Europe Market Study on Gift Cards: Growing Trend of e-Gifting Aiding Market Expansion
Industry: Consumer Goods
Format: PPT*, PDF, EXCEL
ID: PMRREP33121
Last Updated: 27 March 2023
Number of Pages: 300
The Europe Gift Card Market is projected to expand at 12.4% CAGR and reach a valuation of US$ 558.9 Billion by 2033. The market was valued at US$ 155.0 Billion at the end of 2022.
The Europe gift card market accounts for 28% to 30% share in the global gift card market.
Today consumers especially corporates are actively choosing brands whose values are aligned with their own as the belief that brands also have the same responsibility as the government to drive environment consciousness.
In light of all this, few of the players in the market are focused on offering cards that are made from recycled plastic and other environmental friendly materials. Many players are now engaged in producing small-quantity, environmental friendly card options. Few of the materials like PVC plastic cards and paper gift cards are highly trending eco-friendly options. Recycled PVC is considered as a great material option due to its capability of providing a better card aesthetic and feel as per the consumer requirements.
Besides this, few of the players like Wedoogift, in line with its sustainable practices is encouraging consumers regarding the environmental impact of plastic gift card and paper vouchers. The company is encouraging the corporate sector to opt for dematerialized gift cards.
Thus, all of such factors and sustainability trends prevailing in the market are further expected to play a key role in driving the Europe gift card market.
| Attributes | Key Insights |
|---|---|
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Europe Gift Card Market Size (2023) |
US$ 173.7 Billion |
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Projected Sales of Europe Gift Card (2033) |
US$ 558.9 Billion |
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Market CAGR (2023 to 2033) |
12.4% |
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Market Share of Top Europe Gift Card Players |
~35% to 45% |
From 2018 to 2022, use of gift card across the Europe increased at a significant rate.
The European gift card market is expected to witness significant growth by 2033. This growth is expected to be driven by rising demand for gift cards in the corporate sector as well as by the increase in e-commerce and m-commerce adoption in developed countries due to the popularity of smartphones.
The gift card market is driven by technological innovations so that it can create an environment loaded with captivating customer attractions and discount offers to entice customers to buy gift cards.
Besides this, an extensive use of gift card a trend in the retailing industry is further expected to scale up the demand for gift cards in the market. All of such factors are expected to play a key role in scaling up the European gift card market during the period of forecast.
Over the next ten years, Europe gift card sales are projected to increase faster as compared to the historical years, at a CAGR of approximately 12.4% through 2033.
“Retailers Offering Gift Cards in the Form of Loyalty Cards Which Is Highly Appealing”
Initially, the options for gift cards sold by retailers were largely limited to large supermarkets or departmental stores. However, these retailers have since started offering gift cards in the form of loyalty cards or enticing customers with large meal or other card offerings.
Moreover, movie theaters, top food or beverage chains, and other related entertainment establishments has further engaged in offering gift cards all of such factors are likely to play a key role in facilitating a growth in the European gift card market in the coming years.
Despite the widespread availability or utilization of universal or open loop gift cards, consumers typically still prefer to opt for a closed-loop exclusive gift card. Gift cards are not typically used as merely a convenient gifting option during peak shopping months, but customers are also buying gift cards for personal use. These also include specialty cards that allow the users to budget their spending in particular stores.
How is the United Kingdom Gift Card Market Faring?
Gift cards are increasingly being preferred over vouchers in United Kingdom, as gift cards feature numerous redeeming options. Gift card balances can be carried over for future purchases; however, vouchers cannot be partially redeemed. Companies like Amazon also provide top-up gift cards, which can be recharged with funds or cash and are valid before the expiration date. United Kingdom Gift Card Market is expected grow at ~18.1% during the forecast period.
What Factor is Likely to Drive the Growth of Italy Gift Card Market?
Online shopping is gaining popularity among consumers, especially as it makes purchasing easier and more customized. Consumers can opt for digital and physical gift cards when buying online. They can select from different prices denominations as well as can also personalize their messages.
In addition, there are a ton of design selections making the gift cards look more attractive and appealing. Consumers also take into account the instant availability of gift cards as a substantial factor. Additional reasons for purchasing gift cards online are the cards can be purchased faster, are easier to ship, and tougher to lose.
The Italy gift card market is expected to grow at a CAGR of ~12.0% throughout the projection period.
How Is France Expected to Reflect Growth?
The use of artificial intelligence is likely to accelerate the adoption of gift cards, due to the advantages offered by their companies for predicting customer buying patterns. Companies are expected to provide customer-specific gift cards according to their requirements moving forward.
Further, more than 60% of all transactions in department shops are expected to be supported by artificial intelligence by 2033. The market value for gift cards in France is projected to grow by ~13.5% during the forecast period.
Which Type of Gift card are Hugely Popular in the Europe?
Among the Card type segments, the Universal Accepted Open Loop segment has been estimated to dominate the Europe Gift Card Market with ~32.1% share in terms of revenue by 2023 end. However, the e-gifting segment is expected to gain significant traction over the forecast period.
Which Price Range Segment is Expected to Drive Europe Gift Card Market Growth?
Among Price Range segments, revenue contribution from the Medium (200-400US$) segment is anticipated to expand at a CAGR of ~16.3% during the forecast period. In terms of value share, Low (0-200US$) segment was the dominant segment, accounting for ~69.8% share of the Europe market revenue in 2022.
Which Sales Channel is anticipated to Gain Traction during the Forecast Period?
The way companies handle operations globally has changed owing to the rise of internet usage. Businesses are now able to reach a significant number of potential clients online due to the growing adoption of mobile devices and the expansion of high-speed internet access. This has given firms new opportunities, particularly in the e-commerce sector.
The number of people buying online has significantly increased over the past few years, and this trend is also visible in the market for gift cards. As a result, the online segment is anticipated to gain traction and grow at a CAGR of nearly 15.1%.
Digital gift certificates can be purchased on the Internet, which gives businesses significant potential to create a customer database. These digital gift certificates allow companies to track a shopper's buying behavior and observe how many gift cards customers redeem, which will help the business understand accurate metrics. All of such efforts on the part of players is helping them top offer personalized gift card solutions in the market as per consumer needs.
| Attribute | Details |
|---|---|
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Forecast Period |
2023 to 2033 |
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Historical Data Available for |
2018 to 2022 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
Europe |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Pricing |
Available upon Request |
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The Europe gift card market is expected to expand at a CAGR of around 12.4% and reach a valuation of US$ 558.9 Billion.
The Europe market for gift card is currently valued at US$ 155.0 Billion in 2022.
Top manufacturers of gift card are Sodexo Group, Amazon.com, Inc., Appreciate Group Plc., Epipoli SA, Wishcard Italy, GiftChill Ltd.,Incomm Payments, Blackhawk Networks Holdings Inc., Groupe Up, Edenred, Amilon Srl.,Ticketmaster Poland Sp z.o.o.
