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Dublin, June 08, 2020 (GLOBE NEWSWIRE) — The “United States Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Market Size and Forecast (2015-2024) – Covid-19 Update Q2 2020” report has been added to ResearchAndMarkets.com’s offering.
This report details the impact of economic slowdown along with change in business and consumer sentiment due to disruption caused by COVID-19 outbreak on gift card industry in the United States.
Historically, the gift card market in the United States has recorded a steady growth with a CAGR of 11.7% during 2015-2019. However, According to the Q2 2020 Global Gift Card Survey, gift card market in United States is expected to be impacted across retail and corporate segments due to disruption caused by COVID-19 outbreak.
Though growth of gift card industry will be impacted due to pandemic, there are certain segments such as self-use which will gain significant market share. Adoption of e-Gift cards is also expected to increase significantly over the next 4-6 quarters. There are interesting trends emerging across various segments, which are expected to fundamentally reshape gift card industry dynamics.
Despite near-term challenges, medium to long term growth story of gift cards in United States remains strong. The gift card industry in United States will continue to grow over the forecast period and is expected to record a CAGR of 9.2% during 2020-2024. The gift card market in the country will increase from US$ 163,050.7 million in 2019 to reach US$ 221,146.6 million by 2024.
The market growth can be primarily attributed to the rising adoption of gift cards by the millennials, expansion of digital gift cards, rising ecommerce, and increasing demand for cryptocurrencies in the US.
Though growth has been impacted overall, there are sectors across both retail and corporate segments which will drive growth and mark a fundamental shift in terms of gift card usage. Moreover, though overall growth will remain subdued in 2020, the gift card industry in the US is expected to represent a bright spot in overall US economy.
Growth of e-commerce industry is one of the factors driving the growth of the gift card market in the country. Despite a slowdown in 2020, the author expects growth momentum to continue over the forecast period as fundamental value proposition of gift cards remain strong.
According to the report, millennials and Gen Z consumers are driving the gift card market growth in the US. With increasing purchasing power these demographic segments are creating demand for gift cards for self-use and for gifting purposes. Moreover, these consumer segments have more affinity towards digital gift cards than physical gift cards. This is primarily due to growing smartphone penetration and ease of managing digital gift cards through digital wallets and mobile applications. Therefore, leading gift card providers are focusing more on offering digital gift cards to target these consumers. Leading gift card providers such as Apple, Google, Starbucks, and Amazon offer digital gift cards in the US.
Holiday seasons are one of the biggest contributors to the sales of gift cards in the US. Thanksgiving, Christmas, and New Year holiday are the most popular festive seasons where gift cards are used for giving and receiving gifts in the country. According to the author, gift card, especially digital gift card category will record high growth as consumers move to online channel for retail purchases.
During 2020, adoption of digital or e-gift cards will increase, supported by current market scenario of social distancing which will enhance the value proposition of this segment. The digital or e-gift card segment has been posting strong growth in recent quarters and the author expects growth momentum to continue in the US over the forecast period. Being the largest e-commerce platform in the United States, Amazon gift cards are one of the most popular gifting options in the country.
Corporate spending on gift cards is expected to slow down considerably, reflecting overall economic sentiment. However, the author expects increased use of gift cards to offer rewards and incentives to employees.
Another emerging trend of freelancers accepting payments through gift cards for their services is also expected to support the growth of gift card market in the country. The gift card market growth is also expanding due to the rising trend of cryptocurrency trading. This trend is encouraging cryptocurrency players to launch new products in the market.
This report provides a detailed data centric analysis of gift cards and corporate incentive cards market along with consumer behaviour and retail spend dynamics in United States. With over 200 KPIs at country level, this report provides comprehensive understanding of gift and incentive card market dynamics.
The report includes raw data along with structured dashboards, charts, and tables in an interactive Excel format.
