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US Gift Cards Market Research Report: By Type (Physical Gift Cards, E-Gift Cards, Printable Gift Cards), By Distribution Channel (Online, Retail Stores, Mobile Applications), By End Use (Personal Use, Corporate Use, Promotional Use) and By Currency Type (Domestic Currency, Foreign Currency) - Forecast to 2035


ID: MRFR/CR/19403-HCR | 128 Pages | Author: Garvit Vyas| April 2025

US Gift Cards Market Overview


US Gift Cards Market Size was estimated at 95.29 (USD Billion) in 2023. The US Gift Cards Market Industry is expected to grow from 101.93(USD Billion) in 2024 to 183.5 (USD Billion) by 2035. The US Gift Cards Market CAGR (growth rate) is expected to be around 5.49% during the forecast period (2025 - 2035).


US Gift Cards Market Overview


Source: Primary Research, Secondary Research, MRFR Database and Analyst Review


Key US Gift Cards Market Trends Highlighted


The US Gift Cards Market is experiencing several notable trends shaped by consumer preferences and technological advancements. One of the key market drivers is the increasing popularity of digital gift cards. With the rise of online shopping and the convenience of mobile wallets, more consumers in the US are choosing electronic gift cards over traditional plastic cards. This shift is further supported by the growing use of smartphones and the ease of purchasing gift cards via apps or online platforms. Another significant trend is the widespread acceptance of gift cards across various retail sectors. From retail stores to digital platforms, the versatility of gift cards makes them attractive for consumers looking to give gifts that cater to individual preferences, thus fostering a more personalized shopping experience.Opportunities to be explored in the US Gift Cards Market include the potential for brand partnerships and promotions that comply with consumer demand for unique experiences. Retailers are increasingly exploring collaborations to create themed gift cards or offering limited-time promotions that drive customer engagement. Furthermore, the surge in gifting occasions, including holidays and special events, presents a substantial opportunity for businesses to innovate and expand their gift card offerings, appealing particularly to younger demographic groups who prioritize experiences over material gifts. In recent times, sustainability has also emerged as a trend within the US market.Consumers are becoming more environmentally conscious, leading companies to explore eco-friendly gift card options, such as those made from recyclable materials. As digital gift cards continue to rise, companies are also focusing on minimizing their carbon footprint and enhancing their corporate social responsibility efforts. Overall, the US Gift Cards Market is adapting to shifts in consumer behavior and preferences, paving the way for innovative solutions that cater to the evolving gifting landscape.


US Gift Cards Market Drivers


Increase in Digital Payment Adoption


The rise of digital payment platforms in the United States has significantly contributed to the growth of the US Gift Cards Market Industry. According to the Federal Reserve, the use of digital payments has increased by over 50% in the past five years. This trend reflects a growing preference for contactless and online transaction methods, accelerated by the COVID-19 pandemic. Major companies like PayPal and Square are continuously enhancing their services, leading to an increase in the adoption of digital gift cards.Such platforms have made it easier for consumers to purchase and send gift cards electronically, thus creating efficiency and convenience. Additionally, a study from the Electronic Payments Association indicates that nearly 70% of consumers now prefer using digital forms of payment, translating into a stronger demand for digital gift cards, which are projected to drive significant growth in the US Gift Cards Market.


Rising Popularity Among Millennials and Gen Z


Millennials and Generation Z form a substantial part of the consumer base driving the US Gift Cards Market Industry. Recent surveys by the National Retail Federation reveal that approximately 70% of younger consumers prefer gift cards over traditional gifts due to their flexibility and ease of use. This demographic values experiences, and gift cards allow them to make personalized purchases or treat themselves to unique experiences. Furthermore, as this population continues to grow, their preference for digital and customizable gift cards is expected to fuel market expansion.Organizations such as the American Marketing Association have noted that retailers offering tailored gift card options have seen a notable increase in sales, further validating this trend.


