Categories (Split by Retail and Corporate Consumers)
• 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

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

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

United Kingdom Gift Card Purchase by Payment Method
• Credit Card
• Debit Card
• Bank Transfer
• Prepaid Card
• Digital & Mobile Wallet
• BNPL & Other Digital Payment
• Cash

United Kingdom Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
Tesco
ASDA
Sainsbury's
Morrisons
Aldi
Amazon
Lidl
Waitrose & Partners
Argos
Marks & Spencer

Reasons 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.