Gift Card Market, By Type (Universal accepted open loop, Restaurant closed loop, Retail closed loop, Miscellaneous closed loop, E-Gifting), By Merchant (Restaurant, Department store, Grocery stores/food supermarket, Discount store, Coffee shop, Entertainment, Others), By Geography (North America, Latin America, Europe, Asia Pacific, Middle East & Africa)

Published In : Feb 2024

Code : CMI3444

Pages :120

Formats :

Excel and PDF

Industry : Consumer Goods

Gift Card MarketSize and Trends

The gift card Market size is valued at US$ 1,158.99 Bn in 2024 and is expected to reach US$ 3,648.36 Bn by 2031, growing at a compound annual growth rate (CAGR) of 17.8% from 2024 to 2031.

Market Trends:

Growth in Corporate Gift Card Programs: Many large corporations have started implementing gift card reward and incentive programs for their employees and also use them as a tool to strengthen client and vendor relationships.

As corporate programs have expanded, they have become a major source of revenue for gift card providers and merchants. This has encouraged more businesses to enter the market as demand rises. Many new distributors and processing platforms have launched that specialize in corporate programs, real-time rewards functionality, data analytics and customized card solutions. Their innovations are elevating service standards for all gift card users. Global brands have also increased their focus on gift cards as an important part of their rewards/loyalty strategies. The growth of corporate programs demonstrates how gift cards have become a ubiquitous incentive and recognition tool for businesses. As their usage grows for employee and client motivation, it will continue pushing expansion in the gift card industry through increased market activity, specialized solutions and higher consumer exposure to the benefits of gift card offerings.

Personalized Gift Cards: The trend of personalized gift cards has been steadily growing over the 2021, and is having a significant impact on the gift card industry worldwide. Personalized gift cards allow givers to add a custom message, photo, or design which makes the gift more personal and special for the recipient. This has appealed to many consumers as it takes the gift card experience beyond a basic plastic or paper card with a barcode. Personalization allows the giver to put more thought into selecting the design and customize it just for the recipient.

Many large retailers and payment companies now offer options to fully customize gift cards online with hundreds of design templates and images to choose from. Recent data from the UK Gift Card and Voucher Association found that 43% of consumers would prefer to receive a personalized gift card over a standard option. As more consumers look to send gifts digitally, the opportunity for personalization has increased adoption of e-gift cards as well.

The increased demand is driving retailers and payment companies to continuously invest in expanding their personalization capabilities. For example, in 2022 major retailers like Amazon, Target and Walmart rolled out many new design templates, uploaded image options, and messaging customization features on their websites and mobile apps. This allows givers to truly create one-of-a-kind cards.