Gift Cards Market Size, Share, Growth, and Industry Analysis, By Type (Open Loop, Closed Loop and E-gifting), By Application (Accommodation, Delicacy, Spa Service and Others), Regional Insights and Forecast to 2032

Updated On: 22 April 2024

GIFT CARDS MARKET REPORT OVERVIEW

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global gift cards market size was USD 1337.02 million in 2021 and market is projected to touch USD 1516.15 million by 2032 at CAGR 1.15% during the forecast period.

Gift cards come with a predetermined amount of money loaded onto them by the person giving the gift. Specific Retailer or Brand: Gift cards are often specific to a particular retailer, restaurant, or brand. For example, you might have a gift card for a specific clothing store, a popular online marketplace, or a specific restaurant chain. Unlike debit or credit cards, gift card is usually not reloadable, and they cannot be used to withdraw cash from ATMs.

Some gift card may have expiration dates or fees associated with them, so it's essential to check the terms and conditions. Gift card can be physical cards that you can purchase at a store or online, or they can be in digital format, often sent via email. Recipients can use the gift card to make purchases up to the card's value until the balance is depleted. Gift card is a convenient and flexible way to give someone a present, allowing them the freedom to choose what they'd like to buy within the specified network of businesses. It's crucial to be aware of any terms, conditions, or fees associated with the gift card to ensure its proper use.

COVID-19 Impact: E-commerce and Digital Gift Cards to Hinder Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

During the pandemic, there was a significant shift in consumer behavior. With lockdowns, restrictions, and safety concerns, in-person shopping at brick-and-mortar stores decreased, leading to an increase in online shopping. This shift likely influenced the way people purchased and used gift card. The rise of e-commerce and digital transactions during the pandemic contributed to an increase in the popularity of digital gift card. As people avoided physical stores, the convenience of sending and receiving digital gift card via email or mobile apps became more appealing. Physical retail stores, especially those in industries heavily affected by lockdowns and restrictions (such as hospitality, travel, and entertainment), may have experienced a decline in gift card sales. On the other hand, online retailers and essential businesses that remained open during the pandemic may have seen increased gift card sales. Some businesses used gift card as a tool to generate cash flow during the pandemic. They offered discounts or promotions on gift card purchases to encourage consumers to support them during challenging times.

LATEST TRENDS

"E-commerce Integration to Drive Market Growth"

The shift towards digital gift card and mobile-based gifting solutions continued to grow. Consumers appreciate the convenience of sending and receiving digital gift card via email, mobile apps, or messaging platforms. Personalized gift card was gaining popularity. This involves allowing consumers to add custom messages, photos, or designs to the gift card, making it a more thoughtful and unique gift. Gift card became increasingly integrated with e-commerce platforms. Many retailers offer the option to purchase and redeem gift card seamlessly through their online stores. The rise of subscription-based services led to the trend of offering gift card for various subscription boxes or streaming services, providing recipients with ongoing experiences.

GIFT CARDS MARKET SEGMENTATION

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• By Type

Based on type the global market can be categorized into open loop, closed loop and e-gifting), by application (accommodation, delicacy, spa service and others.

Among open loop gift card, products like prepaid Visa or Mastercard gift card is commonly popular due to their versatility, allowing recipients to use them at various locations. The largest product in closed loop gift card can vary based on the popularity of specific retailers or brands. For example, closed loop gift card for major retail chains, popular restaurants, or well-known entertainment venues might be prominent.

• By Application

Based on application the global market can be categorized into accommodation, delicacy, spa service and others.

Gift card in the accommodation sector typically include hotel stays, vacation rentals, or booking platforms. The travel and hospitality industry has a significant impact on the popularity of accommodation gift card. Economic conditions, travel trends, and the overall tourism landscape can influence the demand for these cards.

DRIVING FACTORS

"Last-Minute Gifting to Augment the Market"

Gift cards offer a convenient way for people to give and receive gifts. They eliminate the need to spend time selecting a specific item and can be easily purchased online or at retail locations. Gift card provide recipients with the flexibility to choose their preferred items or experiences within the specified network of businesses. This flexibility makes them an attractive option for gift-givers who want to ensure the recipient gets something they truly want. Gift card is go-to option for last-minute gifts. They can be quickly purchased and often delivered digitally, making them a practical solution for busy individuals. Gift card is suitable for various occasions, including birthdays, holidays, graduations, and other celebrations. Their versatility makes them a universal gift option that can be appreciated by a wide range of recipients

"Digital Transformation to Expand the Market"

Many businesses use gift card as part of their employee recognition programs, incentive schemes, or corporate gifting contributing to gift cards market growth. Gift card provide a tangible and flexible reward for employees and clients. Businesses use gift card as promotional tools to attract and retain customers. Offering gift card as rewards, discounts, or part of loyalty programs can boost sales and customer engagement. The increasing shift toward digital transactions and online shopping has benefited the gift card industry. Digital gift card, delivered through email or mobile apps, align with evolving consumer preferences. As consumers seek experiences over material possessions, the trend of gifting experiences through gift card has gained momentum. This includes vouchers for travel, dining, spa treatments, and other activities.

RESTRAINING FACTOR

"Limited Redemption Opportunities to Potentially Impede Market Growth"

Some gift cards come with expiration dates, and in some cases, fees may be applied if the card is not used within a certain time frame. Consumers may be discouraged if they feel pressured to use the card quickly or if they incur fees. The appeal of gift card depends on the range of businesses or services that accept them. If the redemption options are limited or not aligned with the recipient's preferences, the perceived value of the gift card may decrease. Gift card, especially physical ones, are susceptible to loss, theft, or fraudulent activity. Concerns about the security of gift card may make some consumers hesitant to use or purchase them.

GIFT CARDS MARKET REGIONAL INSIGHTS

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"North America to Dominate the Market due to Mature Retail Markets"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East &Africa

North America is characterized by high levels of consumer spending and has largest gift cards market share. The disposable income of individuals in these regions allows for greater participation in gift-giving activities, including the purchase of gift card. Both North America and Europe have well-developed and mature retail markets. This includes a diverse range of retailers, from large department stores to specialty shops, providing consumers with a wide array of choices for gift card. These regions have embraced technological advancements, including the widespread use of e-commerce and digital payment methods. The adoption of digital gift card and online platforms for purchasing and redeeming gift card has been high.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• Expedia Group (U.S.)
• Airbnb (U.S.)
• Hilton (U.S.)
• Hyatt (U.S.)
• Choice Hotels International (U.S.)

INDUSTRIAL DEVELOPMENT

2020, October: One of the most notable trends in the gift card industry is the shift towards digital gift card. As consumers increasingly embrace online shopping and digital transactions, businesses have adapted by offering electronic gift card that can be purchased, delivered, and redeemed digitally.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.