May 27, 2024
Gift Card Market

Gift Card Market Propelled by Growing Gifting Culture and Ease of Use

The gift card market comprises physical and e-gift cards that enables individuals or businesses to purchase gift cards for shopping, dining or entertainment experiences. Gift cards provide consumers the flexibility and safety of digital payments without carrying cash. They are widely accepted and make ideal gifts for any occasion. The global Gift Card Market is estimated to be valued at US$650 billion in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023-2033, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Growing gifting culture especially during festive seasons and special occasions has propelled the demand for gift cards globally. Gift cards are increasingly being preferred over traditional gifts as they offer convenience to both givers and receivers. Recipients have the flexibility to choose what they want, while givers are relieved of the stress that comes with choosing the right gift. This has boosted the popularity of gift cards as a go-to gifting option. Furthermore, ease of use of digital and e-gift cards is driving their demand. People can easily purchase, send and redeem e-gift cards just with a few clicks without having to physically visit stores. This convenience factor is a major attraction among young working professionals and driving the adoption of gift cards.

SWOT Analysis
Strength: Gift cards offer a convenient gift-giving option and are highly appreciated by recipients. They allow people to choose gifts on their own terms.
Weakness: Gift cards come with activation and transaction fees which reduces the actual value received. There is also a risk of lost or stolen cards.
Opportunity: Growing dematerialization of gifts and focus on experiential spending present an opportunity to increase gift card usage for dining, entertainment etc. New technologies are expanding the ways gift cards can be purchased and shared.
Threats: Shift to cryptocurrencies and digital wallets for payments provides an alternative to traditional plastic gift cards. Strict regulations in some countries pose restrictions on issuance of gift cards.

Key Takeaways

The Global Gift Card Market Demand is expected to witness high growth over the forecast period of 20 years.

The North America region currently dominates the marketsupported by high adoption among consumers and merchants. Growing prominence of gift cards as corporate gifts during festivals and holidays further accelerates market gains.

Key players operating in the gift card market are Amazon, ITunes, Walmart, Google Play, Starbucks, PayPal, Amazon, Walgreens, eBay, Home Depot, Lowe’s, Carrefour, Virgin, IKEA, H&M, Zara, ALDI, JCPenney. Large business organizations are also actively issuing customized gift cards for employee rewards and incentives. Advances in blockchain and mobile wallet technologies are enabling innovative features like personalization and easy redemption. However, stringent regulations around storage of funds and activation rules act as challenges especially for cross border gift card solutions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it