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 2030.
U.S. Gift Card Market Analysis and Insights
Gift card is an artificial prepaid debit card, which is loaded of a specific amount. Gift card is used in various purposes such as gifting someone and purchasing things. Gift cards are mostly of two types, e-Gift cards and physical cards. Most of the consumers including millennials and elder generation having rising demand for Gift cards due to its ease of use and increasing adoption of smartphone payment technologies. The driving factors growth of the market includes growing social trends of online gifts giving, rising demand from millennials.
The U.S. gift card market report provides details of market share, new developments, and the impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, products approvals, strategic decisions, product launches, geographic expansions, and technological innovations in the market. To understand the analysis and the market scenario contact us for an Analyst Brief, our team will help you create a revenue impact solution to achieve your desired goal.
The U.S. gift card market is expected to gain significant growth from period of 2023 to 2030. Data Bridge Market Research analyses that the market is growing with a CAGR of 12.6% in the forecast period of 2023 to 2030 and is expected to reach USD 699,015.16 million by 2030. The major factor driving the growth of the U.S. gift card market is rising demand of gift cards from millennials and growing trends of online gifts giving.
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Report Metric
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Details
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Forecast Period
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2023 to 2030
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Base Year
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2022
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Historic Years
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2021 (Customizable to 2020 - 2015)
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Quantitative Units
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Revenue in USD Million
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Segments Covered
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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)
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Countries Covered
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U.S.
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Market Players Covered
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Tele-Pak Inc., Alltimeprint.com, Plastek Card Solutions, Inc., Card USA, Inc, Duracard, eCard Systems, Blackhawk Network, Card Isle, Tango Card. Inc, InComm Payments, Under Armour, Inc., TransGate Solutions., Walgreen Co., Sephora USA, Inc., Gyft, Inc., and Givex Corporation.
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Market Definition
Gift card is an artificial prepaid debit card, which is loaded of a specific amount. Gift card is used in various purposes such as gifting someone and purchasing things. Most of the consumers including millennials and elder generation having rising demand for Gift cards due to its ease of use and increasing adoption of smartphone payment technologies. The driving factors growth of the market includes growing social trends of online gifts giving, rising demand from millennials.
U.S. Gift Card Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below:
Drivers
- Rise in the popularity of gift cards
Younger consumers such as teenagers are having increasing popularity with gift cards. This is because gift card can go hand in hand and digitally as well. Due to this ease of use for the product is making it popular. Nowadays giving and receive of gifts is getting incredibly important Young generation, Organizations, overall consumers are having a rising preference of gift cards as these gift cards having different benefits such as the recipient can have the freedom to utilize the card and purchase whatever he or she wants, Gift cards are convenient to use, various and markets and store owners use gift cards as a marketing strategy. Most consumers use magazines and media to evaluate what the upcoming trends and so that they may know exactly what to buy and what not to buy. Gift cards play a huge role in affecting a consumer’s choice to buy according to the consumer. These suitability of gift cards are creating a rising of popularity of gift cards each year. Moreover, the adolescents & matured consumers are preoccupied with social acceptance and coolness associated with the gift cards. For this reason, consumers will exhibit a more freedom oriented decision when they go shopping. Therefore, owing to freedom of purchasing, ease of use, increasing consumer preferences is giving a rise of popularity of the gift card. This rising popularity is expected to drive the demand and sales in the U.S. gift card market.
- Rise in the adoption of e-gift cards among millennials
The gift card industry is more and more interconnected with the digital world. Digital platforms and digital marketing strategies are becoming prevalent in the gift card market and many new brands have emerged with the development of e-commerce, which allows companies to engage consumers virtually. In recent years, the gift card industry has also experienced an improvement in relationships with existing consumers through marketing and digital promotion, rather than expansion through geographic channels and store network expansion. In recent years, the generation of millennials are shifting towards the e-gift cards more repetitively. With this shift the adoption of e-gift cards among older generation will be increasing as well. In addition, online platforms and channels for shopping are expected to create opportunities also in both e-gift cards and physical card segments. Moreover, one more main trends that is helping in the development of gift cards is ecommerce—that is, the use of online shopping platforms. Therefore, the U.S. gift card industry is the one that marks the biggest growth Therefore, advent rising adoption of e-gift cards among younger generation will drive the sales and revenue in the U.S. gift card market.
Opportunity
- Increase in the adoption of smartphone technology in payment methods
One of the most innovative field of technology in gift card market is the introduction of smart phone technology. The benefits of e-gift cards using smartphone technology enables a wide range of consumer base who can provide growth to the market with enormous opportunities. Since the increasing use of internet the availability of e-gift cards is also increasing. Continuous launches and announcement in segment of mobile wallet gift cards and e-gift cards and their increasing trend can lead the U.S. gift card market to face an extreme growth in the near future. Some of the benefits from smart phone payment method associated with e-gift cards include gift cards are a good alternative form of payment if any consumer has lack of cash to pay for a product, they can be transferred digitally if the recipient lives in longer distance from the sender of the gift cards. Thus this benefits are creating preference of e-gift cards and companies are launching new products which can led the U.S. gift card market to grow. Thus, the new edge innovation and smart phone payment option created a demand for the products such as gift cards. This demand enables companies to lead the market with new launches and expansion of their product portfolio. Thus the adoption of smartphone technology led to an opportunity to help in registering growth of the U.S. gift card market.
Restraints/Challenges
- Security and hacking issues associated with gift cards
Gift cards are produced to fulfill a specific amount of purchase for a recipient. Despite a wide preference of gift cards, few significant issues associated with security is present in gift card market. Hackers can hack or access the gift card by directly going to the website where the consumer is accessing their gift cards. This can be done by using botnet attack which provide the hackers millions of combinations of gift card account number and stolen PIN or password by which the hacker can login to the online gift card and load the money to their account. In addition, usually gift cards having 16 digit numbers. From this number the last 4 digits are variable and in few cases the last digit is variable only. If the hacker purchases some amount of the gift cards then the hacker can analyse the algorithm and understand the pattern behind the numbering of gift cards. In addition, another associated issue is purchasing gift cards usage is easy because it does not contains any identity or security. Neither there is any kind of enterprise level security present in gift cards which are generally present in debit or credit cards. Moreover, the dominance of hacking in the gift card market has led to more frequent fluctuations on faith of consumers, which has led to significant drop of sales for gift cards. This hacking tendencies is a bottleneck in the growth of the U.S. gift card market.
- Alternatives to gift cards such as merchandise and electronics items as gifts
The gift card is well known for consuming large amount of consumer base of companies who gave their employees gift cards as bonus or appreciation. Since there is a record of unused gift card wastage, so sometimes the gift givers decided not to give them gift cards. Few trending alternatives available in the market can give the market a challenge to grow. Alternatives such as personalize branded merchandise such as jackets, hoodies or sweatshirts are really coming in a rising trend. This kind of products are appreciated by most of the recipients over gift cards. Another options such as smart water bottles with customized logo prints, power banks are facing a rising trend in terms of gifting in bulk (such as employees of a specific firm, students of a specific institute). In addition, online magazine subscriptions, OTT subscriptions are also coming into the competition of alternatives for gift cards. Sometimes these new findings of alternatives act as a hindrance in the growth and development of the U.S. gift card market.
Recent Development
- In April 2022, eCard systems expanded its gift card partnership with toast as a program processing provider. eCard systems and toast provide restaurants with robust customer insights, customer loyalty and feedback, Highly-targeted multi-channel marketing campaigns. It will help the company to expand and grow its business.
- In August 2021, eCard systems announced a partnership with Paytronix as a gift card provider. It helps merchants connect with new customers and strengthen relationships with old ones while providing tools and data to understand gift card program success. It helped the company to expand its business and reach consumers.
U.S. Gift Card Market Scope
The U.S. gift card market is categorized based on products, functional attribute, industry vertical and merchant. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to make strategic decisions to identify core market applications.
Products
- E- Gift Cards
- Physical Cards
Based on product, the U.S. gift card market is classified into e- gift cards and physical cards.
Functional attribute
- Closed Loop
- Universal Accepted Open Loop
- E-Gifting
Based on functional attribute, the U.S. gift card market is classified into closed loop, universal accepted open loop, and e-gifting.
Industry vertical
- Retail
- Corporate Institutions
Based on the industry vertical, the U.S. gift card market is classified into retail and corporate institutions.
Merchant
- Restaurants
- Discount Stores
- Coffee Shops
- Departmental Store
- Grocery Store/Food Supermarkets
- Entertainment
- Others
Based on the merchant, the U.S. gift card market is classified into restaurants, discount stores, coffee shops, departmental store, grocery store/food supermarkets, entertainment and others.
Competitive Landscape and U.S. Gift Card Market Share Analysis
U.S. gift card market competitive landscape provides details by competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product approvals, patents, product width and breadth, application dominance, product lifeline curve. The above data points provided are only related to the companies’ focus related to the U.S. gift card market.
Some of the prominent participants operating in the U.S. gift card market are Tele-Pak Inc., Alltimeprint.com, Plastek Card Solutions, Inc., Card USA, Inc, Duracard, eCard Systems, Blackhawk Network, Card Isle, Tango Card. Inc, InComm Payments, Under Armour, Inc., TransGate Solutions., Walgreen Co., Sephora USA, Inc., Gyft, Inc., Givex Corporation.
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