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Australia Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2024 Update

  • PDF Icon

    Report

  • 268 Pages
  • February 2024
  • Region: Australia
  • PayNXT360
  • ID: 4751534
According to the publisher, the gift card industry in the country is expected to grow by 10.1% on annual basis to reach US$7.3 billion in 2024.

The gift card industry in Australia will continue to grow over the forecast period and is expected to record a CAGR of 8.3% during 2024-2028. Gift card market in the country will increase from US$6.7 billion in 2023 to reach US$10.1 billion by 2028.

The demand for gift cards is projected to grow further in Australia in 2024. The uptake of gift cards is expected to be much higher in young generation consumers compared to older counterparts. Although the uptake is rising, the value of unspent gift cards is also on the surge in Australia. The corporate gifting market is expected to gain momentum over the medium term.

With the mental health crisis being at an all-time high, the demand for health and wellness gift cards is poised to grow in Australia in 2024. Australian gift card startups are also focusing on expanding in new markets over the medium term. Europe is one of the regions where startups like Prezzee are planning to expand operations in 2024. Overall, the publisher maintains a positive growth outlook for the gift card market in Australia over the next three to four years.

Australian consumers have more than A$1 billion in unspent gift cards, with Gen Z leading the trend

Although the adoption of gift cards is rising at a rapid rate, the amount of unused gift cards has also grown subsequently over the last few years in the Australian market. Based on the survey findings of Finder, Australians are sitting on a whopping A$1.4 billion worth of unused gift cards. The report also revealed that one in three consumers have at least one unused gift card, whereas 24% of the consumers have two or more.

Gift card expiry is a major reason behind the unspent gift cards. Nearly 18% of the consumers stated they were unable to use the gift cards due to expiry. An additional 5% were unable to use the gift cards as the consumers lost them. The report also revealed that 1% were unable to redeem their gift cards as the company went out of business. While baby boomers are the most diligent in spending their gift cards, as only 13% have left them untouched, Gen Z is leading the trend of unused gift cards with 37% failing to redeem the payment card.

The demand for health and wellness gift cards is growing significantly in the Australian market

The mental health crisis is at an all time high in Australia. It is costing billions of dollars to businesses in Australia every year. As a result, businesses are turning to health and wellness-focused gift cards, making sure that their employees are spending money wisely. This trend is projected to grow further over the medium term, thereby aiding the demand for health and wellness gift cards in Australia.
  • Mentwell, the digital gift card platform focusing on health and wellness services, has reported strong growth due to soaring demand for such gift cards. In the first 18 weeks of launching, the firm generated a sale of A$5.8 million. This shows the demand for such gift cards in the Australian market. The startup has been bootstrapped and the digital gift card offerings were first rolled out in November 2023.
Mentwell, over the next three years, is also planning to expand its operations in the United States. Furthermore, the firm has set an ambitious target of achieving 60% of personal and business gifting business over the next 10 years. In 2024, the firm is also planning to raise its seed funding round, to further accelerate the business growth in Australia.

Australian gift card startups are trimming the workforce and targeting expansion into new markets in 2024

The downturn in the technology market is also having an impact on gift card startups in Australia. Firms, in the sector, are cutting down on their workforce to restructure the business and focus on international expansion.
  • Prezzee, one of the leading gift card providers in Australia, has cut down 10% of its workforce. The workforce trimming has affected employees largely in the tech department. During the global pandemic outbreak, the startup expanded its team rapidly, as the firm experienced strong growth.
  • Prezzee has now finished the development of several new products. It is now focusing on building its brand and entering new markets globally. This strategic re-focus has impacted various roles leading to job cuts. In 2021, Prezzee revealed that it is expanding operations in the United Kingdom.
From the short to medium-term perspective, the publisher expects more gift card providers to expand operations in global markets. This will support the industry growth over the next three to four years in the Australian market.

Gift card market in 2023 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.

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.

