Enjoy complimentary customisation on priority with our Enterprise License!
The Global Gift Card Market size is estimated to grow by USD 843.11 billion between 2022 and 2027 accelerating at a CAGR of 12.87%. The growth of the gift cards market depends on several factors, including the growth of the e-commerce sector, the increase in the gifting culture, and the generation of a favourable rate of return for vendors.
This gift card market research report extensively covers market segmentation by type (e-gifts cards and physical gift cards), distribution channel (offline and online), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
To learn more about this report, Request Free Sample
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a decrease in demand for the market during the COVID-19 pandemic, a holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.
An increase in the gifting culture is a key factor driving the global digital gift cards market growth. The popularity of gifting culture is increasing globally, leading to a rise in demand for gift cards. Holidays and festivals such as Christmas, New Year, Diwali, Halloween, Easter, Father's Day, and Mother's Day are providing opportunities to exchange gifts, driving the sales of digital gift card market. Gift cards are also gaining popularity in the corporate sector, where they are used to recognize employees' contributions, reward top performers, and offer bonuses.
Gift cards are finding increasing usage in various sectors such as restaurants, grocery stores, department stores, entertainment centers, and movie theaters. This trend is likely to boost the global digital gift card market. For example, in February 2021, Bob Evans partnered with Blackhawk Network Holdings Inc. to expand its gift card program. Similarly, Blackhawk Network partnered with Dunkin' in September 2020 to engage coffee drinkers around the US using digital gift cards.
An increase in demand for recyclable bio-based plastic gift cards will fuel the global gift cards market growth. Physical gift cards have a significant market share, but environmental concerns and government regulations have led to innovation in more sustainable options. Companies like Plastic Resource Co. offer biodegradable gift cards made from materials such as wood, paper, and recycled PVC. CaixaBank SA also plans to issue bioplastics gift cards made from organic materials like corn starch and biomass. These initiatives are a significant step towards reducing the environmental impact of gift cards and are likely to drive demand in the global gift card market.
Gift cards are considered impersonal, which poses a major challenge to the global gift cards market growth. The use of gift cards is often seen as a lack of enthusiasm by gift-givers, causing consumers to seek more personalized gifting options. This has negatively affected the growth of the global gift card market.
Additionally, the popularity of e-commerce platforms such as Amazon and Flipkart has made it easier for consumers to choose from a wide range of products for gifting purposes, with fast and reliable delivery options. As a result, consumers prefer giving gifts instead of impersonal gift cards. This preference for personalized gifting is likely to hinder the growth of the global gift card market during the forecast period.
Our analysis of the life Cycle of the global gift cards market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including the US, Australia, Japan, the UK, and Germany. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Gift Card Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the digital gift card market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including :
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The gift card market share growth by the E-gifts cards segment will be significant during the forecast period. Gift cards continue to witness rapid evolution and ongoing transformation. They are popular among both consumers and retailers, but the method and mode of purchasing, distribution, and redemption have changed in the recent past. The growth in digitalization across the global retail sector has led to the development of e-gift cards. E-Gift cards, also known as digital gift cards, are enabled with a code and are e-mailed to recipients. A confirmation e-mail is also sent to the purchaser of these cards. One of the major advantages that e-gift cards have over physical gift cards is their enhanced versatility and flexibility. They are instantaneously delivered to the recipient's e-mail ID, thus mitigating any logistical barriers present between senders and receivers. Moreover, with hectic work schedules and the busy lifestyles of modern-day consumers, these cards offer a suitable last-minute gifting option. Furthermore, the risk of losing a physical gift card is eliminated.
Get full insights on the market contribution of various segments Request a PDF Sample
The E-gifts cards segment showed a gradual increase in market share, from USD 590.62 billion in 2017 and continued to grow by 2021. E-gift cards have generated substantial sales from the corporate sector during the past five years. These cards are viewed as the most suitable gifting options for employees, clients, and other stakeholders as they reduce the efforts required by corporates to select personalized gifts for everyone. Also, vendors are launching e-gift cards in recent years, which will drive the growth of the segment and, in turn, the market in focus during the forecast period. The growth of this segment is primarily attributed to the increasing adoption of gift Cards by residential consumers, which is driven by an increase in the global demand for the global digital gift card market.
For more insights on the market share of various regions Request PDF Sample now!
North America is projected to contribute 40% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the most important drivers for the gift card market in North America is the inherent push for gift cards and gifting initiatives in the organized retail sector, including e-retail. The mature retail scenario in North America has driven the gift card market in the region. The rise in consumer retail spending, better e-commerce strategies, and relatively low inflation drive the growth of the retail sector in the region. The retail market in North America has a large number of retail companies. These companies have strong distribution networks across the US and a strong infrastructure. These retailers offer gift cards, which can be used at their stores, thereby enhancing the sales of gift cards. In addition, the presence of a large number of e-retail companies, such as Amazon.com, supports the growth of the digital gift card market.
This report forecasts the contribution of all the segments to the growth of the gift card market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to a surge in demand for gift cards in North America. The rapid spread of COVID-19 negatively impacted the economy of North America, especially the US, in 2020. Several commercial enterprises, industries, and institutions partially shut down their operations due to the imposition of lockdowns. Due to the COVID-19 pandemic, numerous restaurants in the region faced losses due to a decline in the number of customers. Governments in the region, therefore, designed gift card programs that allowed contactless transactions and thereby ensured that restaurants were running smoothly. Moreover, the rapid increase in online orders positively impacted the regional gift card market further in 2020-2021. This created a higher need for gift cards as e-commerce has been growing rapidly in the region, which is leading to more new users to e-commerce sites such as Amazon, eBay, and Walmart. The presence of a large number of e-commerce companies in the region will further create an opportunity for the vendors present in the gift cards market during the forecast. Such initiatives are expected to propel the growth of the gift card market in North America during the forecast period.
Our gift card market research report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by type, distribution channel, and region.
|
Gift Card Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
161 |
|
Base year |
2022 |
|
Historical year |
2017-2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 12.87% |
|
Market growth 2023-2027 |
USD 843.11 billion |
|
Market structure |
Fragmented |
|
YoY growth (%) |
9.99 |
|
Regional analysis |
North America, Europe, APAC, the Middle East and Africa, and South America |
|
Performing market contribution |
North America at 40% |
|
Key consumer countries |
US, Australia, Japan, UK, and Germany |
|
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
|
Key companies profiled |
Blackhawk Network Holdings Inc., Card USA Inc, Duracard LLC, Fidelity National Information Services Inc., Fiserv Inc., FleetCor Technologies Inc., Givex Corp., Hennes & Mauritz AB, InComm, Jifiti.com Inc., Kindcard Inc., LVMH Moet Hennessy Louis Vuitton SE, PineLabs Pvt. Ltd., Plastek Card Solutions Inc., Square Inc., Tele Pak Inc, The Voucher Market Ltd., TransGate Solutions LLC, VRG Holdco Pty Ltd, and Yiftee Inc |
|
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Customized Report as per your Business Needs
Let us help you make report more suited to your requirements.
Get the report (PDF) sent to your email within minutes.
