Gift cards have become an increasingly popular way to give and receive gifts. From birthdays to holidays, gift cards are a great option for those who want the recipient to choose their own present. The global gift card industry is expected to reach a market value of $1.9 trillion by 2027, with North America and Europe accounting for over 70% of sales in 2020. In the US alone, the gift card market had a value of $160 billion last year while e-gift cards saw an 80.7% increase in November compared to 2019 figures – showing just how much this sector has grown recently.
It’s no surprise that 93% of American customers have either given or sent a gift card at some point; they’re convenient and easy options when it comes time for gifting occasions like birthdays (74%) or during holiday season (55%). On average, consumers spend around $26 on each individual card but often end up spending more than its face value once redeemed – 60%, according to statistics from Statista.
The open-loop segment accounts for 66% share in total revenue generated by the overall market as well as being one of two main types: closed loop/store specific vs open loop/network branded ones such as Visa or Mastercard which can be used anywhere these payment methods are accepted worldwide. E-gift cards also make up 15 percent share within this category due largely thanks millennials’ preference towards digital payments – 47%. This figure is only set grow too with projections estimating that it will be worth nearly half a trillion dollars ($506bn) come 2025.
Overall there’s plenty evidence out there suggesting why so many people opt for giving someone else (or themselves.) something special via prepaid plastic money instead traditional presents nowadays – not least because 89% employers use them recognize employees’ years service too.
Gift Card Industry Statistics Overview
The sale of e-gift cards increased by 80.7% in November 2020 compared to 2019.
This statistic is a clear indication of the growing popularity of e-gift cards in the gift card industry. It shows that more and more people are turning to e-gift cards as a convenient and secure way to give gifts. This trend is likely to continue in the future, making e-gift cards an increasingly important part of the gift card industry.
93% of American customers have either given or sent a gift card.
This statistic is a powerful indicator of the immense popularity of gift cards among American customers. It shows that the majority of customers have embraced the convenience and flexibility of gift cards, making them a go-to choice for gifting. This statistic is a testament to the success of the gift card industry and its ability to meet the needs of customers.
Average value/load of a gift card was $26.05 in 2020.
The average value/load of a gift card in 2020 speaks volumes about the gift card industry. It shows that gift cards are a popular and valuable form of payment, with an average value of $26.05. This indicates that gift cards are a great way to give someone a meaningful gift, as well as a convenient way to pay for goods and services. Furthermore, it suggests that the gift card industry is thriving, with consumers increasingly turning to gift cards as a preferred payment method.
74% of consumers purchase gift cards for birthdays.
This statistic is a powerful indicator of the popularity of gift cards for birthdays. It shows that the majority of consumers are choosing to give gift cards as presents for birthdays, which is a testament to the convenience and versatility of gift cards. This statistic is an important piece of information for anyone interested in the gift card industry, as it demonstrates the prevalence of gift cards in the birthday gift-giving market.
Over 70% of gift card sales are concentrated in North America and Europe.
This statistic is a telling indication of the immense potential of the gift card industry in North America and Europe. It highlights the fact that these two regions are the major drivers of the industry, and that businesses should focus their efforts on these two markets to maximize their profits. Furthermore, it also suggests that there is still plenty of room for growth in other regions, and that businesses should consider expanding their operations to capitalize on this untapped potential.
52% of consumers prefer receiving gift cards over physical gifts.
This statistic is a powerful indicator of the growing popularity of gift cards in the consumer market. It shows that more and more people are choosing to give and receive gift cards as gifts, rather than physical gifts. This is an important trend to note for anyone interested in the gift card industry, as it suggests that the industry is likely to continue to grow in the future.
The open-loop gift card segment accounts for 66% of the gift card market.
This statistic is a telling indication of the immense influence the open-loop gift card segment has on the gift card market. It is a clear demonstration of the power of this segment and its ability to shape the industry as a whole. This statistic is a valuable insight into the current state of the gift card market and provides a useful reference point for anyone looking to gain a better understanding of the industry.
60% of gift card recipients spend more than the card’s value.
This statistic is a powerful indicator of the success of the gift card industry. It shows that gift cards are not only popular, but they are also effective in driving additional spending. This suggests that gift cards are an effective way to increase sales and revenue for businesses. Furthermore, it highlights the potential of gift cards as a marketing tool, as they can be used to encourage customers to spend more than the value of the card.
55% of Americans will purchase at least one gift card during the holiday season.
