Industry: Consumer Goods
Published Date: August-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 180
Report ID: PMRREP34716
The gift cards (B2B) market size value was estimated at US$315.8 Bn in 2024 and is expected to be valued at US$629.7 Bn by 2031. The market is predicted to achieve an expanding, steady CAGR of 10.4% from 2024 to 2031.
Key Highlights of the Market
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Attributes |
Key Insights |
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Market Size (2024E) |
US$ 315.8 Bn |
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Projected Market Value (2031F) |
US$629.7 Bn |
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Forecast Growth Rate (CAGR 2024 to 2031) |
10.4% |
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Historical Growth Rate (CAGR 2018 to 2023) |
7.0% |
The market has experienced significant growth in recent years. Gift cards are a popular choice for businesses looking to provide incentives, rewards, and promotional offerings to their employees, clients, and partners. They offer flexibility and convenience, allowing recipients to choose their preferred products or services.
According to PMR's report on the gift cards (B2B) industry, gift card providers offer customization options to create a more personalized gifting experience. This trend allows businesses to tailor their gift cards to specific occasions, themes, or branding requirements.
There is a growing trend towards branded gift cards. Additionally, these cards are increasingly used as incentives and rewards in corporate and employee reward programs.
With these gift cards (B2B) market trends, the industry shares are expected to reach US$629.7 Bn by 2031, increasing at a CAGR of 10.4% from 2024 to 2031.
Technological advancements, such as the introduction of smartphone technology, are driving the gift card market expansion. Some B2B companies are aggressively expanding their gift card business in low-and middle-income nations. Further, the convenience and immediacy offered by digital gift cards have contributed to their growing popularity.
The gift cards (B2B) market has witnessed significant growth in recent years. According to a study by Persistence Market Research, the market experienced a substantial growth rate of 7.0% during the historic period of 2019 to 2023.
This growth can be attributed to various factors, including the increasing demand for gift cards as incentives and rewards in corporate settings, the rise of digital gift cards, and the expansion of the corporate gifting market.
Further, the gift cards (B2B) market is expected to continue its growth trajectory. The market is projected to grow at a compound annual growth rate (CAGR) of 10.4% during the period of 2024-2031.
This growth will be driven by factors such as the rising demand for digital gift cards, the expansion of the corporate gifting market, and the increasing adoption of gift cards as incentives and rewards in corporate settings.
Technological advancements will play a crucial role in shaping the future of the gift cards (B2B) industry. The convenience and immediacy offered by digital gift cards have contributed to their growing popularity, and this trend is expected to continue.
The market will also see further customization and personalization options, allowing businesses to tailor their gift cards to specific occasions, themes, or branding requirements.
Increasing Adoption of Gift Cards as Incentives and Rewards
The growing recognition of gift cards as effective incentives and rewards in corporate settings is a significant driver of market expansion. As businesses strive to motivate and engage their employees, clients, and partners, they increasingly turn to gift cards as a versatile and customizable option.
Gift cards allow recipients to choose their preferred products or services, making them popular for incentive programs. This trend is expected to drive gift cards (B2B) market revenue.
Rise of Digital Gift Cards
The convenience and accessibility of digital gift cards have propelled their popularity and contributed to market growth. Digital gift cards can be easily purchased, delivered, and redeemed online, eliminating the need for physical cards.
The ease of use and immediate delivery make digital gift cards attractive for businesses and recipients. With the increasing preference for online shopping and digital transactions, the gift cards (B2B) market demand is expected to continue to rise.
Expansion of the Corporate Gifting Industry
The corporate gifting market is expanding, driven by the need for businesses to strengthen relationships with employees, clients, and partners. Gift cards offer a convenient and flexible solution in the corporate gifting landscape.
As companies seek to enhance their corporate gifting strategies, gift cards provide a versatile option that allows recipients to choose products or services that suit their preferences.
The expanding corporate gifting market, coupled with the growing acceptance of gift cards as a preferred gifting option, is expected to drive the gift cards (B2B) market sales.
Lack of Awareness and Proper Marketing
One factor that can impede the market shares is the need for more awareness and proper marketing of B2B gift card programs. While gift cards can be a valuable tool for businesses, they may only gain the attention and traction they deserve if they are properly marketed and promoted.
Gift cards (B2B) market companies need to communicate effectively the benefits and value of their B2B gift card programs to potential clients and make it easy for companies to place orders.
Competition, and Brand Relevance
The gift cards (B2B) market research report shows that the industry is highly competitive, with various brands vying for a market share. Businesses that need a well-managed and proactive B2B gift card program may face challenges in staying relevant and competitive in the marketplace.
Proactively managing a B2B gift card program helps businesses stay current and relevant among competitors, ensuring they are not handing money to the competition.
Integration with Customer Loyalty Programs
One of the market opportunities is the integration of gift card programs with customer loyalty programs. By combining gift cards with loyalty programs, businesses can enhance customer engagement and retention. This integration allows companies to reward loyal customers with gift cards, incentivizing them to patronize their products or services.
It also allows businesses to attract new customers by offering gift cards as part of their loyalty program sign-up incentives. This integration is expected to drive gift cards (B2B) market growth and increase customer loyalty.
Expansion in E-commerce and Online Marketplaces
The market analysis highlights a significant opportunity for the industry to expand its presence as the e-commerce industry continues to grow. Businesses can leverage these platforms to reach a wider audience and offer gift card programs to a more extensive customer base.
