The impact of Gift Cards in the Cosmetics and Perfumery sector in 2024
Overview of gift cards in the beauty and perfumery sector
In 2024, the gift card market in the cosmetics and fragrance sector continues its upward trajectory, with +4% year-over-year growth, driven by strong seasonality (41% of sales in December, 42% in May for Mother’s Day). Digital formats clearly dominate, with 89% of sales made through e-gift cards — a sign of deeper integration within e-commerce and omnichannel experiences.
The average gift card value remains stable at €58, with peaks in popularity at denominations of €30, €50, and €100. However, in a context of declining purchasing power, we’ve seen a decrease in complementary payments (only 15% of transactions, generating an average add-on basket of €23) and a lower expiration rate of just 9%, compared to 12% in 2023. This improved usage indicates a smoother customer experience and greater perceived value by consumers.
On the B2B side, gift cards remain a strong loyalty and incentive lever. Orders maintain a steady average value of €4,500, with a growing number of cards per order (129 vs. 120 in 2023). Budget pressures are nonetheless visible: 32% of orders include a discount (averaging 10%). Bank transfer remains the preferred payment method (88%), reflecting the structured nature of the B2B channel.
Third-party distribution (via employee benefit platforms, marketplaces, and loyalty programs) is gaining ground, with an average distributed value of €61 (up from €49 in 2023) and attractive commissions ranging from 13% to 16%. 57% of flows come from works councils (CSEs), and nearly one-third of volumes are generated via brand-funded loyalty programs. Downstream, 84% of these distributed cards lead to a complementary payment (averaging €12), underlining their effectiveness as a conversion tool.
Strategic Recommendations for Brands
In a highly competitive and fast-evolving market, the gift card has become a fully-fledged strategic growth lever. To strengthen performance, beauty and fragrance brands should:
- Smooth out seasonality by activating campaigns beyond traditional holidays (Christmas, Mother’s Day, Black Friday).
- Strengthen digital adoption, integrating gift cards into seamless e-commerce, mobile, and social shopping journeys.
- Optimize B2B channels, aligning offerings with new expectations from employee benefits managers and managing margins through structured discount policies.
- Maximize post-redemption conversions, encouraging customers to spend beyond the face value (upselling, complementary products, targeted CRM).
- Explore new distribution channels, including open platforms and multi-brand gift card networks.
By leveraging these key levers, brands can significantly boost the impact of gift cards on their revenue — while meeting consumer demands for flexibility and personalization.
