DUBLIN--(BUSINESS WIRE)--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.

Gift card industry in Australia is expected to grow by 10.1% on annual basis to reach US$7.3 billion in 2024. The market will continue to grow over the forecast period and is expected to record a CAGR of 8.3% during 2024-2028. Gift card market in the country will increase from US$6.7 billion in 2023 to reach US$10.1 billion by 2028.

The demand for gift cards is projected to grow further in Australia in 2024. 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. Overall, the publisher maintains a positive growth outlook for the gift card market in Australia over the next three to four years.

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, the digital gift card platform focusing on health and wellness services, has reported strong growth due to soaring demand for such gift cards. In the first 18 weeks of launching, the firm generated a sale of A$5.8 million. This shows the demand for such gift cards in the Australian market. The startup has been bootstrapped and the digital gift card offerings were first rolled out in November 2023.

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. In 2024, the firm is also planning to raise its seed funding round, to further accelerate the business growth in Australia.

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.

Prezzee, one of the leading gift card providers in Australia, has cut down 10% of its workforce. The workforce trimming has affected employees largely in the tech department. During the global pandemic outbreak, the startup expanded its team rapidly, as the firm experienced strong growth.

Prezzee has now finished the development of several new products. It is now focusing on building its brand and entering new markets globally. This strategic re-focus has impacted various roles leading to job cuts. In 2021, Prezzee revealed that it is expanding operations in the United Kingdom.

From the short to medium-term perspective, the publisher expects more gift card providers to expand operations in global markets. This will support the industry growth over the next three to four years in the Australian market.

Gift card market in 2023 was driven a wide range of factors, which supported growth across retail and corporate segments. The primary factors included growth of ecommerce, increased adoption to incentivize employees working remotely, digital gifting, and initiatives undertaken by government, hospitality, and travel industries to revive growth.

Key Attributes:

Scope

Gift Card Sales Estimates by Key Retailers

• Woolworths Supermarkets
• Coles
• Aldi
• Kmart
• Bunnings
• IGA
• Harvey Norman
• Big W
• JB Hi-Fi

Total Spend on Gifts in Australia

• 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 Australia

• 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 Australia

• Retail Consumer
• Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)

Digital Gift Card Market Size in Australia

• 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 Australia

• By Functional Attribute
• By Occasion
• Value by Purchase Channel

Gift Card Spend by Consumer Behavior and Demographics in Australia

• 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 Australia

• By Functional Attribute
• By Occasion
• By Scale of Business

Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in Australia

• 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 Australia

• 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 Australia

• 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/800e9e

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