Gift Cards Market Trends

Growth Drivers

• Increase in digital gifting options: The increasing number of social media users due to high internet penetration has boosted a variety of digital gifting options such as gift cards. This has promoted several gift card services and products including merchants and enterprises. According to a report in 2024, there are more than 5.15 billion users of social media globally, with an annual growth of about 5.6%. Moreover, gift cards are also used as marketing on social media as this is one of the most used promoting methods used by various industries and companies.
  
  Moreover, the usage of digital gifting options is projected to be a simple and practical way for customers to buy presents as they can be purchased both, online and in-store. A report in 2022 estimated that the retail sales of digital gift cards surpassed the previous sales by 106%. In addition, the market for gift cards is being driven primarily by consumers' preference for experiences over material gifts and by the growing use of gift cards as incentives and rewards.
• Demand for personalized gifting options: Personalized messages and unique designs are common features on gift cards, with this feature, givers can select themes, images, or graphics that go well with the occasion or the recipient's preference. A survey done by Research Nester in 2024 concluded that personalized and customized gifting is popular in more than 55% of companies. Furthermore, gift givers can further tailor the gift card with these design options to the recipient's style, which will improve the gift's overall presentation and impact. The 3D printing share has increased, augmented by the rising personalized technology in gifting.
  
  Additionally, a survey conducted on about 200 Americans in 2020 projected that about 51% of the people wait till the last minute to purchase a gift. Gift givers can select a card from a merchant that holds special meaning for the recipient or select a design that is appropriate for the occasion to personalize the gift-giving experience. To make them even more attractive as personalized gift options, some gift cards now have customizable features like customized phrases or packaging. This is expected to boost the revenue share.

Challenges

• Lack of reliability: Gift cards are prone to fraud and theft, particularly if they lack security features or correct activation procedures. People may fall victim to fraud or theft as a result of insufficient consumer protection, losing the value displayed on their card and being unable to retrieve it again.  Buyers and receivers of gift cards may be frustrated by technical faults or errors that arise during the activation, redemption, or balance-checking procedure.
• Limited acceptance of gift card: Customers may be less likely to purchase gift cards in the future or recommend them to others if they have difficulty using or redeeming them due to a lack of information about their activation in numerous regions.