Gift Card Market to Surpass US$ 1.4 Trillion by 2030; Sales Witnessing Temporary Slowdown Due to Covid-19 Pandemic


  • Published On : Apr 28, 2020

Among all the regions, North America is the largest market for gift cards. However, North America is gradually reaching a maturity phase due to the presence of a large number of players and corresponding customers in the region. The demand for gift cards is rapidly increasing in the Asia Pacific region, particularly in China, Japan, and India. On the other hand, Latin America and the Middle East & Africa are still at the nascent stage. The gift card market in Europe is expected to expand at a prominent CAGR, owing to the increasing number of companies that are present in the region and changing trend in the banking sector.

On the back of these factors, the global gift card market reached US$ 378 Bn in 2019. According to PMR’s report, the market is estimated to register a healthy CAGR of 13% during the forecast period of 2020-2030.

Covid-19 Impact on Gift Card Market

The Covid-19 outbreak, which started in China, has now spread all over the world. Almost every country has reported cases, but the burden is asymmetrically distributed. Countries in Western Europe have seen the number of new cases plateau or begin to decline, and are debating the right approach about reopening their economies. Some countries appear to be at the peak of infection, and are urgently building the capacity of their health systems. Businesses across the world might require to use new communication channels, such as mobile messaging, to operate. Except for essential products and services, all businesses have been temporarily closed. As per the World Economic Forum, U.S. and Eurozone economies are expected to recover full swing by 2023. The pandemic has an adverse impact on the sales of gift cards too. Countries are under lockdown situations, which restricts most physical store sales. However, China, which has started recovering from the Covid-19 effect, is expected to see a recovery in its economy by the end of Q3, 2020. In the most optimistic scenario, online sales will go down after the economy’s recovery as physical sales pick pace.

Scenario 1 (Muted Recovery)

Scenario 2 (Virus Contained)

2020 GDP Growth

% Change

Time To Return To Pre-Crisis

Quarter

2020 GDP Growth

% Change

Time To Return To Pre-Crisis

Quarter

China

-2.7%

Q2-2021

-0.4%

Q4-2020

USA

-2.7%

Q1-2023

-2.4%

Q3-2020

World

-4.7%

Q3-2022

-1.5%

Q2-2020

Eurozone

-9.7%

Q3-2023

-4.4%

Q1-2021

Key Takeaways of Global Gift Card Market Study

  • The global gift card market represents a fairly consolidated competition landscape, where, a majority of key players maintain their strategic focus on new product launches and mergers & acquisitions.
  • PMR identified North America as the largest market for gift cards in 2019, followed by East Asia.
  • Increasing popularity of restaurant gift cards, as they are convenient and easily redeemable, is a factor expected to drive the growth of the related segment over the forecast period.
  • Adoption of e-Gifting is increasing owing to advantages such as convenience, easy availability, and customization benefits.
  • Demand for miscellaneous closed loop gift cards is increasing in sectors such as beauty services, including spas as well as for entertainment.
  • Adoption of retail closed loop gift cards is rising owing to increasing number of shopping malls and organized retail.

“The market in North America is at a stagnancy stage, due to the presence of a large numbers of players in the region. On the other hand, developing countries are estimated to hold a significant share in the global gift card market over the coming years. Investing in product innovation is a strategy that players could follow to stay ahead of the competition,” says a PMR analyst.

View Report Table of Contents, Figures, and Tables

Increasing Trend of Selling Gift Cards through Mobile Apps and Websites

Key players in the gift card market are showing keen interest in selling gift cards through their own or other company websites and mobile apps. For example, in 2017, Early WARING SERVICES COMPANY, under the name Zelle, launched an app to increase its sales in the gift card market across the globe, in terms of volume.

The trend of incentive-based gift cards is being adopted by multiple companies. This is fueling the growth of the gift card market, and is expected to register new growth opportunities for existing and new players in the market during the forecast period. Furthermore, leading companies are expanding their businesses through mergers, acquisitions, and collaborations, in a bid to seize a prominent share in the global gift card market. Acquisition of mobile app companies, e-Commerce companies, and others have significantly helped companies increase their online sales across the world.

PMR’s report underlines groundbreaking insights into the competitive scenario of the gift card market, along with highlights of differential strategies used by manufacturers. Some of the key players identified across the value chain in the global gift card market include Amazon.com Inc., Apple Inc., Best Buy Co., Inc., Blackhawk Network Holdings, Inc., Edge Loyalty Systems Pty Ltd., Gyft, InComm, National Gift Card Corp., QwikCilver Solutions, Starbucks Corporation, Target Corporation, and Wal-mart Stores, Inc., and others.

Know More about Gift Card Market Report Inclusions

Persistence Market Research published a new market report on the gift card market, covering global industry analysis of 2015-2019 and forecasts for 20202030. This report on the gift card market provides compelling insights on the basis of sales channel (online and offline), end user (business and individual), product (universal accepted open loop, restaurant closed loop, retail closed loop, and miscellaneous closed loop), and merchant type (restaurants, department stores, grocery stores, supermarkets/hypermarkets, discount stores, coffee shops, entertainments, salon/spa, book stores, home decor stores, gas stations, visa/master card/ American express gift card, and others), across seven regions. The report also includes forecast factors and vital macroeconomic factors that are anticipated to boost the growth of the global market. The report also addresses restraints that are projected to hinder the growth of the gift card market, along with the latest trends and potential opportunities in the market.

For additional information on how the gift card market will shape up in the near future, write to the team of expert research analysts at media@persistencemarketresearch.com

About Consumer Goods Division at Persistence Market Research

The Consumer Goods team at Persistence Market Research helps clients from all over the globe with their unique business intelligence needs by offering expert analysis, actionable insights, and strategic recommendations. With a repertoire of over 1,000 reports and 1 million+ data points, the team has analyzed the consumer goods industry lucidly in 50+ countries for over a decade. We provide end-to-end research and consulting services; reach out to explore how we can help.

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