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U.S. Gift Card Market – Industry Trends and Forecast to 2031

FMCG

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U.S. Gift Card Market – Industry Trends and Forecast to 2031

  • FMCG
  • Upcoming Report
  • Apr 2024
  • Country Level
  • 350 Pages
  • No of Tables: 220
  • No of Figures: 60

U.S. Gift Card Market – Industry Trends and Forecast to 2031

Market Size in USD Billion

CAGR :  % Diagram

Diagram Forecast Period 2023–2031
Diagram Market Size (Base Year) USD 304.58 Billion
Diagram Market Size (Forecast Year) USD 787.07 Billion
Diagram CAGR %

U.S. Gift Card Market, By Products (E-Gift Cards and Physical Cards), Functional Attribute (Closed Loop, Universal Accepted Open Loop, and E- Gifting), Industry Vertical (Retail and Corporate Institutions), Merchant (Restaurants, Discount Stores, Coffee Shops, Departmental Store, Grocery Store/Food Supermarkets, Entertainment, and Others)– Industry Trends and Forecast to 2031.

U.S. Gift Card Market Analysis and Size

The gift card market thrives on convenience, offering versatile gifting options across various industries. Its adaptability caters to diverse preferences, from retail to digital platforms. Consumers enjoy purchasing flexibility, while businesses benefit from increased revenue and customer loyalty. With seamless transactions and personalized experiences, the gift card market fosters lasting relationships between recipients and brands, driving mutual satisfaction.

For instance, according to United Nations Educational, Scientific and Cultural Organization data from 2022, participation in festivals, traditions, or religious occasions exceeds 60% globally annually. This cultural prominence of festivals, coupled with the human desire for connection through gift exchanges on such occasions, has increased demand for gift cards.

Data Bridge Market Research analyses that the U.S. gift card market size was valued at USD 304.58 billion in 2023, is projected to reach USD 787.07 billion by 2031, with a CAGR of 12.6% during the forecast period 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and consumer behaviour.

Report Scope and Market Segmentation

Report Metric

Details

Forecast Period

2024 to 2031

Base Year

2023

Historic Years

2022 (Customizable to 2016 - 2021)

Quantitative Units

Revenue in USD Billion, Volumes in Units, Pricing in USD

Segments Covered

Products (E-Gift Cards and Physical Cards), Functional Attribute (Closed Loop, Universal Accepted Open Loop and E- Gifting), Industry Vertical (Retail and Corporate Institutions), Merchant (Restaurants, Discount Stores, Coffee Shops, Departmental Store, Grocery Store/Food Supermarkets, Entertainment, and Others)

Countries Covered

U.S., Canada, Mexico, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Brazil, Argentina, Rest of South America, U.A.E., Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa

Market Players Covered

Tele-Pak Inc. (U.S.), Plastek Card Solutions, Inc. (U.S.), Card USA, Inc. (U.S.), Duracard (U.S.), eCard Systems (U.S.), Blackhawk Network (U.S.), Card Isle (U.S.), Tango Card, Inc. (U.S.), InComm Payments (U.S.), Under Armour, Inc. (U.S.), TransGate Solutions (U.S.), Walgreen Co. (U.S.), Sephora USA, Inc. (U.S.), Gyft, Inc. (U.S.), and Givex Corporation (Canada)

Market Opportunities

  • Loyalty Programs and Incentives
  • Increasing Adoption of Smartphone Technology in Payment Methods

Market Definition

A gift card, a tiny treasure unlocking countless possibilities. A token of appreciation, it whispers freedom, inviting the recipient to explore desires, fulfill whims, or savor moments. It is a personalized gesture, a doorway to joyous surprises, igniting smiles with promise. Simple yet profound, it carries sentiments beyond words, crafting memories with every swipe or scan.

Gift Card Market Dynamics

Drivers

  • Rise in the Demand for Convenient Options

Gift cards provide a hassle-free gifting solution for both the giver and recipient. They offer convenience by eliminating the need to choose, wrap, and ship individual items. Whether purchased online or in-store, gift cards can be instantly delivered, saving time and effort for both parties.

  • Rise in the Adoption of E-Gift Cards among Millennials

The increasing adoption of e-gift cards, particularly among millennials, reshapes the gift card industry. Digital platforms and marketing strategies are prevalent, fostering virtual engagement with consumers. This trend is expected to expand to older generations. E-commerce's prominence further boosts growth, particularly in the U.S. market, where e-gift cards drive sales and revenue.

Opportunities

  • Loyalty Programs and Incentives

Gift cards are integral to loyalty programs, rewards initiatives, and staff incentives, boosting their issuance and redemption within specific retail environments. These programs foster customer engagement, employee motivation, and brand loyalty, driving repeat business and enhancing overall sales performance within targeted retail ecosystems.

For instance, in 2022, leading retailers, including Amazon, Target, and Walmart, introduced numerous new design templates, image upload options, and messaging customization features on their websites and mobile apps, enabling users to craft truly unique greeting cards.

  • Increasing Adoption of Smartphone Technology in Payment Methods

Innovative digital transfers offer convenient options, appealing to a wider audience. Continuous advancements in mobile wallet gift cards anticipate significant market expansion, fueled by consumer favor towards digital payments. The rising use of smartphones in transactions presents lucrative prospects for growth in the market.

