The gift card Market size is valued at USD 1,163.17 Bn in 2025 and is expected to reach USD 3,705.24 Bn by 2032, growing at a compound annual growth rate (CAGR) of 18.0% from 2025 to 2032.
The gift card market is experiencing strong growth driven by rising digital adoption, flexible payment options, and increasing consumer preference for personalized gifting. Businesses use gift cards to boost customer loyalty and engagement, while digital platforms make distribution seamless across retail, entertainment, and e-commerce sectors. Prepaid cards also appeal to budget-conscious consumers and offer secure, convenient alternatives to cash. Seasonal demand and corporate gifting further fuel expansion, making gift cards a versatile tool in modern commerce.
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Regulatory Compliance and Data Privacy Tightening |
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In terms of type, the e-gifting segment is expected to lead with 33% share of the market in 2025, driven by rising digital adoption, mobile wallet integration, and the convenience of instant delivery. Consumers increasingly prefer digital gift cards for birthdays, festivals, and corporate rewards due to their flexibility and personalization features.
For instance, in February 2025, AnyMind Group entered a strategic partnership with AnyReach to enhance influencer marketing and cross-border commerce. The collaboration will integrate AnyMind’s platforms with AnyReach’s influencer network, enabling brands to expand reach and drive engagement across Asia. This move strengthens both companies’ capabilities in digital marketing and global e-commerce solutions.
In terms of merchant, the department story segment is expected to contribute he largest share of the market in 2025, offering a wide range of products and strong brand recognition. Their gift cards are popular for both personal and corporate gifting, supported by seasonal promotions and loyalty programs.
For instance, in September 2024, Tata Neu introduced a dedicated gift card store to cater to festive shoppers, offering a wide range of digital gift cards across popular brands. The initiative aims to simplify gifting during Diwali and other celebrations, enhancing convenience and personalization for users through seamless integration with the Tata Neu app.
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North America is expected to be the largest market for gift card, which is expected to grow at a CAGR of over 39.2% during the forecast period. The growth of this market in North America is attributed to increasing demand for gift card in countries such as the U.S. and Canada. North America's gift card market is thriving due to strong demand from retail and corporate sectors. Businesses use gift cards for employee incentives and promotions, while consumers favor them for convenience and personalization. Technological advancements, especially in e-gifting and mobile integration, are accelerating adoption across diverse industries.
For instance, in January 2025, PAR Technology launched a new gift card solution aimed at boosting customer loyalty and revenue for restaurants and retailers. The platform supports both physical and digital formats, integrates with PAR’s existing systems, and enables businesses to offer branded gift cards, aligning with growing demand for flexible, personalized gifting in North America
Europe is expected to be the fastest-growing market for gift card, which is expected to grow at a CAGR of over 18% during the forecast period. Europe's gift card market is thriving due to rising digital adoption, personalized gifting trends, and strong corporate demand. Consumers favor e-gifting for its convenience and flexibility, especially during holidays and special occasions. Businesses use gift cards for employee rewards and customer engagement, supported by mobile wallet integration and expanding e-commerce platforms.
For instance, in March 2025, Klarna expanded its Gift Card Store to Germany, Italy, and The Netherlands in partnership with Blackhawk Network. This launch enables European customers to purchase gift cards from top global brands using Klarna’s flexible payment options. The move responds to rising demand for digital gifting, especially during the holiday season.
In 2025, the U.S. gift card market is thriving due to high consumer demand for flexible, digital gifting options. The rise of e-commerce, mobile wallets, and personalized experiences has made gift cards a preferred choice for birthdays, holidays, and corporate rewards. Businesses also leverage them to boost customer engagement and streamline loyalty programs.
For instance, in October 2025, TripGiftr unveiled new destination gift card SKUs and marketplaces, allowing users to gift curated travel experiences across global cities. The launch supports personalized, experiential gifting and expands access to bucket-list adventures. This initiative reflects growing demand for flexible travel gifting and enhances TripGiftr’s presence in the international gift card market.
In 2025, the UK gift card market is growing due to digital innovation, corporate engagement, and evolving consumer preferences. Shoppers increasingly favor personalized and experiential gifting, while businesses use gift cards for rewards and promotions. Sustainability efforts and mobile wallet integration further drive adoption, making gift cards a versatile tool across retail and e-commerce.
