Australia Gift Card Market Size, Share, Growth Analysis Report and Forecast Trends 2025-2034

Australia Gift Card Market Trends

The growth of the Australia gift card market is driven by the convenience gift cards offer, allowing recipients to choose their desired products or services. They often lead to increased spending as consumers tend to spend beyond the card’s value. Branded gift cards enhance customer loyalty and brand visibility, while their versatility appeals to various industries. The growth of e-commerce has further boosted the demand for digital gift cards. In November 2023, Mentwell launched a digital gift card platform in Australia, generating AUD 5.8 million in sales within 18 weeks, highlighting strong consumer interest in wellness-related gifts.

Gift cards also present opportunities for businesses in the Australia gift card market by boosting cash flow through immediate revenue. They are cost-effective to implement and can be personalised, making them more attractive. Many businesses use gift cards as incentives, boosting customer satisfaction and employee morale. Furthermore, gift cards help attract new customers, expanding company’s reach. In September 2023, the Commonwealth Bank partnered with Karta to introduce simplified gift cards in Australia, aiming to streamline the process and support local businesses.

Australia Gift Card Market Growth

The demand of Australia gif card market is driven by their ability to reduce the risk of returns and exchanges, offering a convenient and hassle-free option for both consumers and businesses. They also provide valuable customer insights, enabling businesses to better understand preferences. Flexibility in redemption enhances convenience for consumers, while seasonal demand boosts sales and often leads to higher transaction values. In September 2024, Prezzee expanded its digital gift card offerings, adding new retail partners to meet the growing demand for convenient gifting solutions, allowing consumers to easily send and redeem gift cards via mobile devices.

The development of the Australia gift card market is further driven by digital gift cards, which eliminate the need for physical inventory, reducing operational costs. Cross-promotional opportunities help businesses expand their reach, while offering gift cards fosters customer engagement and repeat purchases. When integrated into marketing campaigns, they can boost traffic and sales. A regulated market ensures secure transactions and consumer protection. In June 2023, the Gift Card Council of Australia launched an awareness campaign to highlight the benefits of gift cards, promoting their versatility and encouraging responsible usage.

Australia Gift Card Market Insights

• In 2023, more than 60% of gift card sales in Australia were digital, showing a notable shift towards online and contactless gifting solutions, as reported by the Australian Retailers Association (2023).
• In 2023, there were 118,439 marriages registered in Australia, according to the Australian Bureau of Statistics.
• As per industry reports, In October 2024, total online retail sales in Australia reached AUD 4.1 billion, boosting the popularity of digital gift cards for convenient online gifting, as e-commerce activity rises.

Industry News

August 2023

Woolworths introduced an extended range of gift cards, featuring popular brands such as Apple and Google Play. This move is designed to improve customer convenience by offering a broader selection of gift cards for purchase both in-store and online.

December 2022

GiftPay launched its multi-brand gift card platform in Australia, enabling consumers to buy and send gift cards from various retailers. This platform seeks to streamline the gifting experience and enhance customer satisfaction with greater flexibility.

Australia Gift Card Market Drivers

Growth of Digital and E-Gift Cards

The Australia gift card market is witnessing a significant shift towards digital gift cards. As e-commerce continues to grow, consumers are increasingly opting for the convenience of digital or e-gift cards, which can be instantly delivered via email or SMS. This trend is driven by the rise of online shopping and the simplicity of sending and receiving gift cards. Businesses benefit from reduced operational costs and wider reach, as digital gift cards can be easily redeemed both online and in-store. In May 2024, eGifter introduced a new digital group gifting feature in Australia, enabling multiple users to contribute to a single gift card purchase, enhancing social gifting experiences for special occasions.

Personalisation and Customisation

Personalised and customisable gift cards are becoming a significant trend in the Australia gift card market. Consumers are increasingly seeking gift cards that can be customised with unique designs, messages, and branding. This trend enables businesses to provide more personalised experiences and add distinctive elements to their gift card offerings. Personalisation enhances the gifting experience, making the cards more meaningful and appealing as thoughtful gifts. Furthermore, customisation helps businesses strengthen their brand identity and foster customer loyalty. In February 2024, Target Australia introduced e-gift cards that can be purchased online and sent via email, addressing the growing demand for digital solutions in retail.

