Gift Cards Market Analysis

Gift Cards Market Analysis

To get key market trends

  Download Free Sample

Based on type, the market is divided into closed-loop gift cards, and open-loop gift cards. The closed-loop gift cards segment is expected to reach a value over USD 2 trillion by 2032.
 

• Closed-loop gift cards are typically issued by a specific retailer or group of retailers and are restricted to use within their establishments. This type of gift card promotes customer loyalty and ensures repeat business within the issuing retailer's ecosystem. Customers often purchase closed-loop gift cards for convenience and as gifts, providing recipients with the flexibility to choose products or services from a preferred retailer without the need for cash transactions.
   
• The closed-loop gift card market's expansion is further propelled by advancements in digital technology, enabling seamless integration of gift card functionalities into mobile apps and online platforms. This enhances accessibility and ease of use for both consumers and retailers, fostering a robust ecosystem for gift card transactions.
   

Based on distribution channel, the market is divided into online, and offline. The online segment dominated and is expected to grow at a rate of over CAGR 25% during the forecast period.
 

• Online platforms offer unparalleled convenience for purchasing and redeeming gift cards. Consumers can browse, select, and send digital gift cards from the comfort of their homes or on-the-go via mobile devices. This convenience aligns with modern lifestyles where digital transactions are preferred for their speed and ease.
   
• The proliferation of e-commerce platforms has streamlined the integration of gift card functionalities. Online retailers can seamlessly incorporate gift cards into their checkout processes, offering customers a versatile gifting option alongside product purchases. This integration boosts sales and enhances customer retention strategies.
   

North America dominated the global gift cards market in 2023, accounting for a share of over 30%. High consumer purchasing power and a strong gift-giving culture drive market growth in North America. The region's sophisticated digital infrastructure and broad use of e-commerce platforms make it easier for customers to buy and utilize gift cards. Furthermore, the presence of multiple large stores and technology companies that provide different and enticing gift card possibilities increases market value. Corporate usage of gift cards for staff awards and consumer loyalty programs is also widespread, fueling demand.
 

Gift cards are a popular choice for a variety of events as Americans value the flexibility and convenience they provide. The U.S. also has a big number of large shops and technology companies that offer a diverse range of gift card possibilities, increasing customer attractiveness. Corporate use of gift cards for staff awards and consumer loyalty programs is widespread, contributing to market growth. Developments in mobile wallet integration and increased security measures further increase the utility and attractiveness of gift cards, cementing the U.S. as a prominent player in the worldwide gift card market.
 

The China gift card market is expanding rapidly, backed by the country's thriving digital economy and rising consumer buying power. With a large and tech-savvy population, digital gift cards and e-commerce platforms are increasingly popular as convenient gifting solutions. Gift cards are growing popular among Chinese customers for online shopping, leisure, and dining experiences. The integration of mobile payment solutions, such as Alipay and WeChat Pay, has simplified the use of digital gift cards, improving ease and accessibility. The market is also seeing innovations in personalized and themed gift cards to cater to varied customer tastes and events, further fueling growth in China's gift card sector.
 

In May 2024, InComm Payments, a global payments technology provider, announced the launch of Roblox gift cards at both online and physical retailers in Hong Kong. This introduction marked the first time Roblox gift cards are available for purchase in the Hong Kong market, offering access to the popular online immersive platform where millions of people connect and communicate daily.
 

The gift cards market in South Korea is quickly developing, owing to the country's sophisticated retail sector and strong smartphone penetration rates. South Korean customers, known for their love of technology and convenience, are adopting digital gift cards as an alternative to traditional gifts. Major retail chains and entertainment venues provide a comprehensive choice of gift card alternatives to attract a wide range of customers. The incorporation of gift cards into mobile payment apps and reward programs improves their attractiveness and usability.
 

The Japanese gift card business is steadily expanding, driven by a combination of traditional present-giving norms and technology innovations. Japanese consumers love the ease and flexibility of gift cards, especially digital versions that can be purchased and redeemed online or on mobile devices. Major merchants, department stores, and convenience stores all provide a number of gift card options to suit different interests and tastes. The industry is particularly distinguished by the integration of gift cards with reward programs and collaborations with well-known companies, enhancing their appeal as gifts. Despite a preference for cash gifts in traditional settings, the rising popularity of digital payment methods and e-commerce is strengthening the use of gift cards in Japan's developing retail scene.