Gift Cards Market by Type, Application - Global Forecast 2024-2030

List of Tables

[195 Pages Report] The Gift Cards Market size was estimated at USD 827.11 billion in 2023 and expected to reach USD 879.43 billion in 2024, at a CAGR 6.41% to reach USD 1,278.52 billion by 2030.

Gift cards are stored-value, prepaid money cards issued by banks or retailers to be used as an alternative to cash for purchases of shopping within particular stores or related businesses. They come in two primary forms: closed-loop cards, which can only be utilized at the issuing retailer, and open-loop cards, which are often powered by major credit card processors, making them universally accepted at any business that accepts those credit cards. The proliferation of gift cards is largely driven by their convenience, universality, the rise of digital gifting, and a growing preference for cashless transactions. Technological advancements have streamlined the purchasing and redemption process, with digital or e-gift cards gaining traction due to immediate delivery and ease of use. However, there is a possibility of loss or theft, expiration dates or inactivity fees diminishing their value, and limitations on where they can be used, particularly with closed-loop cards, impede their adoption. Some issuers are offering protection for registered cards, extending expiration dates, or removing fees to improve the user experience to sustain their utility. The personalization and customization of gift cards are also areas of potential expansion as consumers seek unique gifting options. Moreover, the introduction of eco-friendly, biodegradable, or digital-only cards aligns with a growing environmental consciousness.

KEY MARKET STATISTICS
Base Year [2023]	USD 827.11 billion
Estimated Year [2024]	USD 879.43 billion
Forecast Year [2030]	USD 1,278.52 billion
CAGR (%)	6.41%

Type: Increasing use of eGifting and open loop gift cards owing to their convenience and universal acceptability

eGifting, also known as digital or electronic gift cards, refers to the process of purchasing and sending gift cards via electronic means, such as email, SMS, or through a brand's app or website. Users favor e-gift cards for their convenience, immediate delivery, and the ease of customization. They are particularly popular among tech-savvy consumers and those seeking last-minute gifts. Miscellaneous closed loop gift cards are specific to a particular service, experience, or non-traditional retail offering. This could include gift cards for airlines, hotels, spas, or niche markets and they create value by offering a unique and often personalized experience that can be redeemed only within the issuer's venues or platforms. These cards are typically preferred by consumers who are gifting within a specific interest or hobby, ensuring the recipient gets an experience or product they will enjoy. Music and streaming gift cards are designed for use with online music and video streaming services and these cards are often preferred by consumers who wish to gift entertainment options, catering to the recipient's interest in music, movies, or television. Gift cards for restaurants are closed-loop cards that can be used exclusively at specified restaurant brands or chains, and they are popular gifts for food enthusiasts or as a convenient option for a night out. Retail closed loop cards are gift cards redeemable only at the issuing retailer's locations or online stores. They cater to shoppers of specific retail brands, ranging from department stores to specialized boutiques. Universal accepted open loop gift cards can be used wherever the card's payment network, such as Visa, Mastercard, or American Express, is accepted, making them the most flexible gift card option. This type of gift card is typically favored by those who want to provide the recipient with the ultimate purchasing flexibility without being limited to a specific store or service.

Application: Adoption of entertainment and retail gift cards to serve the dual purpose of routine use and special occasion gifting

Coffee shop gift cards cater to a specific audience that frequently visits coffee shops for their daily caffeine fix or casual meetings. The preference for coffee shop gift cards is driven by convenience and loyalty. Customers appreciate the ease of not carrying cash or cards, and businesses benefit from the customer loyalty that these cards encourage. Entertainment gift cards satisfy the need for recreational activities, such as watching movies, gaming, or attending events. Customers prefer these cards as gifts for friends and family, adding an element of thoughtfulness and personalization to their present. Gift cards from restaurants or food chains satisfy the universal appeal of dining out. The preference for these cards often comes from the convenience of gifting an experience, particularly for individuals who appreciate outdoor eating adventures. Retail gift cards are designed for customers who enjoy shopping, for clothing, electronics, or home goods. Travel gift cards are popular among individuals who love to explore new destinations or need a getaway. These cards are preferred for their flexibility, allowing recipients to apply them towards flights, accommodation, or travel packages.

Regional Insights

In the Americas, particularly the United States, the gift card market is mature and highly integrated, with both open-loop cards and closed-loop cards being immensely popular. The production of gift cards in this region typically involves sophisticated personalization technologies and efforts toward sustainability, with digital gift cards gaining rapid traction. North American companies dominate in terms of innovation and market share, with an ecosystem consisting of retailers, financial institutions, and specialized gift card companies. The Asia-Pacific region presents a more fragmented picture, with rapid growth and adoption of mobile and e-gift card solutions underpinned by the prevalence of mobile payment systems and the rise of eCommerce. Production in APAC is diversifying, with a significant increase in digital solutions and environmentally friendly physical cards. Numerous local companies are emerging, specializing in gift card solutions, increasingly engaging in partnerships with regional retailers and fintech firms to leverage the expanding digital consumer base. In Europe, particularly Western Europe, gift card usage is high, with a strong focus on consumer protection and regulatory compliance in their production and distribution. Digitalization is progressing steadily, emphasizing security features and multi-currency functionality to cater to a more global consumer base. Companies in EMEA tend to be diverse, ranging from established global players to local retailers keen on tapping the gift card market to incentivize customer loyalty and engagement.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Gift Cards Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Gift Cards Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Gift Cards Market, highlighting leading vendors and their innovative profiles. These include Airbnb, Inc., Amazon.com, Inc., American Express Company, Apple Inc., Best Buy Co., Inc., Blackhawk Network Holdings Inc., Carrefour Group by Majid Al Futtaim Holding, Costco Wholesale Corporation, eBay Inc., Flipkart Internet Private Limited, Givex Corporation, Google LLC by Alphabet Inc., H & M Hennes & Mauritz AB, Home Depot Product Authority, LLC, InComm Payments by e2Interactive, Inc., Inter IKEA Systems B.V., J Sainsbury PLC, JCB Co., Ltd., JD Sports Fashion PLC, Lowe's Companies, Inc., LVMH Moet Hennessy - Louis Vuitton, Macys.com, LLC, PayPal Holdings, Inc., Starbucks Coffee Company, Target Corporation, The Kroger Company, Virgin Red Limited, Walgreen Co., Walmart Inc., and ZARA by ITX MERKEN, B.V..

