Canada Gift Card Market Overview, 2029

The gift card market in Canada has seen robust growth over the past several years, emerging as a favored option for both personal and corporate gifting due to its flexibility, convenience, and appeal across a wide demographic. Canadians have increasingly embraced gift cards as a practical solution for various occasions, such as birthdays, holidays, and special events, with options that range from retail-specific cards to open-loop cards usable across multiple merchants. Gift cards are highly appreciated by recipients for their adaptability, allowing them to select items they genuinely want, rather than receiving a specific gift that may not suit their tastes. Retailers, restaurants, and even entertainment services have leveraged the popularity of gift cards as a strategic tool for driving revenue, enhancing brand loyalty, and attracting new customers. Closed-loop gift cards, which are tied to specific brands or businesses, are particularly popular in Canada’s retail landscape, as they encourage repeat purchases and brand engagement. On the other hand, open-loop gift cards, such as those from major credit card companies like Visa and Mastercard, provide recipients with increased flexibility by enabling them to shop across a variety of stores. As a result, the Canadian gift card market has developed into a dynamic segment of the retail industry, contributing billions of dollars in annual sales and helping to boost customer engagement through innovative gifting solutions.

According to the research report, "Canada Gift Card Market Outlook, 2029," published by Bonafide Research, the Canada Gift Card market is anticipated to add to more than USD 20.96 Billion by 2024–29. Recent industry analyses reveal that digital gift cards are rapidly gaining traction in Canada, driven by the convenience of online transactions and the shift in consumer preferences towards digital solutions. The rise of e-commerce and mobile payment options has spurred the demand for digital gift cards, which can be purchased and sent instantly via email or text, making them particularly appealing for last-minute shoppers or those sending gifts from afar. Digital gift cards offer added benefits, including ease of storage in mobile wallets, integration with loyalty programs, and the ability to monitor remaining balances. This trend is especially prevalent among younger generations, such as millennials and Gen Z, who are accustomed to using digital services and appreciate the instant gratification of e-gifting. Retailers across Canada are increasingly investing in digital gift card platforms to keep up with these changing consumer behaviors and to stay competitive in the digital economy. According to market studies, the gift card market in Canada is projected to grow at a steady pace, with digital gift cards expected to become a dominant force in the industry. The integration of digital gift cards with mobile apps and loyalty programs has further enhanced their appeal, as customers can easily access their cards, track balances, and redeem rewards through unified platforms. Additionally, Canadian consumers have shown a strong interest in personalized and customizable gift cards, such as cards with special designs, messages, or themes, which offer a more unique gifting experience and align with the trend toward individualized shopping experiences.

In Canada, the gift card market is also characterized by the use of closed-loop and open-loop cards, each offering unique advantages for consumers and businesses. Closed-loop cards, limited to specific brands or stores, are commonly associated with retail giants such as Hudson’s Bay, Canadian Tire, and Tim Hortons. These cards are a favored option for consumers who have a preference for particular brands, and they enable retailers to reinforce brand loyalty and drive foot traffic by tying spending directly to their stores. Closed-loop cards are widely popular as holiday gifts, rewards, and loyalty program incentives in Canada, where many businesses strategically offer them as part of customer retention initiatives. Open-loop cards, backed by networks like Visa, Mastercard, and American Express, offer recipients broader spending freedom across various retailers, making them highly versatile and attractive for both corporate and personal gifting. Open-loop cards are particularly appealing in Canada’s multicultural environment, as they provide flexibility that can accommodate diverse consumer preferences and shopping habits. This type of card is commonly used by corporations for employee rewards, recognizing its adaptability as a gifting option suitable for any demographic or occasion.

Price ranges in the Canadian gift card market include high-value, medium-value, and low-value categories, each serving different purposes and audiences. High-value cards, generally over CAD 150, are often used in luxury gifting, such as for exclusive dining, travel experiences, or high-end retail, with recipients typically expecting access to premium products or services. In the corporate sector, high-end gift cards are a popular means of recognizing top-performing employees, rewarding client loyalty, or celebrating major milestones. Medium-value cards, typically priced between CAD 50 and CAD 150, are the most popular choice among Canadian consumers for holidays, birthdays, and other common gift-giving events. Brands like Shoppers Drug Mart, Canadian Tire, and Indigo Books often see high demand for medium-value cards, as these provide recipients with significant purchasing power while remaining affordable for most consumers. Meanwhile, low-value cards, typically under CAD 50, serve as thoughtful gestures for acquaintances, coworkers, and as add-ons for holiday gift exchanges. Low-value cards are also used by businesses to incentivize repeat purchases through loyalty programs, while smaller establishments use them as promotional tools to encourage customer engagement without high cost.

In Canada, gift card end users are largely divided into retail establishments and corporate institutions, each leveraging gift cards to meet specific objectives in customer and employee engagement. Retailers in Canada heavily rely on gift cards to promote customer loyalty and increase sales, using both closed-loop and open-loop options. By offering closed-loop cards, retailers like Walmart and Canadian Tire direct spending back to their stores, capitalizing on consumer brand loyalty and ensuring customers return for repeat purchases. Open-loop cards, on the other hand, are frequently promoted by major banks and financial institutions to provide greater versatility, especially during the holiday season when demand peaks for flexible gifting solutions. In the corporate sector, gift cards are utilized in various programs to enhance employee morale and strengthen client relationships, with open-loop cards often preferred for their convenience and widespread acceptance. Companies in Canada leverage gift cards as part of their employee recognition programs, holiday bonuses, and client appreciation gestures, recognizing the value of flexible, personalized rewards that adapt to diverse preferences. Additionally, as remote work increases, Canadian companies have turned to digital gift cards as convenient, eco-friendly options for remote gifting, allowing employees and clients to redeem them online or in-store, aligning with Canada’s growing emphasis on sustainability and digital accessibility.




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.