Gift Cards Market 2025

Gift Cards Market Size

The global gift cards market reached a value of nearly $1,296,062.54 million in 2024, having grown at a compound annual growth rate (CAGR) of 15.05% since 2019. The market is expected to grow from $1,296,062.54 million in 2024 to $2,635,537.32 million in 2029 at a rate of 15.25%. The market is then expected to grow at a CAGR of 14.66% from 2029 and reach $5,222,615.17 million in 2034. Growth in the historic period resulted from the rising food service sector, increasing growth of the retail sector, favorable government initiatives and surge in online shopping and e-commerce. Factors that negatively affected growth in the historic period were limited consumer awareness and fraud and theft concerns. Going forward, rise in prepaid and reloadable cards, rising popularity of personalized gift options, rise in globalization and cross-border gifting and consumer preference for cashless gifting options will drive the growth. Factor that could hinder the growth of the gift cards market in the future include increased competition from alternative payment methods and limited expiry dates.

Gift Cards Market Drivers

The key drivers of the gift cards market include: Rising Popularity Of Personalized Gift Options The rising popularity of personalized gift options are expected to propel the growth of the gift cards market, during the forecast period. The growing trend of personalized gift cards, which can include custom designs, messages and experiences, is reshaping the gifting market. Retailers are offering a variety of customizable options, from physical cards with personal messages to digital cards with photos or interactive elements. The rise of experience-based gifts, such as dining or travel, further enhances the emotional appeal of personalized cards, aligning them with the recipient's interests. Social media has amplified this trend, as influencers and brands promote personalized gifting, driving consumer demand for unique, tailored gift card experiences across industries. The rising popularity of personalized gift options contribution during the forecast period in 2024 is 1.00%.

Gift Cards Market Restraints

The key restraints on the gift cards market include: Limited Expiry Dates The limited expiry dates are expected to restrain the growth of the gift cards market, during the forecast period. Gift cards often face consumer reluctance due to expiration dates, typically ranging from one to five years and potential maintenance fees that reduce their value over time. These limitations can make gift cards seem less valuable compared to cash or other more flexible gift options, as recipients may fear wasting money if they don't use the card before it expires. This urgency to spend the card may lead to impulsive or unsatisfactory purchases, further diminishing their appeal. As a result, consumers may prefer products with fewer constraints, leading to a decline in gift card demand. Growth affected by limited expiry dates during the forecast period in 2024 is -1.01%.

Gift Cards Market Trends

Major trends shaping the gift cards market include: AI In Enhancing Customer Experiences In The Gift Card Industry Major companies in the gift cards market are focusing on developing innovative AI-powered platforms to enhance personalization, improve customer experiences and optimize gift card management. These innovations help businesses better target consumers, streamline operations and provide more seamless and efficient gift card services across digital and physical channels. For example, in April 2025, NKPAYS PRIVATE LIMITED, an India-based fintech startup launched its AI-powered B2B platform, exchange.nkpays.in, aimed at transforming mobile recharge and digital gift card services for businesses. This innovative solution offers seamless integration through RESTful APIs, enabling businesses to streamline operations and enhance customer experiences. With a focus on security and reliability, NKPAYS provides 24/7 support and a user-friendly interface, catering to various services including mobile recharge, bill payments and travel bookings. The platform's scalability and comprehensive service offerings position it as a valuable tool for businesses seeking to optimize their digital transaction processes. The company's innovative approach underscores its commitment to advancing digital infrastructure in Northeast India. Investments In Gift Cards Expanding Offerings And Consumer Reach Companies operating in the gift cards market are focusing on strategic investments to expand their digital and e-gift card offerings, enhance consumer engagement and integrate advanced technologies such as blockchain and AI. These investments aim to improve customer experience, streamline processing and tap into the growing demand for personalized and cross-channel gift card solutions. For example, in February 2025, Raise, a US-based digital gift card and blockchain payments company, secured $63 million in a funding round led by Haun Ventures, a US-based venture capital firm bringing its total funding to over $220 million. The company plans to utilize the funds to further develop its blockchain-backed gift card program, Smart Cards and expand the Retail Alliance Foundation, a nonprofit coalition aimed at creating a secure and modernized global gift card network. This initiative seeks to transform gift cards into a fully programmable retail currency, enhancing security and interoperability within the industry.

Opportunities And Recommendations In The Gift Cards Market

Opportunities – The top opportunities in the gift cards markets segmented by type will arise in the e-gifting segment, which will gain $688,470.23 million of global annual sales by 2029. The top opportunities in the gift cards markets segmented by price range will arise in the medium (200-400 US$) segment, which will gain $619,196.89 million of global annual sales by 2029. The top opportunities in the gift cards markets segmented by application will arise in the personal finance segment, which will gain $466,833.90 million of global annual sales by 2029. The top opportunities in the gift cards markets segmented by end user will arise in the retail establishment segment, which will gain $889,126.10 million of global annual sales by 2029. The gift cards market size will gain the most in USA at $421,163.95 million. Recommendations- To take advantage of the opportunities, The Business Research Company recommends the gift cards to focus on AI-driven personalization and operational efficiency, focus on strategic investment in digital and blockchain gift card solutions, focus on enhancing consumer experience through customizable digital gift cards, focus on enhancing digital gifting through customizable e-gift cards, focus on leveraging crypto gift cards to expand market reach, focus on expanding in the e-gifting segment to capture high growth, focus on the high-value gift card segment for growth, expand in emerging markets, focus on strategic partnerships to expand capabilities and market reach, focus on competitive and value-based pricing to maximize gift card sales, leverage digital channels for targeted and measurable promotion, combine offline and online efforts to enhance brand visibility and trust, focus on hospitality and travel segment for accelerated growth and focus on prioritizing corporate institutions for accelerated growth.