Scope

Total Spend on Gifts in Australia

  • 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 Australia

  • 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 Australia

  • Retail Consumer
  • Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)

Digital Gift Card Market Size in Australia

  • 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 Australia

  • By Functional Attribute
  • By Occasion
1. Festivals & Special Celebration Days
2. Milestone Celebration
3. Self-Use
4. Other
  • Value by Purchase Channel

Gift Card Spend by Consumer Behavior and Demographics in Australia

  • 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 Australia

  • By Functional Attribute
  • By Occasion
1. Employee Incentive
2. Sales Incentive
3. Consumer Incentive
  • By Scale of Business

Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in Australia

  • 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 Australia

  • 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 Australia

  • Gift Card Online Sales
  • Gift Card Offline Sales
  • 1st Party Sales
  • 3rd Party Sales
  • Sales Uplift

Gift Card Sales Estimates by Key RetailersReasons to buy

  • In-depth understanding of gift card and incentive card market dynamics: Understand market opportunity, key trends and drivers along with five-year forecast (2019-2028) for gift cards and incentive cards in Australia.
  • Develop market specific strategies: Identify growth segments and target specific opportunities across consumer segments and occasions to formulate your gift cards strategy; assess market specific key trends and risks.
  • Get insights into consumer attitude and behaviour in Australia: Understand changing consumer attitude and behaviour and boost ROI. Get detailed insights into retail spend through gift cards for both retail and corporate consumers.
  • Get complete perspective through six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction, and value of transactions.
  • Distribution channel insights: Understand gift cards sales dynamics by channels - online vs offline and by 1st party vs 3rd party sales.

