United States Gift Card Market Forecasted to Reach $267.3 Billion by 2028 with A 5.7% CAGR, Reveals Q1 2024 Report - ResearchAndMarkets.com

DUBLIN: The "United States Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.

The United States gift card industry is forecast to reach US$214.3 billion in 2024 and will continue to grow over the forecast period, to record a CAGR of 5.7% during 2024-2028. The gift card market in the U.S. is forecast to increase from US$199.9 billion in 2023 to reach US$267.3 billion by 2028.

The gift card market is poised to record strong growth over the medium term. The rising adoption among consumers has also resulted in new players entering the sector through strategic partnerships in the United States. The trend is projected to continue further in 2024, and thus, will support innovation and competitive landscape in the gift card industry from the short to medium-term perspective.

In the United States, the trend of mergers and acquisitions is also growing rapidly in the gift card sector. The strategy is part of global expansion plans over the medium term. In 2024, leading gift card providers are expected to tap into smaller firms as they continue to strengthen their position in the market.

Payment firms are partnering with gift card providers to tap into the growing popularity of payment tool

Amid the rising demand for gift cards among consumers, payment firms are entering into strategic collaborations with gift card providers to scale businesses and diversify their revenue growth in the United States.

• Affirm, in December 2023, entered into a strategic partnership with Blackhawk Network. The collaboration will enable Affirm users to buy gift cards directly from the Affirm app. This alliance is part of Affirm's strategy to tap into the fast-growing segment, while also allowing the firm to expand the reach of their network.
• Venmo, in October 2023, also entered into a strategic partnership with InComm to offer digital gift cards. The collaboration will enable Venmo users to send and receive digital gift cards for popular consumer brands. The gift cards will be stored in the in-app wallet for future redemption.

From the short to medium-term perspective, the publisher expects more such strategic collaborations to take place in the United States gift card market. This collaboration will further aid the growth of the digital gift card sector over the medium term in the United States.

Gift card providers are acquiring smaller firms to further cement their position in the market

Amid the growing competitive landscape in the fast-growing industry, firms are resorting to acquisition deals to further strengthen their position in the United States gift card industry.

• Blackhawk Network, in January 2024, announced the acquisition of B2B gift card firm Tango Card. Tango Card revolutionized the way consumers experience rewards by creating a digital-first approach through its application interface (API). Blackhawk Network has been a longtime partner of Tango Card and also one of the early investors in the firm. The acquisition will provide Blackhawk Network with global and scalable solutions. This will subsequently strengthen its position in the gift card industry.
• RDE, the owner of Restaurant.com, also closed its acquisition of CardCash.com in January 2024. The acquisition opens up new opportunities for RDE to market its products across different channels. It also gives Restaurant.com customers more choices when they are looking to buy discounted gift cards. RDE and CardCash.com first announced the acquisition in August 2023.
• CardCash.com, in December 2023, partnered with Onbe allowing consumers to trade in their unused gift cards for virtual cards that they can use right away. These virtual cards are instant payout Mastercard cards, giving consumers the freedom to spend their money at any store that accepts Mastercard.

United Airlines launched a gift card exchange program to solve the unused gift card problem in the United States

Billions of dollars worth of gift cards go unspent every year. According to a survey by Bankrate conducted in July, nearly half of American adults, about 47%, had at least one gift card or voucher they had not used yet. On average, these unused cards or vouchers were worth around US$187 each, adding up to a staggering total of US$23 billion nationwide.

Even though gift cards usually do not expire for years, it is beneficial to use them sooner rather than later. Some cards, especially those like Visa or MasterCard, may start charging fees if they sit unused for a year, reducing their value. Additionally, inflation decreases the purchasing power of gift cards over time. Consequently, to provide gift card holders with an effective solution, United Airlines launched a gift card exchange program in the United States.

United's MileagePlus Gift Card Exchange program lets gift card holders swap their cards for miles. Over 100 popular retailers are participating in the program. These include like Starbucks, Target, and even Southwest Airlines. The entire process is online. Frequent flyers can enter their gift card details and see how many miles they will get in return. Currently, the innovative exchange program is made available only for United States residents.

This report provides a detailed data centric analysis of gift card market, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of gift card market dynamics, market size and forecast.

Company Coverage: Walmart, Home Depot, Amazon, Target, Lowe's, CVS Pharmacy, Walgreens, Kroger and Publix

Key Report Benefits:

• In-depth understanding of gift card and incentive card market dynamics: Understand market opportunity, key trends and drivers along with five-year forecast (2019-2028) for gift cards and incentive cards in the United States.
• Develop market specific strategies: Identify growth segments and target specific opportunities across consumer segments and occasions to formulate your gift cards strategy; assess market specific key trends and risks.
• Get insights into consumer attitude and behaviour in the United States: Understand changing consumer attitude and behaviour and boost ROI. Get detailed insights into retail spend through gift cards for both retail and corporate consumers.
• Get complete perspective through six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction, and value of transactions.
• Distribution channel insights: Understand gift cards sales dynamics by channels - online vs offline and by 1st party vs 3rd party sales.

Key Attributes:

Report Scope

Total Spend on Gifts in United States

• By Consumer Segment (Retail and Corporate)
• By Product Categories (13 Segments)
• By Retail Sectors (7 Segments)

Gift Card Market Size by KPIs across Consumer Segments

• Gross Load Value
• Transaction Value
• Unused Value
• Average Value Per Transaction
• Transaction Volume
• Average Value of Card Purchased
• Number of Cards

Gift Card Market Size by Consumer Segment

• Retail Consumer
• Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)

Digital Gift Card Market Size

• By Retail Consumer
• By Retail Purchase Occasion
• By Corporate Consumer
• By Corporate Purchase Occasion
• By Company Size

Gift Card Market Size by Retail Consumer

• By Functional Attribute
• By Occasion
• Value by Purchase Channel

Gift Card Spend by Consumer Behavior and Demographics

• Consumer Purchase Behaviour
• Gift Card Buyer by Age Group
• Gift Card Buyer by Income Level
• Gift Card Buyer by Gender

Gift Card Market Size by Corporate Consumer

• By Functional Attribute
• By Occasion
• By Scale of Business

Gift Spend by Product Categories

• Food & Beverage
• Health, Wellness & Beauty
• Apparel, Footwear & Accessories
• Books & Media Products
• Consumer Electronics
• Restaurants & Bars
• Toys, Kids, and Babies
• Jewelry
• Sporting Goods
• Home & Kitchen Accessories & Appliances
• Travel
• Entertainment & Gaming
• Other

Gift Card Spend by Retail Sector

• Ecommerce & Department Stores
• Restaurants & Bars
• Supermarket, Hypermarket, Convenience Store
• Entertainment & Gaming
• Specialty Stores
• Health & Wellness
• Travel

Gift Card Spend by Distribution Channel

• Gift Card Online Sales
• Gift Card Offline Sales
• 1st Party Sales
• 3rd Party Sales
• Sales Uplift

Gift Card Sales Estimates by Key Retailers

For more information about this report visit https://www.researchandmarkets.com/r/8am5m7

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Fonte: Business Wire