Gift cards market set to witness an unprecedented growth complimented by its increasing adoption across the corporate sector

Gift cards market growth has been phenomenal since the past few years due to the fact that it facilitates the recipient to make a purchase of his/her choice. Gift cards market expected to reach US$ 750.31 Bn by 2026, with 10.1% CAGR during the forecast period from 2018 to 2026. This growth is by large contributed by the growing popularity of gift cards in the corporate sector. Moreover, growing internet penetration supporting e-gifting is an important factor influencing the market growth positively. Gift card, also referred to as gift voucher or gift certificate or gift token, is usually issued by a bank or a retailer and stores as a prepaid money value to be used as an alternative to real cash. Marketers or retailers issue gift cards to customers in order to entice them to return to the store for future purchase. This further acts as promotional strategy for retailers and marketers. In general, gift cards does not facilitate cashing out and may have an expiry date. Gift cards have become popular considering the fact that giving cash as a gift is usually regarded socially inappropriate.

E-gifting propelling the gift cards market growth

Closed loop gift cards segment led the overall gift cards market in 2017. The segment accounted for over 55% of total market value in 2017. Closed loop gift card is used to make purchases from a single company and has logo of the company where it is usable. It does not have logo of any major payment processors such as MasterCard or Visa. The closed loop gift cards, though being the largest segment is facing stiff competition from open loop gift cards. However, in order to stay competitive, the closed loop card issuers are focusing on expansion of their participating merchant network. Open loop gift cards segment expected to register a high growth during the forecast period. Open loop gift cards have gained preference as it facilitates the recipients to have multiple destinations to shop from. Another prominent factor contributing to open loop gift cards segment growth is enhanced security. As these cards can be used to purchase from multiple retailers, even in case of bankruptcy of a retailer, it can be used elsewhere. This prevents the gift card from becoming redundant. Considering these factors, the segment growth expected to remain significant in the following years. Currently, e-gifting market is still in its nascent stage and evolving at a rapid pace. It is expected to emerge as the fastest growing segment during the forecast period owing to its higher convenience. These cards can be sent instantaneously via e-mail thereby eliminating the concern of losing it, as in the case of physical gift cards.

Emergence of gift cards as a popular holiday present in the U.S. driving the overall North America gift cards market

The global gift cards market is dominated by North America, contributing to more than 45% of the overall market value in 2017. North America is among the first regions to widely use gift cards. Gift cards are the most popular type of holiday present in the U.S., a factor complimenting the gift cards market growth in the nation. Moreover, demand for gift cards has witnessed an unprecedented rise during occasions such as Christmas and birthdays in recent years, a factor further complimenting the market growth. Thank you gift, graduation, baby shower and Mother’s day are some other popular occasions for which consumers are increasingly buying gift cards. Amazon, Walmart, iTunes and Giant Eagle are amongst the leading retailers offering gift cards in the region. Further, Asia Pacific is set to emerge as the most promising market for gift cards in the years to come. Market growth in the region expected to remain the highest during the forecast period due to factors such as improving lifestyle coupled with rising net disposable income. A continuously widening consumer base and increasing popularity of gift cards would ensure high market growth in Asia Pacific through the forecast period.

Promising outlook set to attract a large number of players in the years to come

With gift cards market witnessing an unprecedented growth, the existing players have enormous growth potential in the years to come. One of the common strategies amongst players in the gift card market is to enhance its presence through social media. Starbucks has always remained in the forefront in this context and has been constantly using social media for e-gifting. The brand sends gift cards via Facebook, e-mail, Starbucks mobile app or physical mail. Similarly, WeChat, the most popular Chinese messaging app allows its users to send and receive gift cards. The company initiated this modern approach in 2013 by facilitating users to exchange virtual cash-filled red envelopes during occasions such as Chinese New Year.

This research report further covers qualitative market analysis including key market drivers, restraints and trends to better understand the global gift cards market scenario. The market assessment factors are extensively explained in consideration with the current market condition across different geographies. This report further includes the graphical representation of the market players based on their strategies, business strength and product offering. Key players profiled in the report include National Gift Card Corp., Blackhawk Network Holdings, Inc., InComm Holdings, Inc., QwikCilver Solutions Private Limited, Edge Loyalty Systems Pty Ltd., First Data Corporation, Worldpay, Inc., TransGate Solutions, Buyatab Online, Inc., and ValuAccess Limited among others.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Gift Cards market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Gift Cards market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Gift Cards market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Gift Cards market?
• Which is the largest regional market for Gift Cards market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Gift Cards market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Gift Cards market worldwide?