What Is Driving the Explosive Growth of the Global Gift Card Market in 2025 and Beyond?

The global Gift Card Market has transitioned from a simple retail gifting option to a powerful economic engine that supports digital payments, omnichannel retail strategies, customer engagement, and corporate incentive programs. As digital transformation accelerates worldwide, the demand for gift cards—especially e-gift cards—continues to rise substantially. This market now plays a crucial role not just in consumer gifting, but also in corporate rewards, loyalty programs, employee engagement, and seamless digital commerce experiences.

Recent industry analyses indicate that the market is growing rapidly, with expectations that it will surpass trillions in value over the coming decade. This growth is driven by the expansion of e-commerce, mobile payment adoption, and consumer preference for convenient, flexible gifting options.

Below is a detailed, business-oriented overview highlighting market size, share, trends, opportunities, challenges, and the future outlook for stakeholders in the global gift card market.

Market Overview, Size & Growth Outlook

• The global Gift Card  market was valued at USD 1186.93 billion in 2024 and is expected to reach USD 3433.65 billion by 2032.
• During the forecast period of 2025 to 2032 the market is likely to grow at a CAGR of 14.20%, primarily driven by the increasing adoption of digital and e-gift cards across various sectors.

The worldwide gift card market is expanding robustly due to increasing consumer adoption of digital payments, rising e-commerce penetration, and growing use of gift cards as tools for customer loyalty. Businesses across sectors—from retail and hospitality to entertainment, fintech, and corporate HR—are leveraging gift cards to enhance revenue streams and customer engagement.

Key growth drivers include:

• Rising demand for contactless, cashless payment methods

• Rapid growth of online shopping and mobile wallets

• Increased adoption of corporate gifting and employee incentives

• Ease of issuing, tracking, and redeeming digital gift cards

• Strong seasonal and holiday demand

Because of these factors, the market is expected to grow at a double-digit compound annual growth rate (CAGR) over the next decade.

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Market Segmentation Analysis

1. By Card Type

Closed-Loop Gift Cards

• Accepted only at specific retailers or brands

• Popular for loyalty programs and brand-specific purchases

• Help retailers drive in-store and online traffic

Open-Loop Gift Cards

• Can be used across multiple merchants

• Offer higher consumer flexibility

• Function similarly to prepaid debit cards

• Growing rapidly due to wider acceptance

2. By Format

Physical Gift Cards

• Still widely used for traditional gifting

• Preferred for festivals, corporate events, and occasions

• Maintain a strong market share despite digital adoption

Digital / E-Gift Cards

• Fastest-growing segment

• Instant delivery via email, apps, or mobile wallets

• Eco-friendly and cost-effective

• Increasingly integrated with mobile payment systems

3. By End-User

B2C Consumers

• Personal gifting remains the largest segment

• Includes birthdays, anniversaries, holidays, seasonal occasions

B2B / Corporate

• Corporate gifting, employee rewards, and client incentives

• Recurring, stable, and less seasonal

• Rapidly expanding as businesses digitize HR and reward workflows

4. By Distribution Channel

Offline

• Includes supermarkets, hypermarkets, retail stores

• Still dominant in markets where in-person shopping prevails

Online

• Growing rapidly due to convenience and global reach

• Supported by e-commerce platforms, digital wallets, and brand apps

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Regional Market Share

North America

• Currently the largest market

• Strong adoption of digital payments and prepaid instruments

• Mature retail and e-commerce ecosystem

Asia-Pacific

• Fastest-growing region

• Rising smartphone penetration, digitalization, and young demographics

• Growing middle-class consumer base

Europe

• Expanding corporate gifting sector

• Strong adoption of digital wallets in several countries

Latin America, Middle East & Africa

• Growth supported by expanding retail infrastructure

• Increasing awareness of digital financial products

Key Trends Shaping the Gift Card Market

1. Rapid Expansion of E-Commerce and Digital Payments

The shift to online shopping, mobile wallets, and cashless payments is driving exponential demand for digital gift cards. Instant delivery and integration with mobile apps enhance convenience and customer satisfaction.

2. Personalization & Experience-Based Gifting

Consumers now prefer personalized gift cards with:

• Custom messages

• Branded themes

• Designs for festivals and corporate events

Experience-based gift cards for travel, entertainment, wellness, and hospitality are also rising in popularity.

3. Corporate & Employee Incentive Programs

Companies are adopting gift cards for:

• Employee recognition

• Client appreciation

• Sales incentives

• Loyalty programs

This segment provides consistent business throughout the year.

4. Integration with Mobile Wallets

Gift cards linked with digital wallets offer:

• Instant redemption

• Contactless payments

• Easy tracking and balance management

This drives higher usage frequency and customer convenience.

5. Sustainability and Eco-Friendly Gifting

Digital gift cards reduce plastic waste and packaging, aligning with global sustainability trends. More brands are promoting digital-first approaches to reduce environmental impact.

Market Opportunities

1. Digital-First Gift Card Platforms

Businesses can capitalize on the shift to mobile-driven e-commerce by offering seamless digital card issuance, wallet integration, and automated redemption systems.

2. Expansion in Emerging Markets

Asia-Pacific, Latin America, and parts of Africa present strong opportunities due to:

• Growing urbanization

• Expanding middle-class population

• Increasing smartphone access

• Digital payment reforms

3. Corporate Gifting Solutions

Companies seeking employee engagement tools present a significant growth opportunity. Offering customizable, bulk-purchase gift cards can unlock recurring revenue streams.

4. Cross-Platform & Multi-Merchant Gift Cards

Open-loop and multi-brand cards are increasingly preferred for their flexibility. Companies offering such solutions can gain competitive advantage.

5. Innovative Value-Added Services

Potential innovations include:

• Subscription-based gift cards

• Gamified rewards programs

• AI-powered personalized gifting

• Themed and seasonal digital cards

6. Enhanced Fraud Detection Systems

Opportunity exists for fintech and payment providers to develop advanced fraud prevention technologies to boost consumer trust.

Challenges & Restraints

Despite strong growth, businesses should be aware of certain limitations:

1. Unredeemed or Partially Used Cards

Many consumers forget to redeem gift cards, leaving unused balances, which can cause dissatisfaction and regulatory scrutiny.

2. Limited Acceptance in Some Regions

Small retailers or markets with low digital infrastructure may not accept all card types, slowing adoption.

3. Regulatory Compliance

Gift cards increasingly fall under financial regulations related to:

• Expiry rules

• Inactivity fees

• Anti-fraud measures

• Consumer protection

Staying compliant requires investment in systems and policies.

4. Fraud & Security Risks

Digital delivery can expose cards to fraud, unauthorized access, or resale scams if proper protections are not in place.

5. Awareness Gaps

In certain markets, consumers are unfamiliar with digital cards, limiting adoption.

Future Outlook

The gift card market is expected to undergo significant transformation in the coming decade. Key trends include:

• Digital cards dominating retail and corporate gifting

• Expansion of omnichannel redemption—usable across online and offline touchpoints

• Increased use of open-loop and multi-brand cards

• Integration of rewards, loyalty points, and gamification

• Growth of experience-driven gift cards such as travel, events, digital subscriptions

• Innovations in security and fraud prevention technologies

• Stricter regulations promoting transparency and consumer protection

Overall, the next decade will see the market become more digital, more personalized, and more embedded into corporate and retail ecosystems.

Strategic Recommendations for Businesses

To succeed in the evolving gift card landscape, companies should focus on:

1. Digital & Mobile-First Offerings

Enable instant delivery, mobile wallet integration, and easy redemption.

2. Omnichannel Flexibility

Allow consumers to buy and redeem gift cards across websites, apps, and physical stores.

3. Corporate Partnership Programs

Develop customized solutions for HR, sales teams, and enterprise clients.

4. Personalization Tools

Offer custom card designs, messaging, and themed collections.

5. Customer Education

Promote awareness on how to redeem and manage digital cards.

6. Advanced Security Features

Invest in anti-fraud technologies to build customer trust.

7. Expansion into High-Growth Regions

Tailor offerings for emerging markets with rising digital payment adoption.

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Conclusion

The global gift card market is growing rapidly and becoming an integral part of digital commerce, retail strategy, and corporate engagement. With increasing demand for flexible, digital-first gifting solutions, the industry is poised for strong expansion in the coming years. Businesses that embrace innovation—focusing on personalization, omnichannel experiences, corporate solutions, and mobile integration—can unlock significant opportunities and build long-term customer loyalty.