Home / Technology & Media / Gift Cards Market By Type (Open Loop, Closed Loop, E-gifting), By Merchant Type (Department Stores, Restaurants, Food Supermarkets, Coffee Shops, Discount Stores, Entertainment and Hotels) – Growth, Future Prospects and Competitive Analysis, 2018 – 2026

Gift Cards Market By Type (Open Loop, Closed Loop, E-gifting), By Merchant Type (Department Stores, Restaurants, Food Supermarkets, Coffee Shops, Discount Stores, Entertainment and Hotels) – Growth, Future Prospects and Competitive Analysis, 2018 – 2026

Published: Feb 2018 | Report Code: 58981-02-18

Gift cards market set to witness an unprecedented growth complimented by its increasing adoption across the corporate sector

Gift cards market growth has been phenomenal since the past few years due to the fact that it facilitates the recipient to make a purchase of his/her choice. Gift cards market expected to reach US$ 750.31 Bn by 2026, with 10.1% CAGR during the forecast period from 2018 to 2026. This growth is by large contributed by the growing popularity of gift cards in the corporate sector. Moreover, growing internet penetration supporting e-gifting is an important factor influencing the market growth positively. Gift card, also referred to as gift voucher or gift certificate or gift token, is usually issued by a bank or a retailer and stores as a prepaid money value to be used as an alternative to real cash. Marketers or retailers issue gift cards to customers in order to entice them to return to the store for future purchase. This further acts as promotional strategy for retailers and marketers. In general, gift cards does not facilitate cashing out and may have an expiry date. Gift cards have become popular considering the fact that giving cash as a gift is usually regarded socially inappropriate.

Market Synopsis

Gift Cards Market

E-gifting propelling the gift cards market growth

Closed loop gift cards segment led the overall gift cards market in 2017. The segment accounted for over 55% of total market value in 2017. Closed loop gift card is used to make purchases from a single company and has logo of the company where it is usable. It does not have logo of any major payment processors such as MasterCard or Visa. The closed loop gift cards, though being the largest segment is facing stiff competition from open loop gift cards. However, in order to stay competitive, the closed loop card issuers are focusing on expansion of their participating merchant network. Open loop gift cards segment expected to register a high growth during the forecast period. Open loop gift cards have gained preference as it facilitates the recipients to have multiple destinations to shop from. Another prominent factor contributing to open loop gift cards segment growth is enhanced security. As these cards can be used to purchase from multiple retailers, even in case of bankruptcy of a retailer, it can be used elsewhere. This prevents the gift card from becoming redundant. Considering these factors, the segment growth expected to remain significant in the following years. Currently, e-gifting market is still in its nascent stage and evolving at a rapid pace. It is expected to emerge as the fastest growing segment during the forecast period owing to its higher convenience. These cards can be sent instantaneously via e-mail thereby eliminating the concern of losing it, as in the case of physical gift cards.

Gift Cards Market

Emergence of gift cards as a popular holiday present in the U.S. driving the overall North America gift cards market

The global gift cards market is dominated by North America, contributing to more than 45% of the overall market value in 2017. North America is among the first regions to widely use gift cards. Gift cards are the most popular type of holiday present in the U.S., a factor complimenting the gift cards market growth in the nation. Moreover, demand for gift cards has witnessed an unprecedented rise during occasions such as Christmas and birthdays in recent years, a factor further complimenting the market growth. Thank you gift, graduation, baby shower and Mother’s day are some other popular occasions for which consumers are increasingly buying gift cards. Amazon, Walmart, iTunes and Giant Eagle are amongst the leading retailers offering gift cards in the region. Further, Asia Pacific is set to emerge as the most promising market for gift cards in the years to come. Market growth in the region expected to remain the highest during the forecast period due to factors such as improving lifestyle coupled with rising net disposable income. A continuously widening consumer base and increasing popularity of gift cards would ensure high market growth in Asia Pacific through the forecast period.

Gift Cards Market

Promising outlook set to attract a large number of players in the years to come

With gift cards market witnessing an unprecedented growth, the existing players have enormous growth potential in the years to come. One of the common strategies amongst players in the gift card market is to enhance its presence through social media. Starbucks has always remained in the forefront in this context and has been constantly using social media for e-gifting. The brand sends gift cards via Facebook, e-mail, Starbucks mobile app or physical mail. Similarly, WeChat, the most popular Chinese messaging app allows its users to send and receive gift cards. The company initiated this modern approach in 2013 by facilitating users to exchange virtual cash-filled red envelopes during occasions such as Chinese New Year.

Gift Cards Market

Historical & Forecast Period

2016 – Historical Year
2017 – Base Year
2018-2026 – Forecast Period

This research report presents the analysis of each segment from 2016 to 2026 considering 2017 as the base year for the research. Compounded Annual Growth Rate (CAGR) for each respective segments are calculated for the forecast period from 2018 to 2026.

Report Scope by Segments

Gift cards market report presents the current market dynamics along with quantitative analysis of the global market. The report elucidates the detailed outline of global gift cards market by categorizing the market in terms of type, merchant type, and geography. The objective of publishing this extensive research report is to aid the retailers, technology investors, gift card manufacturers and market stakeholders in making better decisions and strategic initiatives in the gift cards market.

Loop Type (2016–2026; US$ Bn)

  • Open Loop
  • Closed Loop
  • E-gifting

Merchant Segment (2016–2026; US$ Bn)

  • Department Stores
  • Restaurants
  • Food Supermarkets
  • Coffee Shops
  • Discount Stores
  • Entertainment
  • Hotels

Geography Segment (2016–2026; US$ Bn)

  • North America
    • United States
    • Canada
  • Europe
    • United Kingdom
    • Germany
    • France
  • Rest of Europe
    • Asia Pacific (APAC)
    • China
    • Japan
    • India
    • Rest of APAC
  • Rest of the World (RoW)
    • Middle East and Africa (MEA)
    • Latin America

Gift Cards Market

This research report further covers qualitative market analysis including key market drivers, restraints and trends to better understand the global gift cards market scenario. The market assessment factors are extensively explained in consideration with the current market condition across different geographies. This report further includes the graphical representation of the market players based on their strategies, business strength and product offering. Key players profiled in the report include National Gift Card Corp., Blackhawk Network Holdings, Inc., InComm Holdings, Inc., QwikCilver Solutions Private Limited, Edge Loyalty Systems Pty Ltd., First Data Corporation, Worldpay, Inc., TransGate Solutions, Buyatab Online, Inc., and ValuAccess Limited among others.

Key questions answered in this report

  • What was the global market size in 2017 and forecast for 2026?
  • What are the current market trends in the gift cards market and valuable opportunities for the players?
  • Which are the bestselling gift cards?
  • Which region expected to be the fastest growing?
  • How much will e-gifting constitute of the overall market at the end of the forecast period?
  • What are the key strategies adopted by the leading players in market?
  • What are the various purchase behaviors of customers?
  • What are the most important occasions driving the sales of gift card?

Chapter 1 Preface
1.1 Report Description
1.1.1 Purpose of the Report
1.1.2 Target Audience
1.1.3 USP and Key Offerings
1.2 Research Scope
1.3 Market Segmentation
1.4 Research Methodology
1.4.1 Phase I – Secondary Research
1.4.2 Phase II – Primary Research
1.4.3 Phase III – Expert Panel Review
1.4.4 Assumptions
1.4.5 Approach Adopted

Chapter 2 Executive Summary
2.1 Market Snapshot: Global Gift Cards Market
2.2 Global Gift Cards Market, By Type
2.3 Global Gift Cards Market, By Merchant Type
2.4 Global Gift Cards Market, By Geography

Chapter 3 Market Dynamics
3.1 Market Overview
3.1.1 Global Gift Cards Market Value and Growth, 2016 – 2026, (US$ Bn) (Y-o-Y %)
3.2 Market Drivers
3.3 Market Growth Inhibitors
3.3.1 Impact Analysis of Drivers and Restraints
3.4 Key Market Trends and Future Outlook
3.5 Attractive Investment Proposition
3.6 Competitive Analysis
3.6.1 Market Positioning of Key Vendors
3.6.2 Key Strategies Adopted by the Leading Players

Chapter 4 Global Gift Cards Market Analysis, By Type, 2016 – 2026
4.1 Market Analysis
4.2 Open Loop Gift Cards
4.3 Closed Loop Gift Cards
4.4 E-gifting

Chapter 5 Global Gift Cards Market Analysis, By Merchant Type, 2016 – 2026
5.1 Market Analysis
5.2 Department Stores
5.3 Restaurants
5.4 Food Supermarkets
5.5 Coffee Shops
5.6 Discount Stores
5.7 Entertainment
5.8 Hotels

Chapter 6 North America Gift Cards Market Analysis, 2016 – 2026
6.1 Overview
6.2 North America Gift Cards Market Analysis, By Type, 2016 – 2026
6.2.1 Market Analysis
6.3 North America Gift Cards Market Analysis, By Merchant Type, 2016 – 2026
6.3.1 Market Analysis
6.4 North America Gift Cards Market Analysis, By Region, 2016 – 2026
6.4.1 U.S.
6.4.2 Canada

Chapter 7 Europe Gift Cards Market Analysis, 2016 – 2026
7.1 Overview
7.2 Europe Gift Cards Market Analysis, By Type, 2016 – 2026
7.2.1 Market Analysis
7.3 Europe Gift Cards Market Analysis, By Merchant Type, 2016 – 2026
7.3.1 Market Analysis
7.4 Europe Gift Cards Market Analysis, By Region, 2016 – 2026
7.4.1 U.K.
7.4.2 Germany
7.4.3 France
7.4.4 Rest of Europe

Chapter 8 Asia Pacific Gift Cards Market Analysis, 2016 – 2026
8.1 Overview
8.2 Asia Pacific Gift Cards Market Analysis, By Type, 2016 – 2026
8.2.1 Market Analysis
8.3 Asia Pacific Gift Cards Market Analysis, By Merchant Type, 2016 – 2026
8.3.1 Market Analysis
8.4 Asia Pacific Gift Cards Market Analysis, By Region, 2016 – 2026
8.4.1 China
8.4.2 Japan
8.4.3 India
8.4.4 Rest of Asia Pacific

Chapter 9 Rest of the World (RoW) Gift Cards Market Analysis, 2016 – 2026
9.1 Overview
9.2 RoW Gift Cards Market Analysis, By Type, 2016 – 2026
9.2.1 Market Analysis
9.3 RoW Gift Cards Market Analysis, By Merchant Type, 2016 – 2026
9.3.1 Market Analysis
9.4 RoW Gift Cards Market Analysis, By Region, 2016 – 2026
9.4.1 Middle East & Africa (MEA)
9.4.2 Latin America

Chapter 10 Company Profiles
10.1 National Gift Card Corp.
10.2 Blackhawk Network Holdings, Inc.
10.3 InComm Holdings, Inc.
10.4 QwikCilver Solutions Private Limited
10.5 Edge Loyalty Systems Pty Ltd.
10.6 First Data Corporation
10.7 Worldpay, Inc.
10.8 TransGate Solutions
10.9 Buyatab Online, Inc.
10.10 ValuAccess Limited

List of Tables

TABLE 1 Market Snapshot: Global Gift Cards Market
TABLE 2 Impact Indicators
TABLE 3 Impact Analysis of Drivers and Restraints
TABLE 4 North America Gift Cards Market Value, By Type, 2016 – 2026 (US$ Bn)
TABLE 5 North America Gift Cards Market Value, By Merchant Type, 2016 – 2026 (US$ Bn)
TABLE 6 Europe Gift Cards Market Value, By Type, 2016 – 2026 (US$ Bn)
TABLE 7 Europe Gift Cards Market Value, By Merchant Type, 2016 – 2026 (US$ Bn)
TABLE 8 Asia Pacific Gift Cards Market Value, By Type, 2016 – 2026 (US$ Bn)
TABLE 9 Asia Pacific Gift Cards Market Value, By Merchant Type, 2016 – 2026 (US$ Bn)
TABLE 10 RoW Gift Cards Market Value, By Type, 2016 – 2026 (US$ Bn)
TABLE 11 RoW Gift Cards Market Value, By Merchant Type, 2016 – 2026 (US$ Bn)
TABLE 12 National Gift Card Corp: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Business Strategy Analysis, Recent Developments)
TABLE 13 Blackhawk Network Holdings, Inc.: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Business Strategy Analysis, Recent Developments)
TABLE 14 InComm Holdings, Inc.: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Business Strategy Analysis, Recent Developments)
TABLE 15 QwikCilver Solutions Private Limited: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Business Strategy Analysis, Recent Developments)
TABLE 16 Edge Loyalty Systems Pty Ltd.: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Business Strategy Analysis, Recent Developments)
TABLE 17 First Data Corporation: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Business Strategy Analysis, Recent Developments)
TABLE 18 Worldpay, Inc.: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Business Strategy Analysis, Recent Developments)
TABLE 19 TransGate Solutions: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Business Strategy Analysis, Recent Developments)
TABLE 20 Buyatab Online, Inc.: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Business Strategy Analysis, Recent Developments)
TABLE 21 ValuAccess Limited: Company Snapshot (Company Details, Geographical Presence, Product Portfolio, Business Strategy Analysis, Recent Developments)

List of Figures

FIG. 1 Global Gift Cards: Market Segmentation
FIG. 2 Global Gift Cards Market: Research Methodology
FIG. 3 Top-Down and Bottom Up Approach
FIG. 4 Global Gift Cards Market, By Type, 2017 (US$ Bn)
FIG. 5 Global Gift Cards Market, By Merchant Type, 2017 (US$ Bn)
FIG. 6 Global Gift Cards Market, By Geography, 2017 (US$ Bn)
FIG. 7 Global Gift Cards Market Value and Growth, 2016 – 2026, (US$ Bn) (Y-o-Y %)
FIG. 8 Attractive Investment Proposition
FIG. 9 Market Positioning of Key Players, 2017
FIG. 10 Global Gift Cards Market Value Contribution, By Type, 2017 & 2026 (%)
FIG. 11 Global Open Loop Gift Cards Market Value, 2016 – 2026, (US$ Bn)
FIG. 12 Global Closed Loop Gift Cards Market Value, 2016 – 2026, (US$ Bn)
FIG. 13 Global E-gifting Market Value, 2016 – 2026, (US$ Bn)
FIG. 14 Global Gift Cards Market Value Contribution, By Merchant Type, 2017 & 2026 (%)
FIG. 15 Global Gift Cards Market Value from Department Stores, 2016 – 2026, (US$ Bn)
FIG. 16 Global Gift Cards Market Value from Restaurants, 2017 & 2026 (%)
FIG. 17 Global Gift Cards Market Value from Food Supermarkets, 2016 – 2026, (US$ Bn)
FIG. 18 Global Gift Cards Market Value from Coffee Shops, 2017 & 2026 (%)
FIG. 19 Global Gift Cards Market Value from Discount Stores, 2016 – 2026, (US$ Bn)
FIG. 20 Global Gift Cards Market Value from Entertainment, 2017 & 2026 (%)
FIG. 21 Global Gift Cards Market Value from Hotels, 2017 & 2026 (%)
FIG. 22 North America Gift Cards Market Value, 2016 – 2026, (US$ Bn)
FIG. 23 Europe Gift Cards Market Value, 2016 – 2026, (US$ Bn)
FIG. 24 Asia Pacific Gift Cards Market Value, 2016 – 2026, (US$ Bn)
FIG. 25 RoW Gift Cards Market Value, 2016 – 2026, (US$ Bn)

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