The worldwide gift card industry has grown significantly in recent years and is expected to expand more in the future. Gift cards have reinforced their reputation as a favorite choice among customers looking for varied giving solutions due to their simplicity and flexibility. These cards provide significant benefits to both individuals and organizations, establishing them as a valued tool in a variety of industries.
The gift card market is expected to increase by USD 1.1 billion between 2023 and 2028, at a CAGR of 14.46% throughout the forecast period.
The growth of the e-commerce sector, the rise in gifting customs, and the use of gift cards as a means of brand promotion are driving the market.
Understanding Market Trends and Customers Preferences
Our detailed market research digs into the changing dynamics of the worldwide gift card industry, relying on insights from the Allied market research study. This market research study illustrates the industry's considerable expansion, with a predicted value of $4.2 trillion by 2032, rising at a CAGR of 17.7% between 2023 and 2032.
We investigate the enormous growth in e-gift cards, which reflects the rising convergence of gift cards and online purchasing. This rise corresponds to the rising user demand for digital gift choices, as digital gift cards provide a simple and quick way for customers to purchase gifts.
Trends Related to New Gift Card Launches
Industry vendors launching new gift card products is an emerging trend that is driving industry growth. The worldwide gift card industry is fragmented, with several foreign and domestic vendors participating in it. These retailers are offering a variety of gift cards in the market, supported by a number of new product releases, in an effort to draw in more customers and increase their market presence.
Moreover, retail closed loop gift cards, one of the report's segments, is expected to grow at a 12.6% CAGR and reach US$585.7 billion by the end of the research period. The Rrestaurant closed loop category is expected to grow at a CAGR of 11% during the next eight years.
Factors Responsible for the Growth of Gift Cards
According to Business Wire, during the years 2020-2024, the gift card industry is predicted to increase by USD 527.11 billion. The paper also discusses the commercial effects and new prospects that the COVID-19 epidemic has produced.
According to Technavio's recent market research analysis, the impact will be strong in the first quarter but will progressively diminish in future quarters, with a modest influence on full-year economic growth.
According to the reports mentioned by Business Wire, factors such as the widespread use of smartphones and the internet, as well as a rising tech-savvy populace, have contributed considerably to the global expansion of the e-commerce business.
Furthermore, the availability of different payment alternatives such as credit and debit cards, internet banking, electronic wallets, and COD options has enhanced customer desire for online shopping. Furthermore, big e-commerce firms are implementing new marketing methods, such as the introduction of gift cards, to recruit new consumers and increase brand recognition.
Conclusion
According to Technavio, the prevalence of gift card culture will have a favorable influence on the industry and considerably contribute to its growth throughout the predicted period. This research study also examines other major trends and industry factors that will have an impact on market growth between 2020 and 2024.
