The Gift Card Market is Estimated to Witness High Growth Owing to Opportunity of Increased E-commerce Adoption

Gift Card Market


Gift cards have become a popular choice for both gifting purposes as well as self-use at retail stores and restaurants. Gift cards provide flexibility to customers to choose products of their own choice from a wide array of offerings of the merchant. The global gift card market demand is rising owing to growing preference for digital and plastic gift cards over physical vouchers.

The global gift card market is estimated to be valued at US$ 10.70 Bn in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
The increased adoption of e-commerce globally presents a major market opportunity for growth of the gift card market. According to studies, e-commerce sales are estimated to account for over 25% of all retail sales by 2030. Gift cards are increasingly being used as an ideal payment option for online purchases. With rising internet penetration globally, the demand for digital and plastic gift cards is expected to witness strong growth over the forecast period. The convenience and flexibility offered by gift cards for both online and in-store purchases will continue to drive their preference over other gifting options. Gift card vendors are focusing on strengthening their e-commerce channels and offering innovative digital payment solutions to leverage the growing trend of e-shopping, thus presenting lucrative growth opportunities.

Porter's Analysis for Gift Card Market
Threat of new entrants: Low due to the established distribution channels and partnerships between retailers and gift card providers. Bargaining power of buyers: High due to variety of options available with different features, designs and prices. Bargaining power of suppliers: Moderate due to dependence of retailers on gift card providers. Threat of new substitutes: Low as gift cards are unique gifting option without an alternative. Competitive rivalry: Intense due to presence of major players offering innovative products and services.

SWOT Analysis for Gift Card Market
Strengths: Growing demand for gift cards during festive seasons and occasions. Wide availability through various channels strengthens its position.
Weaknesses: Risk of loss or theft of physical cards. Additional charges are levied on activation and purchasing of gift cards.
Opportunities: Growth in e-commerce and m-commerce sector boosts digital gift card adoption. Advancements in technologies support innovative offerings.
Threats: Security issues and fraud attacks can impact sales. Macroeconomic challenges may lower discretionary spending.

Key Takeaways
Global Gift Card Market Demand is expected to witness high growth during the forecast period of 2023-2030. North America dominates the market currently owing to high adoption of gift cards in the US and Canada. Changing consumer preferences towards cashless payments and surge in online shopping are factors fueling sales.

Regional analysis indicates Asia Pacific is emerging as a lucrative market for gift cards. Growing middle-class population along with increasing spending on gifts and celebrations in countries like China, India boosts adoption.

Key players operating in the gift card market are Walmart Inc., Under Armour, Inc., Givex Corporation, American Express, Target Brands, Inc., Best Buy, Starbucks Coffee Company, PayPal Holdings, Inc., Apple Inc., Sephora USA, Inc., Gyft, Inc., Walgreen Co., TransGate Solutions, AMILON S.R.L., Jigsaw Business Solutions, Diggecard, Pine Labs Private Limited, Alltimeprint.com, Plastek Card Solutions, Inc., Card USA, Inc., Duracard, Blackhawk Network, Tango Card. Inc, Stockpile, Inc., and Huuray A/S among others. Major players focus on new product launches and partnerships to expand their market share. 

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