The "Europe Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2023 Update" report has been added to ResearchAndMarkets.com's offering.
Gift card market in 2022 was driven a wide range of factors, which supported growth across retail and corporate segments. The primary factors included growth of ecommerce, increased adoption to incentivize employees working remotely, digital gifting, and initiatives undertaken by government, hospitality, and travel industries to revive growth.
Across Europe, the gift card industry is showing subdued growth, amid rising inflation and economic slowdown. This trend of gift card adoption is projected to further continue in 2023. In the United Kingdom, consumers are buying digital gift cards to keep their gift-giving process more affordable.
Organizations are also expected to adopt gift cards as they seek ways to support their employees and customers in times of surging inflation. To cater to the growing B2B market, firms are expected to enter into strategic collaborations to launch innovative gift card programs. The rising uptake of the digital payment tool in the region has also resulted in the launch of new marketplaces, which is driving the competitive landscape of the gift card industry in Europe.
European fintech firms are launching digital gift card marketplaces amid the rising adoption globally
Ever since the pandemic outbreak, the demand for gift cards has increased globally. To cater to this growing demand for digital gift cards in the global market, Europe-based fintech firms are launching a digital gift card marketplace. For instance,
In October 2022, Recharge.com, a leading European branded payments firm, announced the launch of its global marketplace for branded gift cards. The platform which houses 75 brands is available in 180 countries. Some of the leading brands that are available on the platform include Apple, Google, and PlayStation, among others. Along with gift cards, the firm also provides consumers with prepaid cards. As of October 2022, the firm is the leading distributor of prepaid cards having an annual revenue of more than 500 million euros.
The foray into the global market will further allow the firm to accelerate its growth significantly, as the demand for prepaid cards and gift cards is projected to grow over the next three to four years.
Airline carriers are launching gift cards ahead of the Christmas holiday season
The travel and tourism industry has posted a strong rebound in H2 2022 after two years of pandemic-induced slump. Amid the pent-up travel demand, airline carriers have launched gift card programs just ahead of the holidays, with the aim to target the gift-giving season. For instance,
In November 2022, Ryanair, one of the leading carriers in the region, announced the launch of new gift cards and described the payment tool as the ultimate travel gift. With the upcoming holiday season, coupled with the pent-up travel demand, the gift card solution is expected to gain increasing traction among travelers across the European markets. The firm has launched the gift card solution in both physical as well as digital formats. Furthermore, buyers can also personalize the gift cards with a message for recipients. Starting from just €25 or £25, the gift cards are expected to generate incremental revenue for the firm from the short-term perspective.
The publisher expects more airline carriers and other travel-related businesses to launch gift card solutions to capitalize on the pent-up travel demand in Europe. This will keep assisting the overall market growth from the short to medium-term perspective in the region.
Firms are forging partnerships to bring cryptocurrency gift cards to consumers across Europe
Cryptocurrencies have surged in popularity over the last few years and investors are looking for simplified ways to buy their favored digital assets. Consequently, gift card providers are forging strategic alliances to launch crypto gift cards in Europe. For instance,
In September 2022, Tillo, the United Kingdom-based gift cards, and rewards platform announced that the firm had entered into a collaboration with BitCard, the Bitcoin gift card provider based in the United States. Under the partnership, the BitCard gift cards will be available for consumers to shop from the Tillo platform. More than 2,000 brands offer gift cards to consumers around the world on the Tillo digital gift card platform.
From the short to medium-term perspective, the publisher expects more such strategic collaborations, thereby driving the growth of cryptocurrency gifting around the world. This will keep driving the growth of the gift card industry and adoption among crypto lovers over the next three to four years.
In value terms, the gift card market in Europe has recorded a CAGR of 7.5% during 2018-2022. According to the publisher, gift card industry in the region is expected to grow by 8.0% on annual basis to reach US$ 64,288.0 million in 2023.
The gift card industry in Europe will continue to grow over the forecast period and is expected to record a CAGR of 7.0% during 2023-2027. Gift card market in the region will increase from US$ 59,510.9 million in 2022 to reach US$ 84,143.5 million by 2027.
This report provides a detailed data centric analysis of gift card market, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of gift card market dynamics, market size and forecast.