Gift Card Market Size, Share, and Growth Forecast for 2025 - 2032

Gift Card Market Size and Share Analysis

The global gift card market is estimated to reach a size of US$ 646.12 Bn in 2025. It is predicted to rise at a CAGR of 14.3% through the assessment period to reach a value of US$ 1,472.7 Bn by 2032.

Gift cards are becoming a growing hit because of their personalized, flexible, and convenient features. Due to internet shopping and mobile payment methods, e-gift cards have a roughly 60% market share in 2023. For instance,

• During Black Friday 2023, sales of digital gift cards rose by 15% compared to the previous year, as retailers like Amazon, Walmart, and Starbucks introduced targeted promotions and cashback offers.

Money transaction platforms like Venmo and PayPal have simplified digital gift card purchases, enhancing consumer convenience. The tendency to prioritize experiences above tangible possessions is noteworthy.  

• As per research, nearly 45% of millennials like experiential presents like gift cards to restaurants, underscoring the changing consumer tastes influencing the sector.
• As per studies, Restaurant aggregators such as Postmates, DoorDash, and Uber Eats offer a variety of closed-loop gift cards, accounting for 28.1% market share in 2024.

Key Highlights of the Market

• Rising consumer preference for convenient and personalized gifting solutions, offering flexibility and choice to recipients across various demographics.
• Growing e-commerce ecosystem creating more opportunities for digital and physical gift card distribution through multiple retail channels.
• Millennials and Gen Z preferences for experiential and flexible gifting options, driving innovation in gift card product designs.
• Adoption by corporate entities for employee rewards, incentive programs, and customer loyalty initiatives in multiple industries.
• Department stores are estimated to attain a market share of 40% due to variety of offers in 2024.  
• Based on sales channel, the online segment is projected to account for a market share of 45% in 2024 due to convenience in shopping.
• North America is estimated to attain a market share of 35% in 2024 owing to the adoption of personalized gift cards.
• Europe is anticipated to hold a market share of 29% in 2024 with utilization of sustainable practices.

Market Attributes	Key Insights
Gift Card Market Size (2025E)	US$ 646.12 Bn
Projected Market Value (2032F)	US$ 1,472.7 Bn
Global Market Growth Rate (CAGR 2025 to 2032)	14.3%
Historical Market Growth Rate (CAGR 2019 to 2023)	10.6%

Online Purchasing to Foster Demand for Gift Certificates in North America

North America gift card market is predicted to hold a 35% market share. The region is projected to experience a CAGR of 11.5% over the forecast period. Regional growth is due to the increased usage of digital solutions in the U.S. commercial sector, which employs non-cash incentives. These incentive types include gift cards and reward points to inspire employees and enhance connections with suppliers and partners. For instance,

• Over 64% of U.S. consumers purchased gift cards for holiday gifting in 2023, with significant traction seen during Black Friday and Cyber Monday sales.

The growth of the digital gifting market in North America is fueled by the adoption of personalized digital cards by companies like Starbucks, and the growing acceptance of e-gifting by 75% of Millennials. It is further driven by the ease of distribution and tracking in the corporate sector.

Trend of Sustainability to Boost Demand in Europe

The rising desire for eco-friendly giving solutions is predicted to propel Europe gift card market to establish its significance in 2024, with 29% of the market share. In addition to promoting eco-friendly materials like recycled paper and PVC, which have reduced carbon footprints and attractive aesthetics, companies such as Wedoogift are also pushing dematerialized gift cards.

• In December 2023, Wedoogift teamed up with European companies to provide environment-friendly gift card options that use recycled PVC cards for strength and a high-end appearance.

Adoption of greener technology and digital gift cards in Europe is highlighting the market's growing focus on customer preferences and environmental responsibility. 

Department Stores Across the Globe Offers Variety of Card Designs

In 2024, department stores are predicted to dominate the global gift card market, accounting for 40% of the market share. It is largely due to their increasing offerings of gift cards, discounts, and coupons.

Department shops are increasing the number of gift cards they provide to satisfy the increasing need for flexible, individualized solutions, particularly in emerging markets. Department stores are increasingly utilizing digital platforms to integrate gift cards into their e-commerce offerings, leading to market expansion.

Walmart and Target are promoting gift cards alongside holiday promotions to cater to the growing preference for e-gifting, especially during peak seasons like holidays.

