The global gift card market, valued at $1,128.10 billion in 2023, is projected to reach $4,399.08 billion, growing at a CAGR of 16.3% during the period from 2024 to 2032, according to the Global Gift Cards Market Outlook.
The phenomenon behind this growth is not only the convenience of gift cards as a gifting option, but also reflects a significant shift in consumer consumption patterns and preferences.
Understand the reasons behind this growth:
In recent years, the gift card market has experienced notable growth, driven by a series of factors reflecting changes in consumer preferences and behaviors.
Gift cards offer a versatile and convenient solution for gifting friends and family, allowing the recipient to choose the gift according to their individual preferences.
This flexibility has been one of the main attractions of gift cards, providing freedom of choice and ensuring that the gift is something the recipient truly desires and will appreciate.
Furthermore, technological advancements have aided in the growth of this market, simplifying the purchase, delivery, and redemption processes through digital platforms and mobile applications. This streamlines the gifting process, making gift cards more accessible to a wider audience.
The convenience of acquiring and sending digital gift cards instantly via email or text message has significantly contributed to this trend. In fact, a survey conducted by Todo InComm indicates that 69% of consumers prefer the online environment when purchasing gift cards.
Discover the main areas of use:
From entertainment and leisure to health and urban mobility, gift cards have become a popular choice for gifting and enjoying a variety of products and services.
Exploring the main areas of use of gift cards is essential to understand the impact of these devices on the global market and identify opportunities for growth and innovation.
According to the Nosh portal, in 2021, there was a record of high demand for gift cards by consumers in the UK. This increase is mainly due to innovations in digital gift cards.
In the UK, the most used gift cards are from companies like Amazon, iTunes, Netflix, John Lewis, Sainsbury, Tesco, Google Play, Marks & Spencer, Morrison, and Asda. Check out some of the most important areas of using gift cards:
1. Entertainment:
Gift cards serve as a versatile tool for accessing various forms of entertainment. They are commonly used to purchase tickets for movies, live shows, concerts, theme parks, and other recreational activities, offering recipients the opportunity to enjoy memorable experiences and leisure time.
2. Gaming:
In the realm of video games and technology, steam gift card stand out as a popular choice. The cards allow users to purchase credits on online gaming platforms. This versatility caters to the diverse interests of gamers and technology enthusiasts, providing them with an enjoyable and seamless digital entertainment experience.
3. Technology:
Platforms like Amazon, Netflix and iTunes offer users the freedom to explore and purchase digital content such as movies, music, e-books and apps through gift cards. This not only increases convenience, but also allows for a personalized entertainment experience tailored to the recipient’s individual preferences.
4. Health:
As the importance of health and wellness continues to grow, gift cards are increasingly used to support related pursuits. Recipients can utilize gift cards to access a variety of health and wellness products and services, including spa sessions, gym memberships, yoga classes, and other relaxation and personal care treatments.
5. Transportation:
With the rise of shared transportation services such as Uber and Lyft, gift cards have emerged as a convenient means of providing safe and reliable rides to recipients. Whether for daily commutes, travel, or special occasions, transportation gift cards offer flexibility and peace of mind, allowing recipients to conveniently access transportation services as needed.
Check out 10 benefits of gift cards and Steam gift cards:
1. Flexibility: Gift cards offer flexibility, as they allow the recipient to choose what they want to purchase from the product catalog available in the store or platform. This ensures that the gift is something the recipient truly wants and will appreciate.
2. Convenience: Gift cards are easy to purchase and use. They are available in many physical and online stores, allowing shoppers to purchase them easily. Additionally, digital gift cards can be redeemed instantly without needing to wait for physical delivery.
3. Personalized gift: Gift cards demonstrate thoughtfulness by allowing the recipient to choose what interests them most, rather than receiving something generic or unwanted.
4. Security: When using gift cards, recipients do not need to provide sensitive financial information, reducing the risk of fraud or identity theft. This provides a safer shopping experience for both the buyer and the recipient.
5. Affordability: Gift cards are available in different denominations to suit different budgets. This makes them accessible to people of all income levels.
6. Easy to send: Digital gift cards can be sent instantly via email or text message. This makes it easier to deliver the gift to distant friends and family.
7. No expiration date: Many gift cards have no expiration date, allowing the recipient to use them when it is most convenient for them, avoiding the stress of having to spend the amount within a set period of time.
8. Promotions: Some stores offer discounts or bonuses when purchasing gift cards, which can allow the buyer to save on future purchases. This can encourage the recipient to spend it more quickly.
9. Incentive for new users: Steam gift cards can serve as an incentive for new users to try the platform, especially if they are interested in computer games. By receiving a Steam Gift Card, users have the opportunity to explore a wide variety of games and additional content.
10. Control spending: Gift cards can be a useful tool for parents to teach financial responsibility to their children. This can help young people develop healthy financial habits and learn to manage their money effectively.
Given the significant growth of the global gift card market, it is evident that these devices play a significant role in the current economic landscape. In addition to offering convenience, versatility, and a wide range of gift options.