Gift Cards Market Report 2024

The gift cards market size has grown rapidly in recent years. It will grow from $1.09 trillion in 2023 to $1.29 trillion in 2024 at a compound annual growth rate (CAGR) of 18.4%. The increase observed in the historical period can be attributed to the rise of e-commerce, growing disposable income among consumers, greater adoption of mobile payments, a higher demand for personalized gifts, and a surge in the need for contactless payment methods.

The gift cards market size is expected to see rapid growth in the next few years. It will grow to $2.57 trillion in 2028 at a compound annual growth rate (CAGR) of 18.7%. The anticipated growth in the forecast period is expected due to the rising use of digital wallets, the growth of mobile commerce, the expansion of corporate rewards programs, an increase in e-gifting trends, and greater access to the internet and smartphones. Key trends for the forecast period include the integration of blockchain technology, the application of artificial intelligence for personalized experiences, a growing emphasis on sustainability and eco-friendly options, collaborations between retailers and fintech firms, and a higher utilization of social media for promoting gift cards.

The expanding food service sector is expected to drive growth in the gift cards market moving forward. The food service sector includes establishments that prepare and serve meals and beverages to customers, such as restaurants, cafeterias, catering services, and food trucks. This growth is fueled by increasing consumer demand for convenient dining options, evolving preferences towards healthier and more diverse cuisines, and the ongoing trend of urbanization. Gift cards play a crucial role in the food service sector by fostering customer loyalty, attracting new patrons, improving cash flow, and promoting brand awareness. For instance, as of June 2024, U.S. retail and food services sales totaled $704.3 billion, marking a 2.3% increase compared to June 2023, according to data from the United States Census Bureau. Hence, the robust expansion of the food service sector is a significant driver for the growth of the gift cards market.

Key players in the gift cards market are increasingly focusing on innovative solutions to enhance the digital gift card experience and meet evolving consumer preferences. Customizable and animated e-gift cards are a notable example, allowing consumers to personalize their digital gift cards with custom messages, images, and dynamic visual elements, creating a more engaging and personalized gifting experience. For instance, Givex Corp., a Canada-based fintech company, introduced customizable and animated e-gift cards in October 2023. These e-gift cards enable customers to add personalized images, video messages, and themed designs, making the digital gift card delivery a memorable experience. Additionally, the incorporation of captivating animations adds an element of surprise and delight when the e-gift card arrives in the recipient's inbox, enhancing the overall gifting experience. This innovation reflects Givex's commitment to advancing technology and providing merchants with cutting-edge tools to enhance customer engagement.

In May 2024, Blackhawk Network, a U.S.-based prepaid and payment network service company, acquired Tango Card Inc. to bolster its global rewards platform. This acquisition aims to combine Tango Card's expertise in business-to-business incentives with Blackhawk's scale and industry leadership, offering customers comprehensive, global, and technologically advanced rewards and incentives solutions. Tango Card Inc., based in the U.S., specializes in e-gift and prepaid cards, aligning strategically with Blackhawk Network's goals to expand its offerings and capabilities in the rewards and incentives market.

Major companies operating in the gift cards market are Amazon.com Inc., Apple Inc., Target Corporation, American Express, Best Buy Co. Inc., Starbucks Coffee Company, PayPal Inc., Fiserv Inc., Block Inc., Worldpay Inc., Corpay Inc., Blackhawk Network, InComm Payments, QwikCilver Solutions Pvt. Ltd., Pine Labs Pvt Ltd, Givex Corp., Paytronix Systems Inc., Plastek Card Solutions Inc., Tendercrop Farms, National Gift Card Corp, Card USA Inc., Tele-Pak Inc., Yiftee Inc., JIFITI, Village Roadshow Ltd., TransGate Solutions, Duracard Plastic Cards, Kindcard Inc.

North America was the largest region in the gift cards market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the gift cards market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the gift cards market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Gift cards are prepaid cards provided by retailers, financial institutions, or other organizations, which can be used as a payment method. They are intended to be given as gifts or rewards, offering recipients the ability to select their preferred items.

There are several types of gift cards, universal open-loop, sports gift cards, e-gifting, restaurant closed-loop, retail closed-loop, and miscellaneous closed-loop. Universal open-loop gift cards can be used at any retailer that accepts major credit card networks, providing broad flexibility for various purchases. Additionally, gift cards are categorized by price into low ($0-200), medium ($200-400), and high (over $400) ranges, serving multiple purposes such as personal finance, marketing and promotions, hospitality and travel, education, non-profit and charity, among others. The primary users of gift cards include retail businesses and corporate entities.

The gift card market research report is one of a series of new reports that provides gift card market statistics, including gift card industry global market size, regional shares, competitors with a gift card market share, detailed gift card market segments, market trends and opportunities, and any further data you may need to thrive in the gift card industry. This gift card market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The gift cards market includes revenues earned by entities by providing retail gift cards, general-purpose gift cards, online retailer gift cards, service gift cards, and charity gift cards. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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