What is the current situation of the gift card market in 2023?
The gift card market has been thriving in recent years, experiencing double-digit growth (on average, 14%). The overall market for gift cards demonstrates a balanced distribution of transactions across Europe, the United States, and Asia, each contributing roughly one-third to the total market value. This distribution underscores the universal importance and popularity of gift cards as a means of commercial exchange and gifting. The United Arab Emirates and Africa stand out as rapidly expanding markets, indicating significant growth potential and increasing interest in these regions.
The dynamism observed in the global market is largely influenced by the maturity of the American and British markets. These regions have a long history of gift card use, contributing to their deep integration into consumer habits.
In Europe, the adoption of e-gift cards is accelerating, progressing at a rate 2.5 times faster than physical gift cards, with a notable increase of 15%. This trend reveals a growing preference for digital solutions, facilitating instant conversion of loyalty points into e-gift cards, thereby enhancing their appeal as a tool for increasing purchasing power.
Gift card market in France
Overall, the French gift card market is performing well in 2023. The growth remains positive (+8%) with a volume exceeding 8 billion euros in 2023.
Consumer adoption of gift cards is accelerating. 62% of French individuals have already purchased a gift card. The average purchase is 3.7 gift cards per household. The average face value in B2C stands at 101€ (compared to 103€ last year).
Physical gift cards still have a presence, but digital gift cards are gaining ground. Brands, therefore, have a significant interest in developing an omnichannel experience.
With these achievements, France ranks 3rd in terms of gift card sales volume in Europe, just behind the United Kingdom (1st) and Germany (2nd).
The Challenges of the Gift Card Market in France in 2023
The average amount of purchased gift cards has decreased by 8% in 2023 (compared to 2022), reaching an average of 85€ in both B2C and B2B—a decline that can be attributed to a tight economic climate and restricted budgets.
However, the gift card market continues to show signs of overall vitality (increased complementary payments*, growing number of purchased gift cards, etc.). This resilience demonstrates the market's ability to adapt and maintain its attractiveness despite economic challenges, supported by innovation and the shift in consumer preferences towards more digital and flexible options.
*In B2C, complementary payments amount to 57€ for 25% of gift cards spent on average.
In B2B, complementary payments amount to 65€ for 72% of gift cards spent on average.
The digital gift card market: continuously dynamic
In the French B2C context, gift cards, particularly in their digital form, are gradually gaining popularity, highlighting a transition towards more digital and integrated solutions. Consumers appreciate the practical benefits, such as the ability to integrate these cards into their mobile wallets, providing increased ease of use and accessibility, even though the adoption of these technologies is progressing at a slower pace than in English-speaking environments.
These cards have also become a strategic tool for businesses, serving as a channel to acquire new customers and strengthen the loyalty of existing ones. They not only increase revenue but also recapture the attention of customers towards physical or online stores, providing brands with a better understanding of the preferences and shopping habits of their customer base, essential for building lasting and personalized relationships.
We estimate that in 3 years, the digital gift card market will reach $740 billion with exceptional double-digit growth: 16%.
Top 3 sectors in B2C:
• Cosmetics & Perfume
• Mass Retail
• Tourism & Travel
Distribution of gift cards continues to grow
The distribution network has become a central pillar for brand gift card programs. Today, distribution represents two-thirds of a program, and tomorrow it will approach 75%.
In France and Europe, the majority of flows focus on employee benefits and incentives (about 60% of distribution revenue in France). The face value is around €70 on average for a commission of 12%. This trend is accompanied by market consolidation, marked by mergers and acquisitions, signaling increased competition and maturation of the sector.
Simultaneously, the growing interest in single-brand e-gift cards by various platforms—whether focused on loyalty, consumption incentives, or even integrated into cryptocurrency ecosystems—opens up new avenues for brands. An opportunity for brands to diversify channels and revenue in their strategy. Especially since the commission is lower for a higher amount compared to CSE programs. (around €80 for a commission of 8% across all sectors)
Working on your strategy will be essential in the coming years (leveraging peak times, creating visibility campaigns within the platforms of partner distributors, establishing a policy on commission, distributed amounts, etc.) as more and more brands venture into multidistribution.
Another point in your favor: having an API. Distributors and resellers are all moving towards 100% API in the coming years, to reduce financial and security risks, as well as avoid time-consuming tasks.
Top 3 sectors in gift card distribution:
• Mass Retail
• Cosmetics & Perfume
• Tourism & Travel
Gift card performance by sector
Explore in more detail the 2023 gift card performance by retail and e-commerce sectors:
Food, Restauration & Beverages
