Gift Card Market - By Type (Open Loop, Closed Loop and E-Gifting), By Industry Vertical (Retail and Corporate Institutions), and By Region - Global Opportunity Analysis and Industry Forecast, 2020 – 2030

Gift Card is the mode of transfer in the form of gift or salary or incentives. This trend of transfer is utilized by employees, corporate bodies, and people from many other areas in the form of prepaid gift cards, gift vouchers for various beneficial reasons. This market for the corporate institution's segment is supposed to witness the highest growth rate during the forecast period. Christmas, birthdays, thank you gift, graduation, baby shower and mother's day are some other popular occasions for which consumers are increasingly buying it. Open-loop gift cards growing in popularity. E-gifting gaining in prominence. That cards have become more innovative with the fast evolution of smart phones and the internet as the use of modern technology. Marketing strategies create various ways for card lovers. Thus, the increase in the adoption of smart phones boosts this market by supplying many easy solutions to the customers. The Gift Card Market was valued at 725.51 million USD in 2020 and is expected to reach 3,200.5 million USD by 2030 growing at a CAGR of 16.0% during the forecast period. The open-loop segment is expected to grow at the highest rate during the forecast period.

Market Segmentation:

On the basis of type, the market is classified into open loop, closed-loop, and e-gifting. On the basis of Marchand type, the market is segmented into department stores, restaurants, food supermarkets, coffee shops, discount stores, entertainment and hotels. On the basis of industry verticle, the market is bifurcated into retail and corporate institutions. Geographic breakdown and analysis of each of the aforesaid segments includes regions comprising North America, Europe, Asia-Pacific, and RoW.  

Market Dynamics and Factors:

The major factor attributed to the growth of the global market is increasing demand for gift cards in the corporate sector, coming of e-commerce, Technological innovation in product offerings, rise in adoption for advanced payment solutions. In addition, an increase in application areas among end-users, growth associated with e-commerce and m-commerce industry, increased spending capacity of consumers. It result in additional loss of money, and the growing concern related to the use of plastic is restraining the market growth over the forecast period. The retail business segment contributed the higher share in 2016. This segment accounted for 431,833 million USD in 2016 and is projected to grow at the CAGR of 15.0% during the forecast period. However, this market for the corporate institution's segment is projected to grow at the greatest rate of 17.3%. Virtual cards are low cost as compare to plastic gift cards, have become popular in recent years. Rechargeable cards are also anticipated to give significant growth for the gift card industry. The major challenge of this market is security, fraud, and double-spending problem to integrate with this industry.

Geographic Analysis:

Europe is expected to continue to dominate the market in terms of value during the forecast period due to adequate technological development for the adoption of gift cards. The Europe gift cards market developed the highest share, valued at 246,983 million USD in terms of revenue in 2016. The Asia pacific gift cards market secondly dominating this market due to the growth of the retail industry, remarkable economic growth in Southeast Asia, India, & other economies and growth in trend of integrated cost technologies. Asia-Pacific is the highest revenue for the market owing to the increase in the adoption of cards among end-users and the presence of untapped demands in countries such as China, Japan, and Australia. Starbucks was one of the well-known brands revolutionizing the concept of cards in the US and its popularity has increased manifold all over the years.

Competitive Scenario:

Gift Card Market Report Scope