Market Size of US Gift Card and Incentive Card Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 8.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US Gift Card & Incentive Card Market Analysis
The rise of the US Gift and Incentive Card market, which has been steadily increasing, has accelerated in the aftermath of the pandemic. The digital gift card segment had a significant gain in 2021 as a result of the Covid-19-induced lockout and movement limitations and is likely to continue on its upward trajectory in 2022. Despite the short-term hurdles posed by the epidemic, the medium- to the long-term growth story of gift and incentive cards in the United States continues to be positive.
Due to rising millennial use of gift cards, the development of digital gift cards, and increased e-commerce activity, the Gift Card and Incentive Card Market in the United States is seeing tremendous growth. According to the survey, the gift card market in the United States is being driven by millennials and Gen Z customers. Gift cards for self-use and gifting are becoming more popular as these demographic segments' purchasing power grows. Furthermore, digital gift cards are more popular among these customer demographics than physical gift cards. This is largely due to rising smartphone adoption and the simplicity with which digital gift cards can be managed via digital wallets and mobile apps. As a result, top gift card companies are concentrating their efforts on providing digital gift cards to these customers. Another new trend is for freelancers to take gift cards as payment for their services, which is predicted to help the country's gift card market flourish.
Consumers in the United States are increasingly interested in using gift cards in stores, on websites, and on mobile devices. Consumers' increasing preference for omnichannel gift cards is leading to more strategic alliances in the gift card industry. Several new and imaginative uses for gift cards have emerged in recent years. Innovative program launches, ranging from regional governments providing gift cards for immunization to offering gift cards to assist local businesses, have aided the expansion of the gift card market in the United States and are predicted to continue to do so.
US Gift Card & Incentive Card Industry Segmentation
A gift card is a prepaid debit card with a predetermined amount of money on it that may be used for a range of purchases. A loyalty, prize, incentive, or promotional card that is funded by a business and not available for purchase by the general public is referred to as an incentive card. This report aims to provide a detailed analysis of the US Gift Card and Incentive Card Market. It focuses on the market dynamics, emerging trends in the segments, the future of markets, and insights on various drivers and restraints. Also, it analyses the key players and the competitive landscape in the market. The US Gift Card and Incentive Card Market can be segmented, By Card Type (E-Gift card, Physical card), By Consumer Type (Retail Consumer, Corporate Consumer), and by Distribution Channel (Online, Offline).
| By Card Type | |
| E-Gift Card | |
| Physical Gift Card |
| By Consumer Type | |
| Retail Consumer | |
| Corporate Consumer |
| By Distribution Channel | |
| Online | |
| Offline |
US Gift Card and Incentive Card Market Size Summary
The US Gift Card and Incentive Card market has experienced significant growth, particularly accelerated by the pandemic's impact, which spurred a surge in digital gift card adoption. This market expansion is driven by the increasing use of gift cards among millennials and Gen Z, who prefer digital options due to the convenience of managing them through smartphones and digital wallets. The rise in e-commerce activity further fuels this growth, as consumers seek versatile and accessible payment methods. The market is characterized by a shift towards omnichannel solutions, with strategic partnerships enhancing the availability and functionality of gift cards across various platforms. Innovative applications, such as using gift cards for vaccinations or supporting local businesses, have also contributed to the market's expansion.
Digital gift cards, including e-gift cards and vouchers, have become particularly popular, leveraging the growing trend of digitization and the widespread use of smart devices. These cards offer businesses a way to promote their brands, reduce fraud, and attract new customers. The market is highly competitive, with numerous players offering both closed-loop and open-loop gift cards, the latter providing greater flexibility and ease of use. The preference for open-loop cards has increased, especially during the pandemic, due to their convenience and perceived security advantages in online shopping. Strategic collaborations, such as those between Factor4 and SavorConnect, and between New Seasons Market and Blackhawk Network, continue to enhance the market's offerings, ensuring ongoing growth and innovation.
US Gift Card and Incentive Card Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Overview
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1.2 Market Driver
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1.3 Market Restraints
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1.4 Insight on Technologial Adoption in the Market
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1.5 Porters 5 Force Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Insight on Various Government Regulations in the Market
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1.7 Impact of Covid 19 on market
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2. MARKET SEGMENTATION
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2.1 By Card Type
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2.1.1 E-Gift Card
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2.1.2 Physical Gift Card
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2.2 By Consumer Type
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2.2.1 Retail Consumer
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2.2.2 Corporate Consumer
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2.3 By Distribution Channel
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2.3.1 Online
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2.3.2 Offline
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US Gift Card and Incentive Card Market Size FAQs
What is the current US Gift Card and Incentive Card Market size?
The US Gift Card and Incentive Card Market is projected to register a CAGR of 8% during the forecast period (2024-2029)
Who are the key players in US Gift Card and Incentive Card Market?
Factor4, Nift Network, Prepaid2Cash, Tango Card and Blackhawk Network are the major companies operating in the US Gift Card and Incentive Card Market.
