Gift Cards Market Analysis Italy - Size and Forecast 2024-2028

Italy Gift Cards Market Size 2024-2028 

The Italy gift cards market size is forecast to increase by USD 3.61 billion at a CAGR of 9.6% between 2023 and 2028.

• The Italian gift card market is experiencing significant growth due to the rising gift-giving culture and increasing demand for seasonal decorations. This trend is driven by the convenience and flexibility that gift cards offer as presents. Moreover, the shift towards eco-friendly and sustainable products is influencing the market, with an increasing preference for recyclable bio-based plastic materials. However, some perceive gift cards as impersonal, which may limit their market penetration. The Italian gift card market has experienced significant growth in recent years, driven by the increasing popularity of financial technology and the shift towards digital transactions. However, the use of gift cards also comes with risks, such as the loss or theft of physical cards, which can result in financial losses for both consumers and retailers. To cater to evolving consumer preferences, market players are focusing on innovations in design, customization, and delivery methods. Overall, the Italian gift card market is poised for steady growth In the coming years.

What will be the size of the Italy Gift Cards Market during the forecast period?

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• According to market research, store transactions accounted for the largest share of gift card sales in Italy in 2021, with both plastic and digital cards widely used. However, the market also faces risks such as loss of cash through robbery and theft, making the security of gift cards a top priority for business owners. Customers in Italy prefer popular gift cards for various goods and services, including Steam wallet cards, Sephora cards, and Google Play cards.
• Moreover, monetary denominations range from small impulse purchases to larger customized gift cards for special occasions. Businesses issue both physical gift vouchers and digital assets as monetary gifts, with the latter gaining popularity due to convenience and ease of use. Despite these advantages, digital cards also come with their own set of challenges, such as potential hacking risks and the need for secure delivery methods, like email or mailbox delivery. Overall, the Italian gift cards market is expected to continue growing, offering businesses and consumers a convenient and flexible alternative to cash payments for store purchases.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Type
  • Physical gift cards
  • E-gift cards
• Distribution Channel
  • Offline
  • Online
• Geography
  • Italy

By Type Insights

• The physical gift cards segment is estimated to witness significant growth during the forecast period.

Physical gift cards are gaining popularity in Italy due to the growing importance of omnichannel retailing and customer engagement strategies. These cards enhance brand visibility and equity, providing businesses with a competitive edge. Amazon.Com Inc. Is an example of a company offering customizable cards with sender and receiver photographs and personalized messages, increasing the emotional appeal. Physical cards also serve as effective reminders, encouraging consumers to use products or services before expiration. The organized retail landscape in Italy is fueling the demand for these cards, making them a preferred choice over digital alternatives.

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The physical gift cards segment was valued at  USD 3.17 billion in 2018 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of Italy Gift Cards Market?

The advent of gift-giving culture and increasing demand for seasonal decorations is the key driver of the market.

• The Italian gift cards market encompasses the sale of gift vouchers and cards, including digital and plastic variants, for use in store transactions and online purchases of goods and services. Financial technology has significantly influenced this sector, enabling secure e-gift card transactions and the adoption of digital payment methods. Cash payments are still prevalent, but the risks associated with loss of cash, robbery, and theft have led many business owners and customers toward the use of gift cards. Monetary denominations and customized designs have expanded the market's offerings, with popular gift cards including Steam wallet cards, Sephora cards, and Google Play cards. Seasonal sales, such as Diwali, Eid, and Christmas, contribute significantly to the market's exponential growth. The digital economy's expansion and the increasing popularity of consumer habits like impulse buying and found money have further fueled the market's development.
• Moreover, customization and personalization have become essential factors, with consumers seeking unique and tailored gifts. Digital assets like cryptocurrency and digital transactions are increasingly becoming part of retail shopping experiences. The market's adoption rate continues to grow, leading to additional spending and increased digital payment volume. Secure transactions and the convenience of digital transaction methods make gift cards an attractive alternative to traditional cash payments.

What are the market trends shaping the Italy Gift Cards Market?

An increase in demand for recyclable bio-based plastic gift cards is the upcoming trend In the market.

