What Is The Overview Of The Global Gift Cards Market?
Gift cards are prepaid cards issued by retailers, financial institutions, or other organizations that can be used as a form of payment. They are designed to be given as gifts or rewards and are often used to provide recipients the flexibility to choose their items.
Gift Cards Global Market Report 2024 provides data on the global gift cards market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The gift cards market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Global Gift Cards Market Expected To Grow In Size And Annual Rates?
The gift card market has seen rapid growth in recent years. It is projected to grow from $1,094.23 billion in 2023 to $1,296.06 billion in 2024, with a CAGR of 18.4%. The growth in the past has been driven by the rise of e-commerce, increased disposable income, greater adoption of mobile payments, and growing demand for personalized gift options, along with the surge in contactless payments. Over the next few years, the market is expected to reach $2,576.52 billion by 2028, growing at a CAGR of 18.7%. Factors contributing to this growth include the increasing adoption of digital wallets, the rise of mobile commerce, growth in corporate reward programs, the popularity of e-gifting trends, and wider internet and smartphone penetration. Key trends expected during this period include the integration of blockchain technology, AI-driven personalization, an emphasis on sustainability and eco-friendly options, partnerships between retailers and fintech companies, and the growing role of social media in gift card promotions.
What Main Forces Are Fueling Expansion In The Gift Cards Market?
The expansion of the food service industry is expected to support the growth of the gift cards market. This sector includes establishments such as restaurants, catering services, and food trucks that prepare and serve meals and beverages to customers. The growth of the food service industry is fueled by rising consumer demand for convenient dining options, evolving food preferences toward healthier choices, and increased urbanization. Gift cards play a key role in this sector by enhancing customer loyalty, attracting new patrons, improving cash flow, and boosting brand visibility. For example, in June 2024, the United States Census Bureau reported that U.S. retail and food services sales reached $704.3 billion, a 2.3% increase compared to June 2023. Therefore, the growth of the food service sector is driving the gift cards market.
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What Are The Primary Segments In The Global Gift Cards Market?
The gift cards market covered in this report is segmented –
1) By Type: Universal Accepted Open Loop, Sports Gift Card, E-Gifting, Restaurant Closed Loop, Retail Closed Loop, Miscellaneous Closed Loop
2) By Price Range: Low (0-200 US$), Medium (200-400 US$), High (Above 400 US$)
3) By Application: Personal Finance, marketing And Promotions, Hospitality And Travel, Education, Non-Profit And Charity, Other Applications
4) By End User: Retail Establishment, Corporate Institutions
Which Key Trends Are Driving Changes In The Gift Cards Market?
Companies in the gift cards market are increasingly focusing on innovative solutions like customizable and animated e-gift cards to enhance the digital gifting experience and meet evolving consumer preferences. These e-gift cards are digital cards that can be personalized with custom messages, images, and dynamic visual elements, offering a more engaging and unique gifting experience. For instance, in October 2023, Givex Corp., a Canadian fintech company, launched customizable and animated e-gift cards that allow customers to personalize their gift cards with images, video messages, and animated designs. This feature transforms digital gift cards into memorable gifts, with captivating animations adding a surprise element to the recipient's inbox. This innovation aligns with Givex's mission to enhance customer experience through cutting-edge technology.
What Is The Leading Region In The Gift Cards Market?
North America was the largest region in the gift cards market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the gift cards market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
