Gift Cards Market Size, Share, and Trends 2025 to 2034

Gift Cards Market Size and Growth 2025 to 2034

The global gift cards market size was estimated at USD 1.10 trillion in 2024 and is predicted to increase from USD 1.24 trillion in 2025 to approximately USD 3.81 trillion by 2034, expanding at a CAGR of 13.24% from 2025 to 2034.

Gift Cards Market Key Takeaways

• North America dominated the global market with the largest market share of 46.71% in 2024.
• By type, the closed-loop gift cards segment contributed the highest market share of 39.54% in 2024.
• By type, the e-gift cards segment is expected to grow at a solid CAGR of 16.23% during the forecast period.
• By application, the closed-loop gift cards segment captured the biggest market share of 27.88% in 2024.
• By application, the e-gift cards segment is projected to grow at a solid CAGR of 15.42% during the forecast period.
• By type of consumer, the individuals (B2C) segment generated a major market share of 59.10% in 2024.
• By type of consumer, the businesses/corporate (B2B) segment is expected to expand at a solid CAGR of 14.61% during the forecast period.
• By distribution channel, the online sales segment has held the largest market share of 61.35% in 2024.
• By distribution channel, the offline sales segment is expected to expand at a solid CAGR of 9.18% during the forecast period.

U.S. Gift Cards Market Size and Growth 2025 to 2034

The U.S. gift cards market size was estimated at USD 397.65 billion in 2024 and is predicted to surpass around USD 1,183.27 billion by 2034 with a remarkable CAGR of 11.42% from 2025 to 2034.

North America held the largest share in 2024 in the gift cards market and is observed to sustain the position throughout the predicted timeframe. With its strong consumer culture, gift-giving is common in North America for various occasions, including graduations, weddings, holidays, and birthdays. Gift cards are becoming popular for these occasions because of their adaptability and simplicity. Retailers and companies frequently use gift card promotions and loyalty programs to attract customers. Retailers and gift card issuers profit from these schemes, encouraging consumers to buy and utilize gift cards.

The U.S. is a major contributor to the North American gift cards market. The increasing popularity of online services and mobile payment options has considerably increased the adoption of digital gift cards in the U.S. The increasing gift-giving trends and traditions in the U.S. reflect a transformation in the country’s values, particularly during the holidays and special occasions. Businesses in the country are increasingly focusing on improving employee engagement, boosting the demand for gift cards for incentive programs to boost employee loyalty.

Asia-Pacific is observed to be the fastest-growing in gift cards market during the forecast period. Consumer behavior is shifting in favor of digital transactions and convenience. Gift cards are a practical way to give something special to someone since they let the receiver select the goods or services they want. This is in line with the tastes of the region's tech-savvy consumers, especially the younger set, who are more favoring digital payment methods. The retail environment in Asia-Pacific has completely changed with the introduction of e-commerce platforms. Online shopping is increasingly popular among consumers as smartphones and internet connectivity become more widely used. The market for gift cards is expanding because e-commerce platforms frequently include gift cards in their promotional campaigns.  

India is expected to have a stronghold on the Asia Pacific gift cards market. There is a high demand for flexible and personalized gifts. The rise in consumer disposable income has increased the trend of gift-giving, especially during festive seasons like Diwali. With the rise of e-commerce, consumers in the region are increasingly preferring to send gifts electronically, boosting the demand for e-gift cards. 

• In September 2024, Tata Neu launched a "Gift Card Store” ahead of the festive season in India. This gift store provides customers with a variety of gifting options. The store features over 100 brands from various categories, including both Tata and non-Tata brands. 

Europe is observedt to witness a significant growth in the gift cards market during the forecast period. Gift card issuers and retailers now have more opportunities to reach a wider audience due to the expansion of cross-border e-commerce inside Europe. Gift cards are a practical way to send gifts overseas without requiring physical delivery or currency translation. With the growth of international e-commerce, gift cards are becoming an increasingly popular payment option. 

Market Overview

The gift cards market is an industry that revolves around the offering of prepaid cards or certificates to replace cash while buying at shops or establishments. Usually, these cards have a pre-loaded cash value that the bearer can use to buy products or services from the network of the issuing merchant. Gift cards are a business income stream because they are usually purchased in advance, even if the recipient doesn't use them immediately. As a result, sales during periods when consumer demand is highest, like the holidays, may increase.

