Gift Cards Market Size & Share, By Card Type (Closed-loop Card, Open-loop Card), End-user (Retail Establishment, Corporate Institutions), Regional Forecast, Industry Players, Growth Statistics Report 2024-2032

Market Outlook:

Gift Cards Market surpassed USD 994.15 Billion in 2023 and is likely to exceed USD 4342.7 Billion by end of the year 2032, observing around 17.8% CAGR between 2024 and 2032.

• Base Year Value (2023): USD 994.15 Billion
• CAGR (2024-2032): 17.8%
• Forecast Year Value (2032): USD 4342.7 Billion
• Historical Data Period: 2019-2023
• Largest Region: North America
• Forecast Period: 2024-2032

Market Dynamics:

Growth Drivers & Opportunity:

The Gift Cards Market is experiencing significant growth due to the increasing popularity of digital gift cards, which offer convenience and customization options for both consumers and businesses. Additionally, the growing trend of gift giving for occasions such as birthdays, weddings, and holidays is driving demand for gift cards as the perfect gifting solution. Furthermore, the rise of e-commerce platforms and mobile payment options is fueling the demand for digital gift cards, offering consumers a seamless shopping experience.

Report Scope

Report Coverage	Details
Segments Covered	Card Type, End-user
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	InComm Payments LLC, Walmart , Givex , American Express Company , Paytronix Systems, , Qwikcilver Solutions Pvt. , Amazon.com , PayPal,, Fiserv, , Blackhawk Network

Industry Restraints:

However, despite the growth opportunities, the Gift Cards Market is facing challenges such as the risk of fraud and theft associated with digital gift cards. This security concern is a major restraint for the market, as consumers may be hesitant to purchase gift cards if they fear their information could be compromised. Another restraint for the industry is the lack of awareness and understanding among consumers about the benefits and functionality of gift cards, leading to slower adoption rates and limited market growth.

Regional Forecast:

North America: The gift cards market in North America is dominated by the United States, accounting for the largest share of revenue in the region. The country's strong retail sector and high consumer spending habits contribute to the growth of the gift cards market. Canada also has a significant presence in the market, driven by increasing adoption of gift cards by both consumers and businesses.

Asia Pacific: In Asia Pacific, China is the largest market for gift cards, supported by the country's growing e-commerce sector and changing consumer preferences. Japan and South Korea also have strong gift card markets, fueled by technological advancements and a trend towards cashless payments in these countries.

Europe: The gift cards market in Europe is led by the United Kingdom, where gift cards are popular among consumers for gifting occasions and as incentives in employee rewards programs. Germany and France also have thriving gift card markets, with increasing adoption of digital gift cards and a growing focus on sustainability in gifting practices.

Segmentation Analysis:

In terms of segmentation, the global Gift Cards market is analyzed on the basis of Card Type, End-user.

Gift Cards Market

Closed-loop Card

The closed-loop card segment in the gift cards market is expected to witness steady growth in the coming years. Closed-loop cards are typically restricted for use at a specific retailer or group of retailers, making them a popular choice among consumers who shop frequently at these establishments. Retail establishments often offer closed-loop cards as a way to drive customer loyalty and increase repeat business. These cards also provide retailers with valuable data on consumer spending habits, allowing them to tailor their marketing strategies more effectively.

Open-loop Card

The open-loop card segment in the gift cards market is expected to experience rapid growth, driven by the increasing popularity of gift cards as a convenient gifting option. Open-loop cards, which are issued by major payment processors like Visa and Mastercard, can be used at a wide range of retailers and are often preferred for their flexibility. Corporate institutions, in particular, often opt for open-loop cards as a reward or incentive for employees, clients, or business partners. Additionally, the ability to customize the design and branding of open-loop cards makes them a popular choice for corporate gifting programs.

Competitive Landscape:

The competitive landscape in the Gift Cards Market is characterized by a diverse range of players including retailers, financial services, and technology companies. Key factors driving competition include the growth of e-commerce, the increasing popularity of digital gift cards, and partnerships with various brands to expand offerings. Companies are focusing on enhancing user experience through innovative technology such as mobile wallets and customizable gift cards. The market is also witnessing an increase in corporate spending on gift cards as employee incentives, further intensifying competition among providers. Regulatory changes and consumer preferences towards eco-friendly options are influencing strategies as companies strive to differentiate themselves in this dynamic environment.

Top Market Players

- Walmart Inc.

- Amazon.com Inc.

- Target Corporation

- Visa Inc.

- Mastercard Incorporated

- Starbucks Corporation

- Google LLC

- Apple Inc.

- Blackhawk Network Holdings Inc.

- Square, Inc.