United States Gift Card and Incentive Card Market Report Q1 2023: Increased Adoption to Incentivize Employees Working Remotely – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “United States Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2023 Update” report has been added to ResearchAndMarkets.com’s offering.

In value terms, the gift card market in United States has recorded a CAGR of 6.0% during 2018-2022. According to the publisher, gift card industry in the country is expected to grow by 7.0% on annual basis to reach US$ 198,373.6 million in 2023.

The gift card industry in United States will continue to grow over the forecast period and is expected to record a CAGR of 5.7% during 2023-2027. Gift card market in the country will increase from US$ 185,406.3 million in 2022 to reach US$ 247,990.1 million by 2027.

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.

In the United States, gift cards are among the most popular payment methods. With the adoption of gift cards high among consumers across different demographics, the market has recorded consistent growth over the last three to four years. Amid the current macroeconomic environment, consumers have been found to hold back on their monthly spending to ensure they remain under the budget.
As a result, retailers have turned to gift card programs to drive consumer spending and sales, thereby achieving incremental revenue. Consumers often spend more than the value of gift cards. The publisher expects more and more retailers across the United States to adopt and launch gift card programs to keep driving their sales from the short to medium-term perspective.
Gen Z consumers are expected to drive the sales of gift cards during the 2022 holiday season
Gen Z consumers are again entering the workforce and unemployment levels have dropped significantly lower in the United States, compared to the global pandemic period. Consequently, Gen Z is expected to drive the sales of gift cards during the 2022 holiday season.
The demand for physical gift cards seems to be making a comeback after the covid period though digital gift cards continue to outperform in terms of growth rate.
Starbucks reported US$181 million in unused gift cards and loyalty accounts for FY 2021
Starbucks has one of the largest gift card and loyalty programs in the world. The firm is generating billions of dollars in revenue each year, and many other brands have also launched their stored-value program seeing the growth achieved by Starbucks. In addition to driving more sales, the gift card program has also resulted in higher unused revenue for the firm.
For FY 2021, Starbucks reported that its customers did not spend US$181 million, which they have accumulated through gift cards and loyalty programs. This is approximately 1% of its total sales and 4.3% of its net income during the financial year. In FY 2020, Starbucks announced US$145 million in unused gift cards and loyalty credits.
While the unused gift card has brought in millions of dollars for the firm, Starbucks does not disclose how exactly it is using the revenue. As a result, the Strategic Organizing Center (SOC) filed a complaint with the Securities and Exchange Commission (SEC) in November 2022. Under the complaint, the SOC has asked the SEC to investigate how the firm is utilizing unused gift cards and loyalty credits.
Online retailers are launching gift card programs amid the growing demand during the holiday season
With American shoppers expected to increase their spending on gift cards during the 2022 holiday season, online retailers are launching gift card programs to capitalize on the growing trend. For instance,
In December 2022, iHerb, one of the leading online marketplaces for vitamins, minerals, and supplements, announced the launch of a digital gift card program for its shoppers in the United States. The digital gift cards are redeemable against any product available on the e-commerce marketplace. The platform is also offering customers an option to customize their gift cards by including a message before sending it to the recipient.
From the short to medium-term perspective, more online retailers are expected to launch gift card programs to cater to the growing demand in the United States. This will keep assisting the overall industry growth.

Scope

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

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

For more information about this report visit https://www.researchandmarkets.com/r/i11f0p

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