As per the current market research conducted by CMI Team, the global Digital Gift Card Market size is expected to record a CAGR of 12.5% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 310.1 billion. By 2032, the valuation is anticipated to reach USD 1.2 Trillion.
Digital Gift Card Market: Growth Factors and Dynamics
- Accelerated acceptance of digital payments: The rising embrace of digital payment methods, such as mobile wallets and online transactions, has significantly propelled the digital gift card market. Consumers are increasingly drawn to the convenience and adaptability of digital gift cards, driving their widespread usage.
- Surge in e-commerce dominance: The ascent of e-commerce platforms has provided a substantial impetus to the digital gift card market. Online retailers and marketplaces offer digital gift cards as a convenient gifting alternative, appealing to a larger audience of consumers who prefer online shopping and digital gift delivery.
- Customization and personalization features: Digital gift cards offer effortless customization and personalization options, empowering users to include personalized messages, images, or videos. This feature elevates the gifting experience and resonates with consumers seeking a more tailored touch in their gift choices.
- Reinforced security and fraud prevention measures: The integration of robust security measures in digital gift cards has bolstered consumer trust and confidence. Features like unique codes, password protection, and encryption techniques safeguard against fraud and unauthorized usage, instilling further growth in the market.
- Soaring popularity of mobile applications: The proliferation of mobile apps has played a pivotal role in expanding the digital gift card market. Mobile apps provide seamless access to digital gift cards, enabling users to effortlessly purchase, store, and redeem them on their smartphones, thereby fostering increased adoption.
- Shifting consumer preferences: Evolving consumer preferences towards digital and contactless gifting options have propelled the growth of the digital gift card market. The ease of sending and receiving digital gift cards via email, social media, or messaging platforms aligns with the changing gifting habits of tech-savvy and digitally connected consumers.
- Expanding international gifting trends: The global nature of the digital gift card market has facilitated cross-border gifting trends. With digital gift cards, it has become easier for individuals to send gifts to their loved ones residing in different countries, eliminating the limitations of physical distance and enabling a seamless international gifting experience.
|Feature of the Report||Details|
|Market Size in 2023||USD 399.09 Billion|
|Projected Market Size in 2032||USD 1.2 Trillion|
|Market Size in 2022||USD 310.1 Billion|
|CAGR Growth Rate||12.5% CAGR|
|Key Segment||By Channel, Application Area, Card Type, End Users and Region|
|Report Coverage||Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends|
|Regional Scope||North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America|
|Buying Options||Request tailored purchasing options to fulfil your requirements for research.|
Digital Gift Card Market: COVID-19 Analysis
The COVID-19 pandemic has had a significant impact on the Digital Gift Card Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:
- Accelerated shift towards digital gifting: The COVID-19 pandemic and associated lockdowns led to the closure of physical retail stores, prompting a significant shift towards online shopping and digital gifting. This increased reliance on digital channels positively impacted the digital gift card market as consumers sought contactless and convenient gifting options.
- Surge in e-commerce and remote celebrations: With restrictions on gatherings and social distancing measures, many celebrations and occasions were held remotely. This led to a higher demand for digital gift cards, which could be easily purchased and delivered electronically, allowing people to send gifts to their loved ones without physical contact.
- Emphasis on personalized and virtual experiences: To recover from the impact of COVID-19, digital gift card providers focused on enhancing the virtual experiences associated with their offerings. They introduced features such as personalized messages, virtual celebrations, and interactive elements to replicate the joy of in-person gifting.
- Partnerships with online platforms: Digital gift card providers forged strategic partnerships with popular online platforms, such as e-commerce websites and food delivery apps. By integrating their gift card offerings into these platforms, they expanded their reach and tapped into the increased online consumer base during the recovery phase.
- Targeted marketing campaigns: To regain momentum, digital gift card companies implemented targeted marketing campaigns to raise awareness and promote their offerings. These campaigns highlighted the benefits of digital gift cards, such as convenience, flexibility, and the ability to support local businesses, appealing to both existing and new customers.
- Incentives and promotions: During the recovery phase, digital gift card providers offered incentives and promotions to incentivize customers to purchase and use their gift cards. These included discounts, bonus values, or exclusive offers, attracting consumers and driving sales while encouraging repeat purchases and customer loyalty.
- Enhanced safety measures and trust-building: To recover from the impact of COVID-19, digital gift card providers implemented enhanced safety measures and communicated them effectively to build trust among consumers. This included highlighting secure payment options, robust fraud prevention measures, and transparent refund policies, instilling confidence in the safety and reliability of digital gift cards.
- Diversification of partnerships and offerings: Digital gift card providers focused on diversifying their partnerships and offerings to cater to evolving consumer needs during the recovery phase. This involved collaborating with a wide range of businesses beyond traditional retail, such as online entertainment platforms, fitness apps, and subscription services, to offer a broader selection of digital gift card options and cater to various gifting preferences.
In conclusion, the COVID-19 pandemic has had a mixed impact on the Digital Gift Card Market, with some challenges and opportunities arising from the pandemic. Manufacturers and retailers need to remain agile and adapt to the changing market conditions to overcome these challenges and capitalize on new growth opportunities.
List of the prominent players in the Digital Gift Card Market:
- Amazon.com Inc.
- Apple Inc.
- Google LLC
- Starbucks Corporation
- Walmart Inc.
- Target Corporation
- Best Buy Co. Inc.
- Visa Inc.
- Mastercard Incorporated
- PayPal Holdings Inc.
The Digital Gift Card Market is segmented as follows:
- Brick and Mortor
By Application Area
- Consumer Goods
- Health and Wellness
- Restaurants and Bars
- Travel and Tourism
- Media and Entertainment
By Card Type
- Closed Loop
- Open Loop
By End Users
- Retail Establishments
- Corporate Institutions
- The U.S.
- The UK
- Rest of Europe
- South Korea
- Rest of Asia Pacific
The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Rest of Latin America