United Kingdom Gift Card and Incentive Card Market Report 2022-2026 - Rising Preference for Digital Gift Cards Leads to More New Product Launches
DUBLIN, Feb. 15, 2022 /PRNewswire/ -- The "United Kingdom Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
According to the Q4 2021 Global Gift Card Survey, gift card industry in the country is expected to grow by 10.3% on annual basis to reach US$9479.9 million in 2022.
Despite near-term challenges in 2022, medium to long term growth story of gift cards in the United Kingdom remains strong. The gift card industry in the United Kingdom is expected to grow steadily in H1 2022 and record a strong growth in H2 2022.
The growth momentum is expected to continue to grow over the forecast period, recording a CAGR of 8.7% during 2022-2026. The gift card market in the country will increase from US$8594.6 million in 2021 to reach US$13241.5 million by 2026.
Rising preference for digital gift cards in the United Kingdom leads to more new product launches
Over the last four to eight quarters, the demand for gift card solutions among consumers in the United Kingdom has surged significantly. This has led to innovative digital gift card launches by online marketplaces in the country.
- In November 2021, Airbnb, the online marketplace for vacation rentals, announced the launch of its digital gift card in the United Kingdom. The launch of the digital gift card solution is a strategic one for two main reasons. First, making it easier for customers to gift friends and families, and loved ones their dream holiday during the 2021 holiday season.
- Second, the global supply chain crisis has resulted in product shortages. As a result, more and more consumers are demanding gift card solutions in the United Kingdom. In fact, According to the publisher, consumers were planning to spend around 35% of their holiday gifting budget on gift cards in 2021.
The publisher expects the demand for gift cards to remain strong among consumers over the next four to eight quarters, which will subsequently drive the growth of the overall industry from the short to medium-term perspective in the United Kingdom.
Global gift card players are launching their services in the United Kingdom in the midst of growing consumer preference
The United Kingdom gift card market is one of the most lucrative markets for global gift card players to expand and grow their business. Moreover, the preference for gift cards among consumers has also surged over the last four to eight quarters and is expected to continue its upward momentum. All of these factors have contributed to the presence of global gift card players in the United Kingdom market.
- In November 2021, Australia-based digital gift card firm, Prezzee, announced that it has established its presence in the United Kingdom market. Notably, the firm is aggressively partnering with several retailers across industries to boost its presence in the United Kingdom. As of November 2021, the firm has added more than 120 retailers to its network in the country.
- In June 2021, US-based Factor4 also announced that the firm is expanding its services in the United Kingdom in the midst of growing gift card sales because of the shift in consumer habits led by Covid-19.
Gift card retailers allow consumers to purchase gift cards using cryptocurrencies in the United Kingdom
In the midst of the growing adoption of cryptocurrencies among consumers in the country, gift card retailers are also innovating with their services by offering consumers a variety of different payment options, including cryptocurrencies.
- In November 2021, UK-based online gift card retailer, Giftchill, announced that the firm had added new payment options for consumers to purchase gift cards with cryptocurrencies. Notably, the firm is accepting Bitcoin, Ethereum, Dogecoin, Bitcoin Cash, Litecoin, and USD Coin, among others, as a payment method for gift card purchases in the United Kingdom.
- According to Giftchill, once the gift card purchase is completed through the use of a crypto payment method, consumers receive the gift card code instantly to their email address.
As more and more consumers invest in cryptocurrencies, the publisher expects the adoption of gift cards to rise subsequently in the United Kingdom, as it is one of the most efficient and affordable ways to spend cryptocurrencies.
Scope
Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
- Tesco Plc
- Associated British Foods Plc
- Next Plc
- J Sainsbury Plc
- Wal-Mart Stores Inc
- TJX Cos Inc, The
- Wm Morrison Supermakets Plc
- Amazon.com Inc
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 Value
- Transaction Value
- Unused Value
- Average Value Per Transaction
- Transaction Volume
- Average Value of Card Purchased
- Number of Cards
Gift Card Market Size by Consumer Segment in United Kingdom
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in United Kingdom
- By Retail Consumer
- By Retail Purchase Occasion
- By Corporate Consumer
- By Corporate Purchase Occasion
- By Company Size
Gift Card Market Size by Retail Consumer in United Kingdom
- By Functional Attribute
- By Occasion
1. Festivals & Special Celebration Days
2. Milestone Celebration
3. Self-Use
4. Other - Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in United Kingdom
- Consumer Purchase Behaviour
- Gift Card Buyer by Age Group
- Gift Card Buyer by Income Level
- Gift Card Buyer by Gender
Gift Card Market Size by Corporate Consumer in United Kingdom
- By Functional Attribute
- By Occasion
1. Employee Incentive
2. Sales Incentive
3. Consumer Incentive - By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in United Kingdom
- Food & Beverage
- Health, Wellness & Beauty
- Apparel, Footwear & Accessories
- Books & Media Products
- Consumer Electronics
- Restaurants & Bars
- Toys, Kids, and Babies
- Jewelry
- Sporting Goods
- Home & Kitchen Accessories & Appliances
- Travel
- Entertainment & Gaming
- Other
Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in United Kingdom
- Ecommerce & Department Stores
- Restaurants & Bars
- Supermarket, Hypermarket, Convenience Store
- Entertainment & Gaming
- Specialty Stores
- Health & Wellness
- Travel
Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in United Kingdom
- Gift Card Online Sales
- Gift Card Offline Sales
- 1st Party Sales
- 3rd Party Sales
- Sales Uplift
For more information about this report visit https://www.researchandmarkets.com/r/yuk4at
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