The "Australia Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics" report has been added to ResearchAndMarkets.com's offering.
The gift card industry in the region is expected to grow by 10.1% on annual basis to reach US$7.3 billion in 2024. The gift card industry in Australia 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.
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.
The Australian gift card sector is evolving rapidly with innovations like Mentwell's digital wellness cards and strategic partnerships such as the Commonwealth Bank's collaboration with Karta. Corporate gifting trends are on the rise, while regulatory reforms ensure extended validity and clear terms for consumers. The ACCC enforces these regulations strictly, enhancing transparency and protecting consumer rights.
Key Developments in the Gift Card Sector in Australia
Product Launches and Innovations: Mentwell Digital Gift Cards. Launched in November 2023, Mentwell is a digital gift card platform focused on health and wellness services. In its first 18 weeks, it generated sales of A$5.8 million, indicating a strong market demand for wellness-related gift cards. Mentwell plans to expand its operations in the United States over the next three years, aiming to capture a significant share of both personal and business gifting markets.
Corporate Gifting Trends: As the corporate gifting market gains momentum, various companies are introducing gift card offerings tailored for corporate clients. This trend is expected to continue, with businesses recognizing the value of gift cards as incentives and rewards for employees.
Strategic Partnerships
The Commonwealth Bank recently partnered with industry disruptor Karta to issue simplified gift cards. This partnership aims to reimagine the shopping experiences for Australians by simplifying the purchase, delivery, and use of gift cards. It will enable more businesses to participate in the market and allow customers to better support local businesses.
Regulatory Changes
Consumer Protection Reforms: The Australian Consumer Law (ACL) continues to enforce regulations established in 2019 that require all gift cards sold to consumers to have a minimum expiry period of three years. This law aims to protect consumers from short validity periods and ensure transparency regarding the terms and conditions of gift cards. Any terms that reduce this validity period are deemed void.
Mandatory Disclosure Requirements: Gift cards must prominently display their expiry dates or indicate "no expiry date" if applicable. This requirement is part of the ACL amendments and is designed to enhance consumer awareness and prevent confusion regarding gift card usage.
Enforcement and Penalties: The Australian Competition and Consumer Commission (ACCC) is responsible for enforcing these laws, with penalties for non-compliance reaching up to $30,000 for corporations and $6,000 for individuals. The ACCC also has the authority to impose infringement notices for violations of the gift card regulations.
Reasons to buy
- Comprehensive understanding of the dynamics of the gift card and incentive card markets: Recognise the opportunities in the market, the main drivers and trends, and the five-year projection for gift and incentive cards in Australia.
- Create strategies tailored to the market: To create your gift card strategy, identify growth categories and target particular opportunities across consumer segments and occasions; evaluate important trends and risks unique to your market.
- Learn about the attitudes and behaviours of consumers in Australia: Increase ROI by understanding how consumer attitudes and behaviours are evolving. With gift cards, you may obtain comprehensive information about retail spending for both corporate and retail customers.
- Six key performance indicators (KPIs) provide a comprehensive view: the quantity of cards in circulation, load value, unused value, average purchase value, average value per transaction, and transaction value.
- Distribution channel insights: Recognise the differences in gift card sales across online and offline channels as well as between first-party and third-party sales.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 268 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value (USD) in 2024 | $7.3 Billion |
| Forecasted Market Value (USD) by 2028 | $10.1 Billion |
| Compound Annual Growth Rate | 8.3% |
| Regions Covered | Australia
|
Scope
Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
- Wesfarmers Ltd
- Woolworths Ltd (Australia)
- Metcash Ltd
- Aldi Group
- Harvey Norman Holdings Ltd
- JB Hi-Fi Ltd
- Apple Inc
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
- Festivals & Special Celebration Days
- Milestone Celebration
- Self-Use
- Other
- 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
- Employee Incentive
- Sales Incentive
- Consumer Incentive
- 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/h3buyk
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View source version on businesswire.com: https://www.businesswire.com/news/home/20241209288774/en/
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