United Kingdom Gift Card and Incentive Card Market Report 2024 – Retailers have Experienced a Strong Surge in Gift Card Revenue Amid Increasing Adoption in the U.K.
DUBLIN, March 25, 2024 /PRNewswire/ — The “United Kingdom Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2024 Update” report has been added to ResearchAndMarkets.com’s offering.
The UK gift card industry is expected to reach US$10.8 billion in 2024. The gift card industry in United Kingdom will continue to grow over the forecast period and is expected to record a CAGR of 6% during 2024-2028. The market is forecast to increase from US$10.1 billion in 2023 to reach US$13.7 billion by 2028.
The adoption of gift cards is growing at an accelerated pace and the trend is projected to continue further over the medium term. Retailers have experienced strong gift card revenue growth over the last 12 months amid the soaring demand driven by higher inflation and the cost-of-living crisis in the United Kingdom.
Distribution is seen as the key element in terms of higher gift card revenues for retailers. Consequently, the publisher expects more retailers to partner with providers that have a strong infrastructure and distribution network in the United Kingdom over the medium term. Businesses are also seeking to tap into the growing B2B gift card market through the launch of innovative solutions. This will keep driving the competitive landscape in the market over the next three to four years.
Retailers have experienced a strong surge in gift card revenue 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, more retailers are expected 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.
Retailers are seeking to tap into the fast-growing corporate gift card sector in the United Kingdom
Alongside the consumer-focused market, the corporate gift card segment is also poised to record strong growth over the next three to four years in the United Kingdom. As a result, retailers are entering the B2B gift card sector in partnership with leading distributors in the country.
Pandora, in 2023, announced that it is making gift cards available for corporate gifting in the United Kingdom. The jewelry brand, notably, entered into a strategic collaboration with InComm Payments to develop a B2B gift card program. Through this, the retailer is seeking to add a revenue stream to its business.The gift cards for businesses have been made available only digitally and can be purchased exclusively through the InComm Connect B2B gift card platform. These cards can be used at Pandora stores across the United Kingdom, and are available in amounts from £20 to £200.
Retailers are offering free gift cards to consumers to lessen the impact of higher inflation and cost-of-living crisis
To drive more consumers to their stores, retailers are offering free gift cards to their customers. These gift cards, notably, are also aimed at lessening the impact of higher inflation and the cost-of-living crisis.
These innovative gift card programs are supporting the growth of the broader industry in the United Kingdom.
The 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.
Company Coverage:
TescoASDASainsbury’sMorrisonsAldiAmazonLidlWaitrose & PartnersArgos
Report highlights:
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 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.
Report 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 ValueTransaction ValueUnused ValueAverage Value Per TransactionTransaction VolumeAverage Value of Card PurchasedNumber of Cards
Gift Card Market Size by Consumer Segment in United Kingdom
Retail ConsumerCorporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in United Kingdom
By Retail ConsumerBy Retail Purchase OccasionBy Corporate ConsumerBy Corporate Purchase OccasionBy Company Size
Gift Card Market Size by Retail Consumer in United Kingdom
By Functional AttributeBy OccasionValue by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in United Kingdom
Consumer Purchase BehaviourGift Card Buyer by Age GroupGift Card Buyer by Income LevelGift Card Buyer by Gender
Gift Card Market Size by Corporate Consumer in United Kingdom
By Functional AttributeBy OccasionBy Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in United Kingdom
Food & BeverageHealth, Wellness & BeautyApparel, Footwear & AccessoriesBooks & Media ProductsConsumer ElectronicsRestaurants & BarsToys, Kids, and BabiesJewelrySporting GoodsHome & Kitchen Accessories & AppliancesTravelEntertainment & GamingOther
Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in United Kingdom
Ecommerce & Department StoresRestaurants & BarsSupermarket, Hypermarket, Convenience StoreEntertainment & GamingSpecialty StoresHealth & WellnessTravel
Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in United Kingdom
Gift Card Online SalesGift Card Offline Sales1st Party Sales3rd Party SalesSales Uplift
Gift Card Sales Estimates by Key Retailers
For more information about this report visit https://www.researchandmarkets.com/r/kolouv
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