North America is proving to be the most developed market and is expected to maintain its dominance in the global gift card market during the forecast period and to have the highest market share. This is attributed to the presence of modern telecommunications networks, key market players and a well-established hospitality infrastructure in the region. The Asia-Pacific region will also grow at a high CAGR over the forecast period, representing significant market growth.
The global gift card market is expected to grow at an excellent CAGR of 13.8% over the forecast period (2021-2026). The market is expected to reach $851.1 billion by 2026. The global gift card market has gained momentum in recent years.
The growth of the global gift card market is likely to be influenced by the increasing popularity of e-commerce platforms. These platforms make it easier than ever to use gift cards. The market is characterized by the following limitations, drivers and opportunities.
Gift Card Market by Product and End User – Global Opportunity Analysis and Industry Forecast 2020-2030, this report complements ResearchAndMarkets.com. The global gift card market was estimated at $615.34 billion in 2019 and is projected to reach $2,097.13 billion by 2030, an 11.7% CAGR between 2020 and 2030. The gift card markets have experienced considerable growth in recent years and are expected to continue to expand in the future. The evolving concepts of omni and multi-channel marketing are likely to lead to an escalation in the growth horoscope of the gift card market over the forecast period.
The gift card market is expected to reach an estimated valuation of USD 892.92 million by 2027, with a growth rate of 14.56% over the 2020-2027 forecast period. The increasing acceptance in the retail sector should open up new opportunities for the gift card market.
One of the prominent factors contributing to the growth of the gift card market is the increasing demand for gift cards in the corporate sector. In recognition of their fruitful contributions, companies have offered their employees vouchers. This has recently intensified, leading to positive market growth. Another important factor in market growth has been the emergence of e-commerce.
Increasing Gift Culture: With the increasing number of events and the growing popularity of the gifting culture, the demand for gift cards has increased in recent years. Gift card sales are up during holidays and other special days such as Father’s Day and Mother’s Day.
Several organisations recognise the performance of their staff and offer incentives in the form of vouchers. Gift culture has led to the expansion of the global gift card market with a CAGR of 1.3% over the forecast period. In addition to buying personalized gifts, gift cards can also be used in restaurants, grocery stores, supermarkets, department stores, specialty stores and cafes.
Based on the vertical industry, the gift card market is divided into retail and corporate institutions. The trading segment of the market is divided into restaurants, department stores, grocery stores, grocery stores, discounters, coffee shops, entertainment and others. The product segments of the gift card market are divided into e-gift cards and physical cards. The market is analyzed based on market size, volume and information provided, functional attributes, industry verticals, dealers and product references.
Other major players in the global gift card market include Apple Inc., Starbucks Corporation, Target Corporation, Wal-Mart Stores Inc. Find us on Instagram, Facebook, Twitter and LinkedIn. Ltd., Gyft Inc.omm, National Gift Card Corp. and Qwikcliver Solutions are some of the leading companies offering open loop gift cards.
Players active in the B2B gift card market are primarily focused on expanding their business through penetration operations and employee retention platforms. France is the most lucrative market for gift cards. Market penetration in France is higher than in other regions.
Another prominent factor supporting market growth is the emergence of e-commerce. E-commerce websites such as Amazon, Alibaba, eBay, Flipkart and others offer customers gift cards. With the proliferation of the Internet and smartphones, people are better able to access e-commerce portals, which is another factor that complements market growth.
The growing popularity of online shopping is playing an important role in the development of the global gift card market in the 2020-2030 analysis timeframe. The phenomenal increase in smartphone use and the increasing affordability of data plans has led to an increase in the use of e-commerce websites. Consumers use various mobile apps such as eBay, Amazon and Flipkart to shop online. Buying and browsing these websites without any problems has made online shopping a profitable business.
The gift card market faces several security challenges, such as the high risk of being hacked by hackers and thieves, which severely restricts the market. For example, Destilled Networks discovered GiftGhostbot, an attack on more than 1,000 websites to find gift cards that led to a breach of access to their accounts. This has become an example of the threat to growth in the global gift card market.
Moreover, in a rush to make the launch of mobile gift cards as convenient and cost-effective as possible, companies like Target and Starbucks have overlooked security flaws that allowed shoppers to use money loaded onto other shoppers “gift cards. These vulnerabilities have hampered the growth of the gift card market.
UK Prepaid gift card exchanges allow cardholders to sell or exchange unwanted gift cards. In a typical transaction, a user can lose the value of a gift card to get cash for a card they want to use.
Many gift cards are not used and the amount remains unredeemed if the gift card is spilled or damaged. When this happens, people lose or forget their card and do not know who is using it.
Arun Kumar 