Table of Contents

1 About this Report
1.1 Summary
1.2 Methodology
1.3 Definition
1.4 Disclaimer
2 Australia Total Gift Spend Analyzer
2.1 Total Spend on Gift by Value - Market Size and Forecast, 2019-2028
2.2 Total Spend on Gift by Volume - Market Size and Forecast, 2019-2028
2.3 Total Gift Spend Market Share Analysis by Consumer Segment, 2019-2028
2.4 Gift Spend Market Size and Forecast Analysis by Product Category, 2019-2028
2.5 Gift Spend Market Share Analysis by Product Category, 2019-2028
2.6 Total Gift Spend Market Size and Forecast Trend Analysis by Retail Sector, 2019-2028
2.7 Total Gift Spend Market Share Analysis by Retail Sector, 2019-2028
3 Australia Retail Consumer Gift Spend Analyzer
3.1 Retail Consumer Spend on Gift - Market Size and Forecast, 2019-2028
3.2 Retail Consumer Gift Spend Market Analysis by Volume, 2019-2028
3.3 Retail Consumer Gift Spend Market Size and Forecast Analysis by Product Category, 2019-2028
3.4 Retail Consumer Gift Spend Market Share Analysis by Product Category, 2019-2028
3.5 Retail Consumer Gift Spend Market Size and Forecast Trend Analysis by Retail Sector, 2019-2028
3.6 Retail Consumer Total Gift Spend Market Share Analysis by Retail Sector, 2019-2028
4 Australia Corporate Consumer Gift Spend Analyzer
4.1 Corporate Consumer Spend on Gift - Market Size and Forecast, 2019-2028
4.2 Corporate Consumer Gift Spend Market Analysis by Volume, 2019-2028
4.3 Corporate Consumer Gift Spend Market Size and Forecast Analysis by Product Category, 2019-2028
4.4 Corporate Consumer Gift Spend Market Share Analysis by Product Category, 2019-2028
4.5 Corporate Consumer Total Gift Spend Market Size and Forecast Trend Analysis by Retail Sector, 2019-2028
4.6 Corporate Consumer Total Gift Spend Market Share Analysis by Retail Sector, 2019-2028
5 Australia Gift Card Spend Analyzer
5.1 Gift Card Spend Market Size and Forecast, 2019-2028
5.2 Gift Card Spend Market Analysis by Transaction Value and Volume, 2019-2028
5.3 Gift Card Spend Market Analysis by Avg. Value and Unused Value, 2019-2028
5.4 Gift Card Spend Market Share Analysis by Consumer Segment, 2019-2028
5.5 Gift Card Spend Market Share Analysis by Functional Attribute, 2019-2028
5.6 Digital Gift Card Spend Market Size and Forecast, 2019-2028
6 Australia Digital Gift Card Spend Analyzer
6.1 Digital Gift Card Market Size and Forecast, 2019-2028
6.2 Digital Gift Card Penetration by Occasion, 2019-2028
6.3 Retail Consumer Digital Gift Card Market Size and Forecast, 2019-2028
6.4 Retail Consumer Digital Gift Card Spend Market Share Analysis by Occasion, 2019-2028
6.5 Corporate Consumer Digital Gift Card Market Size and Forecast, 2019-2028
6.6 Corporate Consumer Digital Gift Card Spend Market Share Analysis by Occasion, 2019-2028
6.7 Corporate Consumer Digital Gift Card Spend Market Share Analysis by Company Size, 2019-2028
6.8 Large Enterprise Segment Digital Gift Card Spend Analysis, 2019-2028
6.9 Mid-Tier Segment Digital Gift Card Spend Analysis, 2019-2028
6.1 Small Scale Segment Digital Gift Card Spend Analysis, 2019-2028
7 Australia Gift Card Spend Share by Demographics and Purchase Behaviour
7.1 Gift Card Spend Share by Age, Income, and Gender, 2023
7.2 Digital Gift Card Spend Share by Age, Income, and Gender, 2023
7.3 Gift Card Consumer Purchase Behaviour, 2023
7.4 Corporate Consumer Gift Card Spend by Company Type, 2023
8 Australia Retail Consumer Gift Card Spend Analyzer
8.1 Retail Consumer Gift Card Spend Market Size and Forecast, 2019-2028
8.2 Retail Consumer Gift Card Spend Market Share Analysis by Occasion, 2019-2028
8.3 Retail Consumer Gift Card Spend Market Share Analysis by Functional Attribute, 2019-2028
8.4 Retail Consumer Digital Gift Card Spend Market Size and Forecast, 2019-2028
9 Australia Retail Consumer Gift Card Spend Analysis by Functional Attribute, 2019-2028
9.1 Retail Consumer Gift Card Spend Market Size and Forecast - Open Loop vs. Closed Loop, 2019-2028
9.2 Retail Consumer Open Loop Gift Card Spend Market Size and Forecast, 2019-2028
9.3 Retail Consumer Closed Loop Gift Card Spend Market Size and Forecast, 2019-2028
9.4 Retail Consumer Average Value of Gift Card Purchased by Functional Attribute, 2019-2028
