DUBLIN, March 27, 2024 /PRNewswire/ -- The "Australia Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The Australian gift card industry is expected to reach US$7.3 billion in 2024 and will continue to grow over the forecast period to record a CAGR of 8.3% during 2024-2028. The gift card market in Australia is forecast to increase from US$6.7 billion in 2023 to reach US$10.1 billion by 2028.
The uptake of gift cards is expected to be much higher in young generation consumers compared to older counterparts. Although the uptake is rising, the value of unspent gift cards is also on the surge in Australia. The corporate gifting market is expected to gain momentum over the medium term.
With the mental health crisis being at an all-time high, the demand for health and wellness gift cards is poised to grow in Australia in 2024. Australian gift card startups are also focusing on expanding in new markets over the medium term. Europe is one of the regions where startups like Prezzee are planning to expand operations in 2024.
Australian consumers have more than A$1 billion in unspent gift cards, with Gen Z leading the trend
Although the adoption of gift cards is rising at a rapid rate, the amount of unused gift cards has also grown subsequently over the last few years in the Australian market. Based on the survey findings of Finder, Australians are sitting on a whopping A$1.4 billion worth of unused gift cards. The report also revealed that one in three consumers have at least one unused gift card, whereas 24% of the consumers have two or more.
Gift card expiry is a major reason behind the unspent gift cards. Nearly 18% of the consumers stated they were unable to use the gift cards due to expiry. An additional 5% were unable to use the gift cards as the consumers lost them. The report also revealed that 1% were unable to redeem their gift cards as the company went out of business. While baby boomers are the most diligent in spending their gift cards, as only 13% have left them untouched, Gen Z is leading the trend of unused gift cards with 37% failing to redeem the payment card.
The demand for health and wellness gift cards is growing significantly in the Australian market
The mental health crisis is at an all time high in Australia. It is costing billions of dollars to businesses in Australia every year. As a result, businesses are turning to health and wellness-focused gift cards, making sure that their employees are spending money wisely. This trend is projected to grow further over the medium term, thereby aiding the demand for health and wellness gift cards in Australia.
Mentwell, over the next three years, is also planning to expand its operations in the United States. Furthermore, the firm has set an ambitious target of achieving 60% of personal and business gifting business over the next 10 years.
Australian gift card startups are trimming the workforce and targeting expansion into new markets in 2024
The downturn in the technology market is also having an impact on gift card startups in Australia. Firms, in the sector, are cutting down on their workforce to restructure the business and focus on international expansion.
This report provides a detailed data centric analysis of gift card market, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of gift card market dynamics, market size and forecast.
Company Coverage: Woolworths Supermarkets, Coles, Aldi, Kmart, Bunnings, IGA, Harvey Norman, Big W and JB Hi-Fi.
Report Scope
Total Spend on Gifts
Gift Card Market Size by KPIs across Consumer Segments
Gift Card Market Size by Consumer Segment
Digital Gift Card Market Size
Gift Card Market Size by Retail Consumer
Gift Card Spend by Consumer Behavior and Demographics
Gift Card Market Size by Corporate Consumer
Gift Spend by Product Categories
Gift Card Spend by Retail Sector
Gift Card Spend by Distribution Channel
Gift Card Sales Estimates by Key Retailers
Key Report Benefits
For more information about this report visit https://www.researchandmarkets.com/r/2hf1bw
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