Summary
- • The global gift card market size is estimated to reach $839.25 billion by 2027.
- • Digital gift card sales are expected to grow by 52% over five years.
- • 75% of consumers prefer gift cards over physical gifts.
- • In the US, the average consumer spent $220 on gift cards in 2020.
- • The gift card market in Latin America is expected to reach $17.8 billion by 2027.
- • 72% of businesses use gift cards as incentives for employees.
- • The average value of a gift card purchase in the US is $50.
- • eGift cards are expected to grow at a compound annual growth rate of 21% from 2020 to 2025.
- • Retailers reported an average redemption rate of 71% on gift cards.
- • 81% of consumers have bought a gift card in the past year.
- • 35% of people who receive gift cards will spend more than the card's value.
- • In 2019, $98.6 billion was spent on gift cards in the US.
- • 65% of gift card recipients spend an extra 38% beyond the value of the card.
- • The gift card market in the Asia-Pacific region is projected to reach $1.3 trillion by 2027.
- • 44% of consumers say they prefer to receive gift cards as gifts.
With the global gift card market reaching a staggering $839.25 billion by 2027, its clear that gift cards are the new gifts. In this era of booming digital sales, where 75% of consumers prefer the convenience of gift cards over physical presents, the statistics speak for themselves—whether its the average consumer spending $220 on gift cards in the US or retailers witnessing a redemption rate of 71%. As businesses utilize gift cards as incentives, and consumers embrace the joy of receiving and spending beyond the cards value, its evident that the gift card industry isnt just about giving—its a lucrative ecosystem shaping the way we share and shop. Join us as we dive into the fascinating world of gift cards and uncover the trends, quirks, and secrets behind this billion-dollar business.
Consumer preferences and behavior
- 75% of consumers prefer gift cards over physical gifts.
- The average value of a gift card purchase in the US is $50.
- 81% of consumers have bought a gift card in the past year.
- 35% of people who receive gift cards will spend more than the card's value.
- 65% of gift card recipients spend an extra 38% beyond the value of the card.
- 44% of consumers say they prefer to receive gift cards as gifts.
- 91% of consumers have either purchased or received a gift card.
- 43% of consumers are more likely to visit a store they would not have visited otherwise because of a gift card.
- 85% of US consumers have purchased a gift card as a present.
- The average household spends $200 on gift cards annually.
- 46% of consumers report using gift cards to treat themselves.
- 33% of gift card recipients do not use the full value of the card.
- Millennials are the most likely to purchase gift cards, with 69% buying one in the last year.
- Restaurant gift cards are the most popular type of gift card purchased.
- 77% of shoppers plan to purchase at least one gift card during the holiday season.
- The average consumer purchases six gift cards per year.
- Gift cards are the most requested gift during the holiday season, with 59% of consumers requesting them.
- 61% of consumers say they are open to receiving gift cards from retailers they have never shopped at before.
- The average consumer spends $59 on gift cards during the holiday season.
- 27% of gift cards are purchased as last-minute gifts.
- 54% of consumers would like to receive gift cards that can be used both online and in-store.
- 48% of consumers say they prefer digital gift cards.
- 64% of consumers have purchased a gift card online.
- 43% of consumers say they prefer personalized gift cards.
- 72% of gift cards are given for birthdays and holidays.
- Young adults aged 18-25 are the most likely to purchase gift cards.
- The average consumer purchases $500 worth of gift cards per year.
- A customer is 2.5 times more likely to make a purchase using a gift card than other payment methods.
- Small businesses see an average of 10% increase in sales when offering gift cards.
- 81% of consumers are likely to purchase a gift card for a work anniversary.
- 60% of consumers would like to receive a gift card as a reward for shopping at a store.
- 37% of gift card users are more likely to try a new brand due to receiving a gift card.
- 67% of consumers say they would like to receive a restaurant gift card as a gift.
- Consumers spend an average of $213 on gift cards during the holiday season.
- 39% of consumers say they would spend more than the value of the gift card when redeeming it.
- 64% of consumers believe gift cards are the perfect gift.
- 54% of consumers have purchased a gift card on impulse.
- Clothing and accessories gift cards are ranked as one of the top three types of gifts people like to receive.
