What is the current situation of the gift card market in 2024?

Insights gift card

Emilie

11/17/23

The global gift card market continues its strong growth, reaching an estimated $534.4 billion in 2023, with projections set to hit $607 billion by 2032, representing an average annual growth rate of 7.7%. This expansion is driven by two key factors: the rise of digital gift cards and the booming B2B segment. Today, gift card programs account for 5-7% of total revenue for top-performing brands, confirming their strategic role in customer acquisition and retention.

While the United States still leads the market, Europe is accelerating, and Asia is emerging as a key growth driver, supported by a deep-rooted gifting culture and widespread mobile wallet adoption. Meanwhile, the United Arab Emirates is experiencing 9.3% annual growth, fueled by advanced digitalization and strong B2B demand.

How is the French market performing?

Overview of the gift card market in France

Overall, the French gift card market is performing well in 2024, with continued positive growth of +4.6%, reaching a total market volume of over €8 billion in 2024.

Gift card adoption is accelerating among consumers:

· 62% of French consumers have already purchased a gift card

· The average household purchases five gift cards per year

· The average face value in B2C remains stable at €100 (€101 in 2023)

While physical gift cards remain dominant, digital gift cards are gaining traction, prompting brands to invest in seamless omnichannel experiences.

Thanks to these strong performances, France ranks as the third-largest European market for gift card sales, just behind the United Kingdom (1st) and Germany (2nd).

The rise of digital and omnichannel gift cards

The acceleration of digitalization is directly impacting gift card sales. In 2024, 45% of gift cards in France are purchased digitally, with adoption growing 2.5 times faster than physical cards. In the U.S. and U.K., digital gift card sales have already surpassed physical sales.

This shift is driven by several key factors:

Rising consumer demand for instant, convenient solutions
Integration of gift cards into mobile wallets
Increased omnichannel usage, with:
- 53% of online-purchased gift cards redeemed in-store
- 22% of in-store-purchased gift cards used online

This interconnection between physical and digital retail proves that consumers no longer separate their shopping experiences. To maximize engagement and conversions, brands must ensure their e-commerce and retail strategies are fully aligned.

Key actions for brands:

· Ensure a seamless experience between online purchases and in-store redemptions

· Optimize gift card visibility across all sales channels, particularly online

· Offer digital gift cards that can be easily added to mobile wallets

Top 3 B2C sectors for gift cards in France:

· Cosmetics & Fragrances

· Mass Retail

· Travel & Tourism

Complementary spending: a growth driver

One of the greatest strengths of gift cards is their ability to increase the average basket size. In 2024, the average complementary spend jumped to €74, up from €57 in 2023, reflecting a growing tendency among consumers to spend beyond the initial value of their card. This phenomenon is fueled by both improved purchasing power and brand strategies aimed at creating a more engaging customer experience.

This "free money" effect encourages premium purchases and impulse buying. The most high-performing sectors for complementary spending include:

· Cosmetics (84% of gift cards used with additional spend)

· Sports (68%)

· Home & Decor (60%)

Moreover, in Luxury (63%), Home & Decor (49%), and Sports (46%), complementary spending can double the total purchase amount.

Key actions to implement:

· Develop spending incentives for gift card holders (impactful emails, mobile wallet notifications, easier balance checks)

· Optimize merchandising in-store and online to encourage complementary purchases

Strong positioning in B2B and customer loyalty

The gift card market is largely driven by the B2B segment, which now accounts for more than two-thirds of transactions. In 2024, the average direct B2B order value stands at €11,500, confirming that large enterprises increasingly rely on this tool to reward and retain employees.

When it comes to distribution through third-party platforms, HR platforms and employee benefits programs capture 68% of B2B sales, with an extremely fast redemption rate: 80% of gift cards are used within a month. This is particularly noteworthy as additional spending by end consumers is higher than in B2C, with an average of €67 for 53% of redeemed gift cards.

Additionally, gift cards are becoming an integral part of loyalty programs, representing 19% of total transaction flows. Around 10% of consumers redeem their loyalty points for gift cards, a growing trend as budget optimization becomes increasingly important. Furthermore, 87% of consumers consider gift cards to be a relevant incentive within a loyalty program.

Other third-party distribution channels, such as e-tailers, marketplaces, and cash-to-web solutions, account for 12% of total transaction flows. These channels tend to generate higher average gift card values, increasing brand accessibility and visibility among a broader audience.

Refining your gift card strategy will be crucial in the coming years. Leveraging key sales periods, running visibility campaigns on distributor platforms, and optimizing commission structures and face values will be essential, as more brands adopt multi-channel distribution strategies.

Another key factor in your favor: having an API. Distributors and resellers are increasingly shifting towards 100% API-driven solutions in the coming years to mitigate financial and security risks while eliminating time-consuming manual processes.

Top 3 Sectors for Gift Card Distribution:

· Mass Retail

· Cosmetics & Perfumery

· Travel & Tourism

The Need for Better Management of Expired Gift Cards

While the gift card market continues to grow, 11% of purchased gift cards remain unused—a figure that has remained stable since 2023. However, their average value has surged to €63 (compared to €46 in 2023), indicating that many cards are only partially redeemed.

The sectors most affected by expiration include home & decor, sports, toys & games, and cultural & electronics. To prevent perceived value loss and maximize card usage, brands must adopt a proactive strategy.

Recommended Actions:

Send automated reminders to customers who have not yet used their gift card.
Offer promotional incentives to encourage spending before expiration.
Enhance balance-checking accessibility and optimize landing pages to drive conversions.

Gift Cards Remain Seasonal but Are Becoming a Consumer Habit

Although gift cards are available year-round, they remain closely tied to major commercial events. Christmas alone accounts for 39% of annual sales, with nearly 49% of December transactions occurring in the last week.

Other key sales drivers include:

Mother’s Day: 42% of sales in cosmetics, 36% in mass retail.
Black Friday: 39% of sales in food, 34% in cosmetics, 31% in home & decor.
Valentine’s Day: 28% of sales in cultural & electronics, 23% in cosmetics.

Beyond seasonal peaks, gift cards are becoming embedded in consumer habits, with buyers purchasing an average of five gift cards per year. Micro-moments, such as birthdays and congratulatory gifts, remain an underutilized opportunity for brands.

Recommended Actions:

Launch targeted campaigns around micro-moments (birthdays, family celebrations) and peak seasons.
Strengthen omnichannel presence, using tailored visuals for each event.
Capitalize on last-minute purchases with "express" campaigns and instantly available digital formats.

Integrating Gift Cards into Marketing Campaigns: An Underutilized Lever

Despite its strong potential, the gift card remains largely underused in brand marketing strategies. Yet, it checks all the right boxes: customer acquisition, retention, increased average basket size, and traffic generation.

Brands must integrate gift cards in a cross-functional and holistic way within their marketing strategies. It should not be limited to a simple payment method but leveraged as an incentive tool and branded currency.

Recommended Actions:

Incorporate it into acquisition strategies (welcome offers, influencer collaborations, special promotions).
Use it as a retention and gamification lever (e.g., offering gift cards for purchases above a certain amount).
Leverage it as a motivation tool within communities.
Develop an omnichannel approach to enhance adoption and optimize customer journeys.

In 2025, the gift card must evolve from a simple service to a strategic pillar aligned with the brand’s global vision.

Expertise and KPI tracking will be essential to optimize performance and stand out in an increasingly competitive market. At the same time, automation and tech solutions should simplify gift card management and usage.

A cross-functional approach is key to unlocking the full potential of gift cards in marketing strategies and transforming them into a true growth accelerator.

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