10 Australia Retail Consumer Gift Card Spend Analysis by Occasion
10.1 Retail Consumer Gift Card Spend Market Share Analysis by Occasion, 2019-2028
10.2 Retail Consumer Gift Card Spend Market Size and Forecast - Festivals & Special Celebration Days, 2019-2028
10.3 Retail Consumer Gift Card Spend Market Size and Forecast - Milestone Celebration, 2019-2028
10.4 Retail Consumer Gift Card Spend Market Size and Forecast - Self-Use, 2019-2028
10.5 Retail Consumer Gift Card Spend Market Size and Forecast - Other, 2019-2028
11 Australia Corporate Consumer Gift Card Spend Analyzer
11.1 Corporate Consumer Gift Card Spend Market Size and Forecast, 2019-2028
11.2 Corporate Consumer Gift Card Spend Market Share Analysis by Occasion, 2019-2028
11.3 Corporate Consumer Gift Card Spend Market Share Analysis by Functional Attribute, 2019-2028
11.4 Corporate Consumer Digital Gift Card Spend Market Size and Forecast, 2019-2028
12 Australia Corporate Consumer Gift Card Spend Analysis by Functional Attribute
12.1 Corporate Consumer Gift Card Spend Market Size and Forecast - Open Loop vs. Closed Loop, 2019-2028
12.2 Corporate Consumer Open Loop Gift Card Spend Market Size and Forecast, 2019-2028
12.3 Corporate Consumer Closed Loop Gift Card Spend Market Size and Forecast, 2019-2028
12.4 Corporate Consumer Average Value of Gift Card Purchased by Functional Attribute, 2019-2028
13 Australia Corporate Consumer Gift Card Spend Analysis by Occasion
13.1 Corporate Consumer Gift Card Spend Market Share Analysis by Occasion, 2019-2028
13.2 Corporate Consumer Gift Card Spend Market Size and Forecast - Employee Incentive, 2019-2028
13.3 Corporate Consumer Gift Card Spend Market Size and Forecast - Sales / Channel Incentive, 2019-2028
13.4 Corporate Consumer Gift Card Spend Market Size and Forecast - Consumer Incentive, 2019-2028
14 Australia Corporate Consumer Gift Card Spend Analysis by Company Size
14.1 Corporate Consumer Gift Card Spend Market Share Analysis by Company Size, 2019-2028
14.2 Corporate Consumer - Large Enterprise Segment - Gift Card Spend Market Size and Forecast, 2019-2028
14.3 Corporate Consumer - Mid-Tier Segment - Gift Card Spend Market Size and Forecast, 2019-2028
14.4 Corporate Consumer - Small Scale Segment - Gift Card Spend Market Size and Forecast, 2019-2028
15 Australia Corporate Consumer Gift Card Spend Analysis by Company Size X Functional Attribute
15.1 Large Enterprise Segment Gift Card Spend Market Share Analysis by Functional Attribute, 2019-2028
15.2 Mid-Tier Segment Gift Card Spend Market Share Analysis by Functional Attribute, 2019-2028
15.3 Small Scale Segment Gift Card Spend Market Share Analysis by Functional Attribute, 2019-2028
16 Australia Gift Card Spend Analysis by Distribution Channel
16.1 Closed Loop Gift Card Spend Market Size and Forecast by Distribution Channel - Online vs. Offline, 2021-2028
16.2 Retail Consumer Closed Loop Gift Card Spend Market Size and Forecast by Distribution Channel - Online vs. Offline, 2021-2028
16.3 Corporate Consumer Closed Loop Gift Card Spend Market Size and Forecast by Distribution Channel - Online vs. Offline, 2021-2028
16.4 Gift Card Spend Market Size and Forecast by Online Distribution Channel - 1st Party Sales vs. 3rd Party Sales, 2021-2028
17 Australia Gift Card Spend Analysis by Retail Sector
17.1 Gift Card Spend Market Size and Forecast by Retail Sector, 2019-2028
17.2 Total Gift Card Spend Market Share Analysis by Retail Sector, 2019-2028
17.3 Sales Uplift by Retail Sector, 2023
18 Australia Retail Consumer Gift Card Spend Analysis by Retail Sector
18.1 Retail Consumer - Gift Card Spend Market Size and Forecast by Retail Sector, 2019-2028
18.2 Retail Consumer Gift Card Spend Market Share Analysis by Retail Sector, 2019-2028
19 Australia Corporate Consumer Gift Card Spend Analysis by Retail Sector
19.1 Corporate Consumer - Gift Card Spend Market Size and Forecast by Retail Sector, 2019-2028
19.2 Corporate Consumer Gift Card Spend Market Share Analysis by Retail Sector, 2019-2028
20 Gift Card Sales Estimates by Key Retailers

Companies Mentioned

  • Woolworths Supermarkets
  • Coles
  • Aldi
  • Kmart
  • Bunnings
  • IGA
  • Harvey Norman
  • Big W
  • JB Hi-Fi

Table Information