Gift Card Market Segmented By Type - Universal Accepted Open Loop, Restaurant Closed Loop, Retail Closed Loop, Miscellaneous Closed Loop, and E-Gifting
Industry: Consumer Goods
Published Date: March-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 300
Report ID: PMRREP11560
According to Persistence Market Research, the gift card market generated a revenue of US$ 301.7 Bn in 2024. The demand for gift card will accelerate, with the top market players holding a prominent share in the global and regional markets. The global market is expected to reach US$ 606.9 Bn by 2031, growing at a 10.5% CAGR from 2024 to 2031.
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Market Size (2024A) |
US$ 490 Bn |
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Projected Market Value (2031F) |
US$ 606.9 Bn |
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Value CAGR (2024-2031) |
10.5% |
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Collective Value Share: Top 3 Countries (2023) |
37.5% |
Throughout the forecast period, the market for gift cards is anticipated to increase favorably. During the projected period, the industry is anticipated to develop because of quickly evolving consumer-purchasing habits. On the other hand, it is expected that the use of gift cards for employee rewards and recognition in commercial sectors would increase, which will further spur growth in this area. During the anticipated period, the expanding popularity of e-gifting is also anticipated to boost industry growth.
In the updated study by Persistence Market Research, a wide-ranging analysis of several of the major difficulties faced by companies that provide gift card has also been covered in detail. Further, the market grew with a significant growth rate of 8.2% during the historic period of 2018 to 2023.
Throughout the projected period, the gift card industry is anticipated to continue to be hopeful. Gift cards are becoming more popular because of the major feature of partial redemption. Growing M-commerce and e-Commerce are aiding the expansion of the industry in significant ways. On the other hand, gift cards offer extensive customization and personalization options, which is projected to further encourage market growth.
The players are currently working to increase their operations and market penetration through strategic alliances and partnerships with other competitors, affiliates, suppliers, and service providers, among others. The sales of gift cards are anticipated to increase at an 10.5% CAGR between 2024 and 2031, according to PMR's estimate.
Digital cards, virtual cards, and mobile gift cards are all other names for e-gift cards. These digital cards are becoming far more popular than physical cards. After recognizing that they should be online, several shops have started using e-gifting. Since virtual cards are sent directly to the beneficiary through email or SMS in the form of codes and links, they score highly when it comes to operational and usage flexibility. Another important aspect that has considerably influenced the industry's acceptance of virtual cards is the quick uptake of online payment systems.
However, digital gift cards work best with multichannel marketing tactics, which is why more people are choosing virtual cards every day. The idea of virtual giving has further gained hold in the industry because of the COVID-19 pandemic and the widespread remote working practices in businesses.
Gift cards have been utilized as a marketing technique more frequently during the last few years. Brand owners frequently use gift cards and merchants to improve customer loyalty programs, consumers' perceived value, boost referrals, and keep customers. Since brand owners and retailers today think that gift cards are what is luring consumers' interest and engagement, the use of gift cards for consumer loyalty programs is rising.
Further, offering the proper mix of rewards can help consumers across various demographics and income levels, as many merchants and brand owners have recently come to understand. Gift card adoption is anticipated to benefit further from such player attempts to convert the potential customers to the most devoted ones.
Presently, the majority of big and small businesses are concentrating on improving employee engagement by rewarding and recognizing employees with gift cards. Many multinational corporations are aggressively making every effort to excite and inspire workers to give their best efforts and reach higher goals. The growth in the upcoming years is anticipated to be driven by such initiatives from small and multinational businesses.
The market's players are actively working to increase their company's regional business penetration. Few businesses in the market are now purchasing, working together, or forming partnerships with other market participants in an effort to increase their market presence.
For instance, Blackhawk Network in 2020, announced the acquisition of NGC (National Gift Card), a card and prepaid Technology Company. The company has successfully strengthened its incentive solutions on the back of this acquisition.
Further, it is anticipated that these players' actions will alter market trends and the degree of rivalry.
What Role the Widespread Use of Non-Cash Incentives by Commercial Sectors In The United States Had In Promoting Regional Growth?
The widespread use of digital technology in the United States has significantly influenced the growth of e-gifting. Non-cash incentives, such as reward points, gift cards, incentive trips, and other options, are being used by an increasing number of commercial sector organizations in the U.S. to recognize and reward the efforts and performance of key workers, suppliers, and partners.
The pervasive incentive culture that exists in the United States itself demonstrates the possibility for regional expansion. The U.S. currently holds a share of around ~26% in the global market.
How will Customization and Personalization Services Encourage the Use of Gift Cards in the U.K.?
Customization of gift cards is highly valued by customers as a gifting and reward option. Although it is not new in the U.K., players believe that customization adds an extra perk to the revenue package. Players in the U.K. have now turned to providing bespoke and personalised gift card solutions in response to the expanding business and personal needs.
One such organisation that provides the option to modify and alter card options based on gifting occasions is Amazon.com, Inc. Market participants provide the option for customization in terms of gifting amount, card style, pattern, etc. The providers also offer customization in terms of company name and logo embossment, etc., considering corporate requirements.
How will Indian Gift Card Sales Benefit from Changing Millennial Preference?
In India, the largest generation is the millennial. Indian millennials are gradually switching away from physical presents in favor of gift cards as end-user preference has become more important to today's millennials. The market in the country is anticipated to witness a substantial growth rate of 19.4% over the forecast period.
Millennials today increasingly choose simple and practical solutions in all situations, including gifting, due to the busy and chaotic nature of today's environment. This millennial mentality has drawn and encouraged people to choose gift cards over physical presents.
How will Brazil's Retail Sector's Rapid Development Boost Gift Card Sales?
Brazil's expanding retail industry is anticipated to be crucial in fostering regional expansion in the use of gift cards. According to Brazilian government figures for 2019, the retail sector's growth reached its best level in the preceding five years. Supermarkets, food products, hypermarkets, pharmaceuticals, medical devices, computers, and other communication equipment are all included in this industry.
Gift card sales in Brazil have a bright future, as seen by the expanding retail industry in this region. The usage of gift cards in Brazil is expected to increase along with the country's increasing penetration of supermarkets, hypermarkets, and other gift retailing chains.
Which Type of Merchant Dominates The Industry In Terms of Numbers?
Department stores hold a substantial percentage of the merchant type market followed by discount shops, supermarkets/hypermarkets, etc. Department stores are increasingly active in providing cards, discounts, etc. to draw in customers and increase the quantity of coupons.
In addition, department retailers are likely to use gift cards more frequently in the future. During the projection period, the department store category is anticipated to experience a CAGR of 16.3%. Another reason or characteristic that speaks to the expansion of this sector is the growing penetration of department stores in middle- and low-income nations.
Which Category Rules the Market for Different Types of Gift Cards?
Closed loop gift cards dominate the gift card market with a share of 28.1%, followed by retail closed loop and universally accepted closed loop. Restaurant aggregators like Zomato, Swiggy, and others that sell gift cards have been a major factor in the strong sales development of closed loop restaurant cards.
What is the Prominence of Online Distribution Channel during the Forecast Period?
When it comes to distribution channels, offline channels have a sizable share. However, it is expected that the online channel will experience tremendous development. The online channel is significantly anticipated to increase by 14.2% CAGR. Consumers' and payment systems' swiftly rising online adoption is probably going to have a big impact on the expansion of the online channel.
To obtain a competitive edge over other active companies, the market's players are actively increasing their industry penetration. The competitors are expanding their business in low- and middle-income nations. For instance, a few B2B companies aggressively expanding their business in low- and middle-income nations include Edenred SA and The Up Group. In addition, partnerships with independent gift card suppliers are aiding the players in growing their market share.
The players' primary goal is to increase the penetration of their brand through aggressive marketing tactics. A few B2B market participants are also marketing a couple of their card options as tax advantage cards. The increase of gift card sales in both the personal and business categories is anticipated to be favorably impacted by all of these initiatives and actions on the side of suppliers.
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Details |
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Forecast Period |
2024-2031 |
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Historical Data Available for |
2018-2023 |
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Market Analysis |
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Key Countries Covered |
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Key Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon Request |
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The gift card market is valued at US$ 499.4 Mn as of 2022.
Gift card market is projected to increase at 11.7% CAGR and is expected to be valued at around US$ 1,674.9 Mn by 2033 end.
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, and The Up Group among others.
Europe currently leads the global market. In terms of value sales, the region accounts for a notable share of around 31% in the global market.