Gift cards are popular for personal use as gifts for birthdays, holidays, and other occasions. They allow recipients the flexibility to choose their own gifts while still providing a thoughtful gesture from the giver. Retailers benefit from the sale of gift cards by generating revenue upfront, even if the recipient does not redeem the full value of the card. Additionally, gift cards can drive foot traffic to stores and encourage additional spending beyond the card's value.

• In May 2023, the gift card consulting division of Powerhouse Brands, one of the top consulting firms for the closed-loop gift card market, was acquired by TOTUS, a North American gift card issuer and program manager.

Gift Cards Market Growth Factors

• Consumers favor easy options such as purchasing digital gift cards in-person or online. 
• Gift cards for services like entertainment or vacation are more tempting since consumers are increasingly choosing experiences over material goods. 
• Open-loop gift cards may become more popular in the market and be accepted by many businesses. 
• Targeted marketing strategies catering to certain demographics can increase gift card sales, this acts as a driver for the gift cards market. 
• Companies use gift cards with loyalty programs and incentives to attract and keep consumers. 
• The industry can grow further by integrating digital payment platforms and mobile wallets.

Gift Cards Market Scope

Market Dynamics

Drivers

The rising popularity of personalized gift options

Gift cards frequently have customized designs in addition to personalized messages. This option enables gift givers to choose themes, pictures, or graphics that complement the recipient's preferences or the occasion. With these design options, gift givers can further customize the gift card to fit the recipient's style and tastes, enhancing the overall presentation and impact of the gift. These possibilities include a festive holiday motif, a colorful flower pattern, or a sleek and modern look. Thereby, the rising popularity of personalized gift solutions acts as a driver for the gift cards market. 

Popular choice for last-minute gifts

Even though gift cards come pre-loaded with a predetermined amount, there is still room for customization. To add a personal touch to the gift-giving process, givers can pick a card from a merchant with special meaning for the receiver or choose a design that suits the occasion. Some gift cards now come with customizable features like personalized phrases or packaging to further increase their attractiveness as a personalized gift option. The popularity of this gifting practice has been further encouraged by the advent of digital gift cards. The introduction of e-gift cards has made it unnecessary for customers to buy and ship physical cards because they can send and receive presents quickly via email or mobile devices. Tech-savvy consumers find this digital convenience appealing, and it fits nicely with the expanding trend of online purchasing. 

Restraint

Lack of reliability

Gift cards are prone to theft and fraud, particularly if they don't have the correct activation procedures or security features. In the absence of sufficient consumer protection, people could become victims of fraud or theft, losing the value recorded on their card and having no way to get it back. This danger discourages purchases and weakens customer confidence in the gift card market. Technical glitches or errors in the activation, redemption, or balance checking process can result in frustration for both gift card purchasers and recipients. If consumers encounter difficulties using or redeeming their gift cards, they may be less likely to purchase them in the future or recommend them to others.

Opportunity

Growing demand for e-gift cards

In today's fast-paced world, people highly prize rapid gratification. This need is met by e-gift cards, which may be sent to recipients immediately via email or mobile device. Because e-gift cards are delivered instantly, there are no waiting periods like traditional gift cards, making them the perfect option for last-minute or impulsive purchases. E-gift cards are advantageous for retailers from a sustainability and cost-efficiency standpoint. The expenditures of printing, packaging, and shipping physical cards are removed with digital delivery, which reduces overhead and has a positive environmental impact. Because they are so affordable, shops are encouraged to highlight e-gift cards as the best alternative for giving, which will increase market acceptance. Thereby, the rising demand for e-gift cards acts as an opportunity for the gift cards market. 

Type Insights

The e-gift cards segment is anticipated to expand at the highest CAGR during the forecast period. The segment growth can be attributed to the rising demand for convenient gifting options. E-gift cards provide more advantages over traditional cards, such as instant delivery, more choices, easy tracking options, fewer errors, more reward choices, automatic delivery, and no plastic waste. Digital e-gift cards are cost-effective, reducing the need for physical gifts. These cards are readily accessible through mobile apps, making them more convenient and popular.

Application Insights 

The consumer gifting segment dominated the gift cards market with the largest share in 2024. Consumer gifting helps to strengthen relationships, build trust, and increase loyalty with actionable working strategies. Moreover, gifting improves consumer engagement at every stage of a program: before, during, and after. Corporate gifts help express gratitude and appreciation and also draw the attention of new joiners.

The healthcare and wellness segment is anticipated to expand at the fastest rate during the projection period. Wellness gifts are gaining immense traction in the corporate sector. Appreciating employees with wellness gifts is a great way to improve overall morale. These gifts help build good relations among the employees. Such healthy practices will improve productivity and employee engagement. Moreover, consumers are increasingly focusing on health & wellness, making healthcare & wellness gifts a popular option to gift someone, especially health-conscious people.

Gift Cards Market Revenue, By Application 2022-2024 (USD Billion)

Consumer Type Insights

The individuals (B2C) segment held the largest share of the market in 2024. The segment growth is mainly driven by the increasing preference for personalized gift cards. Thoughtful gifts make a positive emotional bond between the business and the customer, leading to healthier relationships. The flexibility and convenience of gift cards make them popular for various functions.

The businesses/corporate (B2B) segment is likely to register the fastest growth in the coming years. This segment involves the distribution of gift cards among clients, employees, prospects, or business partners on behalf of an organization. Gifting increases customer loyalty because employees who obtain gifts are more likely to continue doing business with the same organization. The rising awareness among entrepreneurs about the benefits of reward programs is expected to support segmental growth. Gifting gift cards as a reward is a thoughtful way to show appreciation to employees, clients, and partners. Gift cards are also used as a marketing tool to attract new customers. 

Gift Cards Market Revenue, By Consumer Type, 2022-2024 (USD Billion)

Distribution Channel Insights

The online sales segment dominated the market in 2024 and is expected to grow at the fastest rate in the upcoming period. The expansion of e-commerce has increased the popularity of online gift cards. Online sales provide advantages such as flexibility and convenience for both recipients and buyers and can potentially increase brand sales. Online gift cards are easily accessible through mobile apps, email, or any digital platform, making them widely accessible. With these online gift cards, consumers can visit a particular website and redeem the payment against one or more purchases. The rising trend of online shopping makes online gift cards more popular, contributing to segmental growth.

Gift Cards Market Revenue, By Distribution Channel, 2022-2024 (USD Billion)

Gift Cards Market Companies

• Amazon.com, Inc.
• Walmart
• Starbucks Coffee Company
• McDonald's Corporation
• Target Corporation
• Netflix Inc.
• Spotify AB
• Microsoft
• Sony Corporation
• Marriott International, Inc.
• Airbnb, Inc.
• Zalando
• Walgreen Co.
• H&M Group
• InComm Payments
• American Express Company
• Blackhawk Network
• Other

Industry Leader Announcement

• In March 2025, Razorpay introduced Engage Gift Cards at the 6th edition of its flagship event, Razorpay FTX’25. Engage Gift Cards is the India’s first intelligent, customisable gift card platform designed to redefine customer loyalty and engagement. Arpit Chug, CFO of Razorpay, said, “We envisioned a smarter way for businesses to engage their customers, beyond just discounts and ads. With Engage Gift Cards Platform, businesses are in complete control, allowing them to customize discounts for different customer and design gift cards for specific products or services.”

Recent Developments 

• In February 2024, Roblox, a worldwide immersive platform for communication and engagement, and Blackhawk Network (BHN) have teamed up to provide digital gift cards in the following currencies: Austrian (EUR), Belgian (EUR), Swiss Franc (CFH), and Brazilian Real (BRL) on Roblox's gift card website, Roblox.com/giftcards. Customers in each nation can now use local currencies to purchase Roblox digital gift cards.
• In July 2024, Air India launched Air India Gift Cards for both domestic and international flights. These cards provide a great way for travelers to gift traveling experiences to their loved ones. These cards are available from Rs 1,000 to Rs 200,000.

Segments Covered in the Report

By Type

• Closed-Loop Gift Cards
• Open-Loop Gift Cards
• E-Gift Cards
• Physical Gift Cards
• Promotional & Loyalty Gift Cards
• Others (Cryptocurrency Gift Cards, etc.)

By Application

• Consumer Gifting
• Corporate Gifting & Incentives
• Online Shopping & E-Commerce
• Travel & Hospitality
• Food & Beverages
• Entertainment & Media
• Healthcare & Wellness
• Others (Charity & Donation, etc.)

By Type of Consumer

• Individuals (B2C)
• Businesses/Corporate (B2B)
• Institutional/Non-Profit Organizations

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa