Digital Gift Card Trends and Forecast
The future of the global digital gift card market looks promising with opportunities in consumer goods, health wellness, restaurants and bars, travel & tourism, and media & entrainment markets. The global digital gift card market is expected to grow with a CAGR of 16.0% from 2024 to 2030. The major drivers for this market are the rise in the payments industryÄX%$%Xs use of cutting-edge technology, the increase in knowledge about digital payments worldwide, the explosion in smartphone adoption, and the rise in gift card use among financial institutions and companies.
Country Wise Outlook for the Digital Gift Card Market
The market for digital gift cards has expanded and transformed due to technological advancements and shifts in consumer behavior. The United States, China, Germany, India, and Japan are experiencing new trends in gift card distribution, personalization, and e-commerce implications, leading to greater interaction between consumers and businesses.
• United States: The U.S. market has seen a sharp increase in the adoption of digital gift cards, driven by the pandemic, which prompted more consumers to shop online. Retailers are offering more choices, including tailored solutions and online sales. Additionally, brand and digital wallet collaborations are making it easier for buyers to send gift cards.
• China: The digital gift card industry in China is growing rapidly, supported by the widespread use of mobile payment services like Alipay and WeChat. More consumers are purchasing digital gift cards for various celebrations, and companies are providing incentives to enhance their appeal. The social aspect of gifting is also gaining traction.
• Germany: The digital gift card market in Germany is growing, with a notable shift toward sustainability and resource efficiency. Brands like RedBox are introducing environmentally friendly card options, replacing physical cards with digital alternatives to reduce pollution. Furthermore, mobile apps are enhancing the purchasing and gifting process for consumers.
• India: In India, the digital sales penetration of gift cards is increasing due to improved internet access and smart device usage. Organizations are creating location-specific gift cards tailored to the Indian audience, considering various festivals and events. The rise of multi-brand platforms is also simplifying the gift card purchasing process, expanding the user base.
• Japan: In Japan, consumer behavior emphasizes the redeemability of digital gift cards. Retailers are utilizing QR codes for purchases, and gift cards are integrated with loyalty programs. Additionally, the trend of using gift cards for experiences beyond products is gaining popularity.
Emerging Trends in the Digital Gift Card Market
This is particularly noticeable in the increasing digital gift card sales. As the landscape of technology and consumers changes, this sector is poised to shift accordingly. These trends indicate growing demands for customization, ease, and eco-friendly options, thus contributing significantly to how consumers view and use gift cards.
• Personalization: Brands have launched initiatives to offer consumers outstanding personalized digital gift cards that enable them to insert messages, select designs, and input the values they want. This enhances the emotional aspect of spending, making the gift card more than just a promotional tool, thereby increasing interaction and utilization rates.
• Push Towards E-commerce: Digital gift cards are increasingly embedded within e-commerce platforms, allowing consumers to purchase and send gifts easily. This trend not only boosts sales for retailers but also improves the shopping experience for consumers, providing simple gift options.
• Social Gifting: The emergence of gifting features on social media networks, applications, and messaging apps is gaining momentum. Today, consumers can send gift cards to relatives and friends via these platforms in seconds, enhancing the fun of gift-giving.
• Increasing Focus on Sustainability: The rise in eco-conscious consumers forces brands to offer sustainable solutions like digital gift cards instead of physical ones. This change helps reduce plastic consumption and targets environmentally conscious consumers, thereby fostering brand loyalty.
• More Secure: As online transactions increase, security concerns must be addressed. Consumers are assured of their safety when using digital gift cards since brands are implementing advanced security measures, including two-factor authentication and secure payments.
As these trends unfold, the digital gift card market will transform, expediting market revolutions, optimizing consumer satisfaction, and aligning products with contemporary values like customization and sustainability.
Recent Developments in the Digital Gift Card Market
Recent developments in the digital gift card market align with evolving consumer behavior and preferences. These changes significantly impact the promotion and use of gift cards globally.
