Gift cards serve a multitude of applications across retail, hospitality, corporate gifting, charity, customer loyalty, and more. Its advantages are numerous, including versatility as they can be used for a wide range of products or services, convenience in purchasing and redemption, personalization options, and the absence of expiry dates in many cases. It offers control over gifting budgets, reduces fraud risk, enhances customer engagement and brand loyalty, and provides valuable data insights to businesses. Additionally, gift cards are more sustainable, particularly in their electronic form, and reduce the likelihood of returns, making them an appealing choice for both givers and recipients, while offering businesses an effective tool for marketing and customer relations.
According to Data Bridge Market Research analyzes that the Global Gift Card Market is expected to reach the value of USD 2,632,843.72 million by 2030, at a CAGR of 14.2% during the forecast period 2030.
"Rise in online gifting boosts the market growth"
The increasing social trend of giving online gifts is a driving force in the gift card market. With consumers experiencing economic growth and a heightened awareness of social movements, the dynamics of gift-giving are changing. Online gifting has become increasingly popular due to its convenience and accessibility, allowing individuals to purchase and send digital gifts globally with ease, making gift cards a preferred option, particularly for last-minute gifting. This trend aligns with the broader shift towards online shopping and digital transactions, further fueling the demand for gift cards, and is expected to foster significant growth in the gift card market as it caters to the evolving preferences in today's digital-centric world.
What restraints the growth of the global medical cannabis market?
“Hacking and fraud restraints the market growth”
Security concerns, particularly hacking and fraud, are posing a significant restraint to the gift card market's growth. Despite the popularity of gift cards, the rising revenue generated through these cards has attracted the attention of hackers. They use tactics such as botnet attacks to access gift card accounts, compromising the security of funds. This not only breaks consumer trust but can also deter potential users.
Segmentation: Global Gift Card Market
The global gift card market is segmented on the basis of product, functional attribute, industry vertical, and merchant.
- On the basis of product, the global gift card market is segmented into e-gift cards and physical cards
- On the basis of functional attribute, the global gift card market is segmented into closed loop, universal accepted open loop, and e-gifting
- On the basis of industry vertical, the global gift card market is segmented into retail and corporate institutions
- On the basis of merchant, the global gift card market is segmented into restaurants, discount stores, coffee shops, departmental store, grocery store/food supermarkets, entertainment, and others
Regional Insights: North America is expected to dominate the Global Gift Card Market
In North America, U.S. is expected to dominate the market due to the rising popularity of gift cards among consumers. This dominance is rooted in the region's strong economic foundation, a well-developed retail landscape, a culture of gift-giving, and widespread corporate adoption of gift cards for incentives and rewards.
- In Asia-Pacific region, China is expected to dominate the market in the global gift card industry, driven by factors such as strong economic growth, increasing urbanization, and a growing middle class. Its substantial consumer base, thriving e-commerce sector, the cultural significance of gift-giving, government support, and well-established digital payment ecosystem make it a key driver in the gift card market.
- In Europe, Germany is experiencing remarkable growth in the use of e-gift cards, largely driven by the tech-savvy millennial generation. E-gift cards, which offer convenience and personalization, have become increasingly popular in the country due to Germany's robust digital infrastructure and the millennial demographic's preference for digital solutions.
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Recent Developments in Global Gift Card Market
- On October 29, 2020, PRNewswire released an article titled "Digital Gifting on the Rise: Giftcards.com Expands E-Gift Card Options." In the article, Giftcards.com is highlighted for its expansion of digital gift card offerings, catering to customers seeking more personalized gift options. They now provide a wide range of unique gift cards tailored for specific occasions, recipients, or charitable causes, and the best part is that these new e-gift cards come with no additional fees
- On April 9, 2021, Thought Works published a blog that sheds light on how gift cards have evolved into strategic tools for retailers. They serve as potential entry points to engage customers within the closed loop of payment, membership, and ordering systems. Retailers can leverage gift cards to shape customer spending habits. For instance, Starbucks gift cards, in addition to being gifts, offer a convenient payment method and effectively boost in-store visit frequency, leading to increased sales for the company
The Prominent Key Players Operating in the Global Gift Card Market Include:
- Walmart Inc. (U.S.)
- Under Armour, Inc. (U.S.)
- Givex Corporation (Canada)
- American Express (U.S.)
- Target Brands, Inc. (U.S.)
- Best Buy (U.S.)
- Starbucks Coffee Company (U.S.)
- PayPal Holdings, Inc. (U.S.)
- Apple Inc. (U.S.)
- Sephora USA, Inc. (U.S.)
- Gyft, Inc. (U.S.)
- Walgreen Co. (U.S.)
- TransGate Solutions (U.S.)
- AMILON S.R.L. (Italy)
- Jigsaw Business Solutions (U.S.)
- Diggecard Germany
- Pine Labs Private Limited India
- Alltimeprint.com (U.S.)
- Plastek Card Solutions, Inc. (U.S.)
- Card USA, Inc. (U.S.)
- Duracard (U.S.)
- Blackhawk Network (U.S.)
- Tango Card, Inc. (U.S.)
- Stockpile, Inc. (U.S.)
- Huuray A/S (Denmark)
Above are the key players covered in the report, to know about more and exhaustive list of global gift card market companies contact, https://www.databridgemarketresearch.com/contact
Research Methodology: Global Gift Card Market
Data collection and base year analysis are done using data collection modules with large sample sizes. The market data is analyzed and estimated using market statistical and coherent models. In addition, market share analysis and key trend analysis are the major success factors in the market report. The key research methodology used by DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market, and primary (industry expert) validation. Apart from this, data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Company Market Share Analysis, Standards of Measurement, global vs Regional and Vendor Share Analysis. Please request analyst call in case of further inquiry.
