Canada Gift Card and Incentive Card Market Intelligence Report 2025-2029 Featuring Real Canadian Superstore, Shoppers Drug Mart, Home Depot, Canadian Tire, Dollarama, Amazon, Safeway, Loblaw, Foodland - ResearchAndMarkets.com

The "Canada Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2025 Update" report has been added to ResearchAndMarkets.com's offering.

The gift card market in Canada is expected to grow by 7.5% on annual basis to reach US$8.43 billion in 2025. The gift card market in the country experienced robust growth during 2020-2024, achieving a CAGR of 8.0%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 6.5% during 2025-2029. By the end of 2029, the gift card sector is projected to expand from its 2024 value of USD 7.84 billion to approximately USD 10.83 billion.

With over 100+ KPIs at the country level, this report provides a comprehensive understanding of gift card market dynamics. It offers a comprehensive analysis of market dynamics in the gift card sector, segmented by digital and e-gift card sales, distribution channels, key occasions, demographic trends, and market share statistics of leading retailers. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

The Canadian gift card market is undergoing a structural transformation driven by digital adoption, corporate demand, and evolving regulations. The shift toward digital gift cards, growing corporate gifting programs, and strategic partnerships between retailers and financial institutions are shaping the market's future. At the same time, regulatory changes are ensuring greater consumer protection, leading to increased trust and market standardization.

Over the next two to four years, competition will intensify as new entrants, technological advancements, and regulatory adjustments redefine the industry landscape. Businesses that invest in innovation, compliance, and consumer-centric strategies will be better positioned to capture emerging opportunities in Canada's growing gift card market.

Competitive Landscape of the Canada Gift Card Market

The Canadian gift card market is expanding rapidly, fueled by the increasing shift toward digital gift cards and the continued growth of e-commerce. This sector is benefiting from higher consumer adoption, particularly among millennials who favor the convenience of digital transactions. The rise of digital wallets and mobile payment platforms also contributes to the increased demand for digital gift card solutions, further driving market expansion.

As competition intensifies, established players and new entrants focus on strategic partnerships, mergers, and acquisitions to strengthen their market presence. Companies such as Swagbucks, Paytm Canada, and InComm are actively working to diversify their offerings and expand distribution networks. Regulatory changes to enhance consumer protection will also shape the market, requiring businesses to adapt their policies while maintaining compliance. Over the next few years, leveraging technological advancements and aligning with evolving regulations will be critical for sustained growth in the Canadian gift card industry.

Current Market Dynamics

• The Canadian gift card market is expanding rapidly, fueled by the increasing preference for digital gift cards and the growth of e-commerce. These sector benefits from shifting consumer behavior, particularly as digital transactions become more widely adopted. The ease of purchasing and redeeming gift cards online has contributed to their rising popularity, making them a preferred gifting option among consumers.
• Millennials are a key demographic driving this growth, as they tend to favor digital payment solutions and online shopping. The emergence of digital gift cards has further accelerated adoption, providing users with instant delivery and seamless integration with mobile wallets. As retailers and financial institutions continue to innovate and expand their offerings, the Canadian gift card market is expected to see sustained demand and further digital transformation.

Key Players and Market Share

• The Canadian gift card market is highly fragmented, with numerous companies offering various gift and incentive card solutions. Established players such as Swagbucks, Paytm Canada, Cadillac Fairview, Miconex Ltd, and InComm have built strong positions in the market by providing both closed-loop and open-loop gift card options. These companies cater to different consumer needs, with closed-loop cards being widely used for specific retailers and open-loop cards offering greater flexibility for broader transactions.
• New entrants in the market are leveraging digital technology to offer innovative solutions and enhance customer experience. Fintech firms and online platforms are increasingly entering the space, focusing on mobile payment integration and instant digital delivery. As competition grows, established and emerging players must focus on personalization, security enhancements, and strategic partnerships to strengthen their market positions.

Accelerate Digital Gift Card Adoption

• The Canadian gift card market is shifting towards digital formats, with consumers increasingly favoring electronic gift cards over physical ones. The pandemic has accelerated this trend and heightened the demand for contactless transactions and digital gifting solutions. As a result, retailers and financial institutions are investing in digital infrastructure to enhance the accessibility and usability of gift cards, particularly through mobile wallets and online platforms.
• Several factors drive this transition, including broader digital transformation efforts across the retail sector and the growing consumer preference for convenience. Digital gift cards provide instant delivery, eliminating the need for physical distribution and making them an attractive choice for individuals and corporate buyers. Additionally, integrating gift cards with mobile payment systems streamlines transactions, further encouraging adoption.
• Over the next two to four years, the digital gift card market will expand significantly as consumers become accustomed to digital-first payment methods. Retailers will likely introduce innovative features to enhance user engagement, such as personalized digital gifting experiences and integration with loyalty programs. As adoption increases, digital gift cards are expected to become a mainstream payment and gifting solution across Canada's retail and e-commerce landscape.

Foster Strategic Partnerships Between Retailers and Gift Card Providers

• Retailers in Canada are increasingly partnering with gift card providers to expand their distribution channels and improve accessibility. These collaborations allow retailers to offer gift cards across multiple platforms, including online stores, third-party marketplaces, and financial institutions. As consumer demand for seamless and convenient gifting options grows, strategic partnerships have become crucial to the gift card industry.
• Several factors drive this trend, including the need for innovative and flexible gift card solutions. Retailers are leveraging technology to streamline gift card issuance and redemption, integrating them with mobile payment systems and e-commerce platforms. Additionally, partnerships help businesses diversify their offerings and enhance customer engagement, giving them a competitive edge in the evolving retail landscape.
• These collaborations will broaden market reach and improve user experiences over the next two to four years. As retailers and gift card providers refine their strategies, consumers will have access to more versatile and personalized gifting options. The growing adoption of digital gift cards and expanded distribution networks will contribute to the overall growth of Canada's gift card market, making it a key revenue driver for retailers and financial institutions.

Leverage Corporate Gifting to Drive Market Growth

• Canadian businesses are increasingly integrating gift cards into their corporate strategies, using them as employee incentives and customer rewards. Companies view gift cards as a flexible and efficient tool to recognize employee performance, enhance engagement, and improve retention. Additionally, businesses leverage gift cards in marketing campaigns and promotional activities to