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Gift card market analysis | Coherent Market Insights

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Gift card market analysis | Coherent Market Insights

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  1. Coherent Market Insights Market Research and Business Consulting Services https://www.coherentmarketinsights.com/ Covid-19 Impact Tracker

  2. GIFT CARD MARKET ANALYSIS • Gift Card Market, By Type (Universal accepted open loop, Restaurant closed loop, Retail closed loop, Miscellaneous closed loop, E-Gifting), By Merchant (Restaurant, Department store, Grocery stores/food supermarket, Discount store, Coffee shop, Entertainment, Others), and By Region (North America Europe Latin America  Asia Pacific  Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2019 – 2027 • The global gift card market is projected to reach around US$ 900 billion by the end of 2027, in terms of revenue, growing at CAGR of 10% during the forecast period (2019-2027).

  3. Drivers • Increasing penetration of smartphones coupled with the affordable data plans has increased the adoption of m-Commerce is projected to foster the market growth of gift cards. Consumers are rapidly downloading mobile apps such as Flipkart, Amazon, and eBay for online shopping as it offers the ability to browse more quickly and easily make purchases on-the-go is resulting in a growing number of consumers using online purchases. This factor is expected to propel the market growth of gift cards over the forecast period.

  4. The growing popularity of e-commerce that enables the user to use gift cards easily and exploring more products with easy purchases is projected to foster the market growth of gift cards. Moreover, online payment offer consumers to choose between digital and physical gift cards during online purchases. Furthermore, easy purchasing option for gift card online is another major factor attracting consumer to use online purchase thus fueling demand for gift cards which in turn driving the market growth. 

  5. Figure 1. Global Gift Card Market, Revenue Share (%), By Region, 2018

  6. Market Restraints • Some gift cards have an expiry date and the recipient must use that card within the mentioned expiry date on the card which is projected to hinder the market growth of the gift card. Some gifts cards are difficult to use for the person who is not aware of the benefits of gift cards and it also has few terms and conditions which is further anticipated to curb the market growth of the gift card over the forecast timeframe.

  7. Many gift cards are not used or half amount remains unredeemed, and this is termed as spillage or breakage of gift cards. This is happen because people losing or forgetting about their cards and are not aware of how and where to use these cards. The outstanding amount on these gift cards remained unearned revenue liability on balance sheet of company’s until customers redeem the cards and that are not redeemed go unclaimed property under the country’s respective state government under laws. This factor is expected to restrict the market growth of the gift cards.

  8. Market Opportunities • The growing popularity of digital gift cards which is attracting customers is projected to foster the market growth of gift cards. Digital gift cards offer companies to track a consumer’s buying behavior and use of redeem gift cards by the customer, which provide accurate information. Therefore, the digital gift card provides marketers to record data of the user as well as the receiver which can be used in personalize future promotions. This factor is estimated to augment the market growth of digital gift cards.

  9. Increasing penetration of innovative gift cards is gaining popularity among consumer is expected to augment the market growth of gift cards. Nowadays gift cards can be used more than once due to partial redeeming option, and the remaining balance can be carried forwards for future use. However, paper-based gift vouchers do not allow partial redemption. According to the Coherent Market Insights, companies such as Amazon also offer top-up gift cards. Therefore, the growing popularity of gift cards is accelerating the market growth.

  10. Figure 2. Global Gift Card Market – Opportunity Analysis

  11. Market Trends • The growing trend of using closed-loop gift cards as it has a prepaid amount is fueling the market growth of gift cards. Despite the easy availability of universal or open-loop gift cards, consumers still prefer closed-loop specialty gift cards as it is a convenient option during heavy sales shopping months and also allow consumer for personal use. Closed-loop gifts cards offer specialty gift cards, which enable users to plan their spending budget in a particular store. This factor is expected to foster the market growth of gift cards.

  12. Increasing the focus of players to introduce lottery cards is expected to propel the market growth of gift cards. For instance, in October 2015, Incomm, which is a prepaid card and payment solution provider, entered into a five-year contract with Scientific Games International, Inc., which is a technology-based product developer, to offer lottery gift cards in North America. However, these cards can only be redeemed by a person aged 18 years or older.

  13. Figure 3. Global Gift Card Market, Revenue Share (%), By Type, in 2018

  14. Competitive Section • Key players operating in global gift card market are Apple Inc., Amazon.com Inc., Best Buy Co., Inc., Starbucks Corporation, Target Corporation and Wal-Mart Stores, Inc.

  15. Few Recent Developments • Blackhawk Network Holdings, Inc. • In November 2015, Blackhawk Network Holdings, Inc. acquired DIDIX Gifting & Promotions Company, which is a leisure themed gift card and promotions providing Netherlands-based Company. This acquisition was aimed at providing new innovative gift cards and increasing the company’s geographical presence. • In January 2016, Blackhawk Network Holdings, Inc. acquired GiftCards.com, LLC, which is a digital and physical prepaid gift card solutions provider. This partnership was aimed at enhancing the E-commerce market presence of gift cards by Blackhawk Network Holdings, Inc.

  16. REQUEST SAMPLE • DOWNLOAD PDF BROCHURE • REQUEST CUSTOMIZATION • TALK TO ANALYST REFERENCE https://www.coherentmarketinsights.com/market-insight/gift-card-market-3444

  17. About Us: Coherent Market Insights is a global market intelligence and consulting organization focused on assisting our plethora of clients achieve transformational growth by helping them make critical business decisions. What we provide: • Customized Market Research Services • Industry Analysis Services • Business Consulting Services • Market Intelligence Services • Long term Engagement Model • Country Specific Analysis

  18. Contact Us: Mr. Shah Coherent Market Insights Pvt.Ltd. Address: 1001 4th Ave, #3200 Seattle, WA 98154, U.S. Phone: +1-206-701-6702 Email: sales@coherentmarketinsights.com

  19. THANK YOU! Kindly follow CMI Social Media Profiles for the latest company updates Facebook LinkedIn Twitter https://www.coherentmarketinsights.com/

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