Global Gift Card Market, By Type (Open-Loop Gift Card, Closed-Loop Gift Card and E-Gift Card), By Distribution Channel (Supermarkets/Hypermarkets (Grocery Stores/Food Market), Independent Brand Showrooms, Hotels, Restaurants, Cafes (Coffee Shops), Discount Stores, Entertainment, Departmental Stores, Sports Stores, E-Portals (Online), and Others) By Region (North America, Europe, the Asia Pacific, the Middle East & Africa and Latin America)

Published:
March 2021
Report Code:
BWC19380
Available Format:
PDF PDF Icon
Pages:
175

global gift card market bwc19380

Global Gift Card Market- Industry Trends & Forecast Report 2026

The global gift card market has gained momentum in recent years. It is further anticipated to grow at a stellar CAGR of 13.8% over the forecast period 2021-2026. The global gift card market is expected to reach USD 851.1 billion by 2026. The demand for gift cards is increasing due to the increase in the number of occasions and the rising popularity of the gifting culture. Moreover, the sales of gift cards increase at an exorbitant rate during festivals and special days, such as Birthdays, Anniversaries, Father's Day, Mother's Day, and so on. Nowadays, many vendors are launching unique products to stay ahead of the curve. Additionally, numerous entertainment corporations are also teaming up with technology solutions providers to launch e-gift cards to be used across major online and retail market places.

Source: BlueWeave Consulting

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 form of vouchers or coupons by organizations, stores, restaurants, etc., for buying at the relevant retail premises. Gift cards cannot be cashed out, and in some situations, may be subject to an expiry date or fees. Gift cards can also be customized to satisfy specific wants. A gift card with a personalized message or name added to the front of the cardboard makes the perfect associate degree personal gift or an incentive to associate degree staff to indicate however much they are valued and appreciated.

Global Gift Card Market Trends

Growth Drivers

Increasing Consumer Preferences to GoDigital

The rising penetration of smartphones along with affordable data plans have increased the adoption of m-Commerce which is projected to foster the market growth of gift cards. Consumers are rapidly downloading mobile apps, including Amazon, Flipkart, and eBay for online shopping as these online stores provide the ability to navigate more quickly and easy to make purchases on-the-go, thereby increasing the number of consumers making purchases online. Additionally, the growing number of e-commerce channels that enable the user to use gift cards are expected to foster the market growth of gift cards. What’s more, online payment also provides consumers with options to choose between digital and physical gift cards during online purchases. These factors are likely to fuel the market growth of gift cards during the forecast period.

The Growing Trend of Corporate Gift-Cards to Reward the Employees for Their Achievements

The usage of gift cards is growing by leaps and bounds in the corporate sector to recognize the contributions and achievements of employees. Additionally, there is a higher adoption rate of e-Commerce and m-Commerce channels in developed and developing countries due to the higher penetration of smartphones and rising internet connectivity. Moreover, the demand for gift cards from the corporate sector has been witnessing a significant increase, globally.

A majority of companies nowadays use gift cards to recognize the contributions and achievements of their employees. Gift cards are convenient and safe and have proven to be a novel means of recognizing employees and rewarding them for their exceptional performances. Cash rewards cause a mental accounting process in recipients, wherein the reward earner identifies cash rewards with their salary. Therefore, subconsciously people blend the cash reward with the pay and utilize it for the same everyday purpose, such as paying bills, buying groceries, mortgage payments, and so on. Since people tend to make utilitarian purchases when given a cash reward, consequently, they derive very little meaning or appreciation from the latter.

Restraints

Limited Validity of Gift Cards

Some gift cards have an expiry date. This requires the recipient to use the gift card within the mentioned expiry date on the card, which is projected to hinder the market growth of the gift card. Moreover, some people who are not aware of the benefits of gift cards do not prefer utilizing such cards. Gift cards also come with a few terms and conditions, which are further anticipated to curb the market growth over the forecast period. Moreover, many gift cards are not used, or half the amount remains unredeemed, which is termed as spillage or breakage of gift cards. This happens when people end up losing or forgetting their cards or are not aware of how and where to use the cards. The outstanding amount on these gift cards gets recorded as unearned revenue liability on the balance sheet of companies until customers redeem the gift cards. If not redeemed, it goes to the unclaimed property under the country’s respective state government laws. This factor is likely to restrict the market growth of gift cards. The limited validity of gift cards, redemption at specific premises, fees associated with transactions, and security concerns are some important limiting factors that are expected to hamper the growth of the global gift card market during the forecast period. For instance: H&M Gift Card is valid for one year from the date of the last activation or purchase. At the expiry of the validity period, the H&M Gift Card cannot be used for any purchase; neither can it be reactivated nor can the unused remaining value be refunded.

