1 Global Gift Cards Market Outlook
The global Gift Cards market is projected to exhibit substantial growth in the coming years, with a CAGR of 6.18% from 2024 to 2033, reaching a total market size of $483798 million USD in 2024. Gift cards, also known as gift vouchers or tokens, are preloaded cards issued by retailers or banks that allow the recipient to purchase goods or services up to the amount loaded on the card. They can be physical cards or digital codes sent via email. Gift cards offer flexibility and convenience, making them an ideal choice for consumers looking to provide a versatile gift option. The market is segmented into various types, including universal accepted open-loop cards, e-gifting, restaurant closed-loop cards, retail closed-loop cards, and miscellaneous closed-loop cards. Each type caters to different consumer needs and preferences, further driving the market’s diversity and growth.
Figure Global Gift Cards Market Size and Growth Rate (2024-2033)
2 Gift Cards Market Growth Drivers and Constraints
The growth of the global gift cards market is driven by several key factors. One of the most significant drivers is the increasing demand for gift cards in the commercial industry. Companies are recognizing the value of gifting cards to employees as a token of appreciation, a trend that has gained significant traction in recent years. This not only boosts employee morale but also enhances corporate culture. Additionally, the rise of e-commerce platforms has played a crucial role in the proliferation of gift cards. Websites such as Amazon, Walmart, and Starbucks offer digital gift cards that can be easily purchased and sent via email, eliminating the need for physical delivery and reducing associated costs.
Consumer preferences also play a pivotal role in the market’s growth. Gift cards are highly desirable during festivals and other celebrations, offering recipients the freedom to choose what they want. According to a survey by the National Retail Federation, gift cards have been the most requested item for 11 consecutive years, with 61% of respondents indicating a preference for them. This trend underscores the market’s potential for continued expansion.
However, the market also faces certain challenges and limitations. One significant issue is the expiration dates and fees associated with some gift cards. These restrictions can negatively impact the consumer experience and limit the market’s growth potential. Additionally, the terms and conditions of gift cards often include “overlord clauses” such as no loss reporting, no cashing, and no compensation, which can be seen as a violation of consumer rights. Security concerns related to the gift card clearing system and the potential for private information leaks also pose risks that need to be addressed.
3 Gift Cards Market Innovations and M&A Activities
Technological innovation has been a cornerstone of the gift cards market’s evolution. The shift towards digital gift cards has been particularly transformative, enabling instant delivery and ease of use. E-gifting platforms have revolutionized the way gift cards are distributed, making them accessible to a broader audience. Companies are continuously investing in technology to enhance the user experience, improve security, and expand their product offerings.
Corporate mergers and acquisitions have also played a significant role in shaping the market landscape. For instance, Amazon’s acquisition of Ring and PillPack in 2018 reflects the company’s strategic move to expand its presence in smart-home technology and healthcare. Similarly, Walmart’s acquisition of Polymorph Labs’ technology and assets in 2019 aimed to enhance its advertising capabilities and provide more relevant digital ads to consumers. These strategic moves not only strengthen the companies’ market positions but also drive innovation and competition within the industry.
In conclusion, the global gift cards market is poised for continued growth, driven by evolving consumer preferences, technological advancements, and strategic corporate maneuvers. While challenges such as expiration dates, fees, and security concerns remain, the market’s potential for innovation and expansion is significant. As companies continue to invest in technology and explore new avenues for growth, the gift cards market is set to remain a dynamic and influential segment of the retail industry.
4 Global Gift Cards Market Analysis by Type
In 2024, the global gift cards market is projected to generate a total revenue of $483,798 million. The revenue distribution by product type is as follows: Universal Accepted Open Loop cards are expected to contribute $111,806 million, accounting for 23.11% of the total market revenue. E-Gifting will generate $33,672 million, representing 6.96% of the market share. Restaurant Closed Loop cards are forecasted to bring in $57,040 million, making up 11.79% of the total revenue. Retail Closed Loop cards will contribute $169,813 million, holding 35.10% of the market share. Lastly, Miscellaneous Closed Loop cards are expected to generate $111,467 million, representing 23.04% of the global gift cards market revenue.
Table Global Gift Cards Market Size and Share by Type in 2024
Type | Market Size in 2024 (M USD) | Market Share in 2024 (%) |
|---|---|---|
Universal Accepted Open Loop | 111806 | 23.11% |
E-Gifting | 33672 | 6.96% |
Restaurant Closed Loop | 57040 | 11.79% |
Retail Closed Loop | 169813 | 35.10% |
Miscellaneous Closed Loop | 111467 | 23.04% |
5 Global Gift Cards Market Analysis by Application
In 2024, the global gift cards market is projected to see a total sales volume of 10,379.02 million units. The sales distribution by end user is as follows: Restaurants are expected to account for 1,477.97 million units, representing 14.24% of the total sales. Department stores will contribute 2,686.09 million units, making up 25.88% of the market. Coffee shops are forecasted to sell 726.53 million units, which is 7.00% of the total. Entertainment (movie, music) will generate 2,264.70 million units, accounting for 21.82% of the market. Lastly, other end users, including a variety of retail and service sectors, will contribute 3,223.72 million units, representing 31.06% of the total sales volume.
