CAGR: 17.30%Current Market Size: USD 622.6 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2023-2030Base Year: 2022
The Global Gift Card market is expected to grow from USD 622.6 billion in 2022 to USD 2231.48 billion by 2030, at a CAGR of 17.30% during the Projection period 2023-2030. The growth of this market is mainly driven owing to the increasing demand for gift cards in shopping to avail various offers and discounts.
Gift cards are coupons that are issued by merchant establishments, banks, or large organizations of a certain product or service as festival offers for a specific product or service. These gift cards are used to purchase services or products from shopping centers, malls, etc. A major factor driving the growth of the gift card market is the increasing use of gift cards as marketing tools. Additionally, the gift card market is expected to grow due to increased demand from commercial sectors, an increasing trend of e-commerce, an increasing digitalization, and a growing culture of gifting and technological advancements. Digital gift cards are primarily driven by the increasing levels of digitalization and the growing adoption of smart devices. In addition, the growing e-commerce sector has led to the increasing use of e-gift vouchers for providing unique and attractive products. As digital payments become more popular, the digital gift card market is expected to grow in the future. Gift cards are easily purchased and used as a form of contactless and digital payment at critical businesses like grocery stores and online-only retailers. Moreover, with the depletion of wood resources increasing, paper-based cards are gradually being replaced by digital alternatives, driving the global market over the Projection period.
Sample Request: - Global Gift Card Market
Market Dynamics:
Drivers:
A growing number of smartphones coupled with affordable data plans have led to an increase in the adoption of m-Commerce, which is expected to provide a boost to the gift card market. Online purchases are growing rapidly due to the ease of browsing and making purchases on the go provided by shopping apps, resulting in a growing number of customers making online purchases, which is positively impacting the growth of the gift card market.
Restraints:
There may be additional losses associated with using gift cards, which poses a major challenge to the growth of the global gift card market. In addition to the amount already credited to the gift card, some gift cards come with an expiry date, which forces the recipient to use the card before it expires. Occasionally, gift cards contain hidden fees and charges that are not disclosed to buyers or recipients at the time of purchase. Therefore, the gift card user must spend additional money in order to use the services listed on the gift card, so unused cash is lost for the buyer.
Opportunities:
Digital cards are becoming popular among customers, creating more opportunities for the gift card market to grow. Companies can gather accurate information by tracking a consumer's buying behaviour and redemption of gift cards by the customer. As such, the digital gift card allows marketers to record data regarding both the user and the receiver, which can be used to tailor future promotions. Moreover, the discounts offered through these gift cards attract more consumers, further contributing to the market's growth.
Challenges:
The gift cards are very beneficial in order to get discounts and many other advantages on shopping. Still, there are some disadvantages, such as the privacy and security of the consumers and key players. The rising cases of cybercrimes as created fear among consumers to use digital modes for payments and gift cards and vouchers which is affecting the growth of the gift card market. Moreover, some gift cards come with an expiry date, which is also hampering the market's growth as consumers refuse to buy such cards with an expiry date.
Segmentation Analysis:
The global gift card market has been segmented based on card type, product type, end-user, and region.
By Card Type
The product type segment includes closed loop and open loop. The open-loop segment led the largest share of the gift card market with a market share of around 61.2% in 2022. The popularity of open-loop gift cards comes from the fact that they allow the recipient to shop at multiple locations and because they can be used at multiple retailers, they do not become obsolete if one of them collapses.
By Product Type
The product type segment includes physical gift cards and e-cards. The e-cards segment led the largest share of the gift card market with a market share of around 57.2% in 2022. Due to the ease at which corporates can choose personalized gifts for employees, clients, and other stakeholders, e-cards are viewed as the most suitable gifting option. Additionally, vendors are launching e-gift cards in recent years, which will continue to drive the growth of the segment and, thus, the market in focus during the Projection period.
By End-User
The end-user segment includes corporate and retail. The retail segment led the largest share of the gift card market with a market share of around 59.32% in 2022. Among the retail sectors are supermarkets, hypermarkets, computers, pharmaceuticals, and other communication devices. Gift card sales are expected to grow in the future due to retail's growth. The use of gift cards in all the retail sectors will propel the growth of the gift card market.
Global Gift Card Market- Sales Analysis.
The sale of gift cards expanded at a CAGR of 16.20% from 2016 to 2022.
Moreover, using e-cards to gift employees, clients, and other stakeholders is the most convenient option as it reduces corporate efforts to choose gifts that are personalized for everyone. Additionally, vendors have begun launching e-gift cards in the past few years, which will drive the market in focus during the Projection period and, in turn, the segment's growth.
Globally, the depletion of natural timber for paper consumption is leading to a gradual shift from paper-based cards towards digital alternatives, which will further drive the global market.
Thus, owing to the aforementioned factors, the global gift card market is expected to grow at a CAGR of 17.30% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the gift card market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North American region dominated the gift card market and held a 37.6% share of the market revenue in 2022.
Global Gift Card Market- Country Analysis:
Germany's gift card market size was valued at USD 48.23 billion in 2022 and is expected to reach USD 175.23 billion by 2029, at a CAGR of 17.5% from 2023 to 2030.
Across the country, technological innovations are attracting more customers to purchase gift cards by offering compelling customer attractions and discount offers, propelling the growth of the gift card market in the country.
