Global Gift Card Market Set to Surge to $2.29 Trillion by 2034

The global gift card market is poised for significant growth, projected to reach a valuation of $950.86 billion by 2024 and expand to $2,290.7 billion by 2034, according to a report from Allied Market Research. The analysis reveals a compound annual growth rate (CAGR) of 9.0% during the period from 2025 to 2034. This surge is attributed to the increasing adoption of digital payments, the rapid expansion of the e-commerce sector, and trends in corporate gifting.

Growth in the gift card market is fueled by several key factors. The rise in digital payment solutions has led to more consumers using gift cards, while e-commerce platforms are integrating these cards to enhance customer experience. Additionally, corporate gifting practices are evolving, with businesses leveraging gift cards to boost employee engagement and customer loyalty.

Market Dynamics and Trends

The report highlights several trends shaping the gift card landscape. The adoption of closed-loop cards is expected to dominate, as they are increasingly integrated across in-store and online environments. Personalization is becoming a priority, with companies offering tailored gift card options to meet consumer preferences.

The individual end-user segment is witnessing notable growth, driven by the popularity of digital gift cards and the widespread use of smartphones. The physical card segment is also anticipated to grow, thanks to advancements in security features like anti-theft technology and fraud protection.

Despite these promising trends, challenges such as limited consumer awareness in emerging markets and a lack of standardization could hinder growth. However, opportunities for market players are emerging through the increasing demand for personalized and customizable gift cards.

Technological Advancements and Regional Insights

Innovations in technology are revolutionizing the gift card sector. The integration of mobile payment systems like Apple Pay and Google Wallet facilitates easy storage and secure transactions. Furthermore, retailers are leveraging artificial intelligence to personalize gift card offerings based on consumer behavior.

Regionally, the Asia-Pacific area leads the gift card market, driven by an increase in digital payments and e-commerce growth. China, in particular, stands out with its advanced digital infrastructure, enhancing the integration of gift cards into platforms like WeChat and Alipay. Initiatives such as Tencent’s new gift-giving feature in WeChat are expected to further boost market performance.

The LAMEA (Latin America, Middle East, and Africa) region is anticipated to grow rapidly, fueled by digital transformation and increased internet penetration. In the UAE, for instance, initiatives supporting fintech adoption and cashless policies are driving the gift card market forward.

Key players in the industry, including Amazon.com Inc., Walmart Inc., and PayPal, Inc., are focusing on expanding their service offerings and enhancing technological innovations. The competitive landscape is characterized by strategic partnerships and the introduction of user-friendly features aimed at increasing adoption rates.

The findings from this report provide valuable insights into the current and future state of the gift card market, highlighting the trends and opportunities that stakeholders can leverage to drive growth and enhance consumer engagement.