Canada Gift Card and Incentive Card Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The Canada gift card and incentive card market is poised to grow at a CAGR of greater than 8% during the forecast period. The retail and business consumer divisions of the gift card market in Canada have seen significant expansion in recent years. Diverse retail sectors are taking part, and rising popularity has included travel agencies, content portals, and mobile payment providers.

Since March 2020, the nation has been under heavy lockdown owing to a coronavirus outbreak. Due to COVID-19, the socioeconomic climate was significantly damaged, which reduced the number of celebrations and gifts given. However, the pandemic had a favorable effect on e-commerce; this tendency is anticipated to continue in the upcoming quarters. In addition, the market for gift cards has benefited from this.

Gift card and incentive card sales are soaring in Canada as a result of rising millennial gift card usage, the emergence of digital gift cards, and increased e-commerce. According to the poll, Gen Z and millennial consumers are driving the gift card market in Canada. As the spending power of these demographic divisions increases, gift cards for both personal use and giving are becoming increasingly common. Additionally, across these client segments, digital gift cards are more common than physical gift cards.This is largely because more people are using smartphones through which managing digital gift cards via mobile applications and digital wallets is so easy. As a result, top gift card firms are focusing their efforts on giving these clients digital gift cards. Another emerging practise will likely contribute to the growth of the nation's gift card market: freelancers accepting gift cards in exchange for their services.

Canada Gift Card & Incentive Card Market Trends

Strong Growth in the E-Commerce Market is Driving the Gift Card Industry

The rapid expansion in the e-commerce sector is one of the key drivers fueling the growth of the gift card market in Canada. On the back of the protracted lockdown restriction and expanding internet and smartphone penetration rate in the nation, the number of customers who switched to online shopping climbed dramatically over the last four to eight quarters.

Young Canadian consumers who purchase mostly on their mobile devices will dominate the online retail business. Notably, over the next four to eight quarters, this expansion in the e-commerce sector will promote the expansion of digital gift cards as well as the entire Canadian gift card market.

Digital gift cards are very popular in the hospitality and spa industry. Many restaurants offer gift cards to their loyal customers as an appreciation for their loyalty. As the effects of the pandemic recede, many small businesses have come forward with a plan to offer gift cards to their customers to get back on track and cover up the pending targets as much as possible. Also, digital gift cards bring in instant cash flow when offered to regular customers.

Greater Adoption of E-Gift Cards is Driving the Market

The e-Gift Card category has shown tremendous growth in recent times, as enterprises and corporates are taking the e-gifting route to engage with their employees and partners to minimize contact in the wake of COVID-19.

Digital gift cards might be one of the most underutilized growth tools in eCommerce. Not only do they require minimal upfront risk, but they can also help boost your brand awareness, drive sales, and build customer loyalty.

Online gift cards are among the most popular choices for holiday shoppers. But the global pandemic has accelerated their sales even beyond seasonal periods.

Canada Gift Card & Incentive Card Market Competitor Analysis

Canadian Gift Cards and Incentive Cards Market is highly fragmented with a large number of players offering Closed-loop gift cards, many credit card issuers such as Visa, Mastercard, American Express, and Discover also provide Open-loop gift cards. The presence of a large number of competitors offering various kinds of gift and incentive cards makes the market highly competitive.

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• The market estimate (ME) sheet in Excel format
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