Market Segmentation & Coverage

This research report categorizes the Gift Cards Market to forecast the revenues and analyze trends in each of the following sub-markets:

Type
- E-Gifting
- Miscellaneous Closed Loop
- Music and Streaming Gift Cards
- Restaurant Closed Loop
- Retail Closed Loop
- Universal Accepted Open Loop

Application
- Coffee Shop
- Entertainment
- Restaurants or Food Chains
- Retail
- Travel

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Gift Cards Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Gift Cards Market?

3. What are the technology trends and regulatory frameworks in the Gift Cards Market?

4. What is the market share of the leading vendors in the Gift Cards Market?

5. Which modes and strategic moves are suitable for entering the Gift Cards Market?

Product Code: MRR-43339CF46FD9

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Increasing Market Penetration through E-Commerce Industry and Employee Reward System
  - 5.1.1.2. Innovative and Personalized Gift Cards to Increase Sales
  - 5.1.1.3. Growing Traction in Airport Lounges and Duty-Free Retailing
- 5.1.2. Restraints
  - 5.1.2.1. Concerns Related to Security and Privacy
- 5.1.3. Opportunities
  - 5.1.3.1. Growing Demand as Promotion Tools and Market Penetration in Emerging Economies
  - 5.1.3.2. Technological Advancements with Quicker and Easy Payment Solutions and Digitization
- 5.1.4. Challenges
  - 5.1.4.1. Issues Pertinent to Plastic Utilization and Chances of Loss of Money
5.2. Market Segmentation Analysis
- 5.2.1. Type: Increasing use of eGifting and open loop gift cards owing to their convenience and universal acceptability
- 5.2.2. Application: Adoption of entertainment and retail gift cards to serve the dual purpose of routine use and special occasion gifting
5.3. Porter's Five Forces Analysis
- 5.3.1. Threat of New Entrants
- 5.3.2. Threat of Substitutes
- 5.3.3. Bargaining Power of Customers
- 5.3.4. Bargaining Power of Suppliers
- 5.3.5. Industry Rivalry
5.4. Value Chain & Critical Path Analysis
5.5. Regulatory Framework Analysis

6. Gift Cards Market, by Type

6.1. Introduction
6.2. E-Gifting
6.3. Miscellaneous Closed Loop
6.4. Music and Streaming Gift Cards
6.5. Restaurant Closed Loop
6.6. Retail Closed Loop
6.7. Universal Accepted Open Loop

7. Gift Cards Market, by Application

7.1. Introduction
7.2. Coffee Shop
7.3. Entertainment
7.4. Restaurants or Food Chains
7.5. Retail
7.6. Travel

8. Americas Gift Cards Market

8.1. Introduction
8.2. Argentina
8.3. Brazil
8.4. Canada
8.5. Mexico
8.6. United States

9. Asia-Pacific Gift Cards Market

9.1. Introduction
9.2. Australia
9.3. China
9.4. India
9.5. Indonesia
9.6. Japan
9.7. Malaysia
9.8. Philippines
9.9. Singapore
9.10. South Korea
9.11. Taiwan
9.12. Thailand
9.13. Vietnam

10. Europe, Middle East & Africa Gift Cards Market

10.1. Introduction
10.2. Denmark
10.3. Egypt
10.4. Finland
10.5. France
10.6. Germany
10.7. Israel
10.8. Italy
10.9. Netherlands
10.10. Nigeria
10.11. Norway
10.12. Poland
10.13. Qatar
10.14. Russia
10.15. Saudi Arabia
10.16. South Africa
10.17. Spain
10.18. Sweden
10.19. Switzerland
10.20. Turkey
10.21. United Arab Emirates
10.22. United Kingdom

11. Competitive Landscape

11.1. Market Share Analysis, 2023
11.2. FPNV Positioning Matrix, 2023
11.3. Competitive Scenario Analysis
- 11.3.1. Restaurant.com Owner RDE Acquires Gift Card Marketplace CardCash.com
- 11.3.2. Onbe and CardCash Partner to Offer Instant Virtual Cards
- 11.3.3. InComm Payments and Meal Train Partner to Supply Gift Card Options for Individuals Organizing Meal Support

12. Competitive Portfolio

12.1. Key Company Profiles
12.2. Key Product Portfolio