Dublin, March 24, 2023 (GLOBE NEWSWIRE) -- The "United States Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2023 Update" report has been added to ResearchAndMarkets.com's offering.
Gift card industry in the country is expected to grow by 7.0% on annual basis to reach US$ 198,373.6 million in 2023. In value terms, the gift card market in United States has recorded a CAGR of 6.0% during 2018-2022.
The gift card industry in United States will continue to grow over the forecast period and is expected to record a CAGR of 5.7% during 2023-2027. Gift card market in the country will increase from US$ 185,406.3 million in 2022 to reach US$ 247,990.1 million by 2027.
Gift card market in 2022 was driven a wide range of factors, which supported growth across retail and corporate segments. The primary factors included growth of ecommerce, increased adoption to incentivize employees working remotely, digital gifting, and initiatives undertaken by government, hospitality, and travel industries to revive growth.
In the United States, gift cards are among the most popular payment methods. With the adoption of gift cards high among consumers across different demographics, the market has recorded consistent growth over the last three to four years. Amid the current macroeconomic environment, consumers have been found to hold back on their monthly spending to ensure they remain under the budget.
As a result, retailers have turned to gift card programs to drive consumer spending and sales, thereby achieving incremental revenue. Consumers often spend more than the value of gift cards. The publisher expects more and more retailers across the United States to adopt and launch gift card programs to keep driving their sales from the short to medium-term perspective.
Gen Z consumers are expected to drive the sales of gift cards during the 2022 holiday season
Gen Z consumers are again entering the workforce and unemployment levels have dropped significantly lower in the United States, compared to the global pandemic period. Consequently, Gen Z is expected to drive the sales of gift cards during the 2022 holiday season.
The demand for physical gift cards seems to be making a comeback after the covid period though digital gift cards continue to outperform in terms of growth rate.
Starbucks reported US$181 million in unused gift cards and loyalty accounts for FY 2021
Starbucks has one of the largest gift card and loyalty programs in the world. The firm is generating billions of dollars in revenue each year, and many other brands have also launched their stored-value program seeing the growth achieved by Starbucks. In addition to driving more sales, the gift card program has also resulted in higher unused revenue for the firm.
For FY 2021, Starbucks reported that its customers did not spend US$181 million, which they have accumulated through gift cards and loyalty programs. This is approximately 1% of its total sales and 4.3% of its net income during the financial year. In FY 2020, Starbucks announced US$145 million in unused gift cards and loyalty credits.
While the unused gift card has brought in millions of dollars for the firm, Starbucks does not disclose how exactly it is using the revenue. As a result, the Strategic Organizing Center (SOC) filed a complaint with the Securities and Exchange Commission (SEC) in November 2022. Under the complaint, the SOC has asked the SEC to investigate how the firm is utilizing unused gift cards and loyalty credits.
Online retailers are launching gift card programs amid the growing demand during the holiday season
With American shoppers expected to increase their spending on gift cards during the 2022 holiday season, online retailers are launching gift card programs to capitalize on the growing trend. For instance,
In December 2022, iHerb, one of the leading online marketplaces for vitamins, minerals, and supplements, announced the launch of a digital gift card program for its shoppers in the United States. The digital gift cards are redeemable against any product available on the e-commerce marketplace. The platform is also offering customers an option to customize their gift cards by including a message before sending it to the recipient.
From the short to medium-term perspective, more online retailers are expected to launch gift card programs to cater to the growing demand in the United States. This will keep assisting the overall industry growth.
This report provides a detailed data centric analysis of gift card market, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of gift card market dynamics, market size and forecast.
Scope
Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
- Wal-Mart Stores Inc
- Kroger Co
- Amazon.com Inc
- Target Corp
- Costco Wholesale Corp
- Albertson's Inc
- Home Depot Inc, The
- Apple Inc
Total Spend on Gifts in United States
- By Consumer Segment (Retail and Corporate)
- By Product Categories (13 Segments)
- By Retail Sectors (7 Segments)
Gift Card Market Size by KPIs across Consumer Segments in United States
- Gross Load Value
- Transaction Value
- Unused Value
- Average Value Per Transaction
- Transaction Volume
- Average Value of Card Purchased
- Number of Cards
Gift Card Market Size by Consumer Segment in United States
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in United States
- By Retail Consumer
- By Retail Purchase Occasion
- By Corporate Consumer
- By Corporate Purchase Occasion
- By Company Size
Gift Card Market Size by Retail Consumer in United States
- By Functional Attribute
- By Occasion
- Festivals & Special Celebration Days
- Milestone Celebration
- Self-Use
- Other
- Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in United States
- Consumer Purchase Behaviour
- Gift Card Buyer by Age Group
- Gift Card Buyer by Income Level
- Gift Card Buyer by Gender
Gift Card Market Size by Corporate Consumer in United States
- By Functional Attribute
- By Occasion
- Employee Incentive
- Sales Incentive
- Consumer Incentive
- By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in United States
- Food & Beverage
- Health, Wellness & Beauty
- Apparel, Footwear & Accessories
- Books & Media Products
- Consumer Electronics
- Restaurants & Bars
- Toys, Kids, and Babies
- Jewelry
- Sporting Goods
- Home & Kitchen Accessories & Appliances
- Travel
- Entertainment & Gaming
- Other
Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in United States
- Ecommerce & Department Stores
- Restaurants & Bars
- Supermarket, Hypermarket, Convenience Store
- Entertainment & Gaming
- Specialty Stores
- Health & Wellness
- Travel
Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in United States
- Gift Card Online Sales
- Gift Card Offline Sales
- 1st Party Sales
- 3rd Party Sales
- Sales Uplift
For more information about this report visit https://www.researchandmarkets.com/r/33xmoy
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