Gift Cards Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The gift-card market is expected to grow significantly, with a market size of $ 444 billion in 2024, expected to reach $ 740 billion by 2035. The annual growth rate is 4.88 percent from 2025 to 2035, indicating that the demand for gift cards will continue to grow in the future. The emergence of digital payment solutions and the popularity of e-gift cards will drive this growth. The convenience and flexibility of gift cards have become the first choice of consumers, and they are also the first choice of business gifts and bonuses. The convenience of technology makes it easier for consumers to use and buy. The convenience of using mobile wallets and digital platforms also makes it easier for consumers to buy and use gift cards, and thus drives the market. Amazon, Blackhawk, and InComm are all active in the industry, and they have established a sound and diversified business structure through innovation and strategic cooperation. The emergence of new business models such as retail collaboration and personalization is expected to drive the market. The gift card industry is expected to continue to develop, driven by technological development and changing consumer behavior.

Regional Market Size

Regional Deep Dive

The Gift Card Market is growing dynamically in many regions, mainly due to the increasing popularity of digital solutions and the convenience of gifting. North America is characterized by a high penetration of e-gift cards and a robust retail landscape, while Europe is characterized by a mix of traditional and digital gift cards influenced by cultural gifting practices. Asia-Pacific is growing rapidly, especially in emerging economies, where digital payment solutions are gaining traction. Middle East and Africa are seeing a slow but steady growth in gift cards, driven by a young population and a growing retail sector. Latin America is also growing as e-commerce and mobile payment platforms are expanding.

Europe

• The European market is witnessing a surge in personalized gift cards, with companies like Giftcards.com and Loop Commerce innovating in customization options to enhance consumer engagement.
• The implementation of the EU's Payment Services Directive 2 (PSD2) is fostering a more competitive environment for digital payment solutions, positively impacting the gift card market.

Asia Pacific

• In Asia-Pacific, the growth of mobile wallets and digital payment platforms, such as Alipay and WeChat Pay, is driving the adoption of gift cards, particularly in China.
• The increasing popularity of online shopping during festivals and holidays has led to a rise in demand for gift cards, with local retailers and e-commerce platforms launching targeted campaigns.

Latin America

• In Latin America, the expansion of e-commerce platforms like MercadoLibre is driving the popularity of gift cards, as consumers seek convenient gifting options.
• Cultural events and holidays, such as Christmas and Dia de los Muertos, are increasingly being celebrated with gift cards, reflecting a shift in gifting practices.

North America

• The rise of e-gift cards has been significant, with companies like Amazon and Starbucks leading the charge, offering innovative digital solutions that cater to tech-savvy consumers.
• Regulatory changes in the U.S. regarding the expiration of gift cards have made them more consumer-friendly, encouraging more people to purchase and use gift cards.

Middle East And Africa

• The Middle East is seeing a rise in gift card offerings from local retailers, with companies like Carrefour and Majid Al Futtaim expanding their gift card portfolios to cater to a diverse consumer base.
• Government initiatives aimed at boosting e-commerce in Africa are encouraging the growth of digital gift cards, as more consumers gain access to online shopping.

Did You Know?

“In 2022, it was estimated that over 60% of consumers in the U.S. purchased at least one gift card, highlighting their popularity as a preferred gifting option.” — National Retail Federation

Segmental Market Size

Gift Cards are a dynamic market in the retail landscape. They are currently experiencing rapid growth, driven by changing customer preferences and technological developments. Digital Gift Cards, which are now available in a wide range of currencies, are becoming increasingly popular, and are seen as a convenient and instant gift solution. The trend towards gifting experiences rather than physical products is also driving growth. And the growth of e-commerce platforms has made Gift Cards more widely available, appealing to a wide range of consumers seeking flexible gifting options. Presently, the market is in a mature stage of development, with the likes of Amazon and Starbucks leading the way in the digital gift card sector. Retail, hospitality and entertainment are the main industries in which gift cards are used, primarily as a marketing tool and as a customer loyalty programme. Further developments, such as the rise of contactless payments and the growing focus on sustainability, with companies such as Target promoting ‘green’ gift cards, will also drive growth. Technology such as mobile wallets and the use of blockchain to facilitate secure transactions will continue to shape the sector’s development, improving customer experience and security.

Future Outlook

Gift cards have the potential to become the most profitable gift item for consumers. The gift card market is set to grow from a projected US$444.15 billion in 2024 to US$750 billion by 2035, at a compound annual growth rate (CAGR) of 4.88% between 2024 and 2035. The digital gift card market is set to grow in the future, with consumers favoring the convenience and flexibility of these cards. The rise of digital gift cards is driven by the proliferation of e-commerce and the advancement of mobile payment technology. This is further supported by the trend towards personalization, with consumers looking for more meaningful and individualized options for their recipients. Artificial intelligence and machine learning will be integrated into gift card platforms, enabling personalization and targeted marketing. Also, the rise of social media and influencer marketing will promote the use of gift cards, especially among younger consumers, who increasingly look to social media for gift ideas. The increasing availability of gift cards in different forms, such as in the form of e-vouchers and gift cards for various industries, such as retail, hospitality, and entertainment, will also promote their use. The gift card market will continue to evolve as new trends and technological developments arise. In this way, it is important for the industry to remain agile and to take advantage of these opportunities to meet consumers’ changing preferences.