Global Paper Card Gift Market Size Likely to Reach at a CAGR of 17.2% By 2033

According to current market research conducted by the CMI Team, the global Paper Card Gift Market is expected to record a CAGR of 17.2% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 5,791.93 Million. By 2033, the valuation is anticipated to reach USD 18,835.05 Million.

Paper Card Gift Market: Growth Factors and Dynamics

• Consumer Preference and Convenience: Physical gift cards remain in demand owing to their physicality and suitability for becoming a gift for many occasions. Such a presence allows its receivers to select the items or services they are interested in, hence being convenient for many situations. Such consumers are left wanting more, and the retailers and the issuers continue to add more designs and packaging for the gift options.

• Retailer Integration and Promotions: Large retailers employ gift cards as an efficient sales tool to increase customer retention and sales and attract more customers. Gift card plans are integrated into customer loyalty programs and promotional activities, motivating customers to purchase more and increasing the average transaction amount. The retailers also gain from increased brand visibility and market penetration through external collaboration and bundling of gifts, giving them a competitive edge in the market.

• Technological Advancements: The fusion of technological solutions has revolutionized the paper card gift market. Digital gift cards are delivered electronically; they do not require any physical presence or visit to the store. They can be redeemed on the internet and mobile devices with additional backup security measures such as PINs and balance monitors. These developments are intended for advanced users who enjoy gadgets, technology, and convenience, widening the market scope and base.

• Seasonal and Occasional Demand: Gift cards are much sought after and used to make purchases, especially during holidays, birthdays, and other moments of celebration, resulting in regular seasonal peaks in sales. At the same time, retailers are taking advantage of these events by encouraging people to buy with focussed advertising and pictures on the gift card, which increases consumer spending and the market during these peak seasons.

• Regulatory Environment and Compliance: Gift cards have restrictions imposed on them regarding terms, fees, charges and consumer provisions. Evolving regulatory issues allow for building and retaining consumer confidence and loyalty among issuers and retailers while decreasing the exposure to the risk of litigation. However, changing trends and standards relevant to regulation are also very important in business to enhance performance and compete, even in regulated markets.

• E-commerce Integration: With the development of Internet commerce came the improvement of sales of paper gift cards, which are bought on the website and delivered over the Internet. Retailers use e-commerce to sell gift cards, make unplanned purchases, and target distant places, all of which add up to the growth and reach of the market.

• Corporate Gifting Trends: Businesses, such as employee awards, client rewards, and promotional campaigns, are using paper gift cards to drive growth in the corporate gifting segment. Increasing support from companies for custom branding features, bulk buying, and corporate wellness program participation provides reasons to use gift cards, including subsidized gifts.

• Sustainability Initiatives: Paper gift card sales are affected by rising consumer awareness and consciousness towards environment friendly gift products. Card companies and merchants are going green by reducing pollution, for instance, by using recycled content, limiting packaging waste, and giving out electronic cards. Sustainable development is appealing to consumers and thereby helps to enhance the market competitiveness of brands and retailers, especially in the current climate-sensitive retail environment.

Paper Card Gift Market: Partnership and Acquisitions

• In June 2020, the assets of Deliv, a company specializing in last mile logistics using crowd-sourcing, were acquired by Target Corporation. The batch and route optimization technology that Deliv developed was also a part of this acquisition. Target is an American retail corporation operating large department stores and hypermarket retail chains. Target Corporation decided to take this step to gain efficiency in logistics and serve many customers’ orders. This acquisition reflects Target’s goal to use sophisticated technology to optimize the company’s operations and improve its customers’ shopping experience.

Report Scope

Paper Card Gift Market: COVID-19 Analysis

The outbreak of COVID-19 negatively impacted the paper gift card business as people changed their consumption patterns, disrupting offline sales. And with countries resorting to social distancing, many physical chief executive officers were locked up or worked under strict conditions. Given that paper gift cards are mostly sold and redeemed inside walls of retail, this greatly limited the consumers’ access. Even when they opened again, there weren’t as many people coming into the shops, and the few who did were reluctant to buy anything because they were not used to purchasing things in person.

At the same time, the adoption of online shopping further quickened, with shoppers turning to various forms of cash-less transactions like e-gift cards. The factors for ease in buying and sending the gift cards and even using them in online purchases made it the most convenient option for choice. This inclination further worsened the sales situation for traditional paper gift cards. Furthermore, the pandemic threatened people, and even if they had the means, it would be unwise due to increasing unemployment rates and lower available disposable incomes.

List of the prominent players in the Paper Card Gift Market:

• Hallmark Cards Inc.
• American Greetings Corporation
• Card Factory plc
• Moonpig Group Limited
• Cardpool Inc.
• GiftCards com LLC
• NGC US LLC (National Gift Card Corp)
• InComm Payments
• Blackhawk Network Holdings Inc.
• The Kroger Co. (through its Gift Card Mall)
• Givex Corporation
• SVM LP (SVM Global)
• CashStar Inc. (owned by Blackhawk Network)
• National Gift Card Europe
• The Gift Voucher Shop (trading as One4all Gift Cards)
• Others

The Paper Card Gift Market is segmented as follows:

By Card Type

• Closed-loop Card
• Open-loop Card

By End-user

• Retail Establishment
• Corporate Institutions

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America