The gift card market has witnessed significant growth in recent years. Gift cards provide an easy and convenient way to purchase gift items for various occasions such as birthdays, anniversaries, holidays etc. They are widely used for premium and luxury brands in industries such as electronics, apparel, cosmetics, restaurants and hospitality. Premium brands have started incorporating gift cards as part of their marketing strategy to attract new customers and enhance customer loyalty. The global gift card market is estimated to be valued at US$ 10.70 Bn in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving the growth of the gift card market is the increasing adoption among premium and luxury brands. Premium brands realize the potential of gift cards in driving new customers and repeat purchases. Gift cards help premium brands elevate their brand image and exclusivity. They attract potential customers by offering gift card promotions during festive seasons. Customers are able to experience premium brands at discounted prices using gift cards. This helps create lasting impressions and enhances customer loyalty. Luxury retailers and restaurants are increasingly focusing on developing attractive gift card designs co-branded with their products to boost sales. The growing use of gift cards as a part of marketing strategies by premium players in indulgence categories such as luxury apparel, cosmetics, electronics and dining is expected to propel the gift card market growth over the forecast period.
Segment Analysis
The global gift card market is dominated by the retail segment which accounts for more than 50% share of the market. Being the pioneering adopters of gift card programs, retail chains have established strong distribution networks and consumer base for their branded gift cards. Within retail, food and beverage retailers such as Starbucks, Dunkin and Subway account for largest share as consumers tend to frequent these stores on regular basis. Growing popularity of online retail has also boosted the sales of e-commerce giant like Amazon's gift cards.
Key Takeaways
The Global Gift Card Market Scope is expected to witness high over the forecast period of 2023 to 2030. Regional analysis
The North America region currently dominates the global gift card market with United States being the largest market. High acceptance of digital payment methods and celebrations of occasions like holidays and birthdays that drive gift card usage has boosted the market in the region. Asia Pacific is expected to be the fastest growing market during the forecast period led by countries like India and China. Rising disposable incomes, growing middle class population and wider acceptance of gift cards for occasions like festivals and weddings will support market growth.
Key players
Key players operating in the gift card market are Walmart Inc., Under Armour, Inc., Givex Corporation, American Express, Target Brands, Inc., Best Buy, Starbucks Coffee Company, PayPal Holdings, Inc., Apple Inc., Sephora USA, Inc., Gyft, Inc., Walgreen Co., TransGate Solutions, AMILON S.R.L., Jigsaw Business Solutions, Diggecard, Pine Labs Private Limited, Alltimeprint.com, Plastek Card Solutions, Inc., Card USA, Inc., Duracard, Blackhawk Network, Tango Card. Inc, Stockpile, Inc., and Huuray A/S among others. The established retail chains like Walmart, Best Buy, Target etc. are focusing on expanding their gift card programs and private label offerings. Technology players like PayPal and digital payment companies are collaborating with retailers to offer innovative gift card solutions.
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