Global Gift Card Market Size, By Type (Open Loop Gift Cards, Closed Loop Gift Cards and E-gifting), By Merchant Type (Food Supermarkets, Department Stores, Restaurants, Coffee Shops, Discount Stores, Entertainment, Hotels, and Others), and by Region (North America, Europe, Asia Pacific, Middle East & Africa and Latin America); Trend Analysis, Market Competition Scenario & Outlook, 2016-2026

Global Gift Card Market Outlook and Trends

The Global Gift Card market is anticipated to witness a CAGR of 13.8 % during the forthcoming period and reach USD 851.1 Million by 2026. The demand for Gift Cards is increasing due to the rising number of occasions and popularity of the gifting culture. The sales of Gift Cards witness noticeable surge during festivals and special days, such as Father's Day, Friendship Day, Daughter's Day, Mother's Day, etc. Also, several organizations recognize their employees' performance and offer incentives in the form of Gift Cards. Gift Cards are widely used in restaurants, department stores, grocery stores, supermarkets, specialty stores, and cafes. All the factors mentioned above are expected to induce market growth substantially during the projection period.

Global Gift Card Market Overview

A Gift Card is a prepaid debit card that contains a specific amount of money available for usage for a variety of purchases. Generally, Gift Cards are provided in the voucher or coupon by the organizations, particular stores, restaurants, only for buying at the applicable retail premises. They cannot be encashed and in some situations, may be subject to an expiry date or fees.

Gift Cards can be tailored to the needs of the users and are appended with custom message or name on the front of the cardboard. They act as a personal gift or incentive for the receiver and can be presented as an appreciation prize to the employees.

Gift Cards are an integrated payment solution developed to ease the transaction at stores or businesses as a substitute for money. These cards establish a medium that supports smooth and hassle-free purchasing procedures during a variety of events, such as dining, entertainment, retail purchases, and others.

Growth drivers

The pervasiveness of the gifting culture

The gifting culture has become pervasive during festivals and special occasions such as Father's Day, Friendship Day, Mother's day, etc. across the globe, driving the growth of the Global Gift Card market. Besides, many organizations offer incentives to their employees in the form of Gift Cards for their excellent performance. People like to gift one another on their personal special days, and companies prefer to give away Gift Cards on their establishment day or on achieving the specific milestone of development.

Launch of new products in the Gift Cards category

Many vendors launch different kinds of Gift Cards with unique and advanced features keeping in mind its easy use and the motives of the receiver/customer to stay ahead in sales and competition. Numerous entertainment corporations collaborate with technology solutions providers to launch e-Gift Cards for shoppers across major online and retail marketplaces.

Restraints

Additional cost involved and use of plastics

The use of Gift Cards in case of any occasion, festivals, and promotion card may lead to additional loss of money. Also, the growing concern related to the use of plastics, paper, and fear may hinder the growth of the Gift Card industry during the forecast horizon.

Global Gift Card Market Segmentation

By Card Type

Based on type, the Gift Card market is segmented into Open Loop Gift Cards, Closed Loop Gift Cards, and E-gifting. Open Loop Gift Cards segment is expected to record the highest growth as it can be redeemed at any outlay where the respective brand card is accepted. While the Closed Loop Gift Card can be redeemed only at a specific retailer. E-cards are customizable according to the requirement of the customer and can be used on a particular website for special occasions and can be virtually sent through to the customers. The market of E-card is expected to grow at a substantial rate during the forecast period.

By Merchant Type

Based on Merchant type, the Gift Card market is segmented into Food Supermarkets, Department Stores, Restaurants, Coffee Shops, Discount Stores, Entertainment, Hotels, and Others. The overall rise in the usage of Gift Cards by all the merchandise stores is expected during the projection period to attract more customers. However, Discount Stores are estimated to grow at a as high rate as E-commerce websites like Amazon, Flipkart, etc., which extensively offer Gift Cards to their customers, to ensure repeated site visits. This is also a prominent factor aiding the market growth of Global Gift Card.

Global Gift Card Market: Regional insights

By geography, the Global Gift Card Market segregated into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. APAC is predicted to have the fastest growth in the Global Gift Card market over the forecast horizon. The developed countries such as US, Canada, UK, France, Germany, etc. are expected to witness steady growth in Gift Card market due to the prevalence of superstore and mall culture, advanced features of cards as well as intensive branding activities by companies. However, Asia-Pacific will register the highest CAGR during the projection period due to growing urbanization, higher per capita income, and demand in the corporate sector in developing countries like China and India.

Competitive Landscape

The leading players in the Gift Card market are, Blackhawk Network Holdings Inc., DOCUMAX Inc., Fidelity National Information Services Inc., Givex Corp, InComm Holdings Inc., National Gift Card Corp., Plastek Card Solutions, Inc., Qwikcilver Solutions, Pvt. Ltd., Stored Value Solutions, Inc., Duracard, Cashstar, Staples, Walmart, Lowe's, Best Buy, Sam's Club and other prominent players are expanding their presence in the market by implementing various business strategies.

Scope of the Report

By Type

Ø  Open Loop Gift Cards

Ø  Closed Loop Gift Card

Ø  E-gifting

By Merchant Type

Ø  Food Supermarkets

Ø  Department Stores

Ø  Restaurants

Ø  Coffee Shops

Ø  Discount Stores

Ø  Entertainment

Ø  Hotels

Ø  Others

By Region

Ø  North America

Ø  Europe

Ø  Asia Pacific (APAC)

Ø  Latin America

Ø  Middle East & Africa

The objective of the Study:

Ø  To analyze and estimate the Global Gift Card Market size, in terms of value.

Ø  To examine the market segmentation carefully and estimate the market size, in terms of value, based on the region by segmenting the Global Gift Card Market into five regions, namely, North America, Europe, Asia Pacific, Rest of the World and their leading countries.

Ø  To outline, categorize and project the Global Gift Card Market based on Card Type, Merchant Type and Region.

Ø  To examine competitive developments in features and user outlets within the Global Gift Card Market.

Ø  To highlight market dynamics such as drivers, restraints, opportunities, and challenges and their impact.

Ø  To provide a detailed competitive landscape, including major players, their strategic profiles, and market shares.

Business Questions Answered by the Report:

Ø  How will the market drivers, restraints, and opportunities affect the market dynamics?

Ø  What will be the market size in terms of value and volume and market statistics with a detailed classification?

Ø  Which segment dominates the market or region, and which one will be the fastest-growing, and why?

Ø  Who are the key players in the market, and what is their share?

Ø  What is the strategy adopted by key players, and how does it affect the existing and new players?

Customization Scope for the Client:

Client satisfaction is our first and last priority, and that is why BlueWeave Consulting offers customization as per client’s specific needs. The following customization options are available for the report:

Ø  Additional Company Information

Ø  Detail Analysis of five additional companies

Ø  Additional country analysis

Ø  Detailed segment analysis