Dublin, Aug. 07, 2024 (GLOBE NEWSWIRE) -- The "Global Gift Cards Market by Type (E-Gifting, Miscellaneous Closed Loop, Music and Streaming Gift Cards), Application (Coffee Shop, Entertainment, Restaurants or Food Chains) - Forecast 2024-2030" report has been added to ResearchAndMarkets.com's offering.
The Gift Cards Market size was estimated at USD 827.11 billion in 2023, USD 879.43 billion in 2024, and is expected to grow at a CAGR of 6.41% to reach USD 1.27 trillion by 2030.
They come in two primary forms: closed-loop cards, which can only be utilized at the issuing retailer, and open-loop cards, which are often powered by major credit card processors, making them universally accepted at any business that accepts those credit cards. The proliferation of gift cards is largely driven by their convenience, universality, the rise of digital gifting, and a growing preference for cashless transactions. Technological advancements have streamlined the purchasing and redemption process, with digital or e-gift cards gaining traction due to immediate delivery and ease of use.
However, there is a possibility of loss or theft, expiration dates or inactivity fees diminishing their value, and limitations on where they can be used, particularly with closed-loop cards, impede their adoption. Some issuers are offering protection for registered cards, extending expiration dates, or removing fees to improve the user experience to sustain their utility. The personalization and customization of gift cards are also areas of potential expansion as consumers seek unique gifting options. Moreover, the introduction of eco-friendly, biodegradable, or digital-only cards aligns with a growing environmental consciousness.
Regional Insights
In the Americas, particularly the United States, the gift card market is mature and highly integrated, with both open-loop cards and closed-loop cards being immensely popular. The production of gift cards in this region typically involves sophisticated personalization technologies and efforts toward sustainability, with digital gift cards gaining rapid traction. North American companies dominate in terms of innovation and market share, with an ecosystem consisting of retailers, financial institutions, and specialized gift card companies.
The Asia-Pacific region presents a more fragmented picture, with rapid growth and adoption of mobile and e-gift card solutions underpinned by the prevalence of mobile payment systems and the rise of eCommerce. Production in APAC is diversifying, with a significant increase in digital solutions and environmentally friendly physical cards. Numerous local companies are emerging, specializing in gift card solutions, increasingly engaging in partnerships with regional retailers and fintech firms to leverage the expanding digital consumer base.
In Europe, particularly Western Europe, gift card usage is high, with a strong focus on consumer protection and regulatory compliance in their production and distribution. Digitalization is progressing steadily, emphasizing security features and multi-currency functionality to cater to a more global consumer base. Companies in EMEA tend to be diverse, ranging from established global players to local retailers keen on tapping the gift card market to incentivize customer loyalty and engagement.
Recent Developments
Restaurant.com Owner RDE Acquires Gift Card Marketplace CardCash.com
RDE, the company behind Restaurant.com, completed the acquisition of CardCash.com, a player in the secondary gift card space, in a strategic move to solidify its presence in the lucrative gift card market. This merger promises to enhance consumer savings through a synergistic model that leverages digital convenience. As customers gain access to an enriched selection of discounted gift cards, the expanded product offerings are expected to tap into the substantial domestic gift card industry.
Onbe and CardCash Partner to Offer Instant Virtual Cards
CardCash, an online marketplace dedicated to the buying and selling of unused gift cards, revolutionized the way consumers manage unwanted gift cards by partnering with Onbe for an innovative solution. This collaboration has led to the creation of an instant virtual Mastercard payment option, providing immediate spending capabilities for users across any merchant accepting Mastercard. By incorporating Onbe's virtual card options with CardCash's existing payout alternatives, including checks, ACH, and PayPal, consumers now have a diversified and flexible range of choices for liquidating their unused gift cards.
InComm Payments and Meal Train Partner to Supply Gift Card Options for Individuals Organizing Meal Support
InComm Payments announced an exclusive partnership with Meal Train, the innovative online platform designed to coordinate meal giving for those experiencing significant life events. This collaboration is expected to extend Meal Train's offerings to include a robust selection of InComm Payments' physical and digital gift cards, enhancing the ways customers can provide support through meal deliveries, grocery shopping, dining options, and more. The partnership brings popular consumer brand gift cards into the fold and introduces InComm's proprietary card brands, available in multiple designs for a personalized touch.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 181 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value (USD) in 2024 | $879.43 Billion |
| Forecasted Market Value (USD) by 2030 | $1278.52 Billion |
| Compound Annual Growth Rate | 6.4% |
| Regions Covered | Global |
Market Dynamics
Market Segmentation Analysis
- Type: Increasing use of eGifting and open loop gift cards owing to their convenience and universal acceptability
- Application: Adoption of entertainment and retail gift cards to serve the dual purpose of routine use and special occasion gifting
Industry Insights
- Market Disruption Analysis
- Porter's Five Forces Analysis
- Value Chain & Critical Path Analysis
- Pricing Analysis
- Technology Analysis
- Patent Analysis
- Trade Analysis
- Regulatory Framework Analysis
Market Drivers
- Increasing Market Penetration through E-Commerce Industry and Employee Reward System
- Innovative and Personalized Gift Cards to Increase Sales
- Growing Traction in Airport Lounges and Duty-Free Retailing
Market Restraints
- Concerns Related to Security and Privacy
Market Opportunities
- Growing Demand as Promotion Tools and Market Penetration in Emerging Economies
- Technological Advancements with Quicker and Easy Payment Solutions and Digitization
Market Challenges
- Issues Pertinent to Plastic Utilization and Chances of Loss of Money
Key Company Profiles
- Airbnb, Inc.
- Amazon.com, Inc.
- American Express Company
- Apple Inc.
- Best Buy Co., Inc.
- Blackhawk Network Holdings Inc.
- Carrefour Group by Majid Al Futtaim Holding
- Costco Wholesale Corporation
- eBay Inc.
- Flipkart Internet Private Limited
- Givex Corporation
- Google LLC by Alphabet Inc.
- H & M Hennes & Mauritz AB
- Home Depot Product Authority, LLC
- InComm Payments by e2Interactive, Inc.
- Inter IKEA Systems B.V.
- J Sainsbury PLC
- JCB Co., Ltd.
- JD Sports Fashion PLC
- Lowe's Companies, Inc.
- LVMH Moet Hennessy - Louis Vuitton
- Macys.com, LLC
- PayPal Holdings, Inc.
- Starbucks Coffee Company
- Target Corporation
- The Kroger Company
- Virgin Red Limited
- Walgreen Co.
- Walmart Inc.
- ZARA by ITX MERKEN, B.V.
Market Segmentation & Coverage
Type
- E-Gifting
- Miscellaneous Closed Loop
- Music and Streaming Gift Cards
- Restaurant Closed Loop
- Retail Closed Loop
- Universal Accepted Open Loop
Application
- Coffee Shop
- Entertainment
- Restaurants or Food Chains
- Retail
- Travel
Region
Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
For more information about this report visit https://www.researchandmarkets.com/r/eh1s5c
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