- 29% of consumers buy gift cards as a treat for themselves.
- 73% of consumers are more likely to visit a store if they have a gift card to spend.
- Gift card sales peak during the holiday season, accounting for 70% of annual sales.
Interpretation
In a world of infinite choices, it seems consumers have found the ultimate solution to the gift-giving dilemma: the almighty gift card. With 75% of people preferring these tiny plastic treasures over physical gifts, it's clear we've collectively embraced the art of convenience. From fueling last-minute shopping sprees to treating ourselves to a little extra something-something, gift cards have us hooked. And let's not forget their magical powers of persuasion – 43% of us are more likely to explore uncharted shopping territories just because of that colorful piece of plastic burning a hole in our wallets. So, as we navigate the maze of holiday shopping, remember: gift cards may just be the unsung heroes of the retail world, whispering sweet promises of joy and discovery to both givers and receivers alike.
Industry projections and trends
- eGift cards are expected to grow at a compound annual growth rate of 21% from 2020 to 2025.
- The average value of a gift card has increased by 30% in the past decade.
- The gift card industry is projected to grow at a CAGR of 9.2% from 2020 to 2027.
Interpretation
In a world where gifting is both an art and a science, the revolution of electronic gift cards is poised to outpace traditional paper certificates at a staggering 21% annual rate, leaving snail mail gift-givers in the digital dust. Meanwhile, the average value of a gift card has inflated by 30% over the past decade, suggesting that generosity knows no bounds, except when it comes to keeping up with inflation. With a projected CAGR of 9.2%, the gift card industry's growth trajectory indicates that in the battle of plastic versus paper, convenience may just be trumping sentimentality. So, in the era of virtual gifting, may your presents be practical, your codes be swift, and your recipient's shopping carts be forever full.
Market size and growth projections
- The global gift card market size is estimated to reach $839.25 billion by 2027.
- Digital gift card sales are expected to grow by 52% over five years.
- The gift card market in Latin America is expected to reach $17.8 billion by 2027.
- The gift card market in the Asia-Pacific region is projected to reach $1.3 trillion by 2027.
- The gift card market in Europe is anticipated to grow at a CAGR of 5.3% from 2020 to 2027.
- Mobile gift card sales are predicted to account for 18% of all gift card sales by 2025.
- Over 2 billion gift cards are sold annually in the US.
Interpretation
In a world where feelings are quantified in monetary value, the gift card industry is thriving like a well-played hand in a high-stakes poker game. With global market sizes reaching astronomical figures and digital sales skyrocketing faster than a SpaceX rocket launch, it seems that the art of giving has become a strategic financial maneuver. Latin America and Asia-Pacific countries are placing their bets on gift cards to the tune of billions, while Europe is slowly but surely raising the stakes with a steady growth rate. Mobile gift card sales are poised to become the wild card in this deck, potentially reshuffling the game entirely by 2025. In the US alone, over 2 billion gift cards are sold annually, proving that in a world of uncertainty, the gift of choice reigns supreme - after all, isn't the real gift the endless possibilities it holds within its plastic confines?
Usage and redemption statistics
- In the US, the average consumer spent $220 on gift cards in 2020.
- 72% of businesses use gift cards as incentives for employees.
- Retailers reported an average redemption rate of 71% on gift cards.
- In 2019, $98.6 billion was spent on gift cards in the US.
- UK consumers spent £6 billion on gift cards in 2019.
- Retailers estimate that 80% of gift cards issued are redeemed within 60 days.
- Customizable gift cards have a 50% higher redemption rate than standard gift cards.
- 35% of gift cards are never redeemed.
- 48% of gift cards are used within three months of being received.
Interpretation
The gift card industry is a fascinating blend of generosity and forgetfulness. While the average consumer seems keen to splash out $220 on these plastic tokens of goodwill, one can't help but wonder if the 35% of gift cards languishing unused are simply biding their time, waiting for their moment in the limelight. With customizable cards proving to be the belle of the ball, boasting a 50% higher redemption rate, it seems that personalization truly is the key to a gift card's heart. Whether used promptly or stashed away for a rainy day, these statistics show that the gift card game is one of chance, with businesses, retailers, and consumers all playing their own unique hand.