Global Gift Card Market: By Type

Based on type, the global gift card market is segregated into open-loop gift cards, closed-loop gift cards, and e-gifting. The open-loop gift card segment is likely to witness the highest growth as it can be redeemed anywhere the brand of card is accepted. The closed-loop gift card, on the other hand, can be redeemed only at a specific retail store. Thee-Gifting cards are customizable according to the requirement of the customer within a website for special occasions and can be sent through the internet to the customers. The market of the e-Gifting card is expected to grow at a high rate in the forecast period.

Source: BlueWeave Consulting

Global Gift Card Market: By Industry Verticals

Based on industry verticals, the global gift card market is segregated into retail and corporate institutions. The retail segment is expected to have the highest growth during the forecast period 2021-2026. Due to the growing number of retailers and hotel chains, new technologies such as hybrid and dual interface cards are being slowly embraced by companies in emerging countries. These types of cards give commuters many advantages, such as reduced travel time and enhanced service quality.

Global Gift Card Market: By Region

Based on region, the gift card market has been segmented into North America, Europe, the Asia-Pacific, Latin America, and the Middle East & Africa. North America is likely to have the fastest growth in the global gift card market over the forecast period.North America is at the immobility stage due to the presence of large numbers of companies in the region. Also, the growing urbanization, higher per capita income, and growing demand in the corporate sector in developing countries like China and India are fueling the overall growth of the global gift card market.

Source: BlueWeave Consulting

Competitive Landscape

The presence of leading players in this market space greatly decrease the opportunities for new entrants to the market as it is difficult to match the high capital requirements. Some of the key players include Amazon, iTunes (Apple Inc.), Google Play (Alphabet Inc.), Starbucks, Walmart, National Gift Card Corp., QwikCilver Solutions Private Limited, Sodexo, Zara, Best Buy, JCB Giftcard, Givex Corporation, Yiftee, TenderCard, RollerSoftware, GiftFly LLC, and other prominent players.

Amazon held a 3.50% market share in 2019 in the global gift card market and ranks number 1 in the world. Amazon utilizes cost leadership as its generic competitive advantage strategy. The primary objective of this generic competitive strategy is to minimize operating costs. For instance, Amazon.com uses advanced computing and networking technologies for maximum operational efficiency, which translates to minimized costs.

 

Recent Development

·         In 2020 Sodexo acquired the London-based delivered-in office food services provider Fooditudeby taking a majority shareholding.

·         In 2019, CashStar, Inc. launched the Interactive Gift Card Platform to register new growth opportunities for market players. Companies such as Uno Chicago Grill, Travelocity Incentives, and Gorham Bike & Ski are primarily engaged in offering interactive gift cards via the CashStar platform.

 

 

 

Scope of the Report

Attribute

Details

Years Considered

Historical data – 2016-2020

Base Year – 2020

Forecast – 2021 – 2026

Facts Covered

Revenue in USD Billion

Market Coverage

North America, Europe, Japan, South Korea, China, India, Thailand, Singapore, Philippines, Vietnam

Product/Service Segmentation

By type, industry verticals, distribution channel, and region

Key Players

Key Players for Market Includes: - Amazon, iTunes (Apple Inc.), Google Play (Alphabet Inc.), Starbucks, Walmart, National Gift Card Corp., QwikCilver Solutions Private Limited, Sodexo, Zara, Best Buy, JCB Giftcard, Givex Corporation, Yiftee, TenderCard, RollerSoftware, GiftFly LLC, and other prominent players

 

 

 

By Type

Ø  Open-Loop Gift Card

Ø  Closed-Loop Gift Card

Ø  e-Gift Card

By Distribution Channel

Ø  Supermarkets/Hypermarkets (Grocery Stores/Food Market)

Ø  Independent Brand Showrooms

Ø  Hotels

Ø  Restaurants

Ø  Cafes (Coffee Shops)

Ø  Discount Stores

Ø  Entertainment

Ø  Departmental Stores

Ø  Sports Stores

Ø  e-Portals (Online)

Ø  Others

By Region

Ø  North America

Ø  Europe

Ø  The Asia-Pacific

Ø  The Middle East & Africa

Ø  Latin America

 

FAQ’s

1.    What is the current size of the global gift card market?

Answer: The global gift card market has reached USD 382.8 billion in 2020.

2.    What are the major factors driving the growth of the global gift card market?

Answer:  The major factors driving the growth of the global gift card market are increasing consumer preferences to go digital and the growing trend of corporate gift cards to reward employees for their achievements.

3.    Who are the key players in the global gift card market?

Answer:  The key players in the global gift card market include Amazon, iTunes (Apple Inc.), Google Play (Alphabet Inc.), Starbucks, Walmart, National Gift Card Corp., QwikCilver Solutions Private Limited, Sodexo, Zara, Best Buy, JCB Giftcard, Givex Corporation, Yiftee, TenderCard, RollerSoftware, GiftFly LLC, and other prominent players.

4.    Which type accounted for the largest share in the global gift card market?

Answer: Open-loop gift cards account for the largest share in the global gift card market.

5.    Which region growing at a higher rate in the global gift card market?

Answer: North America is growing at a higher rate in the global gift card market.

 




 










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