June 18, 2024
Gift Card Market

Gift Card Market driven by rise in E-gift Cards is estimated to reach US$1000 billion by 2030

The gift card market has witnessed significant growth in the past decade owing to the versatility and convenience offered by gift cards. Gift cards can be used as paper cards or e-gift cards that can be sent digitally. They are available in various denominations and themes suitable for different occasions like birthdays, anniversaries, holidays or corporate gifts. Gift cards provide users flexibility to purchase products of their choice from a wide range of retail stores, apparels, restaurants, online stores or for bill payments. The global Gift Card Market is estimated to be valued at US$800 billion in 2030 and is expected to exhibit a CAGR of 10 % over the forecast period 2028-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The gift card market has evolved over the years with the rise in digital technologies. One of the key trends gaining traction is the growth of e-gift cards. E-gift cards are purchased and delivered online via email. They provide added convenience as they can be used from anywhere and do not require shipping. Additionally, e-gift cards are environment friendly as they eliminate paper waste. It is estimated that sales of e-gift cards will rise by 20% annually owing to increased adoption of smartphones and popularity of digital payments. While paper gift cards continue to dominate current sales, e-gift cards are expected to account for over 50% of total gift card sales by 2030.

Porter’s Analysis
Threat of new entrants: Low barrier to entry means threat is high. However, established players have strong brands and distribution networks.
Bargaining power of buyers: Buyers have moderate to high bargaining power due to availability of substitute products. Gift cards from competitors can easily replace those from certain brands.
Bargaining power of suppliers: Retailers have moderate bargaining power over suppliers as there are many suppliers. However, suppliers of specific luxury and niche products may wield more influence.
Threat of new substitutes: Threat of substitutes is moderate as alternatives like gift cheques, cash gifts easily replace conventional gift cards. Cryptocurrencies and digital wallets are emerging substitutes.
Competitive rivalry: Intense as market comprises both giant retailers and small vendors. Pricing wars and marketing campaigns are common to drive customers towards specific brands or occasions.

Key Takeaways
The Global Gift Card Market Demand is expected to witness high growth over the forecast period of 20 years.

Regional analysis: North America dominates the market currently due to high adoption of digital payments and gift cards. Asia Pacific is expected to grow the fastest owing to rising disposable incomes and festivals in countries like India, China etc.

Key players operating in the gift card market are Amazon, Walmart, Starbucks, Target, iTunes and other giants such as Kohl’s, Lowes and Home Depot. Emerging digital wallets from Paytm, Google Pay and PhonePe are also providing gift cards.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it