Gift Card

Gift Card Market Outlook

The global gift card market is witnessing substantial growth, projected to reach approximately USD 1 trillion by 2035, with a remarkable compound annual growth rate (CAGR) of about 12.3% during the forecast period from 2025 to 2035. This growth trajectory can be attributed to several factors. Firstly, the increasing adoption of e-commerce and digital payment solutions has facilitated the purchase and redemption of gift cards. Moreover, the rise of consumer gifting culture, propelled by occasions such as holidays, birthdays, and corporate events, has further driven demand. Additionally, the proliferation of digital and mobile wallets has enabled consumers to utilize gift cards seamlessly, enhancing convenience and user engagement. Lastly, the expansion of retail and online stores offering gift card options has made them accessible and appealing to a broader audience, thus contributing to the overall growth of the market.

Growth Factor of the Market

The growth of the gift card market is significantly influenced by the increasing popularity of digital gift cards, which offer enhanced convenience and flexibility to users. As consumers become more tech-savvy, the demand for online shopping options continues to rise, leading to a shift from traditional physical gift cards to digital alternatives. Furthermore, the integration of gift cards into loyalty programs has created new avenues for retailers to engage customers, improving retention rates and driving sales. Additionally, the growing trend of corporate gifting, wherein businesses use gift cards as incentives for employees or clients, is also boosting market growth. The diversity of gift card options across various sectors, including retail, travel, and entertainment, creates further opportunities for expansion, catering to varied consumer preferences and boosting overall market revenue.

Key Highlights of the Market

• The gift card market is projected to reach USD 1 trillion by 2035.
• A CAGR of 12.3% is anticipated during the forecast period from 2025 to 2035.
• Digital gift cards are increasingly dominating the market, driven by technological advancements.
• Corporate gifting programs are emerging as a substantial growth driver.
• The expansion of e-commerce platforms is enhancing the accessibility of gift cards to consumers.

By Type

Open Loop Gift Cards:

Open loop gift cards are versatile prepaid cards that can be used at a wide range of retailers and locations. Unlike closed loop cards, which are limited to specific stores or brands, open loop gift cards function similarly to debit or credit cards and are typically issued by major credit card networks like Visa or Mastercard. This flexibility makes them highly appealing to consumers who prefer the freedom to choose from various shopping options. As a result, open loop gift cards are becoming increasingly popular for gifting occasions, as they allow the recipient to personalize their shopping experience according to their preferences.

Closed Loop Gift Cards:

Closed loop gift cards are specifically designed to be used at a single retailer or a specific group of retailers, making them a more focused gifting option. These cards are often utilized by retailers to promote brand loyalty and encourage repeat purchases. They typically come with specific terms and conditions, such as expiration dates and fees for inactivity. While they may lack the versatility of open loop cards, closed loop gift cards often come with attractive promotional offers or discounts, which can enhance their appeal to consumers looking for gifts tailored to a particular brand or service.

Semi-Closed Loop Gift Cards:

Semi-closed loop gift cards bridge the gap between open and closed loop cards, allowing users to make purchases at select retailers while also being usable at certain other locations. These cards are issued by specific retailers but can be redeemed at a limited number of partner locations. This type of gift card caters to consumers who want the benefits of both flexibility and brand loyalty. As a result, semi-closed loop gift cards are gaining popularity, particularly in niche markets where specific brands partner with a network of retailers to enhance their reach.

Digital Gift Cards:

Digital gift cards are rapidly transforming the gift card landscape, offering consumers a quick and convenient option for gifting. These cards can be purchased and delivered electronically via email or mobile applications, eliminating the need for physical cards. Their instant delivery appeals to time-pressed consumers, especially during peak gift-giving seasons. Furthermore, digital gift cards can be easily integrated into various platforms and wallets, making them highly accessible for users. As online shopping continues to grow, digital gift cards are becoming a key player in the overall gift card market, attracting both consumers and retailers looking for innovative gifting solutions.

