New York, USA, March 22, 2023 (GLOBE NEWSWIRE) -- According to a report published by Research Dive, the global gift cards market is envisioned to generate a revenue of $1,396.01 billion and grow at a stunning CAGR of 15.4% over the analysis timeframe from 2021 to 2028.
As per our analysts, the rising penetration of smartphones provides more flexible and convenient payment options to consumers all across the globe which is expected to amplify the growth of the gift cards market during the forecast period. Besides, the growing demand for improved products and technological improvements associated with payment solutions is predicted to bolster the growth of the market throughout the analysis timeframe. Moreover, the rapid expansion in e-commerce and the rising technological advancements in gift cards to increase the sales of organizations are predicted to create excellent growth opportunities for the market over the estimated period. However, the lack of security for gift cards may impede the growth of the market throughout the analysis timeframe.
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Segments of the Gift Cards Market
The report has divided the market into segments based on type, sales channel, end-use, and region.
Type: Open Loop Sub-Segment to be Most Productive
The open loop sub-segment is expected to garner a revenue of $724.93 billion during the forecast period. This is mainly due to the increasing popularity of open loop gift cards as they allow recipients to shop at different locations. In addition, the increased security offered by open loop gift cards is further expected to increase the growth of the market sub-segment over the estimated timeframe.
Sales Channel: Online Sales Channel Sub-segment to be Most Profitable
The online sales channel sub-segment is projected to generate $706.05 billion during the analysis timeframe. The increasing use of online gift cards across various industries, such as food and beverage, retail, consumer electronics, and many more to promote brand recognition, attract new clients, and reduce fraud is expected to fuel the growth of the gift cards market sub-segment over the forecast period.
End-Use: Retail Sub-Segment to be Most Beneficial
The retail sub-segment is expected to garner a revenue of $876.72 billion over the estimated timeframe. The increasing acceptance of gift cards across the retail sector due to the rising penetration of supermarkets/hypermarkets and other food and restaurant chains is expected to boost the growth of the market sub-segment throughout the forecast period.
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North America Region to Hold the Maximum Share of the Market
The North America region of the gift cards market is predicted to register a revenue of $604.47 billion during the analysis timeframe. The increasing use of gift cards by consumers of this region for various purposes, such as Christmas presents, and gifts for popular occasions like baby showers, birthdays, graduation parties, and many more are expected to thrive the regional growth of the market over the estimated period.
Covid-19 Impact on the Gift Cards Market
The outbreak of the Covid-19 pandemic has caused disastrous impacts on economies worldwide. It has resulted in travel restrictions, created disturbances in financial markets, and badly impacted supply chains and production levels. The gift cards market is adversely affected by the rise of the pandemic. This is mainly because the demand for physical gift cards decreased due to the closure of stores across several countries during the period of crisis. Moreover, the introduction of e-cards took a long time to be effective, further declining the market growth throughout the pandemic.
Prominent Market Players
The major players of the gift cards market include
- Blackhawk Network Holdings, Inc.
- Qwikcilver Solutions Pvt Ltd
- InComm Payments
- Best Buy Company, Inc.
- Target Corporation
- Apple Inc.
- Starbucks Corporation
- American Express Company
- Walmart Inc.
- Amazon.com, Inc.
These players are mainly working on the development of new business strategies, such as mergers and acquisitions, partnerships and collaborations, and product development to gain a leading position in the global industry.
For instance, in December 2022, Blackhawk Network, an American privately held company that operates in the prepaid, gift card, and payments industries announced its partnership with IKEA, a leading provider of home furnishings solutions. With this partnership, the companies aimed to expand their gift card portfolio by connecting around 300 million consumers per day across all channels. In addition, this partnership would empower the purchase of gift cards across the entire US market.
Further, the report also summarizes other important aspects including SWOT analysis, product portfolio, the financial performance of the key players, and the latest strategic development.
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More about Gift Cards Market:
- Gift Cards: A Purchase that Brings a Smile
- Persistent Technological Advancements and Strategic Partnerships among Major Companies to Create Enormous Opportunities for the Growth of the Global Gift Cards Market by 2028