Consumers Opt for Online Sales Channel due to Convenience

Online sales are predicted to make up 45% of the global gift card market in 2024 indicating a growing preference for digital and instant gifting solutions. Consumers' preference for digital solutions and secure payment systems are driving the shift towards e-gift cards, which are popular for last-minute gifts and impulse purchases.

The online platforms offer an array of customization options, such as personalized designs and instant delivery, which enhance consumer appeal. Leading players like Amazon, Apple, and Walmart have embraced online channels, integrating digital gift cards into their e-commerce offerings.

Market Introduction and Trend Analysis

Gift cards are an essential part of contemporary payment systems that combine convenience and technology to meet customer demands. Such cards are largely managed by smartphones using apps like Google Pay and Gyft.

Innovative solutions enable consumers to track expiration dates, purchase and donate cards online, and use them securely in stores. For instance, Gyft's app for iOS and Android is popular for flexible payment options. Companies benefit from unredeemed balances, known as "breakage," providing additional revenue streams.

Sales of gift cards over the holiday season increased significantly in 2023 for big shops like Starbucks and Target.

• Starbucks' individualized smart card offers and broad customer uptake helped the company record US$ 3.3 Bn in revenues during its fiscal first quarter of 2023. The sales demonstrate how effective gift card payments are in increasing sales.

Historical Growth and Course Ahead

The global gift card market recorded a CAGR of 10.6% during the period from 2019 to 2023. The demand for gift certificates is rising due to consumers' increasing need for handy, adaptable gift alternatives that let them select the goods or services they want.

The emergence of e-commerce and digital payment platforms has aided the market growth, with the simplicity of acquiring and delivering digital gift cards aligning with modern consumer behavior. Also, the integration of gift certificates with mobile wallets and apps has improved user experience and adoption rates. Demand for gift cards is estimated to record a considerable CAGR of 14.3% during the forecast period between 2024 and 2031.

Market Growth Drivers

Trend of Convenient and Personalized Gifting Solutions Remains a Primary Driver

The rising need for simple and personalized gifting choices that provide flexibility and personalization possibilities, making them more meaningful for events like birthdays, weddings, and holidays, has greatly increased the market for gift cards.

• According to a report by Blackhawk Network in late 2023, 70% of consumers preferred receiving gift cards due to their versatility and ease of use.

Brands like Amazon, Starbucks, and Apple have introduced features that enhance the gifting experience. For instance,

• Starbucks experienced a 15% increase in digital gift card sales in 2023 holiday season, largely due to personalized card designs and integrated app functionalities.

Mastercard's 2024 initiative to introduce personalized digital gifting platforms reflects the market trend of offering thoughtful and adaptable gifting options to meet consumer demand.

Focus on Millennials and Gen Zs Propel Innovation in Card Designs  

Millennials and Gen Z are redefining the gift card industry by appreciating distinctive, adaptable, and multipurpose presents that fit their hectic lifestyles.

• According to a 2023 Blackhawk Network survey, more than 60% of Gen Z and Millennial shoppers would rather receive digital gift cards for entertainment, eating, or travel than conventional physical presents.

Companies like Airbnb and Uber are utilizing digital gift cards for experiences, featuring innovative design features like QR-code integration and interactive interfaces. To attract a young demographic and enhance market development, Gyft and Raise launched mobile-based services in 2024 for monitoring card balances, determining expiration dates, and donating unused funds.

Market Restraining Factors

Concerns Regarding Online Fraud Hamper Sales

Online gift cards are susceptible to fraud and theft, which undermine consumer trust and deter purchases. According to the Federal Trade Commission, gift card fraud costs American customers more than US$ 228 Mn in 2022, a 34% rise from the year before. Phishing attacks are a common component of schemes.

Electronic gift cards are vulnerable to hacking, particularly during the busy holiday season, driving businesses such as Target and Walmart to set up improved encryption and multi-factor authentication systems. To reduce risks, customers should purchase gift cards from reliable vendors, confirm activation at the time of sale, and refrain from disclosing card information online.

Key Market Opportunities

Introduction of E-cards to Offer Prospects for Last-minute Gifting 

E-gift cards are a popular digital solution for last-minute gifting, providing instant gratification and addressing modern consumer preferences for speed and convenience. According to the studies, especially around the holidays, more than 70% of consumers in the U.S. preferred e-gift cards in 2023 because of their speedy delivery and customizable features.

