Gift Cards (B2B) Market Projected to Hit USD 629.7 Bn by 2031 - Persistence Market Research

The global gift cards (B2B) market is witnessing a robust expansion, driven by increasing demand for incentive-based programs, digital gifting trends, and evolving corporate reward systems. As of 2024, the market stands at a substantial US$315.8 Bn, with forecasts estimating it will grow to US$629.7 Bn by 2031, progressing at a CAGR of 10.4% during the forecast period. This surge reflects the rising acceptance of gift cards as a valuable tool for corporate gifting and employee engagement.

The department stores segment holds the dominant market share, attributed to aggressive promotional campaigns and a high redemption rate. Geographically, North America, particularly the United States, leads the global gift card (B2B) market. The region's strong digital infrastructure, cultural inclination towards incentives, and high corporate spending on employee rewards are key contributors to its market dominance.

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➤ Key Highlights from the Report

➤ Market to grow from US$315.8 Bn in 2024 to US$629.7 Bn by 2031
➤ Digital gift cards gaining traction due to convenience and instant delivery
➤ Closed-loop cards lead with 28.1% market share among card types
➤ Online distribution channel projected to grow at a CAGR of 14.2%
➤ U.S. holds ~26% of global market share due to strong non-cash incentive culture
➤ Indian millennials are driving a shift from physical gifts to e-gifting solutions

Market Segmentation

Product-Type and Channel-Based Segmentation

The gift cards (B2B) market is segmented based on card type, including universal accepted open-loop, restaurant closed-loop, retail closed-loop, and miscellaneous closed-loop cards. Among these, closed-loop gift cards dominate, driven by their association with specific brands and the added value they offer in promotional programs. Restaurant aggregators and retail giants continue to push sales through bundled offers and partnerships.

By sales channel, the market is split between online and offline avenues. Offline channels currently lead, but the online segment is projected to grow rapidly at a CAGR of 14.2%. As more companies digitize their operations and employees demand instant, flexible rewards, online gift cards will become the standard choice for B2B gifting.

End-User and Merchant-Type Segmentation

In terms of end-users, the market caters to both SMEs and large enterprises, with the latter accounting for a larger share due to structured HR policies and bulk incentive requirements. However, SMEs are catching up by adopting affordable and scalable digital gifting solutions.

By merchant type, department stores lead the segment, followed by discount stores and supermarkets. These retailers frequently deploy gift cards to attract new customers and increase repeat purchases. Gift cards tied to specific promotions and loyalty programs help build long-term relationships with corporate clients and end-users alike.

Regional Insights

North America

North America, especially the United States, is at the forefront of the global gift cards (B2B) market. With a 26% market share, the U.S. is characterized by a strong culture of using non-cash incentives such as gift cards in the corporate sector. Customization and digital adoption continue to drive e-gifting trends, supported by advanced infrastructure and payment technologies.

Europe and Asia-Pacific

In the UK, demand for personalized gift cards is on the rise, with corporate clients seeking customized gifting solutions for occasions and branding. Players like Amazon.com offer tailored options, enhancing the appeal of gift cards in the region.

In India, the millennial population is increasingly preferring gift cards over traditional presents. This shift, driven by the need for convenience and practicality, is expected to fuel the country's market growth at an impressive CAGR of 19.4% during the forecast period.

Market Drivers

The primary driver of the gift cards (B2B) market is the increasing adoption of gift cards in corporate incentive and reward programs. Businesses use gift cards to appreciate employees, motivate partners, and retain clients. Their versatility and ease of distribution make them ideal for bulk corporate use.

Another key factor is the rising popularity of digital gift cards. These cards can be instantly delivered, customized, and redeemed, aligning perfectly with the growing trend of digital commerce and mobile payment platforms. Digital gift cards offer unmatched convenience, especially in remote or hybrid work setups.

The expansion of the corporate gifting industry further amplifies market demand. Companies now view gifting as a strategic tool to foster loyalty and build lasting relationships with stakeholders. Gift cards offer a modern, data-driven alternative to traditional corporate gifts, enhancing personalization and tracking.

Market Restraints

Despite strong growth prospects, the market faces several restraints. A key challenge is the lack of awareness and proper marketing of B2B gift card programs. Many businesses remain unaware of how to effectively implement and benefit from such programs, limiting their adoption.

Additionally, the competitive landscape poses a significant hurdle. With many brands offering similar services, maintaining brand relevance and customer loyalty requires continuous innovation and proactive campaign management. Companies without a robust B2B gift card strategy risk losing market share to more agile competitors.

Market Opportunities

One of the most promising opportunities lies in the integration of gift cards with customer loyalty programs. When linked to a company's CRM or reward system, gift cards can serve as powerful tools for enhancing engagement and increasing retention.

Furthermore, the rise of e-commerce platforms presents a substantial growth avenue. By partnering with online marketplaces, businesses can broaden their distribution channels and target a wider corporate customer base. This digital-first approach aligns well with modern buying preferences and opens new markets globally.

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Frequently Asked Questions (FAQs)

➤ How Big is the Gift Cards (B2B) Market in 2024?
➤ What is the Projected Growth Rate of the Gift Cards (B2B) Market by 2031?
➤ Who are the Key Players in the Global Gift Cards (B2B) Market?
➤ What is the Market Forecast for Gift Cards (B2B) through 2032?
➤ Which Region is Estimated to Dominate the Gift Cards (B2B) Industry during the Forecast Period?

Company Insights

✦ Amazon.com, Inc.
✦ Best Buy Company, Inc.
✦ Starbucks Corporation
✦ Target Corporation
✦ Walmart Stores
✦ QwickSilver Solutions
✦ National Gift Card Corporation
✦ InComm
✦ Gyft
✦ Edge Loyalty Systems Pty. Ltd.
✦ Blackhawk Network Holdings, Inc.
✦ Edenred Group
✦ The Up Group

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