DUBLIN, March 14, 2023 /PRNewswire/ — The “United Kingdom 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.
- In H1 2022, the demand for gift cards was driven by the post-Covid resurgence for the high street in the United Kingdom. In H2 2022, the cost of living and inflationary pressures has impacted the growth momentum of the gift card industry. In their effort to keep the gift-buying process more affordable, brits are turning to digital gift card solutions to avoid high fuel prices. Furthermore, to avoid inflation on popular items, brits are buying gift cards from popular brands.
- From the short to medium-term perspective, the sale of gift cards is also expected to be driven by self-usage, as consumers seek ways to limit their spending or to access discounts and rewards. Moreover, to drive their sales, supermarkets are expected to launch gift card programs, which reward consumers for their shopping. The usage of gift cards is likely to grow significantly, as businesses look for ways to reward and support their employees who are struggling with the rising cost of living.
- Innovative and sustainable digital gift card marketplace launched in the United Kingdom
- More and more consumers are shopping for brands that are eco-friendly and provide sustainable shopping choices. Catering to these demographics, an innovative and sustainable digital gift card marketplace has been launched in the country, which only offers gift cards from sustainable brands.
- In November 2022, dinkm, a digital gift card marketplace for sustainable brands, announced the launch of its operations in the United Kingdom. The marketplace has positioned itself for any consumer who embraces a sustainable lifestyle. Consequently, the platform only deals in digital gift card solutions and offers gift cards from brands that are following sustainable practices.
- The marketplace offers gift card solutions across different categories, including fashion, pets, travel, health, and beauty, among others.
- With many consumers in the United Kingdom struggling to find eco-friendly gifting options, dinkm is expected to gain increasing traction among brits for its sustainable gift card services from the short to medium-term perspective.
- Gift card service providers are raising capital to further expand their geographical footprint
- An increasing number of brands and corporates are launching their gift card programs to support customers and employees in times of rising inflation and the surging cost of living. With the demand for gift cards growing globally, firms in the United Kingdom are raising capital to further boost their presence in the global market.
- In November 2022, WeGift, the United Kingdom-based gift card provider, announced that the firm had raised £26 in its Series B round. The firm is planning to use the fresh capital to further expand its international presence and launch operations for more global brands. Currently, the API-driven software platform is used by over 100 brands. Nike, Aldi, and Airbnb are among the many that are using the platform to disburse gift cards.
- With the gift card ecosystem becoming more competitive amid rising demand, more firms are expected to raise funding rounds, which will also drive the growth of the overall gift card industry over the next three to four years.
- Hospitality firms are launching gift card sales events before the year-end holiday season in the United Kingdom
- After two years of pandemic-induced travel restrictions, the travel and tourism sector has posted a strong recovery in 2022 and the year-end holiday season is expected to generate higher revenue for hospitality firms offering hotels, resorts, and vacation properties. To capitalize on the pent-up travel demand among travelers in the United Kingdom, hospitality firms are launching discounted gift card programs.
- In November 2022, Accor, one of the leading hospitality firms, announced that Accor Live Limitless (ALL) members are eligible to purchase gift cards that are loaded with a 20% bonus amount. The firm had made these gift cards valid for 12 months, thereby making them more attractive for travelers. Accor also launched a similar gift card program for its members in Germany.
- With the rising cost of living, more and more brands across industry verticals are expected to launch such discounted gift card sales events from the short to medium-term perspective. This will keep driving the growth of the gift card industry in the United Kingdom and the global market.
In value terms, the gift card market in United Kingdom has recorded a CAGR of 6.7% during 2018-2022. According to the publisher, gift card industry in the country is expected to grow by 7.6% on annual basis to reach US$ 9,988.2 million in 2023.
The gift card industry in United Kingdom will continue to grow over the forecast period and is expected to record a CAGR of 6.4% during 2023-2027. Gift card market in the country will increase from US$ 9,285.2 million in 2022 to reach US$ 12,800.0 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.
Scope
Total Spend on Gifts in United Kingdom
- 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 Kingdom
- 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 Kingdom
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in United Kingdom
- 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 Kingdom
- 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 Kingdom
- 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 Kingdom
- 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 Kingdom
- 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 Kingdom
- 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 Kingdom
- 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:
- Tesco Plc
- Associated British Foods Plc
- Next Plc
- J Sainsbury Plc
- Wal-Mart Stores Inc
- TJX Cos Inc, The
- Wm Morrison Supermakets Plc
- Amazon.com Inc
Reasons 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 (2018-2027) for gift cards and incentive cards in the United Kingdom.
- 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 the United Kingdom: 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.
Companies Mentioned
- Tesco Plc
- Associated British Foods Plc
- Next Plc
- J Sainsbury Plc
- Wal-Mart Stores Inc
- TJX Cos Inc, The
- Wm Morrison Supermakets Plc
- Amazon.com Inc
For more information about this report visit https://www.researchandmarkets.com/r/njmry7
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