Advent of E-Commerce and Online Shopping


The exponential growth of e-commerce in the United States has had a pronounced impact on the US Gift Cards Market Industry. According to the U.S. Department of Commerce, e-commerce sales increased by nearly 32% during the pandemic in 2020 alone. This dramatic shift towards online shopping has created a fertile ground for gift card sales as more retailers integrate gift card options into their online platforms. Companies like Amazon and Walmart have seen substantial increases in gift card transactions, leveraging their extensive online reach.The convenience of purchasing gift cards online directly contributes to their popularity, especially during holiday seasons, making this trend a significant driver for growth in the US Gift Cards Market.


US Gift Cards Market Segment Insights


Gift Cards Market Type Insights


The US Gift Cards Market shows significant diversity in its Type segment, which is a key factor driving the overall growth of the market. It encompasses a variety of options, including Physical Gift Cards, E-Gift Cards, and Printable Gift Cards, each catering to the evolving preferences of consumers. Physical Gift Cards continue to hold a strong position due to their tangible nature and widespread acceptance in retail environments, contributing significantly to consumer satisfaction and gifting experiences. In contrast, E-Gift Cards are rapidly gaining popularity, particularly among tech-savvy millennials and Generation Z, who appreciate the convenience of digital transactions and instant delivery, thereby expanding the reach and accessibility of gift card offerings.Additionally, Printable Gift Cards provide an attractive alternative for immediate gifting, allowing consumers to print and present them without the need for physical shipping. This variety in Type segmentation is further enhanced by trends such as personalization, where consumers are increasingly seeking customized gift card designs to better reflect their sentiments and relationships. The growing trend of online shopping has also positively impacted the E-Gift Cards segment, as more retailers embrace digital gifting solutions, contributing to the overall market growth.While challenges such as fraud and regulatory compliance exist, they also present opportunities for innovation and improvement within the market. Understanding the US Gift Cards Market segmentation provides valuable insights into consumer preferences and behaviors, further driving competitive strategies and offerings in this dynamic industry.


US Gift Cards Market 2


Source: Primary Research, Secondary Research, MRFR Database and Analyst Review


Gift Cards Market Distribution Channel Insights


The Distribution Channel for the US Gift Cards Market plays a crucial role in the overall accessibility and convenience associated with gift card purchases. Each channel brings unique advantages to consumers and retailers. Online platforms have seen increased traction due to their ease of use and the growing trend of digital shopping, which has encouraged consumers to purchase gift cards from the comfort of their homes. Retail stores continue to be a significant channel, offering consumers immediate access and the tactile experience of selecting a card in person, thus appealing to those who prefer traditional shopping methods.Furthermore, Mobile Applications have gained momentum as a convenient option, providing users instant access to gift card options on their smartphones, linking seamlessly with digital wallets. The utilization of these distribution channels is driven by evolving consumer preferences and technological advancements, which present various opportunities for growth in the US Gift Cards Market. Factors such as increased smartphone penetration, convenience, and the rise of e-commerce contribute to the prominence of these channels, aligning with broader consumer behaviors and preferences in the region.Understanding these dynamics allows stakeholders to adapt their strategies effectively to enhance market presence and consumer engagement.


Gift Cards Market End Use Insights


The End Use segment of the US Gift Cards Market plays a vital role in shaping consumer spending patterns and brand loyalty. Personal Use has gained significant traction, driven by the convenience and flexibility that gift cards offer, making them a preferred choice for gifting on various occasions. Corporate Use represents a substantial portion of the market as businesses utilize gift cards for employee rewards and client incentives, enhancing engagement and fostering goodwill. Meanwhile, the Promotional Use of gift cards allows brands to attract new customers and retain existing ones through creative marketing strategies, such as loyalty programs and giveaways.This segment is becoming increasingly important as companies look to stand out in a competitive landscape by enhancing the customer experience. The market growth in these segments can be attributed to the broader acceptance of digital gift cards and the evolving consumer preferences toward cashless transactions. With the US leading in e-commerce, the demand for gift cards continues to rise, providing a unique opportunity for retailers to capitalize on this trend and expand their customer base. The distribution channels through which these gift cards are sold further indicate the dynamic nature of this market, appealing to both individual and corporate consumers alike.