Opportunities in the Australia Gift Card Market

The integration of loyalty programs with gift cards is driving the Australia gift card market development. Many retailers are linking gift cards to loyalty schemes, offering points or rewards to encourage repeat purchases and foster brand loyalty. This approach benefits both consumers, who enjoy earning rewards, and businesses, which see increased customer retention and spending. Loyalty-linked gift cards add extra value for consumers, making them more likely to buy and redeem them across different platforms. Retailers also gain valuable consumer data to refine their marketing strategies and improve customer experiences. In April 2024, Amazon Australia expanded its gift card offerings with new designs and denominations, enhancing customer choice and the shopping experience.

Market Restraints

The Australia gift card market faces several challenges limiting its growth. Regulatory restrictions, such as the Gift Cards Act 2019, impose limits on expiry dates and fees, reducing flexibility for businesses. Fraud and cybersecurity threats pose risks to both consumers and companies. Additionally, competition from alternative gifting options, such as experiences or subscriptions, may reduce demand.

Limited consumer awareness of the advantages of digital or branded gift cards also hinders market penetration, particularly among less tech-savvy demographics. Economic downturns further impact the market, as reduced disposable income leads to lower consumer spending on gift cards, and businesses may scale back promotional offerings.

Australia Gift Card Market Share

Market Analysis by Card Type

According to the Australia gift card market analysis, closed-loop cards are popular in the market as they offer benefits for both consumers and businesses. These cards encourage customer loyalty by promoting repeat purchases at specific retailers. They also allow merchants to gather valuable customer data, which can help in targeted marketing and promotions, potentially boosting sales and customer engagement. In October 2023, Coles launched a new closed-loop gift card program, allowing customers to purchase cards redeemable exclusively at Coles supermarkets, aiming to improve customer retention and offer exclusive deals for cardholders.

The growth of the Australia gift card market is further supported by open-loop cards, which provide flexibility and convenience to consumers as they can be used across various retailers and locations. This versatility enhances the gifting experience, giving recipients the freedom to choose where to spend their cards. Open-loop cards also offer broader acceptance, increasing their overall utility. In August 2023, Visa introduced a new open-loop gift card program in Australia, enabling consumers to use their cards at any merchant that accepts Visa, offering greater flexibility to gift card recipients.

Market Analysis by Product

According to the Australia gift card market report, the market is led by e-gift cards, which offer convenience and instant delivery, making them ideal for last-minute gifting. Easily stored on smartphones, they reduce the risk of loss and often allow for personalisation, enhancing the gifting experience and offering recipients flexibility in choosing their preferred products or services. In May 2023, Gift Card Store launched a new range of e-gift cards that can be sent via email or SMS, providing customers with a convenient gifting option, and enabling recipients to shop online or in-store at various retailers.

Physical gift cards continue to influence the Australia gift card market dynamics and trends by providing a tangible gifting experience that many consumers value. These cards are easy to purchase and redeem at numerous retail locations, making them versatile for both givers and recipients. Additionally, physical cards can be personalised with unique designs, adding a thoughtful touch to any gift. In September 2023, Kmart expanded its range of physical gift cards, now offering various designs for different occasions, catering to consumer demand for versatile gifting options while encouraging in-store shopping experiences.

Market Analysis by End Use

The demand for the Australia gift card market is growing as retailers gain substantial benefits, including increased customer traffic and higher sales. Gift cards encourage repeat visits, boost customer loyalty, and offer valuable insights into consumer preferences. They also improve cash flow by generating upfront revenue, which can be reinvested into the business. In November 2023, Woolworths introduced a new range of retail gift cards featuring popular brands and designs, aiming to enhance customer choice and drive store traffic during the holiday season.

