Gift Cards Market 2022 | Growth Strategies, Opportunity, Challenges, Rising Trends and Revenue Analysis 2030

The latest market report published by Credence Research, Inc. “Global Gift Cards Market: Growth, Future Prospects, and Competitive Analysis, 2022 – 2030. Gift Cards Market is projected to increase at a significant CAGR of 10.46% in the coming years. In 2022, the global gift cards market was valued at USD818.52 Million and is projected to reach USD 1897.46 Billion by 2030. The gift card market has seen exponential growth over the last decade, becoming an essential segment of the retail and e-commerce industry. Originating as simple prepaid cards for specific stores, this market has evolved into a diverse range of options, including digital cards, reloadable cards, and those that cater to specific experiences or services. Major holidays, birthdays, and other special occasions continue to fuel the demand for gift cards as they are seen as a convenient gifting solution, allowing recipients the freedom to choose their desired product or service. Furthermore, the rise of digitalization and the proliferation of smartphones have paved the way for e-gift cards, which can be sent and redeemed electronically, providing instantaneous gifting opportunities and reducing the need for physical distribution. This digital shift is particularly evident among younger consumers, who value speed, convenience, and personalization. However, the market isn't without its challenges. Concerns around gift card fraud, the potential for unspent balances, and the impersonal nature of a gift card, compared to traditional gifts, are some issues consumers face. Nevertheless, many businesses find gift cards beneficial as they often lead to additional spending beyond the card's value and can be a tool for brand promotion and customer loyalty. Gift Cards Market Dynamics- 1. Drivers: Convenience: Gift cards offer a hassle-free gifting solution, eliminating the stress of selecting the 'perfect' gift. Digital Advancements: With the proliferation of smartphones and e-commerce, digital gift cards, which can be purchased, sent, and redeemed online, have gained significant traction. Promotional Activities: Businesses often use gift cards for promotional purposes, offering them as rewards or incentives, which in turn drives sales and customer loyalty. Seasonal Demand: Festive seasons, holidays, and special occasions boost the demand for gift cards annually. 2. Restraints: Impersonal Perception: Some view gift cards as a less personal or thoughtful gift option compared to traditional presents. Unused Balances: A significant percentage of gift cards remain partially or wholly unused, leading to potential consumer dissatisfaction. Regulatory Challenges: In some regions, the regulatory environment around expiry dates and unused balances can be restrictive for businesses. 3. Opportunities: Customization: Personalized and customizable gift cards, both in design and value, offer a unique selling point. Expansion to New Segments: Emerging markets, as well as untapped sectors like healthcare, wellness, and education, can offer new avenues for growth. Subscription Services: Integrating gift cards with popular subscription-based services can drive their demand further. 4. Threats: Fraud: The gift card market is susceptible to fraud, especially in the digital realm. Scammers may exploit digital cards through hacking, counterfeit cards, or online scams. Market Saturation: As the gift card market continues to grow, there's a potential risk of over-saturation, leading to reduced effectiveness as a promotional tool or loyalty strategy. 5. Trends: Experiential Gift Cards: Rather than just retail, there's a growing trend towards gifting experiences, like spa days, adventure activities, or dining experiences. Mobile Wallet Integration: Integrating gift cards with mobile wallets or apps can enhance user experience, making the gifting and redemption process smoother. Sustainability: Eco-conscious consumers are seeking sustainable options. Digital gift cards or those made from eco-friendly materials can appeal to this demographic. Browse 220 pages report Gift Cards Market By Material Merchant Type (Restaurants, Department Stores, Grocery Stores, Supermarkets/Hypermarkets, Discount Stores, Coffee Shops, Entertainments, Salons/Spa, Book Stores, Home Décor Stores, Gas Stations, Visa/Master Card/American Express Gift Cards, Others) By Merchant Type (Universal Accepted Open Loop, Restaurant Closed Loop, Retail Closed Loop, Miscellaneous Closed Loop, E-Gifting - Growth, Future Prospects & Competitive Analysis, 2016 – 2030)- https://www.credenceresearch.com/report/gift-cards-market Gift Cards Market major players- Amazon: One of the world's largest e-commerce platforms, Amazon offers gift cards for its vast array of products and services. Apple: With its Apple Store gift cards and App Store & iTunes gift cards, Apple has a significant presence in the digital gift card space. Walmart: The retail giant offers both physical and digital gift cards for it