The latest market report published by Credence Research, Inc. “Global Gift Cards Market: Growth, Future Prospects, and Competitive Analysis, 2022 – 2030. Gift Cards Market is projected to increase at a significant CAGR of 10.46% in the coming years. In 2022, the global gift cards market was valued at USD818.52 Million and is projected to reach USD 1897.46 Billion by 2030.
The gift card market has seen exponential growth over the last decade, becoming an essential segment of the retail and e-commerce industry. Originating as simple prepaid cards for specific stores, this market has evolved into a diverse range of options, including digital cards, reloadable cards, and those that cater to specific experiences or services. Major holidays, birthdays, and other special occasions continue to fuel the demand for gift cards as they are seen as a convenient gifting solution, allowing recipients the freedom to choose their desired product or service.
Furthermore, the rise of digitalization and the proliferation of smartphones have paved the way for e-gift cards, which can be sent and redeemed electronically, providing instantaneous gifting opportunities and reducing the need for physical distribution. This digital shift is particularly evident among younger consumers, who value speed, convenience, and personalization.
However, the market isn’t without its challenges. Concerns around gift card fraud, the potential for unspent balances, and the impersonal nature of a gift card, compared to traditional gifts, are some issues consumers face. Nevertheless, many businesses find gift cards beneficial as they often lead to additional spending beyond the card’s value and can be a tool for brand promotion and customer loyalty.
Gift Cards Market Dynamics-
1. Drivers:
Convenience: Gift cards offer a hassle-free gifting solution, eliminating the stress of selecting the ‘perfect’ gift.
Digital Advancements: With the proliferation of smartphones and e-commerce, digital gift cards, which can be purchased, sent, and redeemed online, have gained significant traction.
Promotional Activities: Businesses often use gift cards for promotional purposes, offering them as rewards or incentives, which in turn drives sales and customer loyalty.
Seasonal Demand: Festive seasons, holidays, and special occasions boost the demand for gift cards annually.
2. Restraints:
Impersonal Perception: Some view gift cards as a less personal or thoughtful gift option compared to traditional presents.
Unused Balances: A significant percentage of gift cards remain partially or wholly unused, leading to potential consumer dissatisfaction.
Regulatory Challenges: In some regions, the regulatory environment around expiry dates and unused balances can be restrictive for businesses.
3. Opportunities:
Customization: Personalized and customizable gift cards, both in design and value, offer a unique selling point.
Expansion to New Segments: Emerging markets, as well as untapped sectors like healthcare, wellness, and education, can offer new avenues for growth.
Subscription Services: Integrating gift cards with popular subscription-based services can drive their demand further.
4. Threats:
Fraud: The gift card market is susceptible to fraud, especially in the digital realm. Scammers may exploit digital cards through hacking, counterfeit cards, or online scams.
Market Saturation: As the gift card market continues to grow, there’s a potential risk of over-saturation, leading to reduced effectiveness as a promotional tool or loyalty strategy.
5. Trends:
Experiential Gift Cards: Rather than just retail, there’s a growing trend towards gifting experiences, like spa days, adventure activities, or dining experiences.
Mobile Wallet Integration: Integrating gift cards with mobile wallets or apps can enhance user experience, making the gifting and redemption process smoother.
Sustainability: Eco-conscious consumers are seeking sustainable options. Digital gift cards or those made from eco-friendly materials can appeal to this demographic.
Browse 220 pages report Gift Cards Market By Material Merchant Type (Restaurants, Department Stores, Grocery Stores, Supermarkets/Hypermarkets, Discount Stores, Coffee Shops, Entertainments, Salons/Spa, Book Stores, Home Décor Stores, Gas Stations, Visa/Master Card/American Express Gift Cards, Others) By Merchant Type (Universal Accepted Open Loop, Restaurant Closed Loop, Retail Closed Loop, Miscellaneous Closed Loop, E-Gifting – Growth, Future Prospects & Competitive Analysis, 2016 – 2030)- https://www.credenceresearch.com/report/gift-cards-market
Gift Cards Market major players-
Amazon: One of the world’s largest e-commerce platforms, Amazon offers gift cards for its vast array of products and services.
Apple: With its Apple Store gift cards and App Store & iTunes gift cards, Apple has a significant presence in the digital gift card space.
Walmart: The retail giant offers both physical and digital gift cards for its multitude of products.
Starbucks: Known for its reloadable gift cards, Starbucks has turned its cards into collectibles and has also integrated them into its loyalty program.
Visa, MasterCard, and American Express: These major financial institutions offer generic gift cards, which can be used wherever their respective credit cards are accepted.
