Europe gift card market seen reaching $121.7 billion by 2032

By AI, Created 10:16 AM UTC, May 20, 2026, /AGP/ – Persistence Market Research projects Europe’s gift card market will grow from $75.4 billion in 2025 to $121.7 billion by 2032, as digital gifting, personalization and cashless payments gain traction. E-gift cards already hold the largest share, supported by instant delivery and easy redemption across online and in-store channels.

Why it matters: - The Europe gift card market is moving from a convenience product to a mainstream payment and gifting tool. - Growth in e-gift cards reflects broader consumer shifts toward digital payments, mobile wallets and instant purchasing. - The market’s expansion creates opportunities for retailers, payment firms and technology providers across consumer and corporate use cases.

What happened: - Persistence Market Research estimates the Europe gift card market will be valued at US$75.4 billion in 2025. - The firm projects the market will reach US$121.7 billion by 2032. - The forecast implies a compound annual growth rate of 7.1% from 2025 to 2032. - E-gift cards account for 68.3% of the market in 2025. - The report points to digital adoption, convenience and personalization as the main growth drivers. - The report covers Europe, with country-level analysis including the U.K., France, Italy, Germany, Russia and the rest of Europe. - The report includes segmentation by product type, functional attribute, industry vertical and merchant type.

The details: - E-gift cards are gaining share because they can be delivered instantly through email or mobile apps. - Consumers use digital gift cards for last-minute gifting and online shopping. - Retailers and service providers are integrating e-gift cards with mobile wallets and apps to make redemption easier. - Higher smartphone penetration and broad internet access are supporting the shift to digital gifting. - Physical gift cards remain part of the market alongside digital formats. - Closed-loop, open-loop and e-gifting models make up the functional categories in the report. - Retail and corporate institutions are the main industry verticals highlighted. - Merchant categories include restaurants, discount stores, coffee shops, departmental stores, grocery stores and supermarkets, entertainment and others. - Gift cards are popular for birthdays, holidays and corporate rewards because recipients can choose products or services that fit their preferences. - Companies are using personalized messages, branding and tailored experiences to make gift cards more appealing. - Corporate buyers use gift cards as incentives, employee rewards and promotional tools. - Retailers use gift cards to support customer acquisition and loyalty programs. - The U.K. is one of Europe’s largest gift card markets because of strong consumer spending and digital payment adoption. - Germany and France are also key markets because of increasing digitalization and acceptance of cashless transactions. - Italy and Spain are seeing gradual growth as digital infrastructure improves and consumer awareness rises. - Eastern Europe is emerging as a growth area as retail networks expand and disposable incomes increase. - Technological features such as balance tracking, instant redemption and secure transactions are improving the user experience. - Integration with contactless payment systems and online platforms is making gift cards easier to use. - The report lists Starbucks Coffee Company, American Express, Apple, Blackhawk Network, PayPal, Jigsaw Business Solutions, Diggecard, AMILON S.R.L., Under Armor Inc., Walmart Inc., Huuray A S, Sephora USA Inc. and Givex Corporation among company insights. - The report offers a free sample and report customization through Persistence Market Research.

Between the lines: - The growth story is less about gift cards as a novelty and more about their fit with digital commerce habits. - Instant delivery and wallet integration suggest e-gift cards are becoming a default option for both consumers and businesses. - The report also signals that market expansion may come with risks, including fraud, misuse, unused balances and regulatory complexity across countries. - Those challenges could favor providers with stronger security, flexible redemption rules and cross-border compliance capabilities.

What’s next: - Expansion is likely to continue as mobile-first shopping, cashless payments and digital gifting become more embedded in European consumer behavior. - Future growth may come from experiential gifting, including travel, dining and entertainment. - Partnerships among retailers, financial institutions and technology providers are expected to support new gift card products. - Subscription-based gift cards and multi-brand platforms may gain traction as consumers look for more flexible options. - Companies that invest in personalization and security are likely to be better positioned for the next phase of growth.

The bottom line: - Europe’s gift card market is on track for steady growth, with e-gift cards leading the way as digital convenience reshapes how people give and spend.