• Growth of Multi-Brand Sites: As this trend continues, multi-brand platforms for gift cards are growing rapidly, enabling consumers to select from multiple retailers. This trend encourages users to purchase, simplifying the gift-giving process and enhancing consumer satisfaction.
• Advanced Mobile Wallet Integration: The integration of mobile wallets with digital gift cards is becoming prevalent, making storage and usage easier. This trend creates a better environment for users and encourages them to adopt electronic payment methods, thus driving market growth.
• New Ways of Marketing: The promotion of digital gift cards is utilizing innovative methods, including influencer marketing and social media advertising. These approaches are particularly effective in capturing the interest of younger audiences who demonstrate higher engagement levels.
• Blockchain Technology Utilization: Some platforms are exploring the use of blockchain technology in transactions to enhance credibility for cardholders and merchants. This progress boosts consumer confidence and mitigates the risks of fraud.
• Emergence of Subscription Service-Based Gift Cards: New models for gift cards are emerging, allowing customers to buy a series of gift cards that can be used for specific services or products. This trend caters to the modern consumerÄX%$%Xs desire for quick and straightforward gift-giving.
These developments are driving change in the digital gift card market by promoting growth through innovation and addressing consumer needs in line with modern gift-giving trends.
Strategic Growth Opportunities for Digital Gift Card Market
The rapidly evolving digital gift card market presents numerous strategic development opportunities. Understanding these opportunities is essential for brands aiming to enhance their market presence.
• Corporate Gifting: The corporate gifting segment is a prime target for digital gift card usage, as organizations seek better solutions to appreciate their staff and clients. The convenience of corporate gift cards plays a significant role in fostering brand loyalty.
• Event-Based Gifting: Specific occasions, such as holidays and weddings, create a demand for gifts with minimal effort. This opportunity aligns with cultural norms, particularly in regions where gifting is prevalent.
• Loyalty Programs: The primary rationale behind loyalty programs is that customers using gift cards will become more loyal to the brand, reducing the likelihood of switching to competitors. Companies can also drive repurchases by using gift cards as rewards.
• E-commerce Partnerships: Selling and promoting exclusive online gift cards on e-commerce sites is another avenue for increasing brand revenue and visibility. Collaborations can leverage booming internet shopping habits to reach broader markets.
• International Gifting Solutions: Developing digital gift card solutions for international gifting opens new markets. It simplifies the process for people to buy gifts and send them across borders, appealing to expatriates and global communities.
These strategic growth opportunities are reshaping the digital gift card market, enhancing quality and creativity to meet consumer needs and improve market penetration.
Digital Gift Card Market Driver and Challenges
The digital gift card market faces various drivers and challenges, including technology, economics, and the political and legal environment. These factors help market players understand the market context.
Drivers:
• Increasing Penetration of E-commerce: The convenience of e-commerce has significantly boosted the digital gift card industry, increasing the number of retailers offering digital gift cards to meet consumer demand.
• Consumer Preference for Convenience: The availability of alternative gifting methods, such as digital cards, is driving revenue in the digital gift card sector. Consumers find buying and sending digital cards easier than purchasing physical gifts.
• Increased Mobile Usage: The rising adoption of smartphones and mobile payment applications supports the growth of the digital gift card market. Mobile wallets simplify the storage and redemption of gift cards, enhancing user experience.
• Customization and Personalization Trends: As gifting culture evolves, consumers demand personalized gifts, leading to increased interest in customizable digital gift cards. This trend encourages brands to offer choices that reflect individual preferences.
• Brand Loyalty Initiatives: Digital gift cards are being incorporated into loyalty programs, encouraging repeat purchases and increasing customer retention. This strategy fosters long-lasting relationships with consumers.
Challenges:
• Security Concerns: Growing concerns about data usage pose risks to the digital gift card market, as cybersecurity threats are prevalent. Brands must implement measures to ensure consumer trust.
• Market Saturation: Increased competition in the digital gift card market makes it challenging for brands to differentiate their products and foster brand loyalty.
