A surge in digital gift card sales has boosted significant growth in the Australin gift card market.
According to Blackhawk Network Australia’s NAPCO research, the total Australian gift card market will grow at a compound annual growth rate (CAGR) of 10 per cent between 2020 and 2028, reaching $16.8 billion by 2028.
Digital gift cards are at the forefront of this expansion, with sales valued at $10.9 billion last year and expected to represent 43 per cent of the total market by 2028.
“As Australians increasingly embrace digital-first solutions, our research shows that merchants investing in personalisation, self-use options and robust B2B programs are reaping the rewards,” says Blackhawk Network Australia head of retail, Kieran Nolan.
“The rapid growth of digital gift cards is transforming the market, offering consumers and businesses unprecedented flexibility and convenience.”
Three trends have emerged from the research including personalisation and flexibility have become critical, with a 24 per cent increase in merchants offering options; business-to-business (B2B) programs have expanded substantially and there has been a 30 per cent rise in companies providing self-use capabilities, allowing customers to purchase gift cards for their own budgeting or convenience.
Personalisation and user-friendliness in its gift card program has seen RedBalloon’s gift card revenue grow by 21 per cent year-on-year, along with an increase in order values of 3.4 per cent.
“At RedBalloon, we understand that gifting is deeply personal, with customers spending months finding the perfect experience, so our focus has always been on providing seamless digital delivery, effortless redemption and tailored options that allow every customer to give a truly meaningful gift,” RedBalloon chief growth officer, Big Red Group, John Boris explains.
“Being recognised as a leader in this fast-evolving space is a testament to our team’s dedication to innovation and customer satisfaction. We’re excited to continue working with partners like Blackhawk Network to set new standards for digital gifting in Australia, ensuring that every experience we offer leaves a lasting impression.”
