May 24, 2024
Gift Card Market

The Growing Gift Card Market is Trending Due to Increased Digital Transformation

The gift card market has witnessed substantial growth in recent times owing to the increased adoption of digital technologies. Gift cards have evolved from physical plastic cards to digital/e-gift cards that can be sent via email, SMS, or mobile apps. As physical retail stores shut down during the pandemic, digital gift cards emerged as a convenient option for remote gift-giving.

The gift card market provides a convenient medium of exchange that allows users to purchase goods and services from a select group of retailers. Gift cards are widely used for employee rewards and recognition programs, consumer incentives, and special occasions like birthdays, anniversaries, holidays etc.

The Global Gift Card Market is estimated to be valued at US$ 12.33 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the gift card market are Abbott Laboratories, F. Hoffmann-La Roche AG, Thermo Fisher Scientific Inc., Bio-Rad Laboratories, Inc., Danaher Corporation, Randox Laboratories Ltd., Siemens Healthineers, and BioMArieux SA. These players dominate the market with their technologically advanced and innovative products.

The growing preference for cashless transactions along with the expanded acceptance of Gift Card Market Size at retail stores and online platforms has boosted the demand for gift cards globally. According to recent surveys, nearly 80% of consumers have purchased at least one gift card in the past year. Rising per capita income and growth of the e-commerce industry have further augmented the demand.

The gift card market is expanding aggressively worldwide on account of the increasing digitalization and the convenience of gift cards as an alternative to traditional gifts. North America represents the largest regional market followed by Europe and Asia Pacific. However, regions like Latin America and Middle East & Africa are emerging as high-growth territories for gift cards.

Market key trends

One of the prominent trends in the Gift Card Market is the surge in corporate gift card programs. Many companies use gift cards as an effective reward and incentive tool to boost employee motivation and performance. In fact, over 90% of Fortune 1000 companies employ gift cards for various HR programs today. Demand for digital/e-gift cards has also risen sharply amid the growing consumer preference for contactless payments driven by the pandemic.

Porter’s Analysis

Threat of new entrants: Entry of new players is moderate due to established distribution channels and brand recognition of existing players. Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute products. Bargaining power of suppliers: Suppliers have low bargaining power due to availability of substitute raw materials. Threat of new substitutes: Threat of new substitutes is low as gift cards fulfil specific gifting needs. Competitive rivalry: Intense competition exists between existing players to increase their market share.

Geographically, North America holds the major share in gift card market in terms of value owing to high adoption of gift cards as gifting options. The United States accounts for the largest share in the region due to increasing disposable incomes and gifting culture.

Asia Pacific is poised to register the fastest growth during the forecast period driven by rising middle class population and economic growth in countries such as China and India. Increased acceptance of digital payments and growing online retail industry are further fueling the demand for gift cards in Asia Pacific region.

North America holds the major share in gift card market in terms of value owing to high adoption of gift cards as gifting options. The United States accounts for the largest share in the region due to increasing disposable incomes and gifting culture.

Asia Pacific is poised to register the fastest growth during the forecast period driven by rising middle class population and economic growth in countries such as China and India. Increased acceptance of digital payments and growing online retail industry are further fueling the demand for gift cards in Asia Pacific region.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it