Canada Gift Card and Incentive Card Market Size (2024 - 2029)

The Canada gift card and incentive card market is experiencing significant growth, driven by the increasing adoption of digital gift cards and the expansion of e-commerce. The market size is expanding as millennials and Gen Z consumers, with their rising spending power, increasingly favor gift cards for personal use and gifting. The shift towards digital solutions is further supported by the convenience of managing gift cards through smartphones and digital wallets. Additionally, the acceptance of gift cards by freelancers for services is emerging as a new trend, contributing to the market's expansion.

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Market Size of Canada Gift Card and Incentive Card Industry

Canada Gift Card And Incentive Card Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 8.00 %
Market Concentration Medium

Major Players

Canada Gift Card And Incentive Card Market Major Players

*Disclaimer: Major Players sorted in no particular order

Canada Gift Card & Incentive Card Market Analysis

The Canada gift card and incentive card market is poised to grow at a CAGR of greater than 8% during the forecast period. The retail and business consumer divisions of the gift card market in Canada have seen significant expansion in recent years. Diverse retail sectors are taking part, and rising popularity has included travel agencies, content portals, and mobile payment providers.

Since March 2020, the nation has been under heavy lockdown owing to a coronavirus outbreak. Due to COVID-19, the socioeconomic climate was significantly damaged, which reduced the number of celebrations and gifts given. However, the pandemic had a favorable effect on e-commerce; this tendency is anticipated to continue in the upcoming quarters. In addition, the market for gift cards has benefited from this.

Gift card and incentive card sales are soaring in Canada as a result of rising millennial gift card usage, the emergence of digital gift cards, and increased e-commerce. According to the poll, Gen Z and millennial consumers are driving the gift card market in Canada. As the spending power of these demographic divisions increases, gift cards for both personal use and giving are becoming increasingly common. Additionally, across these client segments, digital gift cards are more common than physical gift cards.This is largely because more people are using smartphones through which managing digital gift cards via mobile applications and digital wallets is so easy. As a result, top gift card firms are focusing their efforts on giving these clients digital gift cards. Another emerging practise will likely contribute to the growth of the nation's gift card market: freelancers accepting gift cards in exchange for their services.

Canada Gift Card & Incentive Card Industry Segmentation

A gift card is a prepaid debit card with a predetermined amount of money on it that may be used for a range of purchases. A loyalty, prize, incentive, or promotional card that is funded by a business and not available for purchase by the general public is referred to as an incentive card. This report aims to provide a detailed analysis of the Canada Gift Card and Incentive Card Market. It focuses on the market dynamics, emerging trends in the segments, the future of markets, and insights into various drivers and restraints. Also, it analyses the key players and the competitive landscape in the market. The Canada Gift Card and Incentive Card Market are segmented based on Card Type (E-Gift card, Physical card), Consumer Type (Retail Consumer, Corporate Consumer), and Distribution Channel (Online, Offline). The report offers market size and forecasts for Canada Gift Card and Incentive Market in value (USD Million) for all the above segments.

By Card Type
E-Gift Card
Physical Card
By Consumer Type
Retail Consumer
Corporate Consumer
By Distribution Channel
Online
Offline
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Canada Gift Card and Incentive Card Market Size Summary

The Canadian gift card and incentive card market is experiencing robust growth, driven by the increasing adoption of digital gift cards and the expansion of e-commerce. The market has seen significant development in both retail and business consumer segments, with diverse sectors such as travel agencies, content portals, and mobile payment providers participating actively. The COVID-19 pandemic, while initially causing a decline in celebrations and gift-giving, has accelerated the shift towards e-commerce, benefiting the gift card market. Millennials and Gen Z consumers are key drivers of this growth, with their rising spending power and preference for digital gift cards, which are more convenient to manage through smartphones and digital wallets. This trend is further supported by the growing practice of freelancers accepting gift cards as payment for services.

The rapid expansion of the e-commerce sector is a major factor propelling the growth of the gift card market in Canada. The increase in online shopping, fueled by prolonged lockdowns and greater internet and smartphone penetration, has led to a surge in digital gift card usage. The hospitality and spa industries, along with restaurants, are particularly popular venues for digital gift cards, which provide instant cash flow and customer loyalty. The e-Gift Card category has also seen significant growth as businesses seek to engage employees and partners with minimal contact. The market is highly competitive, with numerous players offering various types of gift and incentive cards, including both closed-loop and open-loop options. Recent collaborations and expansions by companies like Miconex and InComm Payments highlight the dynamic nature of the market.

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Canada Gift Card and Incentive Card Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Industry Attractiveness - Porters' Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Insights on Various Regulatory Landscape

    6. 1.6 Insights on Impact of Technology and Innovation in the Market

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Card Type

      1. 2.1.1 E-Gift Card

      2. 2.1.2 Physical Card

    2. 2.2 By Consumer Type

      1. 2.2.1 Retail Consumer

      2. 2.2.2 Corporate Consumer

    3. 2.3 By Distribution Channel

      1. 2.3.1 Online

      2. 2.3.2 Offline

Canada Gift Card and Incentive Card Market Size FAQs

The Canada Gift Card and Incentive Card Market is projected to register a CAGR of greater than 8% during the forecast period (2024-2029)

Swagbucks, Paytm Canada, Cadillac Fairview, Miconex Ltd and InComm are the major companies operating in the Canada Gift Card and Incentive Card Market.

Canada Gift Card & Incentive Card Market Report Snapshots

Canada Gift Card & Incentive Card Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)