Gift Card Market, By Type (Universal accepted open loop, Restaurant closed loop, Retail closed loop, Miscellaneous closed loop, and E-Gifting), By Merchant (Restaurant, Department store, Grocery stores/food supermarket, Discount store, Coffee shop, Entertainment, and Others), and By Region (North America, Latin America, Europe, Asia Pacific, and Middle East & Africa) is estimated to be valued at US$ 1,158.99 Bn in 2024 and is expected to exhibit a compound annual growth rate (CAGR) of 17.8% during the forecast period (2024 – 2031), as highlighted in a new report published by Coherent Market Insights.
A gift card is a prepaid debit card that stored a specific amount of money that can be used in a variety of purchases. They can be classified into open loop and closed loop cards and are basically issued by retailers and banks. They are available in plastic-type and digital form. Gift cards basically replace cash and enable the user to receive service or products from stores, malls, bazaars, etc. The gift cards are basically used by employees, corporate bodies, and people from another field. In short, gift cards are modern ways of cash envelopes that were given on special occasion such as marriages, birthdays, etc. as they are intended for shopping, entertainment, dining, and other expenses.
Global Gift Card Market - Impact of Coronavirus (Covid-19) Pandemic
The World Health Organization (WHO) designated the illness caused by the Severe Acute Respiratory Syndrome Coronavirus 2 (SARS-CoV-2), which first appeared in Wuhan (province of Hubei, China) in the last months of 2019, as "coronavirus disease 2019" or COVID-19. This virus spreads quickly and had a serious negative impact on the economies, social behaviours, and healthcare of every country in the world.
The COVID-19 pandemic has significantly impacted this market. The market has witnessed a shift towards digital gift cards, accelerated by the pandemic and the growing popularity of online shopping. The surge in e-commerce platforms has contributed to the demand for gift cards, providing a seamless online shopping experience. The pandemic also accelerated the adoption of digital gift cards as a safer, contactless gifting option, aligning with the shift towards contactless payments. Furthermore, the market has seen a rise in corporate gifting, including employee recognition programs and customer incentives, fuelling the demand for gift cards in the business sector. Additionally, there is an increasing demand for eco-friendly gift cards made from recycled materials, in line with consumer preferences for sustainable gifting options
Recent Developments
- On October 29, 2020, PRNewswire has released an article named “rise in digital gifting paves way for new, more personal e-gift card options available at Giftcards.com”. Giftcards.com has expanded their digital gift card offers. They provide a variety of unique gift cards to their customers who wants to give more personal gifts. Every card is designed for a specific occasion, recipient or particular cause. They are offering several new e-gifts without any fees.
Browse 24 Market Data Tables and 28 Figures spread through 150 Pages and in-depth TOC on “Global Gift Card Market”- Forecast to 2031, Global Gift Card Market, By Type (Universal accepted open loop, Restaurant closed loop, Retail closed loop, Miscellaneous closed loop, and E-Gifting), By Merchant (Restaurant, Department store, Grocery stores/food supermarket, Discount store, Coffee shop, Entertainment, and Others), and By Region (North America, Latin America, Europe, Asia Pacific, and Middle East & Africa)
Link: https://www.coherentmarketinsights.com/market-insight/gift-card-market-3444
Key Takeaways of the Market
- The global gift card market is estimated to be valued at US$ 1,158.99 Bn in 2024 and is forecast to reach a value of US$ 3,648.36 Bn by 2031, growing at a CAGR of 17.8% between 2024 and 2031
- Major players operating in this market include Apple Inc., Amazon.com Inc., Best Buy Co., Inc., Starbucks Corporation, Target Corporation, and Wal-Mart Stores, Inc.
- Key players operating in the gift card market are focusing on various strategies such as mergers & acquisitions in order to strengthen their market presence and expand their product portfolio.
