Dublin, March 23, 2022 (GLOBE NEWSWIRE) -- The "United States Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
United States' gift card industry is expected to grow by 9.5% on annual basis to reach US$188832.7 million in 2022. Despite near-term challenges in 2022, medium to long term growth story of gift cards in the United States remains strong. The gift card industry in the United States is expected to grow steadily in H1 2022 and record a strong growth in H2 2022.
The growth momentum is expected to continue to grow over the forecast period, recording a CAGR of 8.3% during 2022-2026. The gift card market in the country will increase from US$172505.0 million in 2021 to reach US$259728.1 million by 2026.
With supply chain crisis leading to product shortages, gift cards are expected to lift retail sales in the United States
In the United States, the economy is hamstrung by all types of supply chain issues; gift cards are expected to lift retail sales in the next four to six quarters.
- With the Covid-19 induced lockdown and movement restrictions, the digital gift card segment saw a substantial boost throughout 2021 and is expected to continue its upward trajectory in 2022. Notably, retailers are also playing an integral part in the overall growth of the United States gift card industry. Merchants are increasingly pushing the use of gift cards to attract new customers and to boost shopping past the December holiday season into dull periods of January and February.
Growing preference for omnichannel gift cards among consumers leads to strategic partnerships in the United States
In the United States, consumers increasingly want to use gift cards in stores, on websites, and on mobile platforms. This growing preference for omnichannel gift cards among consumers is leading to more strategic partnerships in the gift cards space.
- In September 2021, Factor4, one of the leading providers of gift card and loyalty solutions in the United States, announced that the firm had entered into a strategic partnership with SavorConnect, a leading cloud-based integration platform. Through this strategic partnership, Factor4 will launch omnichannel gift cards on Shopify, which the consumers can use online, in-store, and through mobile devices.
- In November 2021, Factor4 also entered into a strategic partnership with Valor Paytech. This strategic partnership will enable ISOs to provide retailers with an omnichannel gift card solution that is compatible with Valor's suite of devices as well as offers seamless mobile and online functionality.
With online sales of gift cards exploding over the last four to eight quarters and the fact that only a few firms offer omnichannel gift cards, the publisher expects the growing demand among consumers for such solutions to further boost the growth of the digital gift card segment in the United States from the short to medium-term perspective.
Innovative gift card program launches supporting the growth of the overall industry in the United States
Over the last four to eight quarters, several new and innovative use cases of gift cards have emerged. From regional governments launching gift cards for vaccination to offering gift cards to support local businesses, innovative program launches have significantly supported the growth of the gift card market in the United States and are expected to drive further growth in the industry.
- In November 2021, Onondaga County rolled out the new round of double your money restaurant gift cards in the United States. The gift card program is aimed to support of the struggling dining industry due to the pandemic. In the new round of the innovative gift card program, the county is issuing US$400,000 worth of vouchers, which is meant to encourage spending at local restaurants in the country.
- In September 2021, Chicago announced that the government is offering US$100 in gift cards for getting vaccinated against the Covid-19 disease. With more regional governments expected to launch such vaccination gift card programs in the United States over the next four to eight quarters, the publisher expects the growth in the gift card segment to continue from the short to medium-term perspective.
The publisher expects that the innovative use cases of gift cards in the United States will continue to support the market growth over the next four to eight quarters.
Robust growth in the e-commerce market is expected to drive the growth of the gift card market in the United States
The shift towards online shopping has led to a surge in the number of new consumers buying products online. This has resulted in significant growth in the e-commerce market in the United States over the last four to eight quarters. Notably, the growth in the e-commerce segment has also supported the rise of the gift card industry in the country.
With the trend in online shopping expected to continue in the United States from the short to medium-term perspective, the publisher expects that the robust growth in the e-commerce market to further drive the adoption of gift cards among consumers, which will subsequently boost the market growth in the United States over the next four to eight quarters.
Scope
Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
- Wal-Mart Stores Inc
- Kroger Co
- Amazon.com Inc
- Target Corp
- Costco Wholesale Corp
- Albertson's Inc
- Home Depot Inc, The
- Apple Inc
Total Spend on Gifts in United States
- By Consumer Segment (Retail and Corporate)
- By Product Categories (13 Segments)
- By Retail Sectors (7 Segments)
Gift Card Market Size by KPIs across Consumer Segments in United States
- Gross Load Value
- Transaction Value
- Unused Value
- Average Value Per Transaction
- Transaction Volume
- Average Value of Card Purchased
- Number of Cards
Gift Card Market Size by Consumer Segment in United States
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in United States
- By Retail Consumer
- By Retail Purchase Occasion
- By Corporate Consumer
- By Corporate Purchase Occasion
- By Company Size
Gift Card Market Size by Retail Consumer in United States
- By Functional Attribute
- By Occasion
- Festivals & Special Celebration Days
- Milestone Celebration
- Self-Use
- Other
- Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in United States
- Consumer Purchase Behaviour
- Gift Card Buyer by Age Group
- Gift Card Buyer by Income Level
- Gift Card Buyer by Gender
Gift Card Market Size by Corporate Consumer in United States
- By Functional Attribute
- By Occasion
- Employee Incentive
- Sales Incentive
- Consumer Incentive
- By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in United States
- Food & Beverage
- Health, Wellness & Beauty
- Apparel, Footwear & Accessories
- Books & Media Products
- Consumer Electronics
- Restaurants & Bars
- Toys, Kids, and Babies
- Jewelry
- Sporting Goods
- Home & Kitchen Accessories & Appliances
- Travel
- Entertainment & Gaming
- Other
Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in United States
- Ecommerce & Department Stores
- Restaurants & Bars
- Supermarket, Hypermarket, Convenience Store
- Entertainment & Gaming
- Specialty Stores
- Health & Wellness
- Travel
Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in United States
- Gift Card Online Sales
- Gift Card Offline Sales
- 1st Party Sales
- 3rd Party Sales
- Sales Uplift
For more information about this report visit https://www.researchandmarkets.com/r/7eij2b