For instance, in November 2024, Raise launched its leading gift card marketplace in the United Kingdom, marking its European debut. The platform enables UK consumers to buy, sell, and manage gift cards from top brands, offering flexible and value-driven gifting options. This expansion reflects growing demand for digital gift cards across Europe.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 1,163.17 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 18.0% | 2032 Value Projection: | USD 3,705.24 Bn |
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| Companies covered: |
Apple Inc., Amazon.com Inc., Best Buy Co., Inc., Starbucks Corporation, Target Corporation, and Wal-Mart Stores, Inc. |
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Festivals and special occasions are significantly boosting gift card market demand, as consumers seek convenient, personalized, and instantly deliverable gifting options. Digital gift cards are especially popular for events like Diwali, Christmas, weddings, and birthdays, offering flexibility and ease of use. Retailers and brands are responding with themed campaigns, customizable designs, and seamless mobile integration. Corporate gifting also contributes to this trend, with companies using gift cards for employee rewards and client appreciation. As e-commerce and mobile wallets grow, gift cards are becoming a preferred choice for modern gifting, combining practicality with personalization across diverse cultural and seasonal celebrations. For instance, in India, while 87% are okay with physical gift cards, even more, 93%, prefer digital ones.
Gift card market value is rising sharply due to the growing popularity of gifting during birthdays and special occasions. Consumers increasingly prefer digital and physical gift cards for their convenience, personalization, and instant delivery. These cards are ideal for birthdays, anniversaries, and milestone events, offering recipients the freedom to choose their own gifts. Retailers and brands are enhancing this trend with themed designs and mobile wallet integration. For instance, on average, people gave 3–4 cards per person, totaling $170 per giver
The growth of the e-commerce industry is driving a surge in gift card market forecast, as consumers increasingly favor digital-first, flexible gifting solutions. Online platforms offer instant delivery, broad usability, and personalized options, making gift cards ideal for birthdays, festivals, and corporate rewards. Retailers are integrating gift cards with mobile wallets and loyalty programs to enhance convenience and engagement.
Multi-purpose cards are reshaping the gift card market by offering versatile spending options across various categories like retail, dining, travel, and entertainment. These cards provide recipients with greater flexibility and convenience, making them ideal for birthdays, festivals, and corporate rewards. Multi-purpose cards also support digital integration with mobile wallets and loyalty programs, enhancing user experience and encouraging repeat usage. Their adaptability makes them a preferred choice in modern gifting trends.
Corporate gift card programs are playing a pivotal role in driving gift card market growth, as businesses increasingly adopt them for employee rewards, client appreciation, and sales incentives. These programs offer flexibility, ease of distribution, and personalization, making them ideal for fostering engagement and loyalty. Companies are leveraging digital gift cards integrated with mobile wallets and loyalty platforms to streamline recognition efforts and enhance the overall employee and customer experience in a competitive landscape.
Personalized gift cards are redefining the gifting experience, driving innovation and growth in the gift card market. Consumers increasingly seek customized options that reflect individual tastes, occasions, and sentiments. From tailored messages and branded designs to variable denominations and themed packaging, personalization enhances emotional value and user satisfaction. Businesses leverage this trend to boost engagement and loyalty. Personalized gift cards offer a perfect blend of convenience and thoughtful expression.
The gift card sector has evolved into a strategic instrument for liquidity management, customer retention, and incremental revenue generation. Its dual nature, both as an immediate revenue accelerator and a long-term liability, defines its complexity. Unredeemed balances, estimated at $20–$25 billion annually in the U.S., highlight both consumer disengagement and a structural reliance on “breakage.” While this supports short-term financial performance, it invites scrutiny regarding transparency and regulatory compliance.
Digitalization remains the sector’s defining shift. E-gift cards now account for roughly half of total spending, driven by mobile integration and instant delivery. However, this growth has also expanded fraud exposure, including phishing, code theft, and resale scams. Industry reports emphasize that advanced safeguards, such as tokenization, real-time transaction monitoring, and fraud analytics are no longer optional.
Simultaneously, consolidation among digital issuance and distribution networks is concentrating power among platform specialists. Mid-sized retailers must decide whether to build internal systems or align with large-scale intermediaries.
Strategically, unredeemed balances should be reframed as engagement opportunities through loyalty conversions or charitable redemptions. The market’s next competitive frontier will favor participants that balance compliance, cybersecurity, and customer experience—treating gift cards not as promotional tools but as programmable financial assets.
Definition: The gift card is an artificial prepaid debit card that is loaded with a specific amount. It is used for various purposes, such as gifting someone and purchasing things. Most consumers, including millennial and the older generation, have a rising demand for gift cards due to their ease of use and the increasing adoption of smartphone payment technologies. The growing social trends of online gift-giving and rising demand from millennial are expected to drive market growth.
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About Author
Sakshi Suryawanshi is a Research Consultant with 6 years of extensive experience in market research and consulting. She is proficient in market estimation, competitive analysis, and patent analysis. Sakshi excels in identifying market trends and evaluating competitive landscapes to provide actionable insights that drive strategic decision-making. Her expertise helps businesses navigate complex market dynamics and achieve their objectives effectively.
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