• The Italian gift cards market primarily consists of physical gift vouchers, with a significant market share. However, there are emerging trends driving the shift towards financial technology in store transactions. Cash payments are being replaced by digital card payments, including digital gift cards, to mitigate risks associated with loss of cash during robbery and theft. Business owners and customers increasingly prefer digital assets such as digital gift cards for store purchases, monetary value transfer, and additional spending during seasonal sales. Digital gift cards, available in various monetary denominations, offer customized options and are convenient for impulse buyers. They can be used for goods and services, and are increasingly popular for digital assets like Steam wallet cards, Sephora cards, and Google Play cards.
• Moreover, the adoption rate of digital gift cards is growing exponentially In the digital economy, with e-gift card transactions increasing digital payment volume and digital transaction methods becoming more prevalent. Secure transactions and the convenience of digital payments have led to an increase In the use of digital gift cards during festive sales, including Diwali, Eid, and Christmas. As the market continues to grow, it is essential to ensure secure transactions and consumer trust in digital payment methods. Overall, the Italian gift cards market is experiencing significant growth, with a focus on sustainable and eco-friendly solutions, such as biodegradable plastic cards, to address environmental concerns.

What challenges does Italy Gift Cards Market face during the growth?

Gift cards are considered impersonal is a key challenge affecting the market growth.

• The Italian gift cards market has experienced significant growth due to the increasing preference for personalized gifting solutions over traditional physical gift vouchers. The risks associated with cash payments, such as loss through robbery or theft, have led business owners and customers to embrace digital cards as a secure alternative for store transactions. E-gift card transactions have gained popularity, allowing for digital gifts to be sent via email or stored in a digital wallet for use in retail shopping. Monetary denominations on digital cards range from customized gift cards to popular gift cards like Steam wallet cards, Sephora cards, and Google Play cards.
• Additionally, these digital assets can be used for purchasing goods and services, making them an ideal solution for impulse buyers during seasonal sales and festive occasions such as Diwali, Eid, and Christmas. The adoption rate of digital payment volume and digital transaction methods has been on an exponential growth trajectory In the digital economy. E-commerce platforms like Amazon and Flipkart Inc. Have played a pivotal role in this trend, offering a wide range of products for gifting purposes and ensuring timely delivery. This has led to a shift towards digital transactions, providing consumers with added convenience and security.
• Moreover, the Italian gift cards market is witnessing a transition towards digital cards as consumers seek secure and personalized gifting solutions. E-commerce platforms and digital payment methods are driving this trend, making gift card transactions more convenient and secure for both business owners and customers.

Exclusive Italy Gift Cards Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence In the market. The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Alighieri
• Amazon.com Inc.
• Apple Inc.
• Apposta Ltd.
• Esselunga Spa
• Mucci Italian
• Realizzazione Alt Srl
• Schwarz Beteiligungs GmbH
• Square Inc.
• woocommerce
• YouGotaGift.com Ltd

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The gift voucher market in Italy has experienced significant growth in recent years, driven by the increasing popularity of digital cards and the shift towards cashless transactions. This financial technology has revolutionized the way Italians make store transactions, with digital cards becoming a preferred payment method for both business owners and customers. Cash payments, once the dominant form of payment, have been gradually losing ground to digital cards. The risks associated with cash, such as loss or theft, have led many Italians to opt for the security and convenience of gift cards. Both plastic and digital cards are widely accepted, with businesses embracing the digital economy to cater to evolving consumer habits. Digital cards offer several advantages over physical gift vouchers. They can be easily purchased and redeemed online, making them ideal for e-gift card transactions. Digital gifts have become increasingly popular during seasonal sales, festive occasions such as Diwali, Eid, and Christmas, and for impulse purchases.

Moreover, the adoption rate of digital cards has been exponential, with consumers appreciating the added convenience and flexibility they offer. Businesses have also benefited from the rise of digital cards. They enable secure transactions, reduce the need for handling cash, and offer the ability to customize gift cards with monetary denominations and personalized messages. Customized gift cards have become a popular choice for businesses looking to enhance their customer engagement and loyalty programs. The monetary value stored on digital cards can be used to purchase a wide range of goods and services, from everyday essentials to digital assets like cryptocurrency. The versatility of digital cards has led to an increase in additional spending, with consumers often using the remaining balance on their cards for unexpected purchases or treats.

Overall, despite the numerous benefits, there are risks associated with digital cards. Security concerns, such as hacking and fraud, have led to increased focus on secure transactions. Businesses and consumers must ensure they take appropriate measures to protect their digital cards and personal information. Thus, the gift voucher market in Italy has undergone a significant transformation, with digital cards emerging as a preferred payment method. The convenience, security, and flexibility offered by digital cards have led to their widespread adoption, and their popularity is expected to continue growing as the digital economy expands.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across Italy
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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