Target: Another major retailer that offers gift cards for its wide range of products.
Google Play: Offers gift cards for its digital store, where users can purchase apps, games, movies, books, and more.
eBay: The global online marketplace has gift cards that can be used for any purchase on its platform.
Best Buy: The electronics retailer provides gift cards for its myriad of tech products and gadgets.
Home Depot and Lowe’s: Both home improvement giants offer gift cards catering to DIY enthusiasts and professionals alike.
Blackhawk Network: While not a traditional retailer, Blackhawk Network is instrumental in the gift card industry. It provides third-party gift card distribution services, partnering with various retailers and businesses.
Gyft and Raise: These platforms are significant in the digital space, allowing users to buy, sell, and manage their gift cards.
Restaurants Chains: Major chains like McDonald’s, Subway, and Olive Garden, among others, have their gift card offerings.
Gift Cards Market Key Offerings-
1. Types of Gift Cards:
Physical Gift Cards: These traditional plastic cards resemble credit or debit cards and come with a magnetic stripe or barcode for activation and redemption.
Digital or e-Gift Cards: Sent and redeemed electronically, these gift cards can be delivered via email, SMS, or mobile app. They often come with a unique code for redemption.
Reloadable Gift Cards: These cards allow users to add funds multiple times, providing a flexible balance and extended usability.
2. Categories of Gift Cards:
Retail Gift Cards: Specific to certain retail chains or stores, these cards can be used to purchase any goods within that particular store or chain.
Restaurant Gift Cards: Valid for dining experiences at specific restaurant chains or individual establishments.
Entertainment Gift Cards: Redeemable at cinemas, theaters, amusement parks, and other entertainment venues.
Travel and Hospitality Gift Cards: Can be used for booking hotels, flights, or travel experiences.
Service-based Gift Cards: Offer services like spa treatments, salon visits, or fitness classes.
Generic Gift Cards: Operated by major payment networks like Visa, MasterCard, or American Express, these cards are more versatile and can be used wherever the payment network is accepted.
3. Personalization and Customization:
Custom Designs: Some vendors offer customizable card designs, allowing buyers to add personal photos or messages.
Flexible Denominations: Certain gift cards can be loaded with any desired amount, providing flexibility in gifting.
4. Bundled Offerings:
Gift Card Packages: Combining multiple related gift cards into a single package, e.g., a dinner and movie combo.
Corporate Packages: Bulk gift card packages for businesses to offer as employee rewards or customer incentives.
5. Additional Features:
Expiration Reminders: Notifications sent to the cardholder as the expiration date approaches.
Mobile Wallet Integration: Enables users to store and manage their gift cards directly on their smartphones.
Gifting Platforms: These platforms allow users to select, personalize, and send gift cards from multiple brands in one place.
6. Reselling Platforms:
Gift Card Exchange: Platforms that allow users to buy, sell, or trade unwanted gift cards, potentially at a discount or for other preferred cards.
7. Subscription-Based Gift Cards:
Subscription Services: Gift cards that can be used to purchase subscriptions, such as streaming platforms, magazines, or membership clubs.
Future Outlook-
The future of the gift card market looks promising, driven largely by technological advancements and changing consumer preferences. E-gift cards, due to their convenience and eco-friendliness, are poised to dominate, especially with the proliferation of e-commerce and digital payment methods. As mobile wallets become more commonplace, a deeper integration of gift cards within these platforms is anticipated, streamlining the storage, management, and redemption processes for consumers. Personalization, always a critical aspect of gifting, will be heightened with gift cards tailored to specific occasions or recipient preferences. With the rise of the digital realm, enhanced security measures will become paramount, addressing concerns of potential fraud and hacking. Meanwhile, as the world becomes more interconnected, there’s an expectation for gift cards to evolve with cross-border usability, catering to global shoppers. Subscription services, currently a growing trend, may further intertwine with the gift card industry, offering cards specific to popular streaming or monthly product platforms.
Why to Buy This Report-
- The report provides a qualitative as well as quantitative analysis of the global Gift Cards Market by segments, current trends, drivers, restraints, opportunities, challenges, and market dynamics with the historical period from 2016-2020, the base year- 2021, and the projection period 2022-2028.
- The report includes information on the competitive landscape, such as how the market’s top competitors operate at the global, regional, and country levels.
- Major nations in each region with their import/export statistics
- The global Gift Cards Market report also includes the analysis of the market at a global, regional, and country-level along with key market trends, major players analysis, market growth strategies, and key application areas.
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