New research has shown that the UK gift card market industry has reached £6.9 billion in value.
A study conducted by the Gift Card & Voucher Association (GCVA) involving 2,000 UK consumers shows a rising awareness around sustainability, as digital gift cards increase in popularity, making up more than a third (36 percent) of the overall B2C gift card market.
The Valuing the Gift Card Industry 2020 survey found Generation X make up the majority of gift card consumers at 37.7 percent, while baby boomers come a close second at 37.1 percent. Younger consumers (age 16-34) make up a modest 25.1 percent of the gift card market.
The most popular type of gift cards are for retail, with over 60 percent of total purchasing expenditure (2.8 billion pounds). The use of multi-store gift cards has also increased in popularity, taking just over 17 percent of consumer gift card expenditure.
The research was conducted in partnership with GlobalData, which predicts that the gift card industry will be worth around 8 billion pounds by 2025.
Gail Cohen, Director General of the GCVA, said: “Gift cards are an invaluable customer loyalty and engagement tool that hold many benefits for businesses and consumers alike, and it’s fantastic to see their contribution properly recognised.
“If this latest research shows anything, it’s that retailers and other businesses looking to attract and retain customers simply cannot ignore gift cards any longer, with their importance and relevance to consumers only growing over time.”