July 12, 2024
Gift Card Market

Global Gift Card Market is Estimated to Witness High Growth Owing to E-commerce Boom and Increasing Digitalization

The global gift card market is estimated to be valued at US$ 400 billion in 2018 and is expected to exhibit a CAGR of 10% over the forecast period of 2019-2027, according to a new report published by Coherent Market Insights. The market is witnessing high growth due to the increasing popularity of e-commerce and the rapid growth of digitalization.

Market Overview:
The gift card market offers a convenient and flexible alternative to traditional gifting, as it allows the recipient to choose their desired product or service. This market includes various gift cards for major brands such as Apple Inc., Amazon.com Inc., Best Buy Co., Inc., Starbucks Corporation, Target Corporation, and Wal-Mart Stores, Inc. These gift cards can be used for online or offline purchases, making them highly versatile and appealing to customers.

Market Dynamics:
The market is driven by two main factors – the boom in e-commerce and increasing digitalization. Firstly, the rise of online shopping platforms has transformed the gifting experience, making it easier for consumers to purchase gift cards and send them directly to the recipient’s email or mobile device. This convenience has led to a substantial increase in the adoption of gift cards.

Additionally, the growing trend of digitalization has further propelled the gift card market. As more consumers rely on smartphones and prefer digital transactions, gift cards have become a popular choice due to their digital delivery options. Digital gift cards can be easily redeemed through mobile apps or online platforms, providing a seamless experience for both customers and retailers.

Segment Analysis:
Among the various segments in the gift card market, digital gift cards dominate due to their convenience and flexibility. Digital gift cards can be easily purchased, personalized, and sent directly to the recipient’s email or mobile device, eliminating the need for physical cards. Moreover, digital gift cards offer a wide range of customization options, enabling customers to add personalized messages or even upload photos.

PEST Analysis:
Political: The gift card market is minimally affected by political factors, as the sale and usage of gift cards are not heavily regulated by governments.

Economic: The economic factors impacting the gift card market mainly revolve around consumer spending. During periods of economic growth, consumers are more likely to purchase gift cards as gifts or for personal use, boosting market demand.

Social: Gift cards are widely accepted and appreciated as a gifting option across various social groups. They cater to the growing trend of personalization and convenience in gift giving.

Technological: The increasing prevalence of digitalization and technological advancements has revolutionized the gift card market. Digital gift cards, mobile apps, and online platforms have significantly contributed to the market’s growth.

Key Takeaways:
The Global Gift Card Market Growth is expected to witness high growth, exhibiting a CAGR of 10% over the forecast period. This growth is primarily driven by the increasing popularity of e-commerce and the rapid growth of digitalization in the market.

In terms of regional analysis, North America is the fastest-growing and dominating region in the gift card market. The region has witnessed a significant rise in online shopping, with consumers preferring digital transactions. This has fueled the demand for gift cards as a preferred gifting option.

Key players operating in the global gift card market include Apple Inc., Amazon.com Inc., Best Buy Co., Inc., Starbucks Corporation, Target Corporation, and Wal-Mart Stores, Inc. These companies offer a wide range of gift card options and have a strong presence both online and offline.

In conclusion, the gift card market is experiencing significant growth due to the convenience and flexibility it offers to customers. The rise of e-commerce and increasing digitalization have propelled the market forward, making gift cards a popular choice for gifting purposes. With the industry expected to witness a CAGR of 10% over the forecast period, key players and consumers alike are set to benefit from the continued growth of the gift card market.