The Gift Card Market is witnessing a dynamic evolution driven by increased digitalization and consumer preference for convenient gifting options. Industry players are capitalizing on technological advances and changing consumer behavior to expand their offerings. The combination of physical and digital gift cards is reshaping market dynamics while fostering new business growth opportunities.

Market Size and Overview
The Global Gift Card Market size is estimated to be valued at USD 1,163.17 billion in 2025 and is expected to reach USD 3,641.21 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 18% from 2025 to 2032. Gift Card Market Size is fueled by rising e-commerce adoption, increasing smartphone penetration, and the expansion of retail sectors globally. Market insights indicate that emerging economies present significant untapped potential, while mature markets focus on enhancing digital gift card ecosystems to increase market revenue and business growth.

Key Takeaways
- Dominating Region: North America continues to dominate the Gift Card Market share due to the high penetration of digital gift card services. For example, Starbucks reported a 20% increase in digital gift card transactions in 2025, underscoring the market scope in this region.
- Fastest Growing Region: Asia Pacific is the fastest-growing region, driven by expanding online retail and rising disposable incomes. The region saw a 25% surge in gift card market revenue in 2024, primarily led by mobile wallet integration across multiple countries.
- By Card Type Segment:
- Dominant Sub-segment: Closed-loop gift cards remain dominant with widespread acceptance in retail chains such as Target Corporation.
- Fastest Growing Sub-segment: Open-loop gift cards are witnessing rapid growth driven by enhanced cross-border usability and integration with banking networks.
- By Distribution Channel Segment:
- Dominant Sub-segment: Physical gift cards maintain prominence in brick-and-mortar outlets.
- Fastest Growing Sub-segment: E-gift cards soared by 30% in market growth in 2025, exemplified by Amazon.com Inc.'s expansion of its digital gift card platform.
- By End-User Industry Segment:
- Dominant Sub-segment: Retail accounted for the largest Gift Card Market size share with extensive adoption in supermarkets and department stores.
- Fastest Growing Sub-segment: The hospitality sector, particularly cafes and restaurants, showed rapid growth in gift card market revenue, highlighted by Starbucks' robust gift card sales.

Market Key Trends
One significant trend shaping the Gift Card Market in 2025 is the shift towards digital-first strategies leveraging mobile technology. With over 60% of consumers preferring digital gift cards over physical ones, market companies are investing heavily in app-based interfaces and QR code-enabled gift solutions. For instance, Best Buy Co., Inc. launched a refreshed gift card offering integrating augmented reality (AR) for enhanced customer engagement, leading to a 15% uplift in gift card sales within six months of launch. Additionally, recent policies promoting contactless payments globally have accelerated this transition. This trend is pivotal in driving market growth, as organizations align their market strategies to meet evolving consumer expectations, thus fostering sustainable business growth and expanding industry size. Such market insights emphasize the increasing relevance of mobile-centric gift card solutions influencing market dynamics and overall market forecast.

Key Players
The Gift Card Market includes prominent market players such as Apple Inc., Amazon.com Inc., Best Buy Co., Inc., Starbucks Corporation, Target Corporation, and Wal-Mart Stores, Inc., among others. These market companies are adopting multi-pronged growth strategies including digital innovation, strategic partnerships, and geographic expansions in 2024 and 2025. For example, Apple Inc. enhanced its digital gift card platform by integrating with Apple Pay, boosting gift card market revenue through seamless in-app purchases. Starbucks forged partnerships with mobile wallet providers to extend gift card usability across platforms, contributing to increased market share. Meanwhile, Amazon expanded its gift card offerings internationally, tapping into new markets and accelerating market growth. These initiatives highlight the ongoing market growth strategies employed by market players to tackle market challenges and seize market opportunities effectively.

FAQs

1. Who are the dominant players in the Gift Card Market?
Key market players include Apple Inc., Amazon.com Inc., Best Buy Co., Inc., Starbucks Corporation, Target Corporation, and Wal-Mart Stores, Inc., all leveraging innovation and strategic alliances to expand their market scope.

2. What will be the size of the Gift Card Market in the coming years?
The Gift Card Market size is projected to grow from USD 1,163.17 billion in 2025 to approximately USD 3,641.21 billion by 2032, with a CAGR of 18% driven by digital adoption and retail expansion.

3. Which end user industry has the largest growth opportunity?
The retail industry currently holds the largest market share, while the hospitality sector, especially cafes and restaurants, is the fastest growing segment with increasing gift card market revenue.

4. How will market development trends evolve over the next five years?
Market trends indicate a strong pivot towards digital gift card formats, enhanced by mobile payment integration and contactless transaction policies, positioning digital growth as a core driver.

5. What is the nature of the competitive landscape and challenges in the Gift Card Market?
The competitive landscape is characterized by ongoing innovation and partnerships aimed at improving user experience. Market challenges include regulatory compliance and cybersecurity concerns, which companies are addressing through advanced technology.

6. What go-to-market strategies are commonly adopted in the Gift Card Market?
Market players focus on digital transformation, expanding e-gift card platforms, cross-industry partnerships, and geographic diversification to capture emerging market opportunities and sustain business growth.
 

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About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)