Dublin, Oct. 16, 2024 (GLOBE NEWSWIRE) -- The "United States Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The gift card industry in the region is expected to grow by 7.2% on annual basis to reach US$214.3 billion in 2024. The gift card industry in United States will continue to grow over the forecast period and is expected to record a CAGR of 5.7% during 2024-2028. Gift card market in the country will increase from US$199.9 billion in 2023 to reach US$267.3 billion by 2028.
This report provides a detailed data centric analysis of gift card market, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of gift card market dynamics, market size and forecast.
The U.S. gift card sector is evolving rapidly with innovative programs like United Airlines' MileagePlus Exchange, new digital features from Givex, and streamlined transactions from Tbay. Strategic partnerships between Affirm and Blackhawk Network, and Venmo and InComm, are enhancing digital gift card accessibility. Significant mergers, including Blackhawk Network's acquisition of Tango Card and RDE's acquisition of CardCash.com, signal market consolidation and growth. New regulatory changes in New Jersey and insights from the Federal Reserve underscore the sector's expanding role in consumer spending and the need for businesses to adapt to these shifts.
Key Developments in the Gift Card Sector in the United States
Product Launches and Innovations
United Airlines Gift Card Exchange Program: Launched in March 2024, United Airlines introduced a MileagePlus Gift Card Exchange program, allowing customers to exchange unused gift cards for airline miles. This program includes participation from over 100 retailers, including major brands like Starbucks and Target, and aims to address the issue of unspent gift cards in the U.S. market.
Givex Digital Ecommerce Module: In October 2023, Givex launched a new feature called the Digital Ecommerce Module, which allows customers to customize gift cards with personal touches like video messages. This feature is designed to enhance customer engagement and improve the overall gift card experience.
Tbay's Quick Sell Mode: Tbay, a global gift card platform, introduced Quick Sell Mode in December 2023 to expedite gift card transactions by at least 20%. This feature aims to streamline the buying and selling process for gift cards, enhancing user convenience.
Strategic Partnerships
Affirm and Blackhawk Network: In December 2023, Affirm entered a strategic partnership with Blackhawk Network, enabling Affirm users to purchase gift cards directly through the Affirm app. This collaboration aims to leverage the growing demand for gift cards and expand Affirm's network reach in the digital payment space.
Venmo and InComm: In October 2023, Venmo partnered with InComm to offer digital gift cards. This partnership allows Venmo users to send and receive digital gift cards for popular brands, which can be stored in the app for future use, enhancing convenience for consumers.
Mergers and Acquisitions
Blackhawk Network and Tango Card: In January 2024, Blackhawk Network announced its acquisition of Tango Card, a B2B gift card firm. This acquisition is expected to enhance Blackhawk's capabilities in providing scalable gift card solutions and strengthen its position in the market.
RDE and CardCash.com: Also in January 2024, RDE, the parent company of Restaurant.com, completed its acquisition of CardCash.com. This deal, first announced in August 2023, is expected to expand RDE's marketing opportunities and provide Restaurant.com customers with more options for purchasing discounted gift cards. The combined entities generated over $100 million in revenue in 2023, highlighting the potential for growth through this acquisition.
Regulatory Changes
New Jersey Gift Card Regulations: Recently, New Jersey implemented new regulations requiring the registration of gift cards. These regulations mandate that unused balances on gift cards must be escheated (transferred) to the state after two years. This change poses compliance challenges for retailers, as they must update their point-of-sale systems and ensure adherence to these new rules while balancing consumer privacy concerns and customer service quality.
Federal Reserve Insights on Consumer Spending: The Federal Reserve has reported that consumer spending on gift cards continues to grow, outpacing general retail spending. This trend highlights the increasing importance of gift cards as a payment method and incentivizes retailers and businesses to adapt their policies and offerings accordingly.
These regulatory changes and government initiatives reflect a growing recognition of the gift card sector's significance in consumer spending and economic support, prompting businesses to adapt to new compliance requirements and leverage opportunities for community engagement.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 268 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value (USD) in 2024 | $214.3 Billion |
| Forecasted Market Value (USD) by 2028 | $267.3 Billion |
| Compound Annual Growth Rate | 5.7% |
| Regions Covered | United States |
Scope
Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
- Wal-Mart Stores Inc
- Kroger Co
- Amazon.com Inc
- Target Corp
- Costco Wholesale Corp
- Albertson's Inc
- Home Depot Inc, The
- Apple Inc
Total Spend on Gifts in United States
- By Consumer Segment (Retail and Corporate)
- By Product Categories (13 Segments)
- By Retail Sectors (7 Segments)
Gift Card Market Size by KPIs across Consumer Segments in United States
- Gross Load Value
- Transaction Value
- Unused Value
- Average Value Per Transaction
- Transaction Volume
- Average Value of Card Purchased
- Number of Cards
Gift Card Market Size by Consumer Segment in United States
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in United States
- By Retail Consumer
- By Retail Purchase Occasion
- By Corporate Consumer
- By Corporate Purchase Occasion
- By Company Size
Gift Card Market Size by Retail Consumer in United States
- By Functional Attribute
- By Occasion
- Festivals & Special Celebration Days
- Milestone Celebration
- Self-Use
- Other
- Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in United States
- Consumer Purchase Behaviour
- Gift Card Buyer by Age Group
- Gift Card Buyer by Income Level
- Gift Card Buyer by Gender
Gift Card Market Size by Corporate Consumer in United States
- By Functional Attribute
- By Occasion
- Employee Incentive
- Sales Incentive
- Consumer Incentive
- By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in United States
- Food & Beverage
- Health, Wellness & Beauty
- Apparel, Footwear & Accessories
- Books & Media Products
- Consumer Electronics
- Restaurants & Bars
- Toys, Kids, and Babies
- Jewelry
- Sporting Goods
- Home & Kitchen Accessories & Appliances
- Travel
- Entertainment & Gaming
- Other
Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in United States
- Ecommerce & Department Stores
- Restaurants & Bars
- Supermarket, Hypermarket, Convenience Store
- Entertainment & Gaming
- Specialty Stores
- Health & Wellness
- Travel
Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in United States
- Gift Card Online Sales
- Gift Card Offline Sales
- 1st Party Sales
- 3rd Party Sales
- Sales Uplift
For more information about this report visit https://www.researchandmarkets.com/r/c83tar
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