Gift Card Market to Surpass US$ 1,472.7 Billion by 2032, Growing at 14.3% CAGR | Persistence Market Research

The global gift card market is experiencing robust growth, driven by rapid digitalization, rising e-commerce adoption, and increasing consumer preference for personalized gifting solutions. In 2025, the market is projected to reach US$ 646.12 billion, with forecasts indicating it will surge to a valuation of US$ 1,472.7 billion by 2032, growing at an impressive CAGR of 14.3% during the forecast period. Gift cards have evolved from mere festive gifting options to multifunctional financial instruments used for rewards, promotions, and corporate incentives.

Key growth in this market stems from the increasing popularity of contactless payment solutions, tech-savvy consumer behavior, and growing demand for convenient, customizable gifting experiences. The closed-loop segment currently holds the largest share, largely due to brand-specific loyalty programs and ease of transaction. Regionally, North America dominates the global market, primarily due to high digital adoption, strong retail infrastructure, and increasing use of gift cards in corporate and consumer sectors alike.

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✅Key Highlights from the Report:

➤The global gift card market is expected to reach US$ 646.12 Bn by 2025.
➤Market anticipated to grow at a 14.3% CAGR from 2025 to 2032.
➤Overall market value expected to rise to US$ 1,472.7 Bn by 2032.
➤Closed-loop cards continue to lead the market due to ease of use and brand loyalty.
➤North America remains the dominant region, driven by e-commerce and digital payments.
➤Corporate gifting and employee rewards are significant contributors to market growth.

📊Market Segmentation:

Gift cards are segmented primarily based on card type, which includes closed-loop and open-loop cards. Closed-loop cards are issued by specific retailers or service providers and can only be used at designated locations. These remain the most widely used, especially in retail and dining. In contrast, open-loop cards, such as those backed by Visa or Mastercard, offer broader flexibility for consumers and are increasingly being used for gifting and budgeting purposes. The closed-loop segment dominates the landscape, favored for loyalty programs and consumer engagement strategies.

Another critical segmentation is by end-user application, which includes retail, corporate, and individual consumers. The retail segment holds a prominent position due to seasonal demand and promotional activities. The corporate segment is growing rapidly, particularly as organizations adopt gift cards for employee rewards and client incentives. Additionally, gift cards are gaining popularity among millennials and Gen Z due to their ease of use and digital integration with wallets and apps.

📊Regional Insights:

North America holds the largest share in the global gift card market and is anticipated to maintain its dominance through 2032. This growth is primarily attributed to the strong presence of e-commerce platforms, advanced payment infrastructure, and increased consumer preference for digital gifting. The U.S., in particular, is a frontrunner due to widespread corporate gifting programs and digital innovation in retail and fintech sectors.

Asia-Pacific is emerging as a fast-growing region in the gift card landscape. Countries like India, China, and Japan are witnessing significant digital transformation, and rising disposable income is fueling consumer spending. Moreover, the popularity of online shopping festivals and mobile wallet integration is driving gift card usage across diverse consumer segments in the region.

Market Drivers

The expanding e-commerce sector and digital payments are fundamental drivers behind the booming gift card market. As online retail continues to rise, so does the demand for flexible and secure payment options-an area where gift cards excel. Moreover, consumer demand for personalized and instant gifting solutions has fueled innovation in digital card formats, which are easily sharable via email or messaging platforms. Retailers are leveraging these cards as marketing tools, offering them as part of promotions or loyalty rewards.

Additionally, the corporate world has significantly contributed to this market's growth. Companies use gift cards for employee rewards, client appreciation, and promotional incentives. This trend is further amplified by the increasing focus on employee engagement and retention, especially in hybrid and remote work environments. The convenience and perceived value of gift cards make them a favored choice for both organizations and recipients.

Market Restraints

Despite strong momentum, the gift card market faces some challenges. One major issue is the risk of fraud and security breaches, particularly with digital and e-gift cards. Cybercriminals often exploit gaps in system security to conduct fraudulent activities. This not only affects consumer trust but also places pressure on vendors to invest in robust cybersecurity measures.

Another concern is inactivity or breakage, where gift cards go unused or partially used for extended periods. This leads to unredeemed balances, which can impact customer satisfaction and merchant revenues. Moreover, lack of interoperability between different card systems and limited acceptance in certain regions also pose significant barriers to seamless usage, especially for open-loop cards.

Market Opportunities

The future of the gift card market holds significant potential, driven by technological innovations and expanding use cases. The integration of gift cards into mobile wallets and digital platforms offers convenience and accessibility, attracting younger consumers who prefer seamless digital experiences. Additionally, the use of blockchain and secure QR codes could enhance transparency and reduce fraud, making digital gift cards more trustworthy.

The rise of subscription-based models and experiential gifting-such as dining, wellness services, and travel-also opens new avenues. Brands are collaborating with lifestyle service providers to offer more than just monetary value, enhancing customer engagement. Moreover, emerging markets with rising internet penetration and financial inclusion initiatives present a fertile ground for gift card expansion in the coming years.

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👉Reasons to Buy the Report:

✔️Understand the current market valuation of US$ 646.12 Bn and its projected growth to US$ 1,472.7 Bn by 2032.
✔️Identify key segments like closed-loop cards and corporate gifting driving global demand.
✔️Analyze growth opportunities across emerging markets and digital platforms.
✔️Gain insights into regional trends with North America leading and Asia-Pacific rising rapidly.
✔️Stay ahead with detailed forecasts, CAGR analysis, and competitive intelligence.

📌 Key Players

✦ Amazon.com, Inc.
✦ Apple Inc.
✦ Walmart Inc.
✦ Starbucks Corporation
✦ Target Corporation
✦ Best Buy Co., Inc.
✦ Google (Alphabet Inc.)
✦ American Express Company
✦ Blackhawk Network Holdings, Inc.
✦ InComm Payments

■ Amazon recently expanded its range of customizable digital gift cards with added design templates for special occasions.
■ Blackhawk Network introduced a blockchain-secured gift card platform aimed at enhancing fraud prevention and traceability.

By analyzing the current market trajectory, supported by reliable data and strategic forecasts, this article aims to provide stakeholders with a comprehensive understanding of the gift card market and its immense growth potential leading into 2032. Whether you're a retailer, fintech innovator, investor, or enterprise looking to enhance customer engagement, the evolving gift card space offers lucrative opportunities for innovation and expansion.

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