The Australia gift card market is also supported by corporate institutions, which use gift cards as effective tools for employee recognition and motivation, boosting workplace morale and fostering a culture of appreciation. Additionally, corporate gift cards are utilised for client rewards, strengthening business relationships while offering recipients the flexibility to choose their preferred rewards. In May 2023, Karta launched a platform for corporate gifting in Australia, enabling businesses to easily purchase and distribute gift cards to employees, enhancing recognition programs and improving workplace engagement.

Australia Gift Card Market Regional Insights

New South Wales Gift Card Market Overview

The gift card market in New South Wales is flourishing, driven by the rise in digital adoption and increased consumer demand. Government initiatives, such as the Out & About scheme, encourage local spending and foster market growth, with businesses actively participating in the gift card economy. In 2023, the NSW Government launched a gift voucher program offering AUD 100 for dining and entertainment, aimed at boosting local spending, according to the NSW Government.

Queensland Gift Card Market Trends

According to the Australia gift industry analysis, Queensland's gift card market is seeing significant growth, particularly in digital formats. Retailers are embracing e-gift cards to meet consumer demand for convenience, and corporate gifting is on the rise. In 2023, the Queensland Government launched a digital gift card initiative to support local businesses, promoting economic recovery and community engagement in the retail sector.

Western Australia Gift Card Market Dynamics

The gift card market in Western Australia is characterised by strong retail participation and a shift towards digital solutions. E-commerce has accelerated the adoption of digital gift cards, while physical cards continue to be favoured for traditional gifting occasions. Corporate gifting trends are also emerging, enhancing market dynamics. In 2023, Western Australia recorded 12,500 marriages, with a median age of 32 for men and 30 for women, reflecting a steady post-pandemic recovery, according to the Australian Bureau of Statistics.

Competitive Landscape

The Australia gift card market key players within the prepaid and gift card sector offer innovative solutions for both consumers and businesses. These companies provide a broad range of gift cards, digital wallets, and prepaid cards, collaborating with major retailers, brands, and financial institutions. Their networks cover various channels, including physical stores, online platforms, and mobile apps, facilitating smooth gift card purchases and gifting experiences. They also specialise in creating customised solutions for loyalty programmes, employee rewards, and promotional campaigns, helping businesses enhance customer engagement and loyalty.

Key Industry Players

Wesfarmers Ltd.: It is one of Australia's largest diversified corporations, with operations spanning retail, industrial, and resources sectors. Established in 1914 and headquartered in Perth, it owns well-known brands such as Bunnings, Kmart, and Target, and plays a pivotal role in the Australian retail and manufacturing industries.

Woolworths Group Ltd.: It is a major Australian retail company, founded in 1924 and based in Bella Vista, New South Wales. Known for its supermarket chain, Woolworths, it operates across food, liquor, and fuel services, and is one of the largest employers in Australia’s retail sector.

Apple Inc.: Founded in 1976 and headquartered in Cupertino, California, is a global leader in consumer electronics, software, and online services. Known for innovative products like the iPhone, Mac, and iPad, Apple continues to drive technological advancements with a focus on design, user experience, and ecosystem integration.

Metcash Ltd.: It is an Australian wholesale distribution company established in 1949 and headquartered in Sydney. It supplies food, liquor, and hardware products through its brands, such as IGA, Mitre 10, and Cellarbrations. It also services independent retailers across Australia and supports the growth of local businesses within the retail sector.

Other key players in the Australia gift card market report are ALDI Group, Harvey Norman Holdings Limited, JB Hi-Fi Ltd., Coles Group Ltd., and Blackhawk Network Holdings Inc., among others.

Recent Developments

June 2023

Bunnings launched an e-gift card promotion where customers could receive AUD 30 gift cards with the purchase of selected RYOBI products. This initiative aims to drive tool sales while providing additional value to customers through the incentive of gift cards.

November 2022

JB Hi-Fi unveiled new designs for its physical gift cards, tailored for different occasions such as birthdays and holidays. This move enhances the gifting experience by offering customers visually attractive options to choose from.