Global Gift Card Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2031

Gift Card Market Analysis

Gift card market thrives on convenience, offering versatile gifting options across various industries. Its adaptability caters to diverse preferences, from retail to digital platforms. Consumers enjoy flexibility in purchases, while businesses benefit from increased revenue and customer loyalty. With seamless transactions and personalized experiences, the gift card market fosters lasting relationships between recipients and brands, driving mutual satisfaction.

For instance, according to United Nations Educational, Scientific and Cultural Organization data from 2022, participation in festivals, traditions, or religious occasions exceeds 60% globally annually. This cultural prominence of festivals, coupled with the human desire for connection through gift exchanges on such occasions, has driven an increase in demand for gift cards.

Gift Card Market Size

The global gift card market size was valued at USD 1,039.35 billion in 2023 and is projected to reach USD 3,006.70 billion by 2031, with a CAGR of 14.2% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, pricing analysis, brand share analysis, consumer survey, demography analysis, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.

Gift Card Market Trends

“Rise of Digital Gift Cards”

The gift card market is witnessing significant trend in the market by the increasing popularity of digital gift cards. Consumers are gravitating towards the convenience and flexibility of online gifting, especially during festive seasons and special occasions. Major retailers, such as Amazon and Starbucks, are enhancing their digital offerings by allowing customers to personalize e-gift cards and send them instantly via email or messaging apps. This trend has also been bolstered by the rise in e-commerce, as more people shop online and seek easy gifting solutions. According to a recent report, the digital gift card segment is projected to reach USD 300 billion by 2027, highlighting its crucial role in market expansion.

Report Scope and Gift Card Market Segmentation    

Gift Card Market Definition

A gift card is a prepaid card that allows the recipient to purchase goods or services from a specific retailer or group of retailers. Gift cards can be physical cards or digital versions, often loaded with a predetermined amount of money. They offer flexibility, allowing recipients to choose what they want, making them popular for occasions such as birthdays, holidays, or special events. Many retailers offer themed designs, enhancing their appeal as gifts. Additionally, some gift cards can be used online or in-store, providing convenience. They are a practical solution for gift-giving, especially when unsure of the recipient's preferences.

Gift Card Market Dynamics

Drivers

• Rise in the Demand for Convenient Option

The rise in demand for convenient gifting options is significantly driving the gift card market. Gift cards offer a hassle-free solution, allowing givers to skip the time-consuming process of selecting, wrapping, and shipping gifts. For instance, in July 2020, Apple Inc. introduced a universal gift card designed for hardware, software, and services, meeting the diverse needs of consumers. Marketed as "for everything and everyone," this versatile gift card offers unparalleled flexibility across Apple’s extensive product range. By providing a single solution that caters to multiple categories, Apple reinforces its position as a leading provider of innovative consumer products and enhances customer satisfaction through convenience.

• Rise in the Adoption of E-Gift Cards among Millennials

The rise in the adoption of e-gift cards, especially among millennials, is significantly driving growth in the gift card industry. Millennials appreciate the convenience and flexibility of e-gift cards, often utilizing digital platforms for purchases. Brands such as Amazon and Starbucks have effectively leveraged social media marketing to engage this demographic, enhancing their virtual presence. Furthermore, the shift toward e-commerce has fueled the popularity of e-gift cards, with sales soaring during holiday seasons and special occasions. For instance, according to a recent survey, 73% of millennials prefer receiving e-gift cards over physical ones, highlighting a growing trend that is expected to extend to older generations, thereby expanding the market further.

Opportunities

• Loyalty Programs and Incentives

Loyalty programs and incentives have created significant opportunities in the gift card market. Gift cards play a vital role in these initiatives, fostering customer engagement and brand loyalty while motivating employees. Retailers are increasingly recognizing their potential to drive repeat business and boost overall sales. For instance, major retailers such as Amazon, Target, and Walmart launched various new design templates and customizable features for gift cards on their websites and mobile apps. This enhancement allows customers to create personalized greeting cards, enhancing the gifting experience. As a result, the issuance and redemption of gift cards have surged, reflecting their growing importance in retail strategies.

• Increasing Adoption of Smartphone Technology in Payment Methods

The increasing adoption of smartphone technology in payment methods presents significant opportunities for the gift card market. Innovative digital transfers, such as mobile wallets and contactless payments, have made purchasing and redeeming gift cards more convenient, attracting a broader audience. For instance, in April 2021, Thoughtworks launched an innovative gift card aimed at helping retailers enhance customer engagement and spending habits. Utilizing its technological expertise, the company integrates these gift cards into existing payment and ordering systems, creating entry points for consumers. This initiative guides users towards new spending patterns while fostering loyalty, ensuring that retailers can connect with customers in more meaningful ways through personalized offers and rewards.

Restraints/Challenges

• Rising Fraud and Security Concerns

Rising fraud and security concerns pose significant challenges for the gift card market. Hackers increasingly exploit vulnerabilities within gift card systems, employing techniques such as botnet attacks to gain access to account numbers and PINs. By analyzing gift card numbering algorithms, they can generate valid codes, further compromising security. The absence of robust identity verification and enterprise-level security measures exacerbates this issue, making systems more susceptible to breaches. As hacking risks escalate, consumer trust diminishes, leading to a decline in gift card sales. This erosion of confidence ultimately hinders market growth, as consumers become hesitant to purchase or utilize gift cards due to security fears.

• Competition from Alternative Gifting Solutions

The growth of the gift card market is hindered by increasing competition from alternative gifting solutions, including personalized branded merchandise such as jackets, hoodies, and smart water bottles. In addition, subscriptions to online magazines and OTT platforms are gaining popularity as thoughtful gifts. These alternatives are often perceived as offering greater value and personalization, making them more appealing to recipients. Consequently, many gift givers are shifting their preferences away from traditional gift cards in favor of these options. This trend negatively impacts the demand for gift cards, leading to a stagnation in market growth as consumers seek more unique and tailored gifting experiences.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Gift Card Market Scope

The market is segmented on the basis of products, functional attribute, industry vertical and merchant. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Products

• E-Gift Cards
• Physical Cards

 Functional Attribute

• Closed Loop
• Universal Accepted Open Loop
• E- Gifting

 Industry Vertical

• Retail
• Corporate Institutions

 Merchant

• Restaurants
• Discount Stores
• Coffee Shops
• Departmental Store
• Grocery Store/Food Supermarkets
• Entertainment
• Others

Gift Card Market Regional Analysis

The market is analyzed and market size insights and trends are provided by products, functional attribute, industry vertical and merchant as referenced above.

The countries covered in the market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).

North America is expected to dominate the global gift card market because gift cards are gaining rapid popularity among consumers, U.S. is dominating country in the region.

Asia-Pacific is estimated to be the fastest-growing region in the global gift card market due to increasing awareness and rising trends among gift cards, China is dominating in the Asia-Pacific region. Germany is the highest growing country in the Europe region as e-gift cards are becoming increasingly popular among millennials.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Gift Card Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Gift Card Market Leaders Operating in the Market Are:

• Walmart Inc. (U.S.)
• Under Armour, Inc. (U.S.)
• Givex Corporation (Canada)
• American Express (U.S.)
• Target Brands, Inc. (U.S.)
• Best Buy (U.S.)
• Starbucks Coffee Company (U.S.)
• PayPal Holdings, Inc. (U.S.)
• Apple Inc. (U.S.)
• Sephora USA, Inc. (U.S.)
• Gyft, Inc. (U.S.)
• Walgreen Co. (U.S.)
• TransGate Solutions (U.S.)
• AMILON S.R.L. (Italy)
• Jigsaw Business Solutions (U.S.)
• Diggecard (U.S.)
• Pine Labs Private Limited (India)
• Alltimeprint.com (U.S.)
• Plastek Card Solutions, Inc. (U.S.)
• Card USA, Inc. (U.S.)
• Duracard (U.S.)
• Blackhawk Network (U.S.)
• Tango Card, Inc. (U.S.)
• Stockpile, Inc. (U.S.)
• Huuray A/S (Denmark)

Latest Developments in Gift Card Market

• In December 2023, Pine Labs Qwikcilver collaborated with Foodpanda to launch Foodpanda Gift Cards, enhancing the user experience for customers. This innovative solution enables users to conveniently redeem their gift cards and check their purchases through a seamless process. The collaboration aims to streamline gift card transactions, making it easier for customers to enjoy Foodpanda’s offerings and fostering loyalty through improved convenience
• In October 2023, YES Bank, in partnership with ONDC, introduced the ONDC Network Gift Card, enabling customers to purchase items across various brands and sellers in multiple categories. This initiative enhances the shopping experience by providing flexibility and accessibility for consumers. With this gift card, customers can explore a wide range of products, simplifying the purchasing process and catering to diverse consumer preferences
• In April 2022, eCard Systems expanded its collaboration with Toast, enhancing their gift card partnership to provide robust customer insights, loyalty programs, and multi-channel marketing specifically for restaurants. This strategic alliance focuses on driving business growth by equipping restaurant owners with comprehensive tools to engage customers effectively. By leveraging data-driven strategies, this partnership aims to improve customer satisfaction and retention through personalized experiences and targeted promotions
• In August 2021, eCard Systems partnered with Paytronix to empower merchants with essential tools and data for optimizing their gift card programs. This collaboration fosters deeper customer connections and supports business expansion by enabling merchants to evaluate the success of their programs. By analyzing customer behavior and preferences, merchants can strengthen relationships, enhance loyalty, and drive sales, ultimately creating a more engaging and rewarding shopping experience
• In April 2021, Thoughtworks launched an innovative gift card aimed at helping retailers enhance customer engagement and spending habits. Utilizing its technological expertise, the company integrates these gift cards into existing payment and ordering systems, creating entry points for consumers. This initiative guides users towards new spending patterns while fostering loyalty, ensuring that retailers can connect with customers in more meaningful ways through personalized offers and rewards
• In July 2020, Apple Inc. introduced a universal gift card designed for hardware, software, and services, meeting the diverse needs of consumers. Marketed as "for everything and everyone," this versatile gift card offers unparalleled flexibility across Apple’s extensive product range. By providing a single solution that caters to multiple categories, Apple reinforces its position as a leading provider of innovative consumer products and enhances customer satisfaction through convenience

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