Global Paper Card Gift Market 2024–2033

Reports Description

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.

The paper gift card market consists of producing, distributing, and retailing plastic gift cards for use at specific stores and the goods listed by the store. It is a unique market that combines the old way of giving gifts with the new way of helping the user make the right choice.

These days, tending focuses on using a physical card and a digital ecosystem, enabling ease of use. There is also an increasing focus on green practices, which leads to using biodegradable materials. People always demand new and distinctive, powerful ideas about gifting, which adds to the market’s creativity and growth.

Paper Card Gift Market – Significant Growth Factors

The paper card gift market presents significant growth opportunities due to several factors:

• Consumer Preference and Convenience: People prefer physical gift cards, which serve the purpose of gift givers and receivers in a versatile way. Gift cards are convenient for shopping and can be redeemed at different stores, so they are ideal for many who want ease of use and options.

• Retailer Adoption and Promotion: Paper gift time cards also attract more usage from many retailers, who use them to market their products or retain their customers. This diffusion stimulates visibility and availability, boosting the market.

• Gift Card Programs and Incentives: Gift card programs help businesses encourage customers to spend more within the business, engage customers, and attract new customers. These programs are a big part of the market’s growth as they help create more purchase cycles and brand retention.

• Seasonal and Promotional Campaigns: Gift cards are in demand at various times, such as holidays, birthdays, and special events, because they are generally versatile and easy to use. Additional seasonal sales promotions by retailers also drive the demand and sales volume within the paper gift card market.

• Technological Integration: New technologies have included other options in paper gift cards, such as the ability to go digital, work with mobile wallets, and have bespoke designs. Such developments aim to satisfy changing consumer trends and also make the use of physical cards more appealing.

• Sustainability Initiatives: As end users’ awareness and consumption of green products have increased, the industry has also embraced the eco-friendly trend in gift card manufacturing and packaging. The eco-friendly inks and recycled raw materials used surge the demand for eco-friendly packaging and thus the growth of this market segment.

• Global Market Expansion: The paper gift card market has grown in traditional retail areas and new and online areas. This international growth extends the market base and availability, which allows for the exploitation of a range of possibilities for different customer groups and needs.

Paper Card Gift Market – Mergers and Acquisitions

The Paper Card Gift Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the Paper Card Gift Market include:

• In April 2021, Thoughtworks, a global IT service provider in software development, delivery, and consultancy, announced the issuance of a new type of gift card. Businesspeople use These gift cards as soft measures to promote built-in payment, membership, and ordering systems. They assist in teaching spending disciplines among users, creating new areas of activity.

• In July 2020, Apple Inc. paired a gift card ideal for redeeming hardware, software, and credit payment for services offered. With the marketing title, ‘’For everything and everyone,’’ the card provides the ability to pay for a large assortment of products, including accessories, applications, games, music, movies, TV shows, and cloud services. Apple Inc., an eminent for its cutting-edge consumer electronics and app development marketing firm, has an extensive product range, including eye phones, eye pads, Mac computers, eye watches, and Apple TVs, all supplemented by iOS and Mac os operating systems.

These mergers and Acquisitions helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the paper card gift market. The trend is expected to continue as companies seek a competitive edge.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Paper Card Gift Market – Significant Threats

The Paper Card Gift Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Digital Transformation: The rising usage of digital cards and virtual gift card technologies creates a significant challenge for the frame-based giftable. Such alternatives to gift cards provide the advantages of instant gratification, all-time access, and a combination of mobile shopping and digital wallets. Young people who prefer to avoid using physical cards and enjoy doing everything via wires support this. The further development and implementation of innovations of this kind will probably drive consumers away from traditional paper cards.

• Fraud and Security Concerns: Gift cards can have various threats, such as theft, unauthorized usage of gift cards, and usage of fake gift cards. The security measures such as PIN codes and activation after the purchase have been introduced, but there are still cases of misuse. Besides consumers’ trust fraud being a great problem, retailers and issuers also suffer from a loss, which might lead to future improvements to friction. To avoid these possibilities, it is very important to tackle the security issues of the gift cards.

