June 18, 2024
Gift Card Market

The global Gift Card Market Propelled during the forecast period 2023-2030

Gift cards have become one of the most popular gifts worldwide. They allow the recipient to choose what they want to purchase from a wide range of products offered by various retailers and brands. Gift cards are convenient to buy and easy to redeem making them the preferred gifting option for various occasions like birthdays, anniversaries, holidays etc.

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:
The rapid growth of e-commerce and digital payments has propelled the gift card market over the past few years. An increasing number of people are preferring digital gift cards instead of physical cards as they offer added convenience without any expiration dates. Moreover, retailers and brands have started offering digital gift cards on their websites and mobile apps allowing customers to send gift cards to recipients via email or text messages. This digital shift in the gift card industry has tremendously fuelled the market growth and the trend is expected to continue over the forecast period.

SWOT Analysis

Strength: Gift cards have become an important part of marketing strategies for retailers and brands. They help boost sales and customer engagement.

Weakness: Gift cards often go unused and unredeemed. The funds associated with unused cards are generally lost to the issuer. Fraud and loss associated with gift cards is another weakness.

Opportunity: Growing adoption of digital and mobile gift cards present an opportunity for growth. Emerging technologies like blockchain can help address issues like fraud. Growing e-commerce is also expanding the market potential.

Threats: Strict regulations around gift card expiration dates and dormancy fees are a threat in some jurisdictions. Economic downturns may negatively impact consumer spending and gift card sales.

Key Takeaways

Global Gift Card Market Demand is expected to witness high growth over the forecast period of 2023 to 2030. Regional analysis indicates that North America currently dominates the market due to high adoption. However, Asia Pacific is expected to emerge as the fastest growing region, led by countries like China and India.

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. These players are focusing on product innovation, partnerships and expansion to consolidate their position.

North America currently accounts for the largest share of the global gift card market owing to high adoption rates, especially in the United States. However, Asia Pacific is projected to grow at the fastest CAGR during the forecast period with China and India emerging as highly lucrative markets. Growing e-commerce, rising disposable incomes, and changing consumer preferences are driving the growth of gift cards in Asia Pacific.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it