Physical Gift Cards:

Physical gift cards remain a traditional yet popular choice for gifting. These tangible cards are often beautifully designed and can be personalized with messages, making them an attractive option for those who prefer a more personal touch. Physical gift cards are available in various denominations and can be purchased at retail stores, supermarkets, and online platforms. Despite the rise of digital alternatives, many consumers still appreciate the tactile experience of receiving a physical gift card. Retailers continue to offer them as part of their gifting options, ensuring that they remain relevant in the evolving market landscape.

By Distribution Channel

Online Platforms:

Online platforms have emerged as a significant distribution channel for gift cards, driven by the rapid growth of e-commerce. Consumers now have the ability to browse through a wide range of gift card options from the comfort of their homes, enhancing convenience and accessibility. E-commerce websites and mobile applications often feature promotional deals and discounts for various gift cards, attracting consumers looking for value. Furthermore, the surge in digital payment methods has facilitated seamless transactions, making online platforms a preferred choice for purchasing gift cards. This trend is expected to continue, with increasing numbers of consumers opting for the efficiency of online purchases.

Retail Stores:

Retail stores continue to play a crucial role in the distribution of gift cards. Many shoppers still enjoy the experience of physically browsing through gift card displays, especially during holidays and special occasions. Retailers often promote gift cards prominently, creating attractive displays that encourage impulse purchases. Furthermore, the variety of options available at retail locations, from popular brands to niche offerings, appeals to a diverse range of consumers. As physical retail environments adapt to changing consumer preferences, gift cards remain a staple in-store offering that can enhance sales and increase foot traffic.

Gift Shops:

Gift shops are specialized retail outlets that frequently carry a curated selection of gift cards, catering to occasions such as birthdays, holidays, and thank-you gifts. These shops often focus on unique or artisanal brands, providing consumers with options that may not be available at larger retailers. The personalized atmosphere of gift shops allows for a more tailored shopping experience, connecting customers with specific gifting options. The proliferation of gift shops, particularly in urban areas, contributes to the overall growth of the gift card market by offering consumers specialized and unique gift card choices.

Banks:

Many banks and financial institutions have entered the gift card market by offering their own branded gift cards. These cards can be purchased by customers and used in a manner similar to debit cards. The backing of reputable financial institutions provides consumers with a sense of security and reliability. Additionally, banks often promote gift cards as a budgeting tool for recipients. Their presence in the gift card market creates additional distribution channels, allowing consumers to purchase cards conveniently during banking visits or online banking sessions.

Supermarkets:

Supermarkets are significant players in the gift card distribution landscape, providing a one-stop shopping experience for consumers looking to purchase various gift cards. These stores typically offer a diverse selection, featuring cards from various popular retailers and brands. The convenience of purchasing gift cards while grocery shopping attracts many consumers, making supermarkets a go-to destination for gift card purchases. Additionally, supermarkets often run promotions or bundle offers, further incentivizing consumers to buy gift cards alongside their everyday purchases.

By User

Retail:

The retail sector is one of the primary users of gift cards, leveraging them to enhance sales and customer loyalty. Retailers often utilize gift cards as promotional tools, especially during peak seasons such as holidays and back-to-school shopping periods. By offering gift cards, retailers can attract new customers and encourage repeat purchases. Additionally, they can facilitate upselling, as recipients often spend more than the value of the card when redeeming it. The retail sector's reliance on gift cards is expected to continue growing as businesses seek innovative ways to engage consumers and drive revenue.

Corporate:

Corporate users of gift cards have been gaining traction as businesses adopt them as incentives for employees and clients. Gift cards are often utilized for employee recognition programs, rewarding productivity, and boosting morale. Additionally, companies use gift cards as promotional incentives during corporate events, trade shows, and marketing campaigns. This segment is growing due to the flexibility and customization options gift cards offer, allowing businesses to tailor their offerings to specific audiences. The corporate sector is likely to continue embracing gift cards as a cost-effective and appreciated means of engagement and promotion.

Personal:

Personal users represent a significant segment of the gift card market, as consumers purchase these cards for gifting purposes among friends and family. The personal gifting culture has evolved, with individuals increasingly opting for gift cards due to their convenience and versatility. Personal users appreciate the ability to provide recipients with the freedom to choose their gifts, minimizing the risk of giving unwanted items. As social norms shift towards experiential gifting, the popularity of gift cards for personal occasions such as birthdays, holidays, and anniversaries is expected to remain robust, further propelling market growth.

By Card Value

Under $25:

Gift cards valued under $25 are popular choices for casual gifting occasions, making them accessible to a broader audience. These lower-value cards are typically used for small gifts or as add-ons to other presents. They are frequently purchased for occasions such as teacher appreciation, small celebrations, or as tokens of gratitude. Their affordability makes them appealing for consumers looking to give thoughtful gifts without significant financial commitment. As more people seek budget-friendly gifting options, the segment of gift cards valued under $25 is expected to continue growing.

$25-$50:

Gift cards in the $25 to $50 range are increasingly favored for mid-tier gifting occasions. This price point allows the recipient to enjoy a more substantial shopping experience or treat themselves to services such as dining out or entertainment. These cards are popular for birthdays, holidays, or as corporate gifts, striking a balance between affordability and thoughtfulness. As consumers seek to express their appreciation without overspending, the demand for gift cards in this range is anticipated to rise, contributing to overall market growth.

$50-$100:

Gift cards valued between $50 and $100 are often associated with more significant gifting occasions or special milestones. These cards are frequently used for major celebrations such as weddings, graduations, or significant anniversaries. The higher value allows recipients to enjoy a more luxurious experience or purchase higher-priced items. As consumers increasingly perceive gift cards as premium gifts, the segment for gift cards in this range is expected to expand, particularly as more individuals recognize the versatility and usefulness of such offerings.

Over $100:

Gift cards exceeding $100 are typically reserved for high-value gifting occasions, such as weddings, retirement parties, or significant achievements. These cards are often seen as a generous gesture, allowing recipients to make substantial purchases or enjoy premium experiences, such as luxury dining or travel. Despite being a smaller segment of the market, the demand for high-value gift cards is growing as consumers seek to provide meaningful and memorable gifts. Additionally, these cards often attract attention from corporate users aiming to reward top performers or express gratitude to valued clients, further enhancing their presence in the market.

By Region

North America is currently the largest market for gift cards, accounting for approximately 45% of the global market share. The region benefits from a mature retail landscape, a strong e-commerce presence, and a culture that embraces gifting across various occasions. The increasing popularity of digital gift cards is particularly notable in the United States and Canada, where technological adoption is high. The North American gift card market is projected to grow at a CAGR of 11.5% from 2025 to 2035, driven by consumer demand for flexibility and convenience in gifting options.

Europe also represents a significant segment of the gift card market, contributing around 25% of the global share. The region has observed a growing trend in both physical and digital gift cards, as consumers increasingly seek personalized gifting experiences. Countries like the United Kingdom, Germany, and France are leading in gift card adoption, supported by robust retail networks and digital platforms. The European market is expected to witness a CAGR of 10.2% during the forecast period, as retailers continuously innovate to meet changing consumer preferences.

Opportunities

The gift card market presents numerous opportunities for growth, particularly due to the rising trend of personalization and customization in gifting. As consumers seek unique and meaningful gifts, retailers can capitalize on this trend by offering customizable gift cards that allow users to add personal touches such as photos or messages. This approach enhances the emotional connection between the giver and recipient, elevating the gift card beyond a mere transactional item. Furthermore, the integration of gift cards into loyalty and rewards programs can create additional value for consumers, driving engagement and repeat purchases while providing retailers with valuable customer insights.