This statistic is a testament to the immense popularity of gift cards during the holiday season. It shows that the majority of Americans recognize the convenience and versatility of gift cards, making them a go-to choice for holiday shopping. This statistic is a powerful indicator of the strength of the gift card industry and its potential for growth.
The food and beverage segment accounted for 15.5% share in the overall market in 2019.
This statistic is a telling indication of the importance of the food and beverage segment in the gift card industry. It shows that the sector is a major player in the market, and its influence is likely to continue to grow in the coming years. This is an important factor to consider when discussing the overall gift card industry, as it highlights the importance of the food and beverage segment in the industry.
66% of consumers tend to purchase gift cards for ease of purchasing and giving.
This statistic is a powerful indicator of the popularity of gift cards in the consumer market. It shows that the majority of shoppers are drawn to the convenience of gift cards, making them a go-to choice for gifting. This insight is invaluable for anyone looking to understand the gift card industry and the trends that are driving it.
89% of employers use gift cards to recognize their employees for years of service.
This statistic is a powerful testament to the effectiveness of gift cards as a tool for employee recognition. It shows that the vast majority of employers recognize the value of gift cards as a way to reward and motivate their employees. This statistic is a great starting point for a blog post about the gift card industry, as it demonstrates the importance of gift cards in the workplace.
E-gift cards are the fastest-growing application segment in the gift card market, with a 47% share in 2019.
This statistic is a clear indication of the growing popularity of e-gift cards in the gift card market. It shows that more and more people are opting for the convenience of e-gift cards, which can be sent and received instantly. This shift in consumer preference is a reflection of the changing times and the increasing demand for digital solutions. It is also a sign of the potential for further growth in the gift card market.
80% of holiday shoppers purchased a gift card in 2020.
This statistic is a powerful indicator of the success of the gift card industry in 2020. It shows that despite the economic downturn, shoppers still saw the value in purchasing gift cards as presents for their loved ones. This statistic is a testament to the resilience of the gift card industry and its ability to remain relevant in a difficult year.
Millennials are the most likely age group to purchase and redeem gift cards online.
This statistic is significant in the context of the Gift Card Industry Statistics blog post because it highlights the importance of millennials in the industry. It shows that companies should focus their marketing efforts on this age group in order to maximize their profits. Furthermore, it indicates that millennials are more likely to purchase and redeem gift cards online, which could be beneficial for businesses that offer digital gift cards.
47% of gift cards are expected to be redeemed within the first month of receipt.
This statistic is a telling indication of the popularity of gift cards. It shows that people are quick to redeem them, suggesting that they are a desirable and sought-after item. This is an important insight for anyone interested in the gift card industry, as it demonstrates the potential for success in this market.
In 2025, the e-gift card market is projected to be worth $506 billion.
This statistic is a testament to the immense potential of the gift card industry. It shows that the market is expected to grow exponentially in the coming years, indicating that the industry is ripe for investment and innovation. This is an exciting prospect for those interested in the gift card industry, as it suggests that there is a great opportunity to capitalize on the growth of the market.
In 2018, gift cards accounted for 14% of total holiday spending in the United States.
This statistic is a testament to the growing popularity of gift cards as a preferred holiday gift. It highlights the fact that gift cards are becoming increasingly popular among consumers, as they offer a convenient and hassle-free way to give a meaningful gift. This statistic is also important in understanding the size and scope of the gift card industry, and how it is impacting the overall holiday spending landscape.
Conclusion
The gift card industry is a rapidly growing market, with the global value expected to reach $1.9 trillion by 2027 and the US market valued at $160 billion in 2020. The sale of e-gift cards has seen an 80.7% increase from 2019 to 2020, indicating that digital gifting is becoming increasingly popular among consumers. Gift cards are most commonly used for birthdays (74%) but also as rewards or recognition (89%), making them versatile gifts for any occasion. Over 70% of sales occur in North America and Europe, while millennials are more likely than other age groups to purchase and redeem online gift cards due to their tech-savviness. With an average load/value of $26 per card and 60% spending beyond its face value, it’s no surprise that holiday shoppers purchased over 80% of all gift cards during this season alone. As such, it can be concluded that the future looks bright for both physical and digital forms of gifting – especially when considering how much growth potential there still remains within this sector.
References
0. – https://www.blackhawknetwork.com
1. – https://www.giftcardpartners.com
2. – https://www.firstdata.com
3. – https://www.statista.com
4. – https://www.futuremarketinsights.com