Table Global Gift Cards Sales and Share by Application in 2024
Application | Sales in 2024 (M Units) | Market Share in 2024 (%) |
|---|---|---|
Restaurant | 1477.97 | 14.24% |
Deportment Store | 2686.09 | 25.88% |
Coffee Shop | 726.53 | 7.00% |
Entertainment (Movie, Music) | 2264.70 | 21.82% |
Others | 3223.72 | 31.06% |
6 Global Gift Cards Market Analysis by Region
In 2024, the global gift cards market is forecasted to generate a total revenue of $483,798 million. The revenue distribution across major regions is as follows: North America is expected to contribute $225,080 million, accounting for 46.52% of the global market share; Europe will generate $128,668 million, holding 26.60% of the market share; Asia Pacific is projected to bring in $94,160 million, representing 19.46% of the global revenue; South America will contribute $18,243 million, making up 3.77% of the total; and the Middle East and Africa will generate $17,646 million, holding 3.65% of the market share.
Figure Global Gift Cards Market Share by Region in 2024
7 Top 3 Companies of Global Gift Cards Market
7.1 Amazon
Company Introduction and Business Overview:
Amazon, founded in 1994 by Jeff Bezos, is a multinational technology company headquartered in Seattle, Washington. Initially launched as an online bookstore, Amazon has since expanded into a wide range of products and services, becoming one of the world’s leading e-commerce platforms. Amazon’s business model is built on the principles of customer focus, innovation, and operational excellence. The company offers a vast array of products, including electronics, clothing, home goods, and more, through its online marketplace. Additionally, Amazon provides cloud computing services through Amazon Web Services (AWS), which has become a significant revenue driver.
Products Offered:
Amazon offers a diverse range of gift cards tailored to meet various customer needs. These include:
Universal Accepted Open Loop Gift Cards: These cards can be used across multiple retailers and platforms, providing customers with the flexibility to choose from a wide range of products and services.
E-Gifting: Digital gift cards that can be sent via email, making them a convenient option for last-minute gifts or remote gifting.
Retail Closed Loop Gift Cards: These cards are specific to Amazon’s platform and can be used to purchase any product available on Amazon.com.
Miscellaneous Closed Loop Gift Cards: These include specialized gift cards for specific categories or services within the Amazon ecosystem.
Sales Revenue in the Latest Year:
Amazon’s gift card sales revenue reached $3736 million. This significant revenue underscores Amazon’s dominant position in the gift cards market, driven by its extensive product offerings, global reach, and strong brand recognition.
7.2 Walmart
Company Introduction and Business Overview:
Walmart, founded in 1969 by Sam Walton, is a multinational retail corporation headquartered in Bentonville, Arkansas. Walmart operates a chain of hypermarkets, discount department stores, and grocery stores, known for their wide variety of products and competitive prices. The company’s business model focuses on providing everyday low prices and a broad selection of merchandise, making it a preferred shopping destination for millions of customers worldwide. Walmart’s extensive network of stores and robust supply chain management have enabled it to maintain a strong market presence and customer loyalty.
Products Offered:
Walmart offers a comprehensive range of gift cards designed to cater to diverse customer preferences:
Universal Accepted Open Loop Gift Cards: These cards offer flexibility by allowing customers to shop at multiple retailers.
E-Gifting: Digital gift cards that can be easily sent via email, making them a convenient option for gifting.
Retail Closed Loop Gift Cards: These cards are specific to Walmart and can be used to purchase any product available in Walmart stores or on its website.
Miscellaneous Closed Loop Gift Cards: These include specialized gift cards for specific categories or services within Walmart.
Sales Revenue in the Latest Year:
Walmart’s gift card sales revenue amounted to $3032 million. This revenue highlights Walmart’s strong market position and its ability to leverage its extensive retail network and customer base to drive sales in the gift cards segment.
7.3 Home Depot
Company Introduction and Business Overview:
The Home Depot, founded in 1978, is a multinational home improvement retailer headquartered in Atlanta, Georgia. The company operates a chain of do-it-yourself (DIY) home improvement and building supply stores, offering a wide range of products and services related to home improvement and construction. Home Depot’s business model is centered around providing customers with the tools, materials, and expertise needed to undertake home improvement projects. The company’s extensive product offerings and knowledgeable staff have made it a trusted destination for homeowners and professionals alike.
Products Offered:
Home Depot offers a variety of gift cards to meet the needs of its customers:
Universal Accepted Open Loop Gift Cards: These cards provide flexibility by allowing customers to shop at multiple retailers.
E-Gifting: Digital gift cards that can be sent via email, making them a convenient option for gifting.
Retail Closed Loop Gift Cards: These cards are specific to Home Depot and can be used to purchase any product available in Home Depot stores or on its website.
Miscellaneous Closed Loop Gift Cards: These include specialized gift cards for specific categories or services within Home Depot.
Sales Revenue in the Latest Year:
Home Depot’s gift card sales revenue reached $1537 million. This revenue reflects Home Depot’s strong market presence and its ability to capitalize on the growing demand for gift cards in the home improvement sector.