China’s gift card market size was valued at USD 49.20 billion in 2022 and is expected to reach USD 181.20 billion by 2029, at a CAGR of 17.7% from 2023 to 2030.
In the last four to six quarters, the Chinese e-commerce market has experienced significant growth, accelerated by the global pandemic, which propels the growth of the gift card market.
India's gift card market size was valued at USD 37.8 billion in 2022 and is expected to reach USD 138.27 billion by 2029, at a CAGR of 17.6% from 2023 to 2030.
In the last consecutive years, India has surpassed USD 1 billion annually in the overall segment of India's gift card industry, according to Paynxt 360, one of the emerging markets for future digital gift cards.
Key Industry Players Analysis:
To increase their market position in the global gift card business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
17.30% |
Market Size |
622.6 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Card Type, By Product Type, By End-User, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Blackhawk Network Holdings Inc., Yiftee Inc, FleetCor Technologies Inc., The Voucher Market Ltd., Walmart Inc., Plastek Card Solutions, Amazon.com Inc., Givex Corporation, Basic Visual Id Technologies, TenderCard, Qwikcilver Solutions Pvt Ltd., Micro Labels Private Limited, LVMH Moet Hennessy Louis Vuitton SE, Tele Pak Inc, Hennes & Mauritz AB, Fidelity National Information Services Inc., Jifiti.com Inc., TransGate Solutions LLC, Kindcard Inc., and Fiserv Inc. |
By Card Type |
|
By Type Outlook |
|
By End-User |
|
Regional scope |
|
Scope of the Report
Global Gift Card Market by Type:
Global Gift Card Market Product Outlook:
Global Gift Card Market by End User:
Global Gift Card Market by Region:
Global Gift Card market current size is USD 622.6 billion in 2022.
North American region dominated the gift card market and held a 37.6% share of the market revenue in 2022
Increased use of smartphones and advancement in technology will propel the growth of the market.
Blackhawk Network Holdings Inc., Yiftee Inc, FleetCor Technologies Inc., The Voucher Market Ltd., Walmart Inc., Plastek Card Solutions, Amazon.com Inc., Givex Corporation, Basic Visual Id Technologies, TenderCard, Qwikcilver Solutions Pvt Ltd., Micro Labels Private Limited, LVMH Moet Hennessy Louis Vuitton SE, Tele Pak Inc., Hennes & Mauritz AB, Fidelity National Information Services Inc., Jifiti.com Inc., TransGate Solutions LLC, Kindcard Inc. and Fiserv Inc. among others.
Global Gift Card market is expected to reach USD 2231.48 billion by 2030, at a CAGR of 17.30% from 2022 to 2029.
Political Factors- Political reasons, in the form of human resource development, innovation development, and the establishment of institutes for the transfer of new technology, have played one of the most significant roles in the growth of gift card market. Along with these elements, the government began a five-year plan for the advancement of submicron innovation in 1990. This plan involved the creation of research facilities for submicron development in addition to the previously mentioned responsibilities. The introduction of gift card market has closed the design and technological advancement gaps caused by the government's ongoing efforts to put the gift card market industry in line with international standards.
Economic Factors- The industry's financial issues are not limited to the fact that the gift card market sector is experiencing an imbalance between need and supply. gift card market, which has led to capital problems for manufacturers, is followed by a rate that is less than the cost of the market's excess supply. The sector is very concerned about the economy's potential to shrink manufacturing. Increased output brought on by higher efficiency levels might lead to an economic slump once more due to excess supply and poor demand, which forces businesses to close as a result of lower earnings.
Social Factors- In order for markets like gift card market to prosper, the economy needs a moderate rate of inflation. A modest rate of inflation will also aid in corporate expansion and positively influence consumer confidence and spending patterns. As a result, the economy will grow and there will be more money available to spend overall. With trainings aimed at enhancing the awareness of sources in the market, the global government has focused on human funding growth in the industry.
Technological Factors- Since gift card market manufacturers globally do not possess their own technology and still rely on external technological partners, there are still some technical issues in this industry. In order to reduce this dependence, the government's involvement in the sector has focused on changing the gift card market. Leading Taiwanese businesses like Powerchip have strategically partnered with overseas corporations like Elpida in Japan. Due to foreign federal governments' reluctance to transfer technology, such as the Japanese government, this design has technical limitations.
Environmental Factors- The ease of capability expansion in the gift card market business suggests that globally is a favourable location for the manufacturing of gift card market. This conclusion is supported by the fact that the area makes even greater use of creative ability. Recycling and environmental sustainability are receiving more attention. More and more consumers are demanding ways to recycle things before disposing of them. Consumption of recycled goods is also on the rise among consumers. The gift card market has established dedicated websites for the disposal of recyclable goods. Like many other players, gift card market is likewise launching a new product line of recycled goods for consumers to enjoy.
Legal Factors- Concerns and also opportunities exist in the form of IP rights and also contractual obligations in the legal context of gift card market. A company has the legal protection to secure its intellectual property (IP), management, and technology, which might increase others' reliance on it. The fact that Micron's interest in gift card market might not arise as a result of the former company's legal agreement with Nanya, as well as Inotera, shows how highly relevant legal agreements are in this industry.
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