By partnering with e-commerce platforms and online marketplaces, businesses can tap into the growing trend of online shopping and digital transactions. This expansion into the online realm provides convenience for companies and recipients alike, making it a promising opportunity for the growth of the market value.
Department Stores Lead Merchant Market
Department stores dominate the merchant market, followed by discount shops and supermarkets/hypermarkets. To attract customers and boost coupon quantities, department stores actively provide cards and discounts.
Additionally, the use of gift cards by department retailers is expected to increase in the future. Projections indicate a 16.3% CAGR for the department store category.
The gift cards (B2B) market expansion is further fueled by the growing presence of department stores in middle-and low-income nations.
Closed Loop Gift Cards Dominate
Closed-loop gift cards hold the largest market share at 28.1%, followed by retail closed-loop and universally accepted closed-loop cards. The strong sales growth of closed-loop restaurant cards is largely attributed to restaurant aggregators like Zomato, Swiggy, and others, which sell these gift cards.
Online Channel Set for Remarkable Growth While Offline Channels Maintain Dominance
Offline channels hold a significant share in distribution channels, but the online channel is expected to undergo tremendous development. Projections indicate a 14.2% CAGR for the online channel.
The rapid adoption of online platforms by consumers and payment systems will likely impact the online channel's expansion substantially. This adoption fuels the rapid expansion of gift cards (B2B) market shares.
Growth of E-Gifting Driven by Digital Technology and Non-Cash Incentives in the United States
The PMR's gift cards (B2B) market forecast shows that the widespread use of digital technology in the United States has greatly influenced the rise of e-gifting.
An increasing number of commercial sector organizations in the U.S. are utilizing non-cash incentives, such as reward points, gift cards, and incentive trips, to recognize and reward the efforts of critical workers, suppliers, and partners.
A pervasive incentive culture in the U.S. also indicates the potential for regional expansion. With a current share of around 26% in the global market, the U.S. holds a significant position in the industry.
Customization of Gift Cards Gains Popularity in the UK as Players Respond to Growing Demand
As per the gift cards (B2B) market update, the customization of gift cards is increasingly valued by customers as a preferred gifting and reward option. In the UK, players recognize that customization adds an extra benefit to the overall revenue package.
In response to expanding business and personal needs, players in the UK are now offering bespoke and personalized gift card solutions. For instance, Amazon.com, Inc. can modify and tailor card options based on gifting occasions.
The market players also provide customization in terms of gifting amount, card style, pattern, and even company name and logo embossment to cater to various corporate requirements.
Indian Millennials Shift Towards Gift Cards as End User Preference Takes Center Stage
The gift cards (B2B) market concentration report highlights that, in India, the largest generation, the millennial generation, is gradually moving away from physical presents and embracing gift cards as their preference as end-users becomes more significant.
The country's market is expected to experience a substantial growth rate of 19.4% in the forecast period. Today's busy and chaotic environment has led millennials to opt for simple and practical solutions in all aspects, including gifting, thus drawing people towards choosing gift cards over physical presents.
Brazil Gains from the Expanding Retail Industry
According to PMR's gift cards (B2B) market trends analysis, Brazil's expanding retail industry is expected to play a vital role in promoting the regional expansion of gift card usage.
According to data from the Brazilian government, in 2019, the retail sector achieved its highest growth in the past five years, encompassing supermarkets, hypermarkets, pharmaceuticals, medical devices, computers, and communication equipment.
The bright future of gift card sales in Brazil is evident as the retail industry expands. With the increasing presence of supermarkets, hypermarkets, and other gift retailing chains, the usage of gift cards in Brazil is predicted to rise.
The gift cards (B2B) market manufacturers are driving growth through acquisitions and innovation. Startups are enriching the competitive landscape with unique solutions.
Companies in the gift cards (B2B) industry are investing in expanding production capacities and enhancing technological features to stay competitive. Their objective is to develop inventive functionalities and integrate technologies seamlessly. This strategic approach fosters successful market concentration, entry, and widespread adoption.
Recent Industry Developments
In May 2024, Pine Labs partnered with Google Wallet to integrate its gift card offerings on Google's app. This comes three weeks after Google launched its digital wallet application in India. Users will be able to store and manage their gift card journey within the app, urging customers to use it at the point of purchase. The frictionless gift card usage experience will provide ease and convenience to existing and new users, eliminating complexity around usage.
In Jul 2024, Air India has introduced Air India Gift Cards, offering a simple and adaptable way to share the joy of travel with loved ones. These e-cards can be purchased online for varying amounts and can be used to book domestic and international flights, add extra services, and choose travel dates, locations, and cabin classes. Available in four themes: travel, wedding anniversary, birthday, and memorable moments, the cards can be customized for a unique touch. They can be used for a single trip or multiple bookings.
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2018 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Country Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
By Merchant Type
By Type
By End-User
By Price Range
By Sales Channel
By Region
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The market is anticipated to grow from US$ 315.8 Bn in 2024 to US$629.7 Bn by 2031.
Technological advancements, expansion in low-and middle-income nations, and the growing popularity of digital gift cards are augmenting the market's growth.
Amazon.com, Inc., Best Buy Company, Inc., Starbucks Corporation, and Target Corporation are some key industry players.
Challenges like the need for more awareness and proper marketing are restraining industry expansion.
The integration of gift card programs and the expansion of the e-commerce industry are the key opportunities in the market.
