U.S., U.K., U.A.E., Mexico, India and Philippines Gift Card Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2031

Gift Card Market Analysis

The gift card market in the U.S., U.K., U.A.E., Mexico, India, and the Philippines is characterized by diverse growth trends driven by varying consumer preferences and technological advancements. In the U.S. and U.K., the market benefits from high adoption rates of both physical and digital gift cards, with significant usage in retail and e-commerce. The U.A.E. is seeing increasing demand for digital gift cards due to a tech-savvy population and a growing online shopping culture. Mexico and India are experiencing expanding market opportunities fueled by rising disposable incomes and the increasing popularity of gift cards in retail and corporate sectors. In the Philippines, growth is supported by a rising middle class and the expansion of e-commerce, with digital gift cards gaining traction. Collectively, these markets reflect a trend towards digitalization, convenience, and innovative gifting solutions.

Gift Card Market Size

U.S., U.K., U.A.E., Mexico, India and Philippines gift card market is expected to reach a value of USD 1,475.91 billion by 2031 from 416.20 billion in 2023, growing at a CAGR of 17.5% during the forecast period 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and PESTLE analysis.

Gift Card Market Trends

"Rising Popularity of Gift Cards in E-commerce and Digital Payment Solutions"

The growing adoption of gift cards in e-commerce and digital payment solutions is a key factor driving the global market. Gift cards offer a convenient and flexible payment method for consumers, enhancing the shopping experience in online platforms by providing seamless and secure transactions. Many e-commerce giants are increasingly incorporating gift card options to attract and retain customers, offering personalized gift cards for special occasions and promotions.

In addition, digital gift cards are gaining popularity as they provide instant delivery and ease of use, aligning with the shift towards contactless and digital payments. Businesses are leveraging gift cards for customer loyalty programs and employee incentives, further boosting their demand. The rise of mobile wallets and the expansion of digital payment infrastructure are expected to fuel the growth of the gift card market, positioning it as a pivotal tool in modern consumer transactions.

Report Scope and Gift Card Market Segmentation

Gift Card Market Definition

The gift card market encompasses the industry involved in the issuance, distribution, and utilization of prepaid cards or digital vouchers that hold a specific monetary value and are used as a form of payment or gift. These cards can be redeemable for goods or services at designated retailers or online platforms. The market includes physical cards, digital cards, and mobile wallets, and serves various sectors such as retail, hospitality, and entertainment. It also involves the development of technology and solutions for card management, consumer engagement, and fraud prevention. The market is driven by consumer demand for convenient gifting options, corporate incentive programs, and advancements in digital payment technologies.

Gift Card Market Dynamics

Drivers

• Increasing Utilization of Prepaid and Gift Cards

The rising utilization of prepaid and gift cards is playing a pivotal role in propelling the growth of the market across various regions, including U.S., U.K., U.A.E., Mexico, India and Philippines. Consumers in these regions are increasingly turning to prepaid and gift cards due to their convenience, flexibility, and versatility. Moreover, as the world embraces digital payment methods and experiences a surge in e-commerce activity, there is a natural shift towards digital formats of these cards. E-commerce sales experienced a significant surge after the COVID-19 pandemic, driven by a shift in consumer behavior towards online shopping due to lockdowns, social distancing measures, and safety concerns. In addition, the APAC region is home to some of the world's largest e-commerce companies, such as Alibaba and Amazon, which are investing heavily in the region.

For instance,

• In February 2023, Forbes published an article and stated that in the upcoming year of 2023, the e-commerce sector is poised for a significant upswing, with an anticipated growth rate of 10.4%. This projection aligns with the broader trend; as online transactions are expected to constitute a substantial 20.8% of all retail purchases in the same year. As a result, the expansion of e-commerce sales is a natural consequence of this shifting landscape.

Rising Popularity of E-gift Cards and Prepaid Cards in Millennials

The gift card industry and the digital world are interconnected. Companies are engaging their customers virtually using digital marketing strategies and digital platforms since gift cards have become prevalent. In recent years, the gift card industry has experienced an improvement in relationships with existing consumers through marketing and digital promotion, rather than expansion through geographic channels and store network expansion.

For instance,

• In March 2024, according to the article published by FDRA, Millennials are more inclined to redeem gift cards at shopping centers compared to other generations. The ICSC survey shows that 58% of Millennials prefer using gift cards at physical locations within shopping centers, highlighting their desire for experiential spending. This trend notably impacts the gift card markets in the U.S., U.K., U.A.E., Mexico, India, and the Philippines. The growing appeal of e-gift cards and prepaid cards among Millennials fuels demand for flexible and convenient redemption options, driving market expansion and prompting retailers to refine their digital and in-store gift card strategies to meet this demographics’ preference.

Opportunities

• Increasing Collaboration and Partnership among Market Players

Increasing collaboration and partnership among market players is creating substantial opportunities in the gift card market in U.S., U.K., U.A.E., Mexico, India, and the Philippines. Strategic alliances between payment service providers, retailers, fintech companies, and mobile wallet platforms are enhancing the distribution and acceptance of gift cards in these regions. These collaborations enable companies to leverage each other's strengths, expanding their reach and improving the convenience and accessibility of gift cards for consumers. By working together, businesses can integrate innovative technologies and offer more comprehensive solutions, driving growth and adoption in the market.

For instance,

• In May 2024, according to the article published by Economic Times, Google Wallet has teamed up with fintech firm Pine Labs to introduce gift card services on its platform in India, allowing users to store, manage, and receive reminders for their gift cards. This collaboration underscores the rising trend of partnerships in the gift card market, which is poised to drive substantial growth in U.S., U.K., U.A.E., Mexico, India, and the Philippines. By integrating gift card management with leading digital wallets and fintech solutions, this partnership enhances consumer experience, broadens market reach, and stimulates innovation, setting the stage for greater adoption and market expansion in these regions.

Surging Growth of the Digital Economy

With the rapid expansion of the digital economy in U.S., U.K., U.A.E., Mexico, India, and the Philippines, the gift card market in these regions is poised for substantial growth. As more consumers embrace digital payments and online shopping, the demand for digital gift cards is expected to rise. This shift towards digitalization provides an ideal environment for market players to expand their offerings and reach a broader audience. By integrating gift cards into popular digital wallets and e-commerce platforms, companies can cater to the evolving preferences of tech-savvy consumers, enhancing convenience and accessibility.

For instance,

• In February 2024, according to the article published by Chief Information Officer Africa Ltd., the digital gift card market in Africa is rapidly expanding, with a projected Compound Annual Growth Rate (CAGR) of 15.3 percent from 2023 to 2030. This growth highlights the shift towards more seamless, secure, and eco-friendly gifting solutions. The surging digital economy presents a key opportunity for the gift card markets in the U.S., U.K., U.A.E., Mexico, India, and the Philippines. As these regions embrace digital transformation, digital gift cards can address consumer preferences for convenience and sustainability, driving market growth and economic activity.

Restraints/Challenges

• Rising Adoption of Alternative Payment Channels

Consumers increasingly embrace newer payment methods such as mobile wallets, cryptocurrency, and digital banking apps, and the traditional prepaid and gift card market faces growing competition. These alternative payment channels offer greater convenience, security, and often more versatile features than physical or digital gift cards. As a result, consumers are becoming less reliant on gift cards for their financial transactions and gift-giving needs. Stakeholders in the digital gift card industry must innovate and adapt to changing consumer preferences, integrating these alternative payment options into their offerings while providing unique value propositions that set them apart in the evolving financial landscape to remain competitive.

For instance,

• In 2021 study conducted by the Federal Reserve Bank of San Francisco revealed that credit cards accounted for 28% of all payment transactions, marking the highest level observed since the inception of the study in 2016. This data suggests a notable shift in consumer preferences towards credit cards as a preferred mode of payment, surpassing traditional cash and other payment alternatives. Notably, the prevalence of credit card usage is more pronounced among households with higher income levels, reaching 34% for those earning between USD 100,000 and USD 149,999, and 44% for those with incomes exceeding USD 150,000.

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 into five notable segments on the basis of product, functional attribute, industry vertical, usage, and merchant type. The growth amongst these segments will help you analyse 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.

