US Gift Cards Market

The gift cards market is currently experiencing a notable transformation, driven by evolving consumer preferences and technological advancements. As digital transactions gain traction, the demand for electronic gift cards is on the rise, reflecting a shift towards convenience and instant gratification. Consumers appear to favor the flexibility that digital options provide, allowing for easy sharing and use across various platforms. This trend is further supported by the increasing integration of gift cards into mobile wallets, enhancing their accessibility and appeal. Moreover, the gift cards market is witnessing a growing interest in personalized offerings. Retailers are increasingly recognizing the value of customization, enabling consumers to tailor gift cards to suit individual tastes and occasions. This personalization not only enhances the gifting experience but also fosters brand loyalty, as customers are more likely to engage with brands that offer unique and thoughtful options. As the market continues to evolve, these trends suggest a promising future for gift cards, characterized by innovation and consumer-centric strategies.

Rise of Digital Gift Cards

The shift towards digital gift cards is becoming increasingly pronounced. Consumers are gravitating towards electronic options due to their convenience and instant delivery. This trend is likely to continue as more retailers enhance their digital offerings, integrating gift cards into mobile applications and online platforms.

Personalization and Customization

There is a growing emphasis on personalized gift cards, allowing consumers to create unique experiences for recipients. Retailers are responding by offering customizable designs and messages, which not only enhance the gifting experience but also strengthen customer loyalty.

Integration with Loyalty Programs

The integration of gift cards with loyalty programs is gaining traction. Retailers are leveraging gift cards as a tool to reward loyal customers, encouraging repeat purchases. This trend indicates a strategic approach to enhance customer engagement and retention.

Technological advancements play a crucial role in shaping the gift cards market, particularly through the integration of mobile and digital platforms. As of November 2025, mobile wallet usage has surged, with over 40% of consumers utilizing mobile payment solutions that include gift cards. This trend indicates a shift towards digital solutions, where consumers prefer the ease of managing and redeeming gift cards via their smartphones. The gift cards market is adapting to these technological changes by enhancing user experiences through mobile apps and online platforms, making it easier for consumers to purchase, send, and redeem gift cards. Additionally, advancements in security measures, such as blockchain technology, are likely to bolster consumer confidence in digital gift cards, further driving market growth.

The gift cards market is experiencing a notable surge in consumer adoption, driven by the convenience and flexibility that gift cards offer. As of 2025, approximately 60% of consumers in the US report having purchased a gift card in the past year, reflecting a growing trend towards digital and physical gift card options. This increase in adoption is particularly evident among younger demographics, who favor the ease of online shopping and gifting. The gift cards market benefits from this trend, as retailers expand their offerings to include a wider variety of gift card options, catering to diverse consumer preferences. Furthermore, the rise of e-commerce has facilitated the purchase of gift cards, allowing consumers to send gifts instantly, thereby enhancing the overall appeal of gift cards as a gifting solution.

The gift cards market is significantly influenced by the expansion of retailer offerings, as businesses increasingly recognize the potential of gift cards as a revenue stream. In 2025, it is estimated that the total value of gift cards sold in the US will exceed $160 billion, with a substantial portion attributed to new entrants in the market. Retailers are diversifying their gift card portfolios, introducing cards for various occasions and experiences, which enhances consumer choice. This expansion not only attracts new customers but also encourages repeat purchases, as consumers are drawn to the variety and convenience of gift cards. The gift cards market is thus poised for growth, as retailers leverage innovative marketing strategies to promote their gift card offerings, further solidifying their position in the competitive landscape.

The gift cards market experiences pronounced fluctuations in demand driven by seasonal and event-based occasions. Major holidays, such as Christmas and Mother's Day, account for a significant portion of annual gift card sales, with estimates suggesting that these events contribute to nearly 30% of total sales. Additionally, events like graduations and weddings further stimulate demand, as consumers seek convenient gifting solutions. The gift cards market capitalizes on these seasonal trends by launching targeted marketing campaigns and promotional offers, encouraging consumers to purchase gift cards for various occasions. This cyclical nature of demand not only boosts sales during peak seasons but also fosters brand loyalty, as consumers often return to purchase gift cards from their preferred retailers.

The gift cards market is increasingly recognized for its potential as a tool for corporate incentives and employee rewards. In 2025, it is projected that corporate spending on gift cards will account for approximately 15% of the total gift card sales in the US. Companies are leveraging gift cards to motivate employees, reward performance, and enhance employee satisfaction. This trend is particularly prevalent in industries where employee retention is critical, as gift cards provide a flexible and appreciated form of recognition. The gift cards market is thus benefiting from this corporate shift, as businesses seek innovative ways to engage and reward their workforce, leading to increased demand for bulk gift card purchases.

The gift cards market in the US exhibits a dynamic competitive landscape characterized by rapid growth and evolving consumer preferences. Key players such as Amazon (US), Walmart (US), and Starbucks (US) are at the forefront, leveraging their extensive distribution networks and brand loyalty to capture market share. Amazon (US) continues to innovate its digital offerings, enhancing user experience through personalized recommendations and seamless integration with its e-commerce platform. Meanwhile, Walmart (US) focuses on expanding its physical presence and enhancing customer engagement through in-store promotions and loyalty programs, thereby solidifying its position as a leading retailer in the gift card segment. Starbucks (US) emphasizes sustainability and ethical sourcing in its gift card offerings, appealing to environmentally conscious consumers and differentiating itself in a crowded market.

The business tactics employed by these companies reflect a concerted effort to optimize supply chains and localize offerings to meet regional demands. The market structure appears moderately fragmented, with a mix of large retailers and niche players vying for consumer attention. The collective influence of these key players shapes competitive dynamics, as they continuously adapt to changing consumer behaviors and preferences.

In October 2025, Amazon (US) announced the launch of a new feature allowing customers to send personalized video messages along with their gift cards. This strategic move not only enhances the gifting experience but also aligns with the growing trend of digital personalization. By integrating multimedia elements, Amazon (US) positions itself as a leader in innovation, potentially increasing customer engagement and loyalty.

In September 2025, Walmart (US) expanded its gift card offerings to include a wider range of local and regional brands, catering to diverse consumer preferences. This initiative reflects Walmart's strategy to localize its product offerings, thereby enhancing its appeal to various demographic segments. By incorporating local brands, Walmart (US) strengthens its community ties and differentiates itself from competitors, potentially driving increased foot traffic to its stores.

In August 2025, Starbucks (US) introduced a new line of eco-friendly gift cards made from recycled materials, reinforcing its commitment to sustainability. This initiative not only aligns with consumer demand for environmentally responsible products but also enhances Starbucks' brand image as a socially responsible company. By prioritizing sustainability, Starbucks (US) may attract a growing segment of eco-conscious consumers, thereby expanding its market reach.

As of November 2025, the competitive trends in the gift cards market are increasingly defined by digitalization, sustainability, and the integration of advanced technologies such as AI. Strategic alliances among key players are shaping the landscape, as companies collaborate to enhance their offerings and improve customer experiences. The shift from price-based competition to a focus on innovation and technology is evident, as companies prioritize supply chain reliability and customer engagement strategies. Looking ahead, competitive differentiation is likely to evolve, with an emphasis on personalized experiences and sustainable practices becoming central to market success.