Australia Gift Card Market Overview, 2029

The gift card market in Australia has experienced significant growth over the last few years, driven by a cultural shift toward convenience and flexibility in gift-giving, the rapid adoption of digital payments, and the influence of e-commerce. Gift cards have become a mainstream gifting solution across Australia, with consumers appreciating the ease, choice, and practicality that they offer. Both closed-loop and open-loop gift cards have established strong footholds in the Australian market, catering to diverse needs and preferences. Closed-loop gift cards, such as those provided by major Australian retailers like Coles, Woolworths, and Myer, allow consumers to redeem the cards within a specific store or brand. These cards have become particularly popular for everyday essentials and shopping at trusted retail outlets. Open-loop cards, backed by payment networks like Visa and Mastercard, offer a higher degree of versatility as they can be used across various stores and services, making them ideal for corporate gifting and a preferred option for consumers looking for greater flexibility. With the rise of digital and mobile wallets like Apple Pay, Google Pay, and PayPal, digital gift cards have seen a surge in popularity, especially among tech-savvy, urban consumers who appreciate the ability to purchase and redeem gift cards online. As Australian consumers become more accustomed to digital financial solutions, gift cards have transitioned from merely practical items to sought-after gifts with substantial market demand.

According to the research report "Australia Gift Card Market Overview, 2029," published by Bonafide Research, the Australia Gift Card market is anticipated to grow at more than 17.15% CAGR from 2024 to 2029. The Australian retail landscape is highly integrated with digital platforms, allowing consumers to purchase gift cards from major online marketplaces like Amazon, eBay, and Catch, as well as through retailer-specific apps. Seasonal events, such as Christmas, Easter, and Mother’s Day, have traditionally driven demand for gift cards, but they have also become popular for everyday occasions like birthdays and anniversaries, as well as spontaneous gestures. Additionally, gift cards have gained traction within corporate Australia, where companies use them as incentives, rewards, and bonuses for employees. Australian businesses have increasingly turned to gift cards to support employee recognition programs, seeing them as a cost-effective, tax-friendly, and convenient way to motivate staff. The government’s initiatives to boost digital payments and support a cashless economy, especially during the COVID-19 pandemic, accelerated the adoption of digital gift cards as consumers adapted to contactless transactions. Retailers in Australia have responded to this shift by expanding their digital gift card offerings, with many introducing customizable, branded e-gift cards that can be sent instantly via email or messaging apps. The combination of favorable economic conditions, a strong digital ecosystem, and changing consumer behavior is expected to sustain and enhance the growth of the gift card market in Australia.

In Australia, the gift card market is thriving, supported by a culture that embraces both personal and corporate gifting. Closed-loop gift cards, which are limited to specific brands or stores, are highly popular and commonly issued by leading Australian retailers such as Woolworths, Coles, and Myer. These cards are especially popular during holidays like Christmas, Easter, and Father’s Day, when Australians traditionally give gifts to family and friends. Closed-loop cards cater to various consumer needs, from groceries and clothing to electronics and home goods, making them versatile options for everyday purchases. As Australia’s digital economy grows, these gift cards are increasingly available in digital forms, which can be redeemed both online and in physical stores, offering recipients the flexibility and convenience to shop as they prefer. Open-loop cards, issued by payment networks like Visa and Mastercard, are also widely used in Australia, particularly among those who appreciate flexibility. These cards can be redeemed across numerous stores, cafes, and restaurants and are popular among urban Australians, who value the choice to spend on experiences, travel, or products. Open-loop gift cards are frequently chosen by corporations for employee rewards and client appreciation, allowing recipients the freedom to use them as they see fit, which aligns with Australia’s emphasis on individual choice and practicality in gifting.

Australia’s gift card market includes a diverse range of price categories, from high-value to low-value options, each suited to different gifting scenarios. High-value cards, typically valued above AUD 200, are often reserved for milestone events, such as weddings, graduations, and major work anniversaries, where a substantial gesture is appropriate. These high-value cards are often used for luxury purchases, such as fine dining, travel, and premium shopping, making them a common choice for companies looking to recognize key employees or loyal clients. Medium-value cards, generally in the AUD 50 to AUD 200 range, are the most popular gift card option in Australia, making them ideal for birthdays, Christmas gifts, and other special occasions. Retailers like JB Hi-Fi, Bunnings, and Amazon offer gift cards in this range, catering to a wide demographic with interests spanning from electronics and home improvement to books and fashion. Medium-value cards allow givers to provide a meaningful yet manageable gift that recipients can use across a variety of popular categories. Low-value cards, usually valued at AUD 10 to AUD 50, are commonly used as small tokens of appreciation, thank-you gestures, or rewards in loyalty programs. These cards are frequently distributed by cafes, cinemas, and convenience stores, where they encourage repeat business and customer engagement. During holiday seasons, low-value cards are often part of retailer promotions, further boosting their appeal among consumers looking for budget-friendly, thoughtful gifts.

Australian retailers and corporate institutions leverage gift cards extensively to drive customer engagement, reward loyalty, and show appreciation to employees. Retailers, ranging from supermarkets to department stores, utilize gift cards to boost sales during peak shopping seasons, offering promotional discounts or rewards for customers who purchase gift cards. Digital gift cards are becoming particularly popular in Australia, where contactless payment is widely adopted; these digital cards are often integrated with apps or mobile wallets, allowing Australians to redeem them easily both online and in-store. Corporate institutions in Australia are also avid users of gift cards, especially open-loop options, which they employ as part of employee rewards programs, client gifts, and holiday bonuses. These cards are widely appreciated by employees, as they offer the flexibility to spend on a range of personal or family needs, from groceries and utilities to leisure activities. In the wake of remote work expansion, digital gift cards have become a preferred option for Australian companies, enabling them to acknowledge employee efforts seamlessly across locations. This adaptability, along with a focus on choice and convenience, reflects Australia’s evolving consumer and corporate approach to gift cards, positioning them as a practical and appreciated component of the country’s gifting landscape.




Considered in this report
• Geography: Global
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Global Gift Card Market with its value and forecast along with its segments
• Region & country wise Gift Card market analysis
• Application wise Gift Card distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Card Types
• Closed -Loop Card
• Open-loop Card

By Price Range
• High
• Medium
• Low

By Sale Channel
• Offline
• Online

By End User
• Retail Establishment
• Corporate Institution

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.