Gift Cards Market Size, Share, and Trends 2024 to 2033

Gift Cards Market Size and Growth 2024 to 2033

The global gift cards market size was valued at USD 984.31 billion in 2023 and is anticipated to reach around USD 5,039.3 billion by 2033, growing at a CAGR of 17.74% from 2024 to 2033. The gift cards market is driven by the rising acceptance of virtual gift cards.

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Gift Cards Market Key Takeaways

• The North America gift cards market size accounted for USD 344.51 billion in 2023 and is expected to attain around USD 1,763.76 billion by 2033.
• North America dominated the market with the largest market share of 34% in 2023.
• By card type, the closed-loop card segment has held the major market share of 62% in 2023.
• By end-user, the retail establishment segment dominated the gift cards market.

Gift Cards Market Size in the U.S. 2024 to 2033

The U.S. gift cards market size was estimated at USD 275.61 billion in 2023 and is predicted to surpass around USD 1,419.82 billion by 2033 with a remarkable CAGR of 17.81% from 2024 to 2033.

North America held the largest share in 2023 in the gift cards market and is observed to sustain the position throughout the predicted timeframe. With its strong consumer culture, gift-giving is common in North America for various occasions, including graduations, weddings, holidays, and birthdays. Gift cards are becoming popular for these occasions because of their adaptability and simplicity. Retailers and companies frequently use gift card promotions and loyalty programs to attract customers. Retailers and gift card issuers profit from these schemes, encouraging consumers to buy and utilize gift cards.

Asia-Pacific is observed to be the fastest-growing in gift cards market during the forecast period. Consumer behavior is shifting in favor of digital transactions and convenience. Gift cards are a practical way to give something special to someone since they let the receiver select the goods or services they want. This is in line with the tastes of the region's tech-savvy consumers, especially the younger set, who are more favoring digital payment methods. The retail environment in Asia-Pacific has completely changed with the introduction of e-commerce platforms. Online shopping is increasingly popular among consumers as smartphones and internet connectivity become more widely used. The market for gift cards is expanding because e-commerce platforms frequently include gift cards in their promotional campaigns.  

• In December 2023, FoodpandaGift Cards are the result of a partnership between Pine Labs' Qwikcilver, a leading supplier of end-to-end gift card and stored value solutions in Southeast Asia and India, and Food Panda, the largest food and grocery delivery network in Asia (apart from China). With this improved solution, customers can effortlessly redeem and check out.

Europe is observedt to witness a significant growth in the gift cards market during the forecast period. Gift card issuers and retailers now have more opportunities to reach a wider audience due to the expansion of cross-border e-commerce inside Europe. Gift cards are a practical way to send gifts overseas without requiring physical delivery or currency translation. With the growth of international e-commerce, gift cards are becoming an increasingly popular payment option. 

Gift Cards Market Size in the Asia Pacific 2024 to 2033

The Asia Pacific gift cards market size was calculated at USD 285.45 billion in 2023 and is estimated to cross around USD 1,486.69 billion by 2033, rising at a CAGR of 17.94% from 2024 to 2033.

Gift Cards Market Overview

The gift cards market is an industry that revolves around the offering of prepaid cards or certificates to replace cash while buying at shops or establishments. Usually, these cards have a pre-loaded cash value that the bearer can use to buy products or services from the network of the issuing merchant. Gift cards are a business income stream because they are usually purchased in advance, even if the recipient doesn't use them immediately. As a result, sales during periods when consumer demand is highest, like the holidays, may increase.

Gift cards are popular for personal use as gifts for birthdays, holidays, and other occasions. They allow recipients the flexibility to choose their own gifts while still providing a thoughtful gesture from the giver. Retailers benefit from the sale of gift cards by generating revenue upfront, even if the recipient does not redeem the full value of the card. Additionally, gift cards can drive foot traffic to stores and encourage additional spending beyond the card's value.

• In May 2023, the gift card consulting division of Powerhouse Brands, one of the top consulting firms for the closed-loop gift card market, was acquired by TOTUS, a North American gift card issuer and program manager.

Gift Cards Market Growth Factors

• Consumers favor easy options such as purchasing digital gift cards in-person or online. 
• Gift cards for services like entertainment or vacation are more tempting since consumers are increasingly choosing experiences over material goods. 
• Open-loop gift cards may become more popular in the market and be accepted by many businesses. 
• Targeted marketing strategies catering to certain demographics can increase gift card sales, this acts as a driver for the gift cards market. 
• Companies use gift cards with loyalty programs and incentives to attract and keep consumers. 
• The industry can grow further by integrating digital payment platforms and mobile wallets.

Gift Cards Market Scope

Gift Cards Market Dynamics

Drivers

The rising popularity of personalized gift options

Gift cards frequently have customized designs in addition to personalized messages. This option enables gift givers to choose themes, pictures, or graphics that complement the recipient's preferences or the occasion. With these design options, gift givers can further customize the gift card to fit the recipient's style and tastes, enhancing the overall presentation and impact of the gift. These possibilities include a festive holiday motif, a colorful flower pattern, or a sleek and modern look. Thereby, the rising popularity of personalized gift solutions acts as a driver for the gift cards market. 

