United States 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, Open

According to PayNXT360, gift card market in United States is expected to grow by 7.9% on annual basis to reach US$234,149.9 million in 2025.

The gift card market in the country experienced robust growth during 2020-2024, achieving a CAGR of 8.7%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 7.0% during 2025-2029. By the end of 2029, the gift card sector is projected to expand from its 2024 value of USD 216,934.0 million to approximately USD 307,248.8 million.

This report provides a detailed data-centric analysis of the gift card sector in United States, 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 U.S. gift card market is undergoing significant changes, with digitalization playing a key role in its expansion. The increasing shift towards digital gift cards, driven by the rise of e-commerce and evolving consumer preferences, indicates that technology will continue to reshape the industry. Additionally, businesses are integrating gift cards into employee incentives and customer loyalty programs, further solidifying their role in corporate reward strategies.

Looking ahead, market consolidation through strategic partnerships and acquisitions will shape the competitive landscape. Established players will likely enhance their digital capabilities, while new entrants will introduce innovative solutions to gain market share. As the industry evolves, companies must focus on technological advancements, regulatory compliance, and customer engagement strategies to remain competitive in the expanding U.S. gift card market.

Expansion of Digital Gift Cards
• The U.S. is witnessing a significant shift towards digital gift cards, with consumers favoring their convenience and instant delivery. Major retailers such as Amazon and Walmart have expanded their digital gift card offerings to meet this growing demand.
• The trend toward digital gift cards is expected to intensify, with projections indicating continued growth in the U.S. gift card market. Retailers will likely invest more in digital platforms and personalized e-gift card options to enhance customer engagement and loyalty.

Integration of Gift Cards into Corporate Incentive Programs
• Businesses in the U.S. are increasingly incorporating gift cards into their employee reward and customer loyalty programs. Companies such as Starbucks have adopted gift cards as incentive strategies to boost engagement and satisfaction.
• The need for flexible and customizable reward solutions has led corporations to prefer gift cards over traditional incentives. Gift cards' versatility allows businesses to tailor rewards to individual preferences, thereby enhancing the effectiveness of their incentive programs.
• The use of gift cards in corporate settings is anticipated to grow, contributing significantly to the overall expansion of the U.S. gift card market. As companies seek innovative ways to motivate employees and retain customers, the demand for corporate gift card solutions is expected to rise.

Strategic Partnerships and Market Consolidation
• The U.S. gift card market is experiencing increased activity in terms of partnerships and acquisitions. For instance, various collaborations have expanded Blackhawk Network's gift card offerings.
• The drive to enhance market share and diversify product portfolios has led companies to pursue strategic alliances. By partnering with fintech firms and other retailers, companies aim to leverage shared expertise and resources to offer more comprehensive gift card solutions.
• This trend is expected to continue, leading to a more consolidated market with a few key players dominating the landscape. Such consolidation may result in more standardized offerings and better consumer value propositions.

Competitive Landscape of the United States Gift Card Market

The U.S. gift card market is rapidly expanding, driven by increasing digital adoption, corporate incentives, and strategic collaborations. Established players such as Amazon, Walmart, and Starbucks continue to dominate, while new entrants introduce innovative solutions to diversify offerings. Regulatory changes focused on transparency and fraud prevention are expected to reinforce consumer confidence and market stability.

Looking ahead, competition is set to intensify as companies enhance digital platforms and explore new technologies such as cryptocurrency-based gift cards. Strategic mergers and acquisitions will likely reshape the market, leading to further consolidation among key players. Businesses that adapt to evolving consumer preferences and regulatory requirements will be well-positioned to capture growth opportunities in this expanding sector.

Current Market Dynamics
• Gift Card is driven by the increasing adoption of digital gift cards, their integration into corporate incentive programs, and the rise of e-commerce. The market encompasses both closed-loop cards specific to individual retailers and open-loop cards usable across multiple merchants.

Key Players and Market Share
• Prominent companies such as Amazon, Walmart, and Starbucks dominate the U.S. gift card landscape, leveraging their extensive networks and technological capabilities to capture significant market share.
• In recent years, new entrants have introduced innovative products, including digital and multi-brand gift cards, catering to tech-savvy consumers and diversifying market offerings. For instance, companies such as Gyft and Prezzee have entered the market with unique digital gift card solutions.

Anticipated Market Evolution (Next 2-4 Years)
• The competitive intensity in the U.S. gift card market is anticipated to increase, driven by technological advancements and evolving consumer preferences. Established players are expected to enhance their digital offerings, while new entrants may introduce innovative solutions such as cryptocurrency-based gift cards.
• Strategic partnerships and acquisitions are likely to continue as companies seek to expand their market share and diversify their product portfolios. The emphasis on digitalization, strategic collaborations, and consumer protection will be central to shaping the future landscape of gift cards in the U.S.

Regulatory Changes
• In the past year, the U.S. has implemented regulatory measures to enhance transparency and security in the gift card sector. These regulations address fees, expiration dates, and usage terms to protect consumers and ensure fair competition among providers.
• The Federal Trade Commission (FTC) has also issued guidelines to prevent fraudulent activities associated with gift cards, emphasizing the importance of consumer education and robust security measures.

Scope

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

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

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

United States of America Digital Gift Card Market Size
• By Retail Consumer
• By Retail Purchase Occasion
• By Corporate Consumer
• By Corporate Purchase Occasion
• By Company Size

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

United States of America Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
Walmart
Amazon
Costco
Home Depot
Target
Apple Store
CVS Pharmacy
Walgreens
Kroger
Publix

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 States.
• 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 States: 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.