Restraints/Challenges

  • Rising Fraud and Security Concerns

Hackers exploit vulnerabilities in gift card systems, using techniques such as botnet attacks to access account numbers and PINs. Analysis of gift card numbering algorithms allows them to generate valid codes. Lack of identity verification and enterprise-level security increases susceptibility. Heightened hacking risks erode consumer trust, causing a decline in gift card sales and hindering the market growth.

  • Competition from Alternative Gifting Solutions

The rise of personalized branded merchandise such as jackets, hoodies, and smart water bottles, along with subscriptions to online magazines and OTT platforms, presents a challenge to the growth of the market. These alternatives are gaining traction due to their appeal to recipients and perceived higher value than traditional gift cards. As a result, some gift givers opt for these alternatives over gift cards, impacting the market expansion.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

  • In April 2022, eCard Systems expanded its gift card partnership with Toast, offering robust customer insights, loyalty programs, and multi-channel marketing for restaurants. This collaboration aims to enhance business growth by providing comprehensive solutions for customer engagement and satisfaction
  • In August 2021, eCard Systems partnered with Paytronix to provide merchants with tools and data to optimize gift card programs, fostering customer connections and business expansion. This strategic alliance enables merchants to understand program success and strengthen customer relationships
  • In April 2021, Thoughtworks launched a gift card, leveraging its technology expertise to help retailers drive customer engagement and spending habits. Gift cards serve as entry points into integrated payment and ordering systems, guiding users toward new expenditure patterns and enhancing loyalty
  • In July 2020, Apple Inc. launched a universal gift card for hardware, software, and services catering to diverse consumer needs. Positioned as "for everything and everyone," it offers flexibility across Apple's product line, reinforcing the company's status as a leading provider of innovative

Gift Card Market Scope

The market is segmented on the basis of products, functional attribute, industry vertical, and merchant. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Products

  • E-Gift Cards
  • Physical Cards

 Functional Attribute

  • Closed Loop
  • Universal Accepted Open Loop
  • E- Gifting

 Industry Vertical

  • Retail
  • Corporate Institutions

 Merchant

  • Restaurants
  • Discount Stores
  • Coffee Shops
  • Departmental Store
  • Grocery Store/Food Supermarkets
  • Entertainment
  • Others

Competitive Landscape and Gift Card Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major players operating in the market are:

  • Tele-Pak Inc. (U.S.)
  • Plastek Card Solutions, Inc. (U.S.)
  • Card USA, Inc. (U.S.)
  • Duracard (U.S.)
  • eCard Systems (U.S.)
  • Blackhawk Network (U.S.)
  • Card Isle (U.S.)
  • Tango Card, Inc. (U.S.)
  • InComm Payments (U.S.)
  • Under Armour, Inc. (U.S.)
  • TransGate Solutions (U.S.)
  • Walgreen Co. (U.S.)
  • Sephora USA, Inc. (U.S.)
  • Gyft, Inc. (U.S.)
  • Givex Corporation (Canada)


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Research Methodology:

Data collection and base year analysis are done using data collection modules with large sample sizes. The stage includes obtaining market information or related data through various sources and strategies. It includes examining and planning all the data acquired from the past in advance. It likewise envelops the examination of information inconsistencies seen across different information sources. The market data is analysed and estimated using market statistical and coherent models. Also, market share analysis and key trend analysis are the major success factors in the market report. To know more, please request an analyst call or drop down your inquiry.

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. Data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Patent Analysis, Pricing Analysis, Company Market Share Analysis, Standards of Measurement, Global versus Regional and Vendor Share Analysis. To know more about the research methodology, drop in an inquiry to speak to our industry experts.

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Customization Available:

Data Bridge Market Research is a leader in advanced formative research. We take pride in servicing our existing and new customers with data and analysis that match and suits their goal. The report can be customized to include price trend analysis of target brands understanding the market for additional countries (ask for the list of countries), clinical trial results data, literature review, refurbished market and product base analysis. Market analysis of target competitors can be analyzed from technology-based analysis to market portfolio strategies. We can add as many competitors that you require data about in the format and data style you are looking for. Our team of analysts can also provide you data in crude raw excel files pivot tables (Fact book) or can assist you in creating presentations from the data sets available in the report.

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FREQUENTLY ASK QUESTIONS

Rise in the Demand for Convenient Options and Rise in the adoption of e-gift cards among millennials are the growth drivers of the U.S. Gift Card Market.
The products, functional attribute, industry vertical and merchant are the factors on which the U.S. Gift Card Market research is based.
The major companies in the U.S. Gift Card Market are Tele-Pak Inc. (U.S.), Plastek Card Solutions, Inc. (U.S.), Card USA, Inc. (U.S.), Duracard (U.S.), eCard Systems (U.S.), Blackhawk Network (U.S.), Card Isle (U.S.), Tango Card, Inc. (U.S.), InComm Payments (U.S.), Under Armour, Inc. (U.S.), TransGate Solutions (U.S.), Walgreen Co. (U.S.), Sephora USA, Inc. (U.S.), Gyft, Inc. (U.S.), and Givex Corporation (Canada).
The U.S. Gift Card Market size will be worth USD 787.07 billion by 2031.
The growth rate of the U.S. Gift Card Market is 12.6%.
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