Popular choice for last-minute gifts

Even though gift cards come pre-loaded with a predetermined amount, there is still room for customization. To add a personal touch to the gift-giving process, givers can pick a card from a merchant with special meaning for the receiver or choose a design that suits the occasion. Some gift cards now come with customizable features like personalized phrases or packaging to further increase their attractiveness as a personalized gift option. The popularity of this gifting practice has been further encouraged by the advent of digital gift cards. The introduction of e-gift cards has made it unnecessary for customers to buy and ship physical cards because they can send and receive presents quickly via email or mobile devices. Tech-savvy consumers find this digital convenience appealing, and it fits nicely with the expanding trend of online purchasing. 

Restraint

Lack of reliability

Gift cards are prone to theft and fraud, particularly if they don't have the correct activation procedures or security features. In the absence of sufficient consumer protection, people could become victims of fraud or theft, losing the value recorded on their card and having no way to get it back. This danger discourages purchases and weakens customer confidence in the gift card market. Technical glitches or errors in the activation, redemption, or balance checking process can result in frustration for both gift card purchasers and recipients. If consumers encounter difficulties using or redeeming their gift cards, they may be less likely to purchase them in the future or recommend them to others.

Opportunity

Growing demand for e-gift cards

In today's fast-paced world, people highly prize rapid gratification. This need is met by e-gift cards, which may be sent to recipients immediately via email or mobile device. Because e-gift cards are delivered instantly, there are no waiting periods like traditional gift cards, making them the perfect option for last-minute or impulsive purchases. E-gift cards are advantageous for retailers from a sustainability and cost-efficiency standpoint. The expenditures of printing, packaging, and shipping physical cards are removed with digital delivery, which reduces overhead and has a positive environmental impact. Because they are so affordable, shops are encouraged to highlight e-gift cards as the best alternative for giving, which will increase market acceptance. Thereby, the rising demand for e-gift cards acts as an opportunity for the gift cards market. 

Card Type Insights 

The closed-loop card segment dominated the gift cards market in 2023. Certain stores, eateries, or companies generally distribute closed-loop gift cards, allowing them to customize the features, design, and incentives to fit their corporate identity and target market. Customers are more inclined to buy and utilize gift cards from their preferred retailers or brands due to this personalization, which increases their sense of brand loyalty. Advanced security features like PINs, magnetic stripes, or unique activation codes are usually included to help prevent fraud and illegal use. In addition, many merchants let customers register their gift cards or connect them to online accounts, which allows them to check their balance, keep an eye on transactions, and quickly report any problems.

The open-loop card segment is observed to witness a significant growth in the gift cards market during the forecast period. Open-loop cards are incredibly flexible and versatile, enabling their use at various merchants and shops. Open-loop cards allow users to choose how and where to redeem their value, unlike closed-loop cards, which are restricted to brands or retailers. Because of their adaptability, open-loop cards are a more desirable choice for donors and recipients, boosting their uptake.

End-user Insights 

The retail establishment segment dominated the gift cards market in 2023. Retail businesses frequently have a sizable consumer base and strong brand awareness. Because department stores, specialty shops, and large retail chains are well-known brands, their gift cards are in high demand. Customers favor giving or receiving gift cards from these well-known businesses because they are familiar with the brands, believe in their goods and services, and often prefer them. Retailers typically offer discounts, bonus offers, or bundled packages, as well as other promotions and incentives to boost gift card sales. Gift givers and receivers are drawn to these promotional methods, which increase sales volume and expand the retail gift card market share overall.

The corporate institutions segment shows a significant growth in the gift cards market during the forecast period. Giveaways and prizes are a common approach to draw people in and keep them involved at corporate events, trade exhibitions, and marketing initiatives. Gift cards are adaptable promotional tools that may be incorporated into various marketing campaigns to increase consumer involvement and brand knowledge, including competitions, polls, and referral schemes. The corporate institutions sector uses gift cards as part of their marketing strategy to increase client loyalty and brand visibility. 

• In September 2023, The "ONDC Network Gift Card" was introduced, according to a statement from the Open Network for Digital Commerce (ONDC). With the help of this network-level gift card, businesses can now engage their employees and offer corporate gifts. Furthermore, customers may use any ONDC-enabled buyer application to shop from thousands of merchants on the network.

Gift Cards Market Recent Developments 

• In February 2024, Roblox, a worldwide immersive platform for communication and engagement, and Blackhawk Network (BHN) have teamed up to provide digital gift cards in the following currencies: Austrian (EUR), Belgian (EUR), Swiss Franc (CFH), and Brazilian Real (BRL) on Roblox's gift card website, Roblox.com/giftcards. Customers in each nation can now use local currencies to purchase Roblox digital gift cards.
• In December 2022, Just in time for the holidays, Turo, the largest peer-to-peer car-sharing platform in the world, announced the first-ever availability of digital gift cards in the United States. The digital gift card from Turo allows users to browse the platform's enormous inventory of thousands of distinctive makes and models.

Gift Cards Market Companies

• InComm Payments LLC
• Walmart Inc. 
• Givex Corporation 
• American Express Company 
• Paytronix Systems, Inc. 
• Qwikcilver Solutions Pvt Ltd. 
• Amazon.com Inc. 
• PayPal, Inc.
• Fiserv, Inc. 
• Blackhawk Network

Segments Covered in the Report

By Card Type

• Closed-loop Card
• Open-loop Card

By End-user

• Retail Establishment
• Corporate Institutions

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa