Gift Card Market Size to grow by USD 1100 million between 2024-2028

Technavio, a leading provider of market research reports, has released its latest study on Gift Card Market. This report offers a comprehensive analysis of the current market trends, emerging opportunities, and key challenges.

Key Highlights:

• Market Research Overview: According to Technavio's market research, the global gift card market is a segment of the broader specialized consumer services market. This market encompasses the revenue generated by various consumer service providers, which include residential services, home security services, legal services, personal services, renovation and interior design services, consumer auction services, wedding services, and funeral services. Notably, the report excludes consumer services classified under casino and gaming, hotel, resorts, and cruise lines; leisure facilities; restaurants; and education services. Technavio's analysis of the global specialized consumer services market size is determined by the revenue generated by specialized service providers, such as residential, home security, legal, personal, renovation and interior design, consumer auction, wedding, and funeral service providers. - The Gift Card Market is experiencing significant growth, fueled by the Growth of e-commerce sector. Businesses are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

• Major Findings:
  • Growth of e-commerce sector
  • Increase in gifting culture
  • Additional loss of money in using gift cards
  • Impersonal nature of gift cards
• Growth Projections

The market size is estimated to grow by USD 1100 million, at a CAGR of 14.46% during the forecast period. In the gift card market, there has been a notable trend towards the adoption of open-loop gift cards over closed-loop cards. Open-loop cards, which are not restricted to a single merchant or brand, offer greater convenience and flexibility to customers due to their wide acceptance at numerous retailers and online platforms. Brands such as Visa, MasterCard, and American Express issue these cards, making them a preferred choice for consumers. Vendors, including InComm Payments, a prominent UK-based prepaid products and payments technology company, have recognized this trend and have introduced new offerings in the open-loop gift card segment, such as InComm's Vanilla Go global brand, which has been in operation for over half a decade.

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• Regional Insights

The gift card market in North America is significantly driven by the strategic initiatives of organized retailers and e-retailers, who are increasingly promoting gift cards as a preferred gifting option. The mature retail landscape in North America, characterized by a large number of established retail brands such as Walmart Inc., Costco Wholesale Corp., Kroger Co., Home Depot Inc., and Target Corp., is a key growth factor. The retail sector's expansion is fueled by rising consumer retail spending, effective e-commerce strategies, and minimal inflation. These retail giants, with their extensive distribution networks and robust infrastructure, are major contributors to the region's gift card market growth.

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