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

According to the publisher, the gift card industry in the region is expected to grow by 7.9% on annual basis to reach US$71.4 billion in 2024.

The gift card industry in Europe will continue to grow over the forecast period and is expected to record a CAGR of 6.4% during 2024-2028. Gift card market in the region will increase from US$66.2 billion in 2023 to reach US$91.7 billion by 2028.

The European gift card market is poised for strong growth over the medium term. Several local governments, especially in the United Kingdom, have launched gift card programs to revive economic growth in 2023. This trend is projected to continue further in 2024, and a as result, will provide growth support to the regional gift card industry. In the United Kingdom, retailers have also experienced strong growth in gift card sales in 2023.

This is a clear indication of the growing demand for gift cards in markets like the United Kingdom. In 2023, several new gift cards have been launched across European markets. Meta, for instance, launched its Quest gift cards in markets like France and Germany. The publisher expects more product launches over the medium across the region. All of these factors indicate a strong growth market in the European region over the next three to four years.

Local government disbursement programs are driving the growth of the gift card industry in Europe

Miconex, the Scotland-based fintech firm, reported that the local gift card programs are driving spending in high streets and downtown areas across several markets including the United Kingdom. In 2023, sales from Miconex's local gift card programs reached £12.4 million. In 2024, the trend of supporting local businesses seems to be growing even stronger, with a 69% increase in local gift card sales compared to the previous year.

• The number of locations offering local gift card programs with Miconex's support surpassed 200 in 2023, marking a significant growth compared to the year before. Additionally, 26 new towns, cities, and downtown areas joined the trend by launching their own local gift card programs. These initiatives are not only meeting the regional demand for gift cards but also providing a way for communities to encourage spending at independent and national brick-and-mortar stores across various sectors.
• Notably, the Aberdeen Gift Card and the ShopLK Gift Card were among the most successful local gift card programs in the United Kingdom and Ireland, respectively. This highlights the effectiveness of these programs in driving local economic growth and supporting small businesses. According to Miconex's report, 33% of consumers end up spending between 100% to 125% more than the actual value of the gift card when they use it to make purchases in the United Kingdom.

This means that gift cards often encourage people to spend more than they initially planned, especially in the UK where a significant portion of users tends to exceed the card's value by a substantial margin. The retail sector emerged as the most popular category for redeeming local gift cards in the United Kingdom. Among the top national retailers where these cards were used were Primark, M&S, Boots, Argos, TK Maxx, Next, Sainsbury’s, John Lewis, Dunnes Stores, and Aldi. Additionally, new national retailers such as Co-op, Smyths Toys, and Lidl also jumped on board, participating in the local gift card programs, which contributed to supporting the local economy.

Meta launched its Quest gift cards in several European markets like the United Kingdom, France, and Germany

Meta, in 2023, expanded the presence of its Quest gift cards across several international markets, including in Europe. The gift cards were initially launched for consumers in the United States in October 2022. The firm has now made the payment tool available in markets like the United Kingdom, France, and Germany. These gift cards come with unlimited validity. In addition to this, Meta is ensuring that the games purchased with these gift cards are transferrable between headsets.

Retailers have experienced a strong surge in gift card revenues amid increasing adoption in the United Kingdom

Inflation and the cost-of-living crisis have resulted in higher demand for gift cards over the last 12 months. Consumers, across the United Kingdom, are using the payment tool for budgeting and to receive higher value for their dollars. This has benefited retailers offering gift card solutions to their customers.

• Marks & Spencer, for instance, reported that its gift card revenue has surged a significant 245% in 2023. Apart from the rising demand, the firm has attributed the growth to its partnership with Runa, the digital value payments infrastructure and network.
• Before collaborating with Runa, Marks & Spencer lacked critical infrastructure in the gift card sector. The insufficient means to distribute the payment tool to the masses hindered the firm’s growth in the segment. With Runa, Marks & Spencer has been able to streamline its ordering process, enabling the retailer to create a new customer base.

This is a clear indication that distribution is a key element for growth in the gift card vertical. In 2024, the publisher expects more retailers to enter into strategic partnerships with gift card providers, and have strong infrastructure and distribution capabilities. This will support the broader industry growth, while also driving the competitive landscape in the fast-growing sector.

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 bundled 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 region level, this report provides a comprehensive understanding of gift card market dynamics, market size and forecast.

This title is a bundled offering, comprising 1 regional and 15 Country Reports.

• Regional Report - Europe Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 1 - Norway Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 2 - France Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 3 - Germany Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 4 - Italy Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 5 - Spain Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 6 - United Kingdom Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 7 - Netherlands Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 8 - Austria Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 9 - Belgium Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 10 - Greece Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 11 - Switzerland Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 12 - Poland Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 13 - Denmark Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 14 - Finland Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 15 - Russia Gift Card and Incentive Card Market Intelligence (Databook)

Scope

This bundled offering provides the following detailed gift card market opportunity at country level

Total Spend on Gifts

• 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

• 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

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

Digital Gift Card Market Size

• By Retail Consumer
• By Retail Purchase Occasion
• By Corporate Consumer
• By Corporate Purchase Occasion
• By Company Size

Gift Card Market Size by Retail Consumer

• 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

• 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

• 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)

• 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)

• 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)

• 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 Europe.
• 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 Europe: 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.