How Has the Gift Cards Market Evolved Historically and What is its Current Size?
The gift cards market has seen considerable growth due to a variety of factors.
• The gift cards market has expanded rapidly in recent years. It is projected to grow from $1,296.06 billion in 2024 to $1,542.41 billion in 2025, at a compound annual growth rate (CAGR) of 19.0%.
Historical growth is driven by the rise of e-commerce, growing consumer disposable income, increased adoption of mobile payments, rising demand for personalized gift options, and a surge in contactless payment methods.
What is the Forecasted Market Size and CAGR for the Gift Cards Market?
The gift cards market is expected to maintain its strong growth trajectory in upcoming years.
• The gift cards market is expected to experience rapid growth, reaching $3053.92 billion by 2029, at a CAGR of 18.6%.
Growth will be driven by the increased use of digital wallets, the rise of mobile commerce, growth in corporate rewards programs, the surge in e-gifting trends, and the growing penetration of the internet and smartphones. Major trends will include the integration of blockchain technology, the use of AI for personalization, a focus on sustainability and eco-friendly options, collaborations between retailers and fintech companies, and greater use of social media for gift card promotions.
What Key Factors and Trends Are Driving The Growth Gift Cards Market?
The gift cards market is expected to benefit from the rising food service sector. The growth in restaurants, cafeterias, and other food-related businesses, driven by increased demand for convenient and diverse dining options, is fueling this market. Gift cards help attract new customers and promote customer loyalty. For example, in June 2024, U.S. retail and food service sales reached $704.3 billion, a 2.3% increase from the previous year, according to the U.S. Census Bureau. Therefore, the growing food service sector is driving the gift cards market.
What Are The Market Segments In The Gift Cards Market?
The gift cards market covered in this report is segmented –
1) By Type: Universal Accepted Open Loop, Sports Gift Card, E-Gifting, Restaurant Closed Loop, Retail Closed Loop, Miscellaneous Closed Loop
2) By Price Range: Low (0-200 US$), 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
Subsegments
1) By Universal Accepted Open Loop: Bank-Issued Gift Cards, Prepaid Credit Cards
2) By Sports Gift Card: Team Merchandise Gift Cards, Sports Event Gift Cards
3) By E-Gifting: Digital Gift Codes, Virtual Gift Cards
4) By Restaurant Closed Loop: Fast Food Gift Cards, Fine Dining Gift Cards, Coffee Shop Gift Cards
5) By Retail Closed Loop: Apparel Gift Cards, Electronics Gift Cards, Grocery Store Gift Cards
6) By Miscellaneous Closed Loop: Entertainment Gift Cards, Spa and Wellness Gift Cards, Travel Gift Cards
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How Are New Trends Impacting The Size Of The Gift Cards Market?
The key players in the gift card sector, are increasingly focussing on the creation of innovative offerings such as personalized and animated e-gift cards. By catering to the changing consumer needs, these firms aim to enhance the digital gift card experience. Customizable and animated e-gift cards are a unique form of digital gifting that allows the inclusion of tailored messages, visuals and dynamic elements that result in a unique gifting experience. An example of this is the launch of such cards by Givex Corp., a Canadian fintech corporation, in October 2023. These cards give the customers the authority to personalize their e-gift cards with images, videos and themed designs, turning them into treasured memories. Furthermore, these e-gift cards can now take on a sense of liveliness with compelling animations that bring unexpected delight when received in the recipient's email box. The introduction of this advanced feature is aligned with Givex's commitment to innovation and their plan to provide retailers with advanced technological solutions to improve customer interactions.
Who Are the Key Players In The Gift Cards Market?
Major companies operating in the gift cards market are:
• Amazon.com Inc.
• Apple Inc.
• Target Corporation
• American Express
• Best Buy Co. Inc.
• Starbucks Coffee Company
• PayPal Inc.
• Fiserv Inc.
• Block Inc.
• Worldpay Inc.
• Corpay Inc.
• Blackhawk Network
• InComm Payments
• QwikCilver Solutions Pvt. Ltd.
• Pine Labs Pvt Ltd
• Givex Corp.
• Paytronix Systems Inc.
• Plastek Card Solutions Inc.
• Tendercrop Farms
• National Gift Card Corp
• Card USA Inc.
• Tele-Pak Inc.
• Yiftee Inc.
• JIFITI
• Village Roadshow Ltd.
• TransGate Solutions
• Duracard Plastic Cards
• Kindcard Inc.
What Are The Regional Insights Into 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.