Below is a summary of country level trend analyses covered across gift card segments:
- Total gift market: This report provides detailed view of overall spend on gifts, broken down by retail and consumer segments. For both retail and consumer segments, this report provides a breakdown of spend on gifts by product categories (13 segments) and retail sectors (7 segments).
- Gift cards: Drawing from proprietary survey results, this report provides in-depth analysis of opportunities in both open loop and closed loop prepaid gift card categories. Assesses consumer behaviour by type of consumer (retail and corporate – SMB, Mid-Tier, Large Enterprise), gifting occasion, digital gift card (e-gift card), and market share by retail sectors.
- Details six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction, and value of transactions.
- Corporate incentive & loyalty cards: This report provides detailed market dynamics of corporate incentive cards, broadly segmented in three categories – consumer incentive card, employee incentive card, and sales/partner incentive card. It details market size and forecast at category level, by functional attribute (open loop and closed loop), and by corporate consumer segments (small scale business, mid-size business, and enterprise business).
- Digital gift card (e-gift card) analysis: Provides market size and forecast for digital gift cards, broken down by retail and corporate buyers. It also includes gift card spend by occasion (retail – festivals & special celebration days, milestone celebration, self-use, other; Corporate incentive cards -consumer incentive card, employee incentive card, and sales/partner incentive card). The report also includes digital gift card adoption by company size.
- Open loop and closed loop: Provides market estimates and forecasts to assess opportunities in open loop and closed loop gift and incentive card segments across consumer segments.
- Consumer attitude and behaviour: Drawing from proprietary survey results, this report identifies and interprets key KPIs related to gift card dynamics including spend by age, gender, and income level.
- Retail spend: Breaks down retail spend across retail sectors (7 segments) to provide detailed insights on consumer behaviour and changing dynamics of gift card spend.
- Market share by retailer: Provides market share of closed loop gift cards by key retailers in United States.
- Distribution channel analysis: Provides market share by distribution channel – online vs offline sales and 1st party vs 3rd party sales (sales through outlet of other retailers).
Key Topics Covered
1 United States Total Gift Spend Analyzer
2 United States Retail Consumer Gift Spend Analyzer
3 United States Corporate Consumer Gift Spend Analyzer
4 United States Gift Card Spend Analyzer
5 United States Digital Gift Card Spend Analyzer
6 United States Gift Card Spend Analysis by City Type
7 United States Gift Card Spend Share by Demographics and Purchase Behaviour
8 United States Retail Consumer Gift Card Spend Analyzer
9 United States Retail Consumer Gift Card Spend Analysis by Functional Attribute
10 United States Retail Consumer Gift Card Spend Analysis by Occasion
11 United States Corporate Consumer Gift Card Spend Analyzer
12 United States Corporate Consumer Gift Card Spend Analysis by Functional Attribute
13 United States Corporate Consumer Gift Card Spend Analysis by Occasion
14 United States Corporate Consumer Gift Card Spend Analysis by Company Size
15 United States Corporate Consumer Gift Card Spend Analysis by Company Size X Functional Attribute
16 United States Gift Card Spend Analysis by Distribution Channel
17 United States Gift Card Spend Analysis by Retail Sector
18 United States Retail Consumer Gift Card Spend Analysis by Retail Sector
19 United States Corporate Consumer Gift Card Spend Analysis by Retail Sector
20 United States Closed Loop Gift Card Market Share Analysis by Top Retailers
- Wal-Mart Stores Inc
- CVS Health Corp
- Kroger Co
- Amazon.com Inc
- Walgreens Boots Alliance Inc
- Target Corp
- Costco Wholesale Corp
- Albertson’s Inc
- Home Depot Inc, The
- Best Buy Co Inc
- Publix Super Markets Inc
- Sears Holdings Corp
- Rite Aid Crop
- eBay Inc
- Apple Inc
- Macys Inc
- Lowe’s Cos Inc
- HE Butt Grocery Co
- TJX Cos Inc, The
- Dollar General Corp
For more information about this report visit https://www.researchandmarkets.com/r/81lwt3
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