Top Gift Card Statistics In 2024 (Market Data & Trends)
Gift cards have become a powerful tool for businesses to boost revenue and customer loyalty. As of 2024, the global gift card market is valued at $474.8 billion, highlighting significant growth and consumer demand. In the US, 71% of consumers prefer digital gift cards due to their immediacy and ease of use, indicating a shift towards digital solutions.
Gift cards not only drive sales but also increase customer spending, with many recipients spending more than the card’s value. In this blog, we explore key statistics and trends shaping the gift card industry in 2024, providing valuable insights for both businesses and consumers.
Gift Card Statistics 2024 (Editor's Picks)
- The global gift card market is valued at $474.8 billion in 2024.
- 64% of US shoppers buy gift cards as holiday gifts.
- 61% of gift card recipients spend more than the card's value.
- 71% of consumers prefer digital gift cards due to their convenience and immediacy.
- North America dominates the global gift card market.
- 75% of consumers have purchased a gift card in the past year.
Current Gift Card Market Trends
The gift card market is a dynamic and growing industry that reflects evolving consumer preferences and market trends. Understanding the current landscape is essential for businesses and individuals looking to leverage this popular gifting option.
Gift card market size (Are they still popular?)
Gift cards aren't just popular, but they're growing in demand across the world.
The gift card market has seen significant growth over recent years. As of 2024, the global gift card market is valued at approximately $474.8 billion, reflecting a steady increase from previous years.
This growth is attributed to the rising popularity of both digital and physical gift cards. The market has expanded at a compound annual growth rate (CAGR) of 5.8% from 2018 to 2024.
The global gift card market is projected to reach a value of $510 billion by 2025.
Here's a table that shows the global market value of gift cards from 2017 to 2025:
| Year | Gift card market value (in USD) |
| 2025 | $510 billion |
| 2024 | $474.84 billion |
| 2023 | $448.81 billion |
| 2022 | $424.21 billion |
| 2021 | $400.95 billion |
| 2020 | $378.97 |
| 2019 | $358.2 billion |
| 2018 | $338.56 billion |
| 2017 | $320 billion |
Consumer Preferences
Understanding consumer preferences can provide valuable insights into the evolving gift card market. Here's a closer look at what consumers are choosing and spending on:
Popular Gift Card Categories
Consumers have diverse preferences when it comes to gift cards. Recent data shows that retail and restaurant gift cards are among the most popular, with large retailer gift cards accounting for 88% of total gift card sales.
Food and beverage gift cards follow closely, making up 78% of the market. In addition, the trend of personalized and customizable gift cards is gaining traction as consumers seek unique and thoughtful gifting options. This trend is expected to continue shaping the gift card market in the coming years.
Trends in Consumer Spending on Gift Cards
Consumer spending on gift cards has been on the rise, with an average spend of $60 per card in 2024, up from $55 in 2023. Reports indicate that in 2024, 52% of consumers plan to purchase gift cards, reflecting a continued preference for gift cards as a convenient and versatile gifting option.
Emerging gift card markets
The gift card market is expanding beyond traditional strongholds. Nielsen’s 2024 Global Retail Trends report indicates that emerging markets in Southeast Asia and Latin America are experiencing significant growth.
In Southeast Asia, the market is growing at a CAGR of 8%, driven by increased digital adoption and economic development. Latin America is seeing a similar trend, with a 7% CAGR, as more consumers and businesses embrace gift cards.
Key statistics on gift card usage
Gift cards continue to be a popular choice for both giving and receiving, reflecting their enduring appeal and versatility. Here's a snapshot of the current landscape of gift card usage:
Top retailers by gift card sales
WalletHub's top gift card retailers in 2024 are Visa, Amazon, and Target. Visa gift cards are versatile and can be used at various retailers, while Amazon and Target offer a diverse selection of products, making their gift cards appealing to many people.
Other notable mentions include Starbucks, Disney, and Sephora gift cards. Gift cards from these retailers were chosen based on their popularity, discount rates, resale value, customer satisfaction, and shipping costs.
Digital vs. physical gift card statistics
54% of consumers still prefer physical gift cards over digital ones. Despite this preference, the digital gift card market currently holds a 48% market share and is growing rapidly, with a projected CAGR of 17% through 2026.
The trend of storing and redeeming gift cards through mobile wallets like Apple Pay and Google Pay is expected to grow, enhancing convenience and security for users.
There is a clear contrast between gift givers and recipients. Most people who receive gifts prefer digital gift cards, while those who give gifts often prefer physical gift cards.
94.8% of participants think that physical gift cards are more socially acceptable. This preference is based on the idea that physical gift cards show more thoughtfulness, while eGift cards might seem like a last-minute choice, even though they are convenient for online shopping.
What's more? About 61% of people appreciate physical gifts because they feel more personal, and nearly 46% of consumers enjoy the experience of unwrapping a physical gift card because it adds to the excitement of receiving a gift.
Sustainable Gift Card Statistics
Plastic gift cards are typically single-use items that often end up in landfills. Each year, 50,700 tons of plastic gift cards end up in landfills. Also, the production of a single plastic gift card results in the emission of 21 grams of carbon.
There's a growing preference for eco-friendly gift cards, especially among Millennials and Gen Z. About 71% of Gen Z consumers prefer brands that are transparent about their environmental, social, and governance (ESG) practices, with over 51% willing to pay more for sustainable options.
By transitioning to digital gift cards, businesses can minimize their environmental footprint and showcase their dedication to sustainability.
