In 2014, the UKGCVA reported an increase in annual sales of 8.07% on gift cards over 2013.
The UK gift card market is growing. At present it is estimated to be worth over £5.4bn in the UK, growing representatively as time goes on, offering an enormous boom over previous years. The market has almost doubled since 2007 when it was worth £3.3 bn.
How this splits the market is very simple. Prior to 2011 the sales of gift vouchers and certificates to customers in the general public outweighed the sale of gift vouchers to businesses. This flipped over around in 2011 so that businesses were receiving more and more gift vouchers instead. The reason for this is unclear, and now year by year it appears to fluctuate between corporate and consumer sales ruling the roost.
Although the specific reason for this is unknown; strangely, against all odds, corporate gift cards remained strong throughout the 2008/2009 recession. What is unsurprising is that retailers, for every year they recorded, saw a boom in the forth quarter - the Christmas quarter.
Paper voucher sales continue to decline. Across the board they are being phased out. This started at a fast pace, however it has been slowing down in recent years. More and more digital platforms are being used to replace physical vouchers across the board as ecommerce shopping continues to grow. There has also been a boom in digital vouchers being used instore to create an entirely different customer experience. Digital sales using vouchers currently account for around 4% of the total sales of gift certificates. Out of paper, plastic, and digital vouchers - plastic gift cards still dominate the sector, accounting for more than 85% of the total.
The majority of the data in this one minute article comes from the UK Gift Card and Voucher Association.