• Regulatory Changes and Compliance: The gift card market is regulated concerning expiration dates, fees, and consumer protection laws, which invite regulatory attention. Changes to the regulations – for example, limits imposed upon the fee charges or the dates of expiry – may affect the profitability and conduct of the gift card business by the issuers and retailers. It is very important to change as per the regulations and ensure they adhere to the changing rules to escape the sanctioning process and operate efficiently.

• Economic Downturns and Consumer Spending Patterns: Gift cards or other products used to show affection can be stopped in case of economic downturns or less spending. In this case, consumers may focus on essential goods and services rather than using gift cards to buy discretionary gifts, which will also result in decreased sales and redemption of gift cards. Consumer demand for gift cards and goodwill can be highly susceptible to changes in consumer sentiment and the overall economy, proving to be a threat to both the development and retention of revenue streams for retailers and issuers.

• Environmental Concerns: Among the changes that consumers are gradually adopting is a concern for environmental issues such as paper gift cards’ environmental impact from the cradle to the grave. Using paper and plastic in gift card production creates waste and environmental pollution. Retailers and issuers may need to change how they do business or the materials they use to sustain their position in the gift card industry.

Category-Wise Insights:

By Card Type

• Closed-loop Card: A specific kind of gift card is the property of particular shops or businesses and is only usable at member shops or under certain restrictions. They aim to increase the same retailer’s consumption through discounts, bonuses, or other motivational forms that are particular to the retailer.

• Open-loop Card: Financial institutions like banks and payment relation networks like Visa or Mastercard, which have a specific user base, generate these cards. They provide the client with variety and convenience. Still, it’s important to remember that they also come with costs and limitations set by the financial regulations that apply to their industry.

By End User

• Retail Establishment: Gift card usage within the retail sector encompasses the constant reinvention of businesses by investing in gift cards as a marketing strategy to acquire new customers and retain existing ones. The trends within this segment include customized designs of the physical gift cards linked to the clients’ spending history to improve customer loyalty and the issuance of digital gift cards for use on e-commerce and mobile applications.

• Corporate Institutions: The bosses use gift cards widely for marketing, customer rewards, and employee recognition. What is happening in this sector includes marketing of gift cards with the company’s brand names on them, using bulk purchase discounts, and combining gift card programs with wellness programs and employee recognition.

Report Scope

Paper Card Gift Market – Regional Analysis

The paper card gift market is segmented into various regions: North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: North American region in the paper card gift market comprises the USA, Canada, and Mexico. Trends include appreciated preference for electronic gift cards, compatibility with mobile wallets, and created gifting warranting the buyer’s preference.

• Europe: Due to the sponge-like regulatory environment, more than one country is considered in the European market for gift paper cards. Trends include the rise of green gift cards, solutions for hassle-free gifting across the borders of Europe, and collaboration with retail partners to improve distribution channels.

• Asia-Pacific: In Asia-Pacific identified markets like the Republic of Korea and the People’s Republic of China, there is an increasing uptake of digitalized gift cards. The trends include forecasting mobile gift card management, integrating gifting and shopping online, and expanding into new territories.

• LAMEA: The paper card gift market in the LAMEA region is characterized by cultural diversities and economic variances. Trends seem to be exploiting gift cards through mobile phones, adapting gift card designs to local tastes, and developing new market channels through cooperation with local stores.

Competitive Landscape – Paper Card Gift Market

The paper card gift market is highly competitive, with many manufacturers and retailers operating globally. Some of the key players in the market include:

• 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

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.

New entrants in the paper gift card market are embracing technology-based innovation to break into the market. Companies like Gyft, Tango Card, and Raise are utilizing mobile technology to reach new customers through the web. These players aim to improve engagement by providing innovative features and easy redemption options.

Hallmark, American Greetings, and InComm Payments are some of the key players in the paper gift card market. They retain their position through strong retail partnerships, various types of products, and strong distribution channels. The existing players in the market also embrace a new approach by providing digital gift cards to keep up with the changes in consumers’ needs and stay on top of the market.

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