News
Read time 2 mins
Author Sophia 🌱
We’re storming into the second half of 2024, and the gift card industry is really heating up. Here are three growth trends you need to watch as we head into Peak.
The GCVA’s most recent KPMG report shows that digital gift cards have taken the lead for the first time, capturing over 50% of the market share in the first half of 2024!1
This continued shift to digital is a clear signal that consumers are embracing the convenience and flexibility of the digital age, and with a 17.1% growth rate in H1 2024 alone, it’s clear that digital gift cards are not just a passing trend - they're becoming the new standard.
As we approach the holiday season, it will be fascinating to see if digital gift cards maintain their momentum or if consumers will return to physical for gifting.
Gift cards aren’t just for consumers anymore. The B2B market is a powerhouse driving the industry forward, accounting for a staggering 72% of total sales in the first half of 2024!2
The growth in B2B is largely fueled by the popularity of employee benefit programs, which saw an 11.8% increase in like-for-like sales with companies increasingly using gift cards as a tool to reward, motivate, and retain employees, especially in light of rising living costs and the ongoing focus on employee well-being.
The B2B space has been growing for some time, and most recent data indicates that the trend shows no signs of slowing down.
while retail gift cards are a mainstay, the leisure sector is truly shining in 2024, with a remarkable 15.5% growth rate in the first half of the year!
Leisure gift cards cover everything from travel and hospitality to entertainment, and while the post-pandemic desire for leisure and entertainment certainly started this trend, its continued growth proves that consumer desire to spend on experiences rather than products is here to stay.
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1GCVA KMPG Report H1 2024
2GCVA KMPG Report H1 2024
Ready to leverage the power of gift cards to grow your business?
As these trends show, the gift card industry is evolving rapidly, with digital options, B2B sales, and the leisure sector leading the charge.
Staying ahead of these trends can give your business a competitive edge, whether you're looking to enhance your employee benefits program, engage customers, or tap into the growing demand for experiential gifting.
Ready to harness the power of gift cards and see what an award-winning gift card API can do for your business?
Contact us today to learn more about how Tillo can help you leverage these trends and drive growth in 2024.