Gift Cards Market Currency Type Insights


The Currency Type segment of the US Gift Cards Market encompasses Domestic Currency and Foreign Currency, providing key insights into consumer preferences and usage trends. Domestic Currency gift cards dominate the market, reflecting the convenience and practicality sought by consumers for local shopping and gifting. They play a significant role in facilitating transactions across a wide range of retailers, thereby serving as a popular choice for birthdays, holidays, and other occasions. Moreover, the rise in digital payment systems and the increasing integration of gift cards into mobile wallets are driving the growth of Domestic Currency gift cards, as they offer users greater flexibility and accessibility.On the other hand, Foreign Currency gift cards present a unique opportunity for consumers traveling abroad or purchasing from international retailers. This segment caters to the demands of a diverse demographic, providing an advantage in easing currency exchanges for travelers and enabling foreign purchases without the need for credit cards or cash. Awareness of global brands and the growth in e-commerce across borders support the sustained interest in Foreign Currency gift cards. Overall, the segmentation by Currency Type in the US Gift Cards Market reveals nuanced trends that cater to varied consumer needs, highlighting growth dynamics and evolving spending behaviors in the marketplace.


US Gift Cards Market Key Players and Competitive Insights


The US Gift Cards Market is characterized by a diverse and competitive landscape wherein various players vie for consumer attention with innovative offerings and marketing strategies. This market is burgeoning due to changing consumer preferences, which increasingly favor the convenience and versatility that gift cards offer. In their quest to capture market share, companies emphasize creating unique card designs, exploring partnerships with popular brands, and integrating digital solutions to enhance user experience. The competition is further fueled by the advent of technology and mobile payments, leading to a rising trend of digital gift cards that cater to the tech-savvy population. As companies innovate and differentiate their products, the competitive dynamics can significantly affect market growth, customer loyalty, and overall revenue.Starbucks has established a strong foothold within the US Gift Cards Market, leveraging its brand reputation and consumer loyalty to enhance its gift card offerings. The company’s gift cards are popular for their aesthetic values, easily customizable options, and tie-ins with their loyalty programs. Starbucks benefits from its extensive store network, which serves as a physical point for gift card purchases and redemption, creating a seamless experience for customers. Additionally, the company harnesses its mobile app to facilitate the purchasing of gift cards and integrating them into the rewards program, thus increasing customer engagement and driving traffic to its stores. The brand's ability to foster a strong community around its products further strengthens its position in the gift card segment, which allows it to outperform competitors by leveraging loyal customers who frequently purchase gift cards for gifting occasions.Apple's presence in the US Gift Cards Market is marked by its focus on enhancing its digital ecosystem, particularly through its gift cards designed for iTunes, the App Store, and Apple Services. These cards serve as gateways to a wide range of digital content and services, including music, apps, and subscriptions, which resonate with a generation that favors digital consumption. With Apple’s strong brand identity and customer loyalty, it fosters a seamless integration of gift cards within its user experience, enhancing the desirability of these products. Apple’s strategic partnerships and occasional mergers and acquisitions further consolidate its position by expanding the range of services available through gift cards. The company continually invests in marketing initiatives that highlight the advantages of its gift card offerings, which include convenience, versatility, and accessibility, thereby solidifying its competitive edge in a rapidly evolving market.


Key Companies in the US Gift Cards Market Include



  • Starbucks

  • Apple

  • PayPal

  • Lowe's

  • Macy's

  • CVS

  • GameStop

  • Walmart

  • Best Buy

  • eBay

  • Visa

  • Mastercard

  • Target

  • Amazon

  • Home Depot


US Gift Cards Market Industry Developments


The US Gift Cards Market has seen significant developments recently, with major players like Starbucks, Apple, and Walmart continuing to innovate. For instance, Starbucks has been ramping up its digital engagement through its gift card program, enhancing customer loyalty via mobile applications. Meanwhile, Apple has expanded its gift card offerings for services, catering to a growing digital consumer base. In terms of mergers and acquisitions, there has been notable interest, such as when PayPal announced in March 2022 its acquisition of a digital wallet provider, enhancing its gift card functionalities. Companies like Target and Amazon have also invested in improving their gift card categories, showcasing an ongoing trend towards digital and personalized gift solutions. Current market valuations have shown a positive trajectory due to the increased adoption of digital gift cards, projected to reach revenues surpassing USD 520 billion by 2026. This surge is propelled by the rise in e-commerce and gift card usage for online shopping, with retailers like Best Buy and Lowe's adapting to consumer demands. Recent years have emphasized the importance of digital platforms, with 2021 experiencing a substantial increase in sales, driven by changing consumer behaviors amid the pandemic.


US Gift Cards Market Segmentation Insights


Gift Cards Market Type Outlook



  • Physical Gift Cards

  • E-Gift Cards

  • Printable Gift Cards


Gift Cards Market Distribution Channel Outlook



  • Online

  • Retail Stores

  • Mobile Applications


Gift Cards Market End Use Outlook



  • Personal Use

  • Corporate Use

  • Promotional Use


Gift Cards Market Currency Type Outlook



  • Domestic Currency

  • Foreign Currency

Report Scope
Report Attribute/Metric Source: Details
MARKET SIZE 2018 95.29(USD Billion)
MARKET SIZE 2024 101.93(USD Billion)
MARKET SIZE 2035 183.5(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 5.49% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
MARKET FORECAST PERIOD 2025 - 2035
HISTORICAL DATA 2019 - 2024
MARKET FORECAST UNITS USD Billion
KEY COMPANIES PROFILED Starbucks, Apple, PayPal, Lowe's, Macy's, CVS, GameStop, Walmart, Best Buy, eBay, Visa, Mastercard, Target, Amazon, Home Depot
SEGMENTS COVERED Type, Distribution Channel, End Use, Currency Type
KEY MARKET OPPORTUNITIES Digital gift card growth, Personalized gift card offerings, Integration with mobile wallets, Expanding e-commerce partnerships, Increased corporate gifting solutions
KEY MARKET DYNAMICS increasing online shopping trends, rising popularity of digital cards, diverse retail partnerships, consumer gifting culture expansion, ease of use and convenience
COUNTRIES COVERED US


Frequently Asked Questions (FAQ) :

The US Gift Cards Market is expected to be valued at approximately 101.93 billion USD in 2024.

By 2035, the US Gift Cards Market is expected to reach a value of about 183.5 billion USD.

The expected CAGR for the US Gift Cards Market from 2025 to 2035 is 5.49 percent.

In 2024, both physical gift cards and e-gift cards are valued at 40.0 billion USD each, indicating their significant market presence.

The market value of physical gift cards is projected to be approximately 72.0 billion USD by 2035.

Key players in the US Gift Cards Market include Starbucks, Apple, PayPal, Lowe's, Macy's, CVS, GameStop, Walmart, Best Buy, eBay, Visa, Mastercard, Target, Amazon, and Home Depot.

The e-gift cards segment is expected to reach a valuation of 80.0 billion USD by 2035.

The market size for printable gift cards is expected to be valued at 21.93 billion USD in 2024.

The growth of digital transactions and increasing consumer preferences for convenience are primary drivers of the US Gift Cards Market.

The increasing adoption of e-commerce and mobile payments presents significant opportunities for growth in the US Gift Cards Market through 2035.

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