The gift card market allows customers to purchase gift cards/vouchers that can be redeemed for goods and services. Gift cards are an easy and convenient alternative to traditional gift giving and help people select gifts suitable for the recipient’s needs and preferences. Different options are available in terms of card design, denomination value, expiry periods, and redemption processes. Some key advantages include greater flexibility, hassle-free gifting, customized design options, redemption tracking, safe and secure transactions, and customer loyalty programs. Gift cards have gained immense popularity for various occasions including birthdays, weddings, anniversaries, promotions, employee incentives, and seasonal gift giving.

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 2024 to 2031.

Growth of the e-commerce and m-commerce sectors has facilitated digitalization of gift cards. Consumers are increasingly preferring digital/e-gift cards over physical cards owing to benefits such as instant delivery, flexibility in usage, and round-the-clock availability.

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 BioMérieux SA. The gift card industry is getting increasingly consolidated with mergers and acquisitions among major players.

The growing demand for Gift Card Market Growth from the corporate sector is also driving market growth. Companies are using gift cards for employee recognition programs, sales incentives, rewards and loyalty programs. Gift cards offer higher flexibility and assurance of redemption compared to physical gifts.

Rapid digitalization and expansion of online shopping has resulted in strong growth opportunity for e-gift cards globally. Development of advanced technology infrastructure has enabled wider acceptance of digital payments in developing markets of Asia Pacific and Latin America. This is encouraging the global expansion of gift card companies in these untapped regions.

Market Drivers

Increased digitalization is a major market driver for the gift card industry. Advent of advanced technologies like blockchain, mobile wallets, and contactless payments has facilitated issuance, purchase, and redemption of digital gift cards. The growing preference for safe, convenient and secure digital payment methods will continue driving demand. Shift towards online shopping, m-commerce and remote working has also boosted adoption of digital gift cards globally.