Another significant opportunity lies in the growing acceptance of gift cards in emerging markets. As economies develop and consumer spending increases, the demand for gift cards is expected to rise in regions such as Asia Pacific and Latin America. Retailers looking to expand their footprint can tap into these emerging markets by offering localized gift card options tailored to cultural preferences and consumer behavior. Additionally, partnerships with local businesses can enhance brand visibility and acceptance, further driving market penetration. By strategically positioning gift cards within these markets, companies can unlock new revenue streams and foster long-term customer loyalty.

Threats

While the gift card market has robust growth potential, it is not without its threats. One of the primary challenges stems from the increasing prevalence of digital payments and fintech solutions that offer similar functionalities as traditional gift cards. As consumers become more accustomed to using mobile wallets and digital currencies, there is a risk that the appeal of gift cards may diminish. Additionally, the emergence of direct-to-consumer brands and subscription services presents competition for traditional retailers, which could impact gift card sales. Retailers must innovate and adapt to these changing consumer preferences to remain competitive in the evolving landscape.

Another significant threat to the gift card market is the issue of fraud and security risks. Gift cards can be susceptible to theft and unauthorized use, which poses a risk to both consumers and retailers. The rise of cybercrime and online scams has made it essential for businesses to implement robust security measures and educate customers about safe gift card practices. Failure to address these risks could lead to diminished consumer trust and confidence in gift cards, ultimately impacting sales and market growth.

Competitor Outlook

• Amazon Gift Cards
• Walmart Gift Cards
• Target Gift Cards
• Visa Gift Cards
• Mastercard Gift Cards
• Starbucks Gift Cards
• iTunes Gift Cards
• Best Buy Gift Cards
• Home Depot Gift Cards
• Sephora Gift Cards
• eBay Gift Cards
• GameStop Gift Cards
• Cabela's Gift Cards
• PayPal Gift Cards
• American Express Gift Cards

The competitive landscape of the gift card market is characterized by a diverse range of players, including traditional retailers, e-commerce giants, and financial institutions. Major companies like Amazon, Walmart, and Target have established themselves as leaders in the space, offering a plethora of gift card options across various categories. These companies leverage their extensive retail networks and e-commerce platforms to provide consumers with accessible and attractive gift card choices. The presence of well-known brands enhances consumer trust and encourages repeat purchases, which is crucial for maintaining market share in this competitive environment.

In addition to traditional retailers, digital platforms such as PayPal and major credit card companies like Visa and Mastercard have entered the gift card market, offering innovative solutions that cater to the evolving needs of consumers. These companies provide a range of gift card options, including digital and physical cards, attracting tech-savvy customers who seek convenience and flexibility. The integration of gift cards into mobile payment systems and digital wallets enhances their appeal, making them a desirable choice for both consumers and retailers. The competitive landscape is further enriched by niche players, such as specialty retailers and experiential gifting platforms, which offer unique and curated gift card options that cater to specific consumer preferences.

Amidst this competitive environment, companies must continuously innovate and adapt to changing consumer trends to remain relevant. This includes enhancing the user experience through personalized offerings, improving security measures, and leveraging data analytics to understand customer behavior. Additionally, strategic partnerships and collaborations with popular brands can further strengthen a company's position in the market, enabling them to capture a larger share of consumer spending on gift cards. As the gift card market continues to evolve, adaptability and responsiveness to consumer needs will be key determinants of success for companies operating in this space.

• 1 Appendix

  • 1.1 List of Tables
  • 1.2 List of Figures

• 2 Introduction

  • 2.1 Market Definition
  • 2.2 Scope of the Report
  • 2.3 Study Assumptions
  • 2.4 Base Currency & Forecast Periods

• 3 Market Dynamics

  • 3.1 Market Growth Factors
  • 3.2 Economic & Global Events
  • 3.3 Innovation Trends
  • 3.4 Supply Chain Analysis

• 4 Consumer Behavior

  • 4.1 Market Trends
  • 4.2 Pricing Analysis
  • 4.3 Buyer Insights

• 5 Key Player Profiles

  • 5.1 Visa Gift Cards
    • 5.1.1 Business Overview
    • 5.1.2 Products & Services
    • 5.1.3 Financials
    • 5.1.4 Recent Developments
    • 5.1.5 SWOT Analysis
  • 5.2 eBay Gift Cards
    • 5.2.1 Business Overview
    • 5.2.2 Products & Services
    • 5.2.3 Financials
    • 5.2.4 Recent Developments
    • 5.2.5 SWOT Analysis
  • 5.3 Amazon Gift Cards
    • 5.3.1 Business Overview
    • 5.3.2 Products & Services
    • 5.3.3 Financials
    • 5.3.4 Recent Developments
    • 5.3.5 SWOT Analysis
  • 5.4 PayPal Gift Cards
    • 5.4.1 Business Overview
    • 5.4.2 Products & Services
    • 5.4.3 Financials
    • 5.4.4 Recent Developments
    • 5.4.5 SWOT Analysis
  • 5.5 Target Gift Cards
    • 5.5.1 Business Overview
    • 5.5.2 Products & Services
    • 5.5.3 Financials
    • 5.5.4 Recent Developments
    • 5.5.5 SWOT Analysis
  • 5.6 iTunes Gift Cards
    • 5.6.1 Business Overview
    • 5.6.2 Products & Services
    • 5.6.3 Financials
    • 5.6.4 Recent Developments
    • 5.6.5 SWOT Analysis
  • 5.7 Sephora Gift Cards
    • 5.7.1 Business Overview
    • 5.7.2 Products & Services
    • 5.7.3 Financials
    • 5.7.4 Recent Developments
    • 5.7.5 SWOT Analysis
  • 5.8 Walmart Gift Cards
    • 5.8.1 Business Overview
    • 5.8.2 Products & Services
    • 5.8.3 Financials
    • 5.8.4 Recent Developments
    • 5.8.5 SWOT Analysis
  • 5.9 Best Buy Gift Cards
    • 5.9.1 Business Overview
    • 5.9.2 Products & Services
    • 5.9.3 Financials
    • 5.9.4 Recent Developments
    • 5.9.5 SWOT Analysis
  • 5.10 Cabela's Gift Cards
    • 5.10.1 Business Overview
    • 5.10.2 Products & Services
    • 5.10.3 Financials
    • 5.10.4 Recent Developments
    • 5.10.5 SWOT Analysis
  • 5.11 GameStop Gift Cards
    • 5.11.1 Business Overview
    • 5.11.2 Products & Services
    • 5.11.3 Financials
    • 5.11.4 Recent Developments
    • 5.11.5 SWOT Analysis
  • 5.12 Starbucks Gift Cards
    • 5.12.1 Business Overview
    • 5.12.2 Products & Services
    • 5.12.3 Financials
    • 5.12.4 Recent Developments
    • 5.12.5 SWOT Analysis
  • 5.13 Home Depot Gift Cards
    • 5.13.1 Business Overview
    • 5.13.2 Products & Services
    • 5.13.3 Financials
    • 5.13.4 Recent Developments
    • 5.13.5 SWOT Analysis
  • 5.14 Mastercard Gift Cards
    • 5.14.1 Business Overview
    • 5.14.2 Products & Services
    • 5.14.3 Financials
    • 5.14.4 Recent Developments
    • 5.14.5 SWOT Analysis
  • 5.15 American Express Gift Cards
    • 5.15.1 Business Overview
    • 5.15.2 Products & Services
    • 5.15.3 Financials
    • 5.15.4 Recent Developments
    • 5.15.5 SWOT Analysis

• 6 Market Segmentation

  • 6.1 Gift Card Market, By Type
    • 6.1.1 Open Loop Gift Cards
    • 6.1.2 Closed Loop Gift Cards
    • 6.1.3 Semi-Closed Loop Gift Cards
    • 6.1.4 Digital Gift Cards
    • 6.1.5 Physical Gift Cards
  • 6.2 Gift Card Market, By User
    • 6.2.1 Retail
    • 6.2.2 Corporate
    • 6.2.3 Personal
  • 6.3 Gift Card Market, By Card Value
    • 6.3.1 Under $25
    • 6.3.2 $25-$50
    • 6.3.3 $50-$100
    • 6.3.4 Over $100
  • 6.4 Gift Card Market, By Distribution Channel
    • 6.4.1 Online Platforms
    • 6.4.2 Retail Stores
    • 6.4.3 Gift Shops
    • 6.4.4 Banks
    • 6.4.5 Supermarkets

• 7 Competitive Analysis

  • 7.1 Key Player Comparison
  • 7.2 Market Share Analysis
  • 7.3 Investment Trends
  • 7.4 SWOT Analysis

• 8 Research Methodology

  • 8.1 Analysis Design
  • 8.2 Research Phases
  • 8.3 Study Timeline

• 9 Future Market Outlook

  • 9.1 Growth Forecast
  • 9.2 Market Evolution

• 10 Geographical Overview

  • 10.1 Europe - Market Analysis
    • 10.1.1 By Country
      • 10.1.1.1 UK
      • 10.1.1.2 France
      • 10.1.1.3 Germany
      • 10.1.1.4 Spain
      • 10.1.1.5 Italy
  • 10.2 Gift Card Market by Region
  • 10.3 Asia Pacific - Market Analysis
    • 10.3.1 By Country
      • 10.3.1.1 India
      • 10.3.1.2 China
      • 10.3.1.3 Japan
      • 10.3.1.4 South Korea
  • 10.4 Latin America - Market Analysis
    • 10.4.1 By Country
      • 10.4.1.1 Brazil
      • 10.4.1.2 Argentina
      • 10.4.1.3 Mexico
  • 10.5 North America - Market Analysis
    • 10.5.1 By Country
      • 10.5.1.1 USA
      • 10.5.1.2 Canada
  • 10.6 Middle East & Africa - Market Analysis
    • 10.6.1 By Country
      • 10.6.1.1 Middle East
      • 10.6.1.2 Africa

• 11 Global Economic Factors

  • 11.1 Inflation Impact
  • 11.2 Trade Policies

• 12 Technology & Innovation

  • 12.1 Emerging Technologies
  • 12.2 AI & Digital Trends
  • 12.3 Patent Research

• 13 Investment & Market Growth

  • 13.1 Funding Trends
  • 13.2 Future Market Projections

• 14 Market Overview & Key Insights

  • 14.1 Executive Summary
  • 14.2 Key Trends
  • 14.3 Market Challenges
  • 14.4 Regulatory Landscape

Segments Analyzed in the Report

The global Gift Card market is categorized based on

By Type

• Open Loop Gift Cards
• Closed Loop Gift Cards
• Semi-Closed Loop Gift Cards
• Digital Gift Cards
• Physical Gift Cards

By Distribution Channel

• Online Platforms
• Retail Stores
• Gift Shops
• Banks
• Supermarkets

By User

• Retail
• Corporate
• Personal

By Card Value

• Under $25
• $25-$50
• $50-$100
• Over $100

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Key Players

• Amazon Gift Cards
• Walmart Gift Cards
• Target Gift Cards
• Visa Gift Cards
• Mastercard Gift Cards
• Starbucks Gift Cards
• iTunes Gift Cards
• Best Buy Gift Cards
• Home Depot Gift Cards
• Sephora Gift Cards
• eBay Gift Cards
• GameStop Gift Cards
• Cabela's Gift Cards
• PayPal Gift Cards
• American Express Gift Cards