The gift card market enables gift-giving in a faster, easier and more personalized way. Gift cards have become a popular choice for gifting on occasions as they allow recipients to select a gift of their choice. Gift cards are available for many retail stores, restaurants, online streaming services and other occasions. Key players operating in the gift card market are Abbott Laboratories, F. Hoffmann-La Roche AG, Thermo Fisher Scientific Inc., Bio-Rad Laboratories, Inc., Danaher Corporation, Randox Laboratories Ltd., Siemens Healthineers, and BioMérieux SA.
The global gift card market is estimated to be valued at US$ 12.33 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031.
The Gift Card Market Growth enables gift-giving in a faster, easier and more personalized way. Gift cards have become a popular choice for gifting on occasions as they allow recipients to select a gift of their choice. Gift cards sales have grown exponentially over the years driven by increasing digitalization and rising online shopping trends. With rising adoption of smartphones and internet penetration globally, digital and e-gift cards are gaining popularity.
Key Takeaways
Key players operating in the gift card market are Abbott Laboratories, F. Hoffmann-La Roche AG, Thermo Fisher Scientific Inc., Bio-Rad Laboratories, Inc., Danaher Corporation, Randox Laboratories Ltd., Siemens Healthineers, and BioMérieux SA. Gift card spending has grown significantly in past few years as consumers have increasingly embrace digital payments and online shopping. Increasing usage of gift cards as employee reward and incentive is another key factor boosting the demand. Advancement in gift card technology such as multi-purpose reloadable cards, customizable e-gift cards and integration with mobile wallets is further supporting the market growth.
Growing demand from millennials and working professionals coupled with increasing adoption of gift cards as employee incentives is anticipated to drive the market growth during the forecast period. Rising number of working women and dual income households have augmented the demand for gift cards. Gift cards are finding increased acceptance for occasions beyond festivities & holidays such as employee bonuses and rewards.
Advancement in gift card technology is supporting their adoption. Features such as personalized e-gift cards, multi-purpose reloadable cards and integration with mobile wallets & payment apps are enhancing convenience. Many vendors are offering innovative gifting solutions like personalized messages, location specific discounts and gamification for increased customer engagement on occasions.
Market Trends
Single brand/merchant gift cards are giving way to multi-brand/universal gift cards: Major retailers are launching multi-brand gift cards that can be used across a wider network of affiliated brands and franchises. Such cards provide greater flexibility and choice to customers.
Gift card program integration with mobile payments is growing: Leveraging growing adoption of mobile wallets, vendors are integrating gift cards with popular payment apps like Google Pay, Apple Pay for ease of purchase and usage on smartphones.
Market Opportunities
Rising adoption of cryptocurrency gifts cards: With growing familiarity with digital currencies, cryptocurrencies gift cards are emerging as a novel gifting trend. Major players are launching cryptocurrency gift cards.
Personalized digital gifts and experiences: Companies are exploring personalized digital gifts and experiences like online courses/tutorials, streaming subscriptions, online shopping credits rather than traditional gift cards to drive engagement.
Impact of COVID-19 on Gift Card Market Growth
The COVID-19 pandemic has significantly impacted the growth of the gift card market. During the initial lockdown phases in 2020, the market witnessed a decline as physical stores remained shut for months. People also cut down on discretionary spending and celebrations. However, with the shifting consumer behavior towards contactless payments and online shopping, the demand for digital/e-gift cards surged significantly. Companies pushed for digital gift cards as a safe gifting option without any direct contact. E-commerce giants partnered with major retailers and restaurants to offer digital gift cards. They also participated in corporate gifting and promotional campaigns to boost sales. It is expected that the demand for digital gift cards will remain strong even in the post-pandemic era as people have gotten more comfortable with contactless payments. Overall, the market is estimated to bounce back and witness steady growth over the forecast period backed by the rising adoption of digital gift cards. However, future waves of the pandemic still remain a challenge.
Concentration of Gift Card Market in the US and China
In terms of value, North America, led by the US, holds the major share of the global gift card market currently. The US accounts for over 35% of the total market value due to heavy reliance on gift cards by consumers and businesses for various occasions throughout the year. China is also one of the lucrative markets for gift cards globally and holds the second position. China's rapidly expanding middle-class population and young generation's increasing spending power on online shopping and services is driving the demand. Both the US and Chinese markets are expected to continue dominating over the forecast period supported by rising digitalization of payments.
Fastest Growing Region - Southeast Asia
The Southeast Asian region, comprised of countries like Singapore, Thailand, Indonesia, Malaysia and Vietnam, is expected to witness the highest growth in the gift card market during the forecast period. Factors such as increasing middle-class population, rising disposable income, growing youth populations embracing digital payment methods, expanding e-commerce industry are contributing to strong growth. Additionally, supportive government regulations for digital payments and partnerships between global gift card companies and local digital payment players are helping boost digital gift card adoption. Countries like Vietnam and Indonesia are estimated to see annual growth rates above 15% over the next few years.
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