Product

• Physical Cards
• E-Gift Cards

Functional Attribute

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

 Industry Vertical

• Retail
• Corporate Institutions

Usage

• Domestic
• Cross-Border

Merchant Type

• Retail and E-Commerce
  • Product
    • Physical Cards
    • E-Gift Cards
• Restaurants and Dining
  • Product
    • Physical Cards
    • E-Gift Cards
• Entertainment and Streaming Services
  • Product
    • Physical Cards
    • E-Gift Cards
• Mobile Top-Up and Utilities
  • Product
    • Physical Cards
    • E-Gift Cards
• Others
  • Product
    • Physical Cards
    • E-Gift Cards

Gift Card Market Regional Analysis

The market is segmented into five notable segments on the basis of product, functional attribute, industry vertical, usage, and merchant type.

The countries covered in the market report as U.S., U.K., U.A.E., Mexico, India, and Philippines.

U.S. dominates the gift card market due to its large consumer base, high disposable income, and well-established retail and e-commerce sectors. Gift cards are deeply integrated into U.S. consumer culture, with widespread acceptance across various industries, including retail, dining, and entertainment. The country’s advanced digital infrastructure supports the growing trend of e-gift cards, and U.S. businesses frequently use gift cards for promotions, rewards, and corporate incentives, contributing to their widespread adoption and market leadership.

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 like 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 U.S., U.K., U.A.E., Mexico, India, and Philippines 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

Market competitive landscape provides details of the competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, 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:

• Starbucks Coffee Company (U.S.)
• Target Brands, Inc.  (U.S.)
• American Express Company (U.S.)
• PayPal.com (U.S.)
• Blackhawk Network (U.S.)
• Apple Inc. (U.S.)
• Best Buy (U.S.)
• Sephora USA, Inc. (U.S.)
• Pine Labs (India)
• MUJI Philippines Corp. (Philippines)
• Givex Corporation (Canada)
• Gyft, Inc (U.S.)
• Tango Card Inc (U.S.)
• Plastek Card Solutions, Inc. (U.S.)
• Huuray A/S (Denmark)
• Diggecard (Norway)
• Duracard Plastic Cards (U.S.)
• Jigsaw bussiness solutions (U.K)
• Stockpile, Inc. (U.S.)
• Card USA, Inc (U.S.)
• TransGate Solutions (U.S.)
• Alltimeprint.com (U.S)
• Walmart (U.S.)
• Under Armour, Inc. (U.S.)
• Walgreen Co. (U.S.)

Latest Developments in Gift Card Market

• In February 2024, Walmart has agreed to acquire VIZIO Holding Corp. for USD 2.3 billion. This acquisition allows Walmart to leverage VIZIO’s SmartCast Operating System to enhance customer engagement and advertising capabilities. By integrating VIZIO’s platform, Walmart can offer personalized gift card options and targeted promotional campaigns, improving the consumer experience and driving sales
• In January 2024, Best Buy highlighted the versatility of its gift cards, which offer recipients the freedom to choose from a wide range of products, including electronics and home appliances. The company integrated gift cards with the My Best Buy Rewards Program, allowing users to earn points and access exclusive promotions. Best Buy also provided seasonal and occasional promotions, enhancing the value of gift cards. The cards are available online and in-store, offering a seamless redemption experience
• In May 2022, Starbucks Coffee Company reported over USD 1 billion in unused gift card balances. CEO Howard Schultz revealed that Starbucks gift cards are used by over 120 million people annually. In 2021, customers added USD 11 billion to these cards, contributing significantly to the company's revenue
• In February 2023, Walgreens has acquired Pharmaca and will shut down all Pharmaca locations, including the Santa Fe store, by February 25, 2023. This acquisition allows Walgreens to access Pharmaca's prescription files and inventory, potentially boosting their pharmacy services. Customers holding Pharmaca gift cards should verify redemption options at nearby Walgreens stores
• In October 2023, PayPal.com introduced a new feature on Venmo allowing users to send and receive gift cards from popular brands like Starbucks, Amazon, and Target directly through the app. This feature provided a convenient way for customers to gift digitally, enhancing the gifting experience on Venmo. The company benefited by expanding its digital gifting options, appealing to the growing trend of digital transactions, and potentially increasing user engagement on the platform

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