The gift card market allows consumers to gift funds that can be redeemed for various products and services. Gift cards offer flexibility and are considered more personal than tangible gifts. They are increasingly being used for both occasions like holidays and everyday use. Gift cards issued by major retailers can be used to purchase commodities like apparel, consumer electronics, grocery and general merchandise.

The global gift card market is estimated to be valued at US$730 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023-2033, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
One of the major drivers for the growth of the gift card market is the rising consumer spending on gifts. Consumers are showing increased preference for gifting options that can be used over tangible gifts. Gift cards allow the recipients to redeem funds for products of their choice. They add convenience and flexibility compared to physical gifts. Additionally, gift cards are gaining traction as an alternative to cash gifts. The demand for gift cards from major retailers is increasing for occasions like birthdays, anniversaries, festivals and more. Gift cards also provide opportunities for last minute gifting. Further, the gift card market is being propelled by new issuing models like digital gift cards and multi-purpose cards that can be spent across different merchants.

SWOT Analysis
Strength: There are three main strengths of the gift card market. Gift cards allow quick and easy purchasing of gifts without needing to choose an item. Gift cards can also suit a wide range of recipients and tastes. Gift cards are also a convenient option for last-minute gift giving.
Weakness: Two main weaknesses are that gift cards often go unused if recipients don't want anything offered by a particular retailer. Once a card is lost or stolen, the funds may be impossible to recover.
Opportunity: The growth of e-commerce and digital gift cards presents an opportunity to reach more customers online. Emerging payment technologies could integrate gift cards into mobile payment platforms. Population groups like millennials that prefer experience gifts also offer an opportunity.
Threats: Economic downturns may negatively impact spending on gifts and gift cards. The development of alternative gift options like donation gifts presents a threat. Stricter regulations on expiration dates and dormancy fees for gift cards pose another threat.

Key Takeaways
The Global Gift Card Market Demand is expected to witness high growth over the forecast period of 2020 to 2028.

The North American region currently dominates the gift card market due to higher adoption. The US accounts for the largest share due to growing popularity of gift cards among all age-groups for various occasions. The Asia Pacific region is expected to grow at the fastest pace due to rising disposable incomes and increasing social celebrations like weddings and festivities embracing digital gift cards.

Key players operating in the gift card market are Amazon, Walmart, Starbucks, Target, Home Depot, Best Buy, Lowes, Google Play, Itunes, Sephora, Kohl's, H&M, Zara, IKEA, Macy's, JCPenny, and Nordstrom. Major gift card brands include Visa, Mastercard, and American Express. These key players have established strong distribution networks including both online and physical retail stores. The competitive environment is characterized by tie-ups with merchants and innovations in digital technologies.

For more details on the report, Read- https://www.pressreleasebulletin.com/gift-card-market-growth-market-size-share-analysis/

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