The Latest Digital Gift Card Industry Statistics Explained
By 2027, the global digital gift card market is expected to reach $698.2 billion.
The statistic indicates a projection that the global digital gift card market is forecasted to grow significantly, reaching a value of $698.2 billion by the year 2027. This forecast is likely based on trends in consumer behavior, technological advancements, and the increasing popularity of digital gift cards as a convenient and versatile gifting option. The substantial growth in the market reflects the changing landscape of retail and e-commerce, with digital gift cards offering advantages such as instant delivery, customization options, and ease of use. This statistic suggests a promising future for the digital gift card industry, with continued expansion and innovation expected in the coming years.
In 2019, the global digital gift card market was worth approximately $363.87 billion.
The statistic “In 2019, the global digital gift card market was worth approximately $363.87 billion” indicates the total value of digital gift card transactions worldwide during the calendar year 2019. This figure represents the monetary value of consumers purchasing digital gift cards for various occasions and purposes, such as birthdays, holidays, and corporate rewards. The considerable market size suggests a growing trend towards digital gifting in the retail and e-commerce industry, as consumers increasingly opt for the convenience and flexibility of digital gift cards over traditional physical gift cards. The significant market value underscores the importance of digital gift cards as a popular and profitable segment of the overall gift card market.
The digital gift card industry is projected to expand at a CAGR of 17.4% from 2020 to 2027.
The statistic stating that the digital gift card industry is projected to expand at a compound annual growth rate (CAGR) of 17.4% from 2020 to 2027 indicates the anticipated rate of growth for this sector over the specified time period. A CAGR of 17.4% suggests a strong potential for growth in the digital gift card industry, with revenues expected to increase substantially each year. This projection reflects the increasing popularity and adoption of digital gift cards as a convenient and flexible gifting option, driven by factors such as the growth of e-commerce, shifting consumer preferences towards digital solutions, and the convenience of instant delivery and customization. Businesses operating in this industry can anticipate significant opportunities for expansion and revenue generation in the coming years based on this growth forecast.
In 2019, Europe held the largest share of the digital gift card market, contributing to over 35% of the overall market.
The statistic indicates that in 2019, Europe played a significant role in the digital gift card market by holding the largest share, making up more than a third (35%) of the total market. This suggests that the region was a primary driver of the growth and adoption of digital gift cards during that year. The high market share could be attributed to factors such as the widespread adoption of digital payment methods, increasing consumer preference for convenience and digital gifting options, and the presence of well-established retail and e-commerce sectors in Europe. This data highlights Europe’s importance in the digital gift card industry and may have implications for businesses looking to target this market segment.
The restaurant end-use segment is expected to register the fastest CAGR of 17.1% from 2020 to 2027.
This statistic indicates that the restaurant end-use segment within a particular industry is projected to experience the highest Compound Annual Growth Rate (CAGR) of 17.1% from the year 2020 to 2027. This suggests that the restaurant sector is expected to see substantial growth over this period compared to other end-use segments within the industry. The fast pace of growth in this segment could be driven by factors such as evolving consumer preferences, increased focus on convenience and delivery services, or other industry-specific trends that make the restaurant end-use segment particularly lucrative for potential investors or stakeholders.
The U.S. represents the largest market for digital gift cards worldwide.
The statistic that the U.S. represents the largest market for digital gift cards worldwide indicates that the United States has the highest level of consumer spending on digital gift cards compared to any other country. This suggests that a significant portion of gift-giving and retail transactions in the U.S. are conducted through digital gift cards as opposed to traditional physical gift cards or other types of gifts. This trend may be influenced by factors such as the convenience, flexibility, and variety offered by digital gift cards, as well as the widespread adoption of digital payment methods and online shopping in the U.S. It also reflects the overall maturity and prominence of the digital gift card market within the U.S. compared to other countries.
In 2020, Millennials accounted for nearly 40% of all digital gift card purchases.
The statistic indicates that in 2020, Millennials, referring to individuals typically born between 1981 and 1996, constituted approximately 40% of the total digital gift card transactions. This suggests that Millennials were a significant demographic segment engaging in purchasing digital gift cards, showcasing their preference for this form of gifting or personal use. The data reflects the growing trend of digital gifting among Millennials, likely influenced by factors such as convenience, ease of online transactions, and the increasing shift towards digital shopping platforms. Understanding and targeting this age group’s preferences and behaviors in relation to digital gift cards can be valuable for businesses looking to optimize their marketing strategies and offerings in this market segment.
Restaurant brands experienced a 40% year-over-year growth in digital gift card sales in 2020.
The statistic indicates that restaurant brands saw a significant 40% increase in their digital gift card sales from one year to the next in 2020. This growth suggests a notable shift towards online purchasing behavior among consumers, likely influenced by the COVID-19 pandemic and resulting restrictions on in-person dining. The surge in digital gift card sales can be attributed to factors such as convenience, contactless payments, and the increasing popularity of e-gifting options. The substantial year-over-year growth in digital gift card sales highlights the importance for restaurant brands to adapt to changing consumer preferences and leverage digital channels to drive sales and engagement in an evolving marketplace.
Digital gift card users are 15% more likely to make additional visits to a restaurant.
The statistic “Digital gift card users are 15% more likely to make additional visits to a restaurant” indicates that individuals who use digital gift cards are 15% more inclined to return to a restaurant for additional visits compared to those who do not use digital gift cards. This suggests that digital gift card users exhibit higher levels of loyalty or engagement with restaurants, potentially driven by the convenience, flexibility, and rewards associated with digital gift cards. The 15% increase in likelihood indicates a meaningful impact on consumer behavior, highlighting the potential of digital gift cards as a tool for increasing customer retention and enhancing overall patronage at restaurants.
On average, customers that purchase digital gift cards spent 38% more than the gift cards’ initial value.
The statistic indicates that, on average, customers who purchase digital gift cards tend to spend 38% more than the face value of the gift card they initially purchase. This suggests that digital gift cards may have a significant impact on customers’ purchasing behavior, possibly leading them to make higher-value purchases than they would have made otherwise. The phenomenon could be attributed to factors such as convenience, ease of use, or a tendency for customers to feel more inclined to spend beyond the initial gift card amount. This insight could be valuable for retailers and businesses looking to leverage digital gift cards as a tool for increasing customer spending and overall revenue.
The full-service restaurant segment held over 20% of the digital gift card market in 2018.
The statistic indicates that the full-service restaurant segment acquired a significant share of the digital gift card market in 2018, specifically exceeding 20%. This suggests that consumers showed a preference for purchasing digital gift cards from full-service restaurants compared to other types of businesses offering gift cards online. The high market share held by full-service restaurants signifies a strong presence and appeal within the digital gift card market, highlighting their popularity and perceived value among consumers. This statistic could be indicative of the popularity of dining experiences as gifts or the convenience and flexibility of digital gift cards in the restaurant industry.
The growth of IoT is anticipated to bring a surge in the demand for digital gift cards, contributing to the growth of the market.
The statement indicates that the expansion of the Internet of Things (IoT) industry is expected to lead to an increased need for digital gift cards, which in turn will fuel growth within the market for gift cards. As IoT devices become more prevalent in households and businesses, the convenience and flexibility of digital gift cards are likely to appeal to a broader audience. This surge in demand for digital gift cards can be attributed to the seamless integration of IoT technology with online shopping platforms and e-commerce services, offering consumers a convenient and versatile way to send gifts or make purchases. Overall, the anticipated growth of IoT is forecasted to have a positive impact on the digital gift card market, stimulating its expansion in the upcoming years.
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