The global gift cards market is on an upward trajectory, poised to witness remarkable growth over the next decade, according to a recent market analysis. The market, valued at US$818.2 billion in 2022, is projected to skyrocket to an astounding US$1,897.5 billion by the end of 2030, reflecting an impressive Compound Annual Growth Rate (CAGR) of 10.5% between 2023 and 2030.
Evolving Consumer Preferences and Technological Advancements Fuel Growth
The gift cards industry owes its remarkable expansion to evolving consumer preferences, heightened convenience, and unparalleled versatility. Originally introduced in the mid-1990s, gift cards gained substantial ground in the early 2000s and have been on a continuous growth trajectory ever since.
Several key factors contribute to this growth. First, gift cards empower recipients with the freedom to select products or experiences of their choice, enhancing the gift-giving experience. Second, the rise of e-commerce and digital payments has facilitated the widespread adoption of electronic gift cards, making them easily accessible and usable online. Moreover, businesses have recognized the strategic value of gift card programs in boosting sales, attracting new customers, and fostering brand loyalty. The gift cards market has not only adapted to changing consumer behavior but has also capitalized on emerging trends, establishing itself as a dynamic and continually expanding sector within the retail and finance industries.
Key Findings Highlight Market Momentum
The reports key findings include:
- Growing usage of gift cards as a means of customer satisfaction among online storeowners, retailers, and businesses is driving market growth.
- The gift cards market is expected to expand approximately 2.3 times its 2023 value by 2030.
- Technological advancements, such as personalized designs, mobile wallet integration, and blockchain-based solutions, are elevating the growth prospects of the gift cards market.
- The highest demand for gift cards is anticipated in the Business-to-Consumer (B2C) sector.
- Restaurants and discount stores continue to dominate demand for gift cards.
- North America is expected to lead the global gift cards industry throughout the forecast period.
Driving Forces of Growth
Several factors are propelling the gift cards markets impressive growth:
- Growing Perception of Gift Cards as a Unique and Thoughtful Gift
Gift cards have become a popular choice for gifting, offering recipients the freedom to use the stored value as they wish. They eliminate the hassle of choosing the perfect gift and have gained popularity, especially among millennials who are increasingly using digital wallets for transactions. Rising awareness of mobile wallets and the continuous growth of e-commerce activities are driving demand for gift cards globally. Rewards and incentives are also contributing to the increased demand for gift cards.
- Consumer Inclination Toward Gift Personalization
Gift cards come in three major categories: open loop, closed loop, and e-gifting. Closed loop gift cards, which are tied to specific brands, have held the highest share, with over 40% in 2022. However, the demand for e-gift cards is projected to grow at a CAGR of 11% between 2023 and 2030 due to the expansion of e-commerce, smartphone usage, and increased interest in personalized gifts.
Regional Growth Opportunities
- North America Takes the Lead: In 2022, North America accounted for over 45% of the global gift cards market, driven by a strong gift card culture in the United States. Post-pandemic, there has been an acceleration in e-gifting due to increased e-commerce activities and millennial engagement.
- Europe Captures a Significant Position: Europe is witnessing a shift toward omnichannel gift card solutions, driven by rising e-commerce and m-commerce activities. Countries such as Germany, the UK, France, and Italy are expected to exhibit impressive growth rates.
- Asia Pacifics Rapid Growth: Asia Pacific is predicted to be the fastest-growing region for gift cards. Factors such as a rapidly growing economy, increasing urbanization, and technological advancements are propelling the industrys growth in countries like India, China, Thailand, Vietnam, and Indonesia.
Competitive Landscape and Strategic Collaborations
Many key players in the gift cards market are focusing on local and regional markets. They are strategically collaborating to strengthen their presence across regions. Leading companies such as Amazon, Edenred, Apple, Best Buy, and Blackhawk are at the forefront of driving innovation and growth in the global gift cards market.
Conclusion
The global gift cards market is poised for an extraordinary journey of expansion, driven by evolving consumer preferences, technological innovations, and strategic collaborations. As gift cards continue to gain popularity, businesses and consumers alike are set to reap the benefits of this dynamic and versatile gifting solution.
Global Gift Cards Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030 (By Type Coverage, By Merchant Coverage, By Price Range Coverage, By End User Coverage, By Geographic Coverage and By Company) https://www.fairfieldmarketresearch.com/report/gift-cards-market
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COMTEX_440910095/2840/2023-09-25T13:12:28
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