E-gift cards, promoted by brands like Amazon and Starbucks, are environmentally sustainable, reducing their carbon footprint by eliminating the need for physical production, packaging, and shipping. E-gift cards are cost-effective, saving firms around 25% on manufacture and delivery expenses, which makes them appealing to shops.

Personalized designs and rapid redemption choices are a couple of Gyft's 2024 innovations that have increased market acceptability and generated substantial opportunity for the e-gift card market.

Growing E-commerce Enhances the Distribution of Cards Across Various Retail Channels

The distribution of digital and physical gift cards is being increased by the e-commerce sector, especially during busy times like the holiday shopping season. Instant delivery and multichannel shopping are driving up sales of digital gift cards for retailers like Walmart and Amazon.

• Online gift card purchases made up more than 40% of all U.S. sales as of the end of 2023. Leading systems like Apple Pay and PayPal have integrated these choices to facilitate consumer transactions.
• Retailers like Target saw a 12% boost in sales in 2023, demonstrating the continued popularity of physical gift cards.

The integration of e-commerce platforms and retail locations has broadened the reach of physical and digital gift cards, allowing consumers to use them flexibly across various channels.

Competitive Landscape for the Gift Card Market

Market participants are strategically concentrating their efforts on enhancing their presence in low- and middle-income countries, recognizing the untapped potential within different regions. Business-to-business companies are actively seeking to grow their operations in these emerging markets.

Market players are forming partnerships with independent gift card suppliers to bolster their market dominance, allowing for a broad range of offerings and increased market share. Through aggressive marketing techniques, such as the launch of tax benefit cards, the market players are concentrating on developing brand penetration and awareness.

The goal of such initiatives is to increase gift card sales in a variety of industries, which will help both corporate and personal giving and increase brand penetration.  

Recent Industry Developments

• In December 2024, Line Investments & Property, a division of Lulu International Holdings, launched the LAKA Gift Card, a VISA-powered platform offering convenience, personalization, and security for shoppers across its 19 malls in the UAE.
• In December 2024, Blackhawk Network (BHN) introduced Roblox digital gift cards in Mexican Peso for seamless eCommerce, allowing users to purchase virtual currency and redeem for Roblox Premium subscription service.
• In December 2024, Target launched redesigned gift cards to combat fraud, following the AARP-supported Maryland bill. Cards have security code stickers, blank spaces, secure packaging, and employee training.
• In September 2024, Tata Neu introduced its "Gift Card Store" with over 100 brands, NeuCoins, discounts, incentives, and exclusive Taj Experience Dining Vouchers for select restaurants. 
• In August 2024, LazyPay, a credit service by PayU, launched a new product line called Gift Cards, offering vouchers from over 150 popular brands in various categories. The platform, accessible via the LazyPay app, will be available to customers with up to 10% discounts and exclusive launch period cashback offers.

Gift Card Market Report Scope

Attributes	Details
Forecast Period	2025 to 2032
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Regions Covered	North America Europe East Asia South Asia and Oceania The Middle East and Africa Latin America
Key Market Segments Covered	Merchant Type Type End User Price Range Sales Channel Region
Key Companies Profiled in the Report	Amazon.com, Inc. Best Buy Company, Inc. Starbucks Corporation Target Corporation Walmart Stores QwickSilver Solutions National Gift Card Corporation InComm Gyft Edge Loyalty Systems Pty. Ltd. Blackhawk Network holdings, Inc. Edenred Group The Up Group Others
Report Coverage	Market Forecast and Trends Company Share Analysis Competitive Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization and Pricing	Available upon request

Gift Card Market Segmentation

By Merchant Type

• Restaurants
• Department Stores
• Grocery Stores
• Supermarkets/Hypermarkets
• Discount Stores
• Coffee Shops
• Entertainments
• Salons/Spa
• Book Store
• Home Décor Stores
• Gas Stations
• Visa/Master Card/American Express Gift Card
• Others

By Type

• Universal Accepted Open Loop
• Restaurant Closed Loop
• Retail Closed Loop
• Miscellaneous Closed Loop
• E-Gifting

By End User  

• Business
  • Small and Medium Enterprises
  • Large Enterprises
• Individuals

By Price Range

• High (Above US$ 400)
• Medium (US$ 200-400)
• Low (Below US$ 200)

By Sales Channel

• Online
• Offline

By Region

• North America
• Europe
• East Asia
• South Asia and Oceania
• Latin America
• The Middle East and Africa

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