Gift card market is anticipated to grow at a CAGR of 15.2% during the forecast period. The growing use of gift cards as marketing tools is a significant element driving the gift card market's expansion. Additionally, the rising demand from commercial sectors, growing e-commerce, digitalization, and gifting culture, as well as merchants’ inclination towards gift cards for more profits and improved customer service, are some factors that are propelling the gift card market growth. For instance, in February 2023, ausper, a gold-tech platform that provides India's first visa-powered card for purchasing gold jewelry, launched a Valentine's Day digital campaign launching ausper LUV, a Visa-Powered Gift Card. It is a pre-loaded Visa-powered gift card with perks such as the ability to gift gold to anyone and anywhere. The card user may send gold for $24.5 and select from several brands of jewelry.

Segmental Outlook 

The global gift card market is segmented by functional attribute, merchant, and card type. Based on functional attributes, the market is sub-segmented into open loop and closed loop. Based on the merchant, the market is sub-segmented into restaurants, department stores, grocery stores/ food supermarkets, discount stores, coffee shops, entertainment, and others. Based on the card type, the market is sub-segmented into e-gift cards and physical cards. Among the functional attributes, the open-loop sub-segment is expected to hold a significant share of the market since open-loop gift cards allow recipients to purchase at many retail locations, and since they are redeemable at multiple businesses, gift cards do not become outdated if one of the stores goes out of business.

The E-Gift Card Sub-Segment Holds a Prominent Share of the Global Gift Card Market

Based on card type, the market is sub-segmented into e-gift cards and physical cards. Among these, the e-gift card sub-segment holds a significant share of the market owing to the continuously increasing number of smartphone users, internet users, and online shoppers. Another factor that is enhancing their usage is that these cards are provided directly to the recipient in the form of codes and links by email or SMS, making it easier for the user to redeem them. These cards also provide speedy payment alternatives on both online and offline platforms. For instance, in June 2021, Qwikcilver, a Pine Labs company, introduced no-cost EMI on e-gift cards, which can be availed using the credit card of listed banks. The minimum ticket size to be eligible for the same is $ 4,237.2 and above.

Regional Outlooks

The global gift card market is segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the rest of the world (the Middle East and Africa and Latin America). The market can be analyzed for a particular region or country level as per the requirement. Among the regions, the North American region is expected to hold a prominent share of the global gift card market. However, the Asia-Pacific market is anticipated to grow at a considerable share over the forecast period owing to the growing developing countries such as India and China. These countries have the highest number of young people along with a growing technology sector.

Global Gift Card Market Growth, by Region (2023-2029)

The North American Region is Expected to Dominate the Global Gift Card Market

North America is anticipated to hold a prominent share in the global gift card market due to the growing e-commerce activity caused by the booming millennial and Gen Z populations, which are likely to use gift cards. According to US Census Bureau data from 2021, millennials were the largest population group in the US, accounting for 72.2 million people or around 21.7% of the population. Additionally, the rising smartphone penetration among customers, which enables easy management of digital gift cards via mobile applications, is boosting market demand. According to research conducted by the US Census Bureau, the US had one of the highest smartphone penetration rates worldwide as of 2021, with 82.2% of the population owning a smartphone. The North American region's market is also fueled by big shops and restaurant chains such as Walmart, Amazon, Target, Starbucks, and Chipotle, which offer customers both real and digital gift cards. The aforementioned elements are projected to significantly promote the growth of this region's gift card industry. However, the market in the region may face some restraints due to the high number of unused gift cards. According to a new CreditCards.com poll, over half of all Americans (47%) had one unused gift card, voucher, or shop credit, totaling $21 billion countrywide. CreditCards.com commissioned YouGov Plc to conduct an online poll of 2,372 respondents regarding gift card use in July 2022. A person holds an average of $175 in unspent gift cards, certificates, and shop credit, a $61 increase from 2021.

Market Players Outlook

The major companies serving the global gift card market include NGC US, LLC, Plastek Card Solutions, Inc., Prime Plastic Cards, PSM Cards, and others. These companies are considerably contributing to the market’s growth through the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, investments, and new gift card launches, to stay competitive in the market. For instance, in March 2023, Zuza, a business management and POS software provider released Prolific eGift. The novel eGift program of the company is intended to aid merchants by offering a simple and effective approach to increasing sales and income. Merchants can quickly generate and sell digital gift cards that their customers can purchase and redeem online or in-store with Prolific eGift. The application is simple to use, inexpensive, and adaptable to the specific demands of any organization.

The Report Covers-

• Market value data analysis for 2023 and forecast to 2029.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global gift card market. Based on the availability of data, information related to new product launches and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who stands where’ in the market.