Market research identifies distinct behaviors across generations, with younger cohorts driving digital adoption while older generations stick to physical cards.
While they spend less overall ($211 annually), they are the most likely to make spontaneous purchases at checkouts or via social media. Nearly half use them to combat inflation by locking in prices for essentials like clothing or groceries.
The most active segment, spending an average of $456 per year on gift cards. They are twice as likely as Baby Boomers to purchase them and lead the market in digital gift card usage.
The gift card market has shifted from a simple "last-minute gift" to a strategic tool for personal budgeting and corporate incentives. While remain the primary purchasers, a significant rise in self-use —where buyers purchase cards for themselves to earn loyalty points or manage budgets—is a defining trend for 2025. Key Gift Card Buyer Demographics
The primary users of physical gift cards , with 97% reporting they prefer plastic over digital formats. They typically plan their purchases well in advance. Emerging Buyer Motivations
This group has the highest volume of unused gift cards , with an average of $255 in unredeemed value per person. They bridge the gap between physical and digital preferences.