Unused gift card statistics
47% of American adults have unused gift cards. The average value per person is $187, and the total value of these unspent funds in the US annually is approximately $23 billion.
Higher-income individuals are most likely to have unredeemed gift cards, with 62% of this demographic reporting unused cards.
Nearly 29% of Americans have kept a gift card so long that it expired, and 25% have lost at least one gift card.
Gift card redemption statistics
Over 56% of gift cards are redeemed within the first 180 days of being received, indicating a high rate of utilization by consumers. The initial 45 days see about 35% of cards being redeemed, with the rate gradually increasing over the subsequent months
Demographics and buying patterns
Gift card usage reveals interesting patterns across different demographics and seasonal trends. Here’s a detailed look into who buys gift cards and how buying behaviors shift throughout the year:
Age and gender distribution of gift card buyers
Millennials (Born 1981-1996) are the largest group of gift card buyers, comprising 37% of all gift card sales. Gen X (Born 1965 – 1980) follows closely behind, representing 28% of the market.
Interestingly, all age groups tend to use open-loop gift cards primarily for online shopping.
Open-loop gift cards, like Visa gift cards, are prepaid cards that can be used at multiple merchants and locations, not limited to a specific retailer or brand.
Gen Z is particularly inclined to use gift cards for gaming gear and health and beauty products, while Gen Xers often utilize them to pay bills
Here is a table that shows a detailed age distribution of gift card buyers in the US:
| Age Group | Percentage of Buyers |
| Millennials | 37% |
| Gen X | 28% |
| Gen Z | 18% |
| Baby Boomers | 17% |
Women tend to buy and use gift cards more frequently than men. In the US, approximately 57% of women purchase gift cards, compared to 43%of men.
| A typical gift card buyer is often a married woman without children at home. |
Seasonal trends in gift cards
On average, consumers purchase gift cards 5 to 6 times per year. This frequency tends to increase during major holiday seasons, with many buyers purchasing multiple cards at once
Gift cards were the No. 1 most requested gift for the 2023 holiday season, marking the 17th year in a row that they’ve been at the top of holiday wish lists.
A significant 64% of US consumers buy gift cards as holiday gifts. The holiday season, especially the final quarter of the year, is the peak time for gift card purchases.
Americans spend nearly $30 billion on gift cards each holiday season.
Google searches for gift cards spike dramatically starting in early November and peaking just before Christmas. Additionally, other holidays like Mother's Day, Father's Day, and graduations also contribute to spikes in gift card purchases.
The primary reasons include allowing recipients to choose their own gifts (72%), ease of ordering and wrapping (41%), and uncertainty about what to buy (33%). Additionally, 65% of shoppers prefer purchasing gift cards directly from the retailer where the card will be useed
| December alone can account for nearly half of the annual digital gift card sales, reflecting the high demand during the festive period. |
43% of US consumers prefer money as a Christmas gift, followed by gift cards at 38%.
The most popular gift card categories during the holidays were for restaurants and dining, followed by department stores and online retailers.
Average spend per transaction for gift cards
The average amount spent per gift card during the holiday season in the US is $51.47
47% of consumers spend more than the value of their gift cards. 37% spend exactly as much as the card contains, and 14% spend less than the card's value.
Consumers reported receiving the greatest gift card value from their significant others.
On average, consumers purchase gift cards 5 to 6 times per year. During major holiday seasons, this frequency can increase significantly, with many buying multiple cards at once.
Case Studies of Successful Gift Card Programs
Many brands have leveraged effective gift card strategies to drive sales and enhance customer loyalty. Let’s take a closer look at how gift cards can be used as a powerful tool for customer acquisition, retention, and building brand awareness.
Starbucks gift card case study
Starbucks is one of the most gifted brands in the world. Its highly successful gift card program generated over $3.3 billion in the US in the last quarter. The company’s loyalty program is deeply integrated with its gift cards, encouraging repeat purchases and customer satisfaction.
Their digital gift card strategy, which includes personalized eGift cards and the ability to reload and track balances via the Starbucks app, has been particularly effective in engaging tech-savvy customers and driving repeat business.
Amazon gift cards case study
Amazon’s gift card program is highly popular due to its versatility. The highly sought-after Amazon gift card has a monthly search volume of 246,000, making it the most popular choice. Customers can use these gift cards to purchase a wide range of products, from books to electronics.
Amazon frequently runs promotions where customers get bonus credits for purchasing gift cards, enhancing the program’s appeal. Their digital gift card option also allows for instant delivery, which is a significant draw for last-minute shoppers.
Target gift card case study
Target’s gift card program continues to be a standout success. In 2024, Target reported a significant boost in their gift card sales, with a notable increase during seasonal promotions like Target Circle Week. This event alone offered savings of up to 50% off thousands of items, significantly driving gift card purchases.
Integration with their REDcard rewards program and digital accessibility through the Target app has also contributed to their success. In Q1 2024, Target saw a 1.4% increase in digital sales, with a significant portion attributed to gift card transactions
Wrapping Up
As we navigate through 2024, the gift card market continues to evolve, reflecting changing consumer preferences and technological advancements. The growing popularity of digital gift cards, with a projected CAGR of 17% through 2026, indicates a significant shift towards online convenience. Meanwhile, physical gift cards remain a staple, favored by 54% of consumers for their perceived thoughtfulness and tangible nature.
Looking ahead, the rise of personalized and customizable gift cards is set to drive further innovation in the market. Emerging markets in Southeast Asia and Latin America are also expected to contribute to global growth, with the latter showing a robust 7% CAGR.