• Regulatory Compliance: Companies face challenges adhering to regulations governing digital payments and gift cards. Compliance with these laws is critical for market entry and consumer trust.
These drivers and challenges influence the strategic thinking of brands and the choices consumers make, ultimately affecting the growth prospects of the digital gift card sector.
List of Digital Gift Card Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies digital gift card companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the digital gift card companies profiled in this report include-
• Apple
• Loop Commerce
• PayPal Holdings
• Blackhawk Network
• Walmart
• NGC
• InComm Payments
• Target Brands
• Amazon.com
• Fiserv
Digital Gift Card by Segment
The study includes a forecast for the global digital gift card by channel, transaction type, application, end use, and region.
Digital Gift Card Market by Channel [Analysis by Value from 2018 to 2030]:
• Brick and Mortor
• Digital
Digital Gift Card Market by Transaction Type [Analysis by Value from 2018 to 2030]:
• B2B
• B2C
Digital Gift Card Market by Application [Analysis by Value from 2018 to 2030]:
• Consumer Goods
• Health and Wellness
• Restaurants and Bars
• Travel and Tourism
• Media and Entertainment
• Others
Digital Gift Card Market by End Use [Analysis by Value from 2018 to 2030]:
• Retail Establishments
• Corporate Institutions
Digital Gift Card Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Digital Gift Card Market Insights
• Lucintel forecasts that, within the channel category, the digital will remain the larger segment over the forecast period due to robust internet connectivity and the widespread adoption of mobile devices.
• Within the application category, the consumer good will remain the largest segment.
• In terms of region, North America is expected to witness the highest growth over the forecast period due to increase in demand for digital gift cards, rapid digitization, and a sharp increase in the use of smart devices in the region.
Features of the Global Digital Gift Card Market
Market Size Estimates: Digital gift card market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Digital gift card market size by various segments, such as by channel, transaction type, application, end use, and region in terms of value ($B).
Regional Analysis: Digital gift card market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different channel, transaction type, application, end use, and regions for the digital gift card market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the digital gift card market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the growth forecast for digital gift card market?
Answer: The global digital gift card market is expected to grow with a CAGR of 16.0% from 2024 to 2030.
Q2. What are the major drivers influencing the growth of the digital gift card market?
Answer: The major drivers for this market are the rise in the payments industryÄX%$%Xs use of cutting-edge technology, the increase in knowledge about digital payments worldwide, the explosion in smartphone adoption, and the rise in gift card use among financial institutions and companies.
Q3. What are the major segments of digital gift card market?
Answer: The future of the global digital gift card market looks promising with opportunities in consumer goods, health wellness, restaurants and bar, travel & tourism, and media & entrainment markets.
Q4. Who are the key digital gift card market companies?
Answer: Some of the key digital gift card companies are as follows:
• Apple
• Loop Commerce
• PayPal Holdings
• Blackhawk Network
• Walmart
• NGC
• InComm Payments
• Target Brands
• Amazon.com
• Fiserv
Q5. Which digital gift card market segment will be the largest in future?
Answer: Lucintel forecasts that digital card will remain the larger segment over the forecast period due to robust internet connectivity and the widespread adoption of mobile devices.
Q6. In digital gift card market, which region is expected to be the largest in the next 5 years?
Answer: North America is expected to witness the highest growth over the forecast period due to increase in demand for digital gift cards, rapid digitization, and a sharp increase in the use of smart devices in the region.
Q.7 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the digital gift card market by channel (brick and mortor and digital), transaction type (B2B and B2C), application (consumer goods, health and wellness, restaurants and bars, travel and tourism, media and entertainment, and others), end use (retail establishments and corporate institutions), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Digital Gift Card Market, Digital Gift Card Market Size, Digital Gift Card Market Growth, Digital Gift Card Market Analysis, Digital Gift Card Market Report, Digital Gift Card Market Share, Digital Gift Card Market Trends, Digital Gift Card Market Forecast, Digital Gift Card Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.