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Gift Card and Incentive Card Market Size (2024 - 2029)

The gift card and incentive card market is poised for significant growth, driven by the increasing adoption of digital currencies, e-commerce, and smartphone usage. The pandemic has accelerated the shift towards digital gift cards, as consumers seek cash alternatives and e-commerce continues to expand. This market expansion is supported by various factors, including the rise of digital gifting, corporate incentives for remote employees, and government initiatives to stimulate sectors like hospitality and travel. Companies are also focusing on niche markets to further their reach, responding to the demand created by product shortages during global lockdowns.

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Market Size of Gift Card and Incentive Card Industry

Gift Card and Incentive Card Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR 9.50 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration Medium

Major Players

Gift Card and Incentive Card Market Major Players

*Disclaimer: Major Players sorted in no particular order

Gift Card & Incentive Card Market Analysis

The gift card and Incentive Card Market is expected to achieve a CAGR of 9.5% during the forecast period. Despite near-term challenges in 2022, the medium to long-term growth story of gift cards in America and the Asia Pacific remains strong. The rising use of digital currency, e-commerce, and increased smartphone penetration will boost the market.

The worldwide coronavirus pandemic has accelerated the rise in the use of digital gift cards. The demand for cash alternatives has unexpectedly increased worldwide. The pandemic had a positive impact on e-commerce and the rise in e-commerce has spiked the growth of digital gift cards and Incentive cards.

The gift card and Incentive market were driven by a wide range of factors, which supported growth across retail and corporate segments such as the growth of e-commerce, increased adoption to incentivize employees working remotely, digital gifting, and initiatives undertaken by governments, hospitality, and travel industries to revive growth.

Globally, gift card companies are targeting niche areas to expand their businesses.Due to the prolonged lockdown worldwide, there has been shortage of gift products which has ultimately pushed consumers to go for digital gift cards.

Gift Card & Incentive Card Industry Segmentation

The Gift Card and Incentive Card Market is Segmented By card type (Closed-loop card, open-loop card), By Consumer (Individual, Corporate), and By Distribution Channel (Online, Offline), by spend category (E-commerce & departmental stores, restaurants & bars, supermarket, hypermarket and convenience store, entertainment & gaming, specialty store, Health & wellness, travel, others) and By Region (North America, South America, Europe, Asia Pacific, Middle East & Africa). The report offers market size and forecast values for the Gift Card and Incentive Card Market in USD million for the above segments.

By Card Type
Closed-Loop Card
Open-Loop Card
By Consumer
Individual
Corporate
By Distribution Channel
Online
Offline
By Spend Category
E-commerce & departmental stores
Restaurants & Bars
Supermarket
Hypermarket and Convenience Store
Entertainment & Gaming
Specialty Store
Health & Wellness
Travel
Others
By Geography
North America
South America
Asia-Pacific
Europe
Middle-East and Africa
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Gift Card and Incentive Card Market Size Summary

The gift card and incentive card market is poised for significant growth, driven by the increasing adoption of digital currencies, the expansion of e-commerce, and the widespread penetration of smartphones. The pandemic has accelerated the shift towards digital gift cards, as consumers sought cash alternatives and embraced online shopping due to lockdowns and restrictions. This shift has been further supported by the growth of e-commerce and the need for businesses to incentivize remote employees. The market is experiencing a surge in demand across both retail and corporate segments, with companies targeting niche areas to expand their offerings and enhance customer loyalty.

Globally, the market is moderately fragmented, with major players like Apple Inc, Amazon, and Sodexo leading the charge. These companies are leveraging technological advancements and product innovations to strengthen their market presence. The rise in mobile commerce, facilitated by increased smartphone subscriptions, is also contributing to the market's expansion. As businesses continue to explore new ways to engage customers and employees, the demand for gift cards and incentive cards is expected to grow, offering lucrative opportunities for both large and mid-size companies to secure new contracts and enter new markets.

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Gift Card and Incentive Card Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Insights on Various Regulatory Landscape

    5. 1.5 Insights on impact of technology and innovation in market

    6. 1.6 Industry Attractiveness - Porters' Five Forces Analysis

      1. 1.6.1 Threat of New Entrants

      2. 1.6.2 Bargaining Power of Buyers/Consumers

      3. 1.6.3 Bargaining Power of Suppliers

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Card Type

      1. 2.1.1 Closed-Loop Card

      2. 2.1.2 Open-Loop Card

    2. 2.2 By Consumer

      1. 2.2.1 Individual

      2. 2.2.2 Corporate

    3. 2.3 By Distribution Channel

      1. 2.3.1 Online

      2. 2.3.2 Offline

    4. 2.4 By Spend Category

      1. 2.4.1 E-commerce & departmental stores

      2. 2.4.2 Restaurants & Bars

      3. 2.4.3 Supermarket

      4. 2.4.4 Hypermarket and Convenience Store

      5. 2.4.5 Entertainment & Gaming

      6. 2.4.6 Specialty Store

      7. 2.4.7 Health & Wellness

      8. 2.4.8 Travel

      9. 2.4.9 Others

    5. 2.5 By Geography

      1. 2.5.1 North America

      2. 2.5.2 South America

      3. 2.5.3 Asia-Pacific

      4. 2.5.4 Europe

      5. 2.5.5 Middle-East and Africa

Gift Card and Incentive Card Market Size FAQs

The Gift Card and Incentive Card Market is projected to register a CAGR of 9.5% during the forecast period (2024-2029)

Apple Inc, Amazon.com Inc, Aldi Group, Carrefour SA and Sodexo are the major companies operating in the Gift Card and Incentive Card Market.

Gift Card and Incentive Card Report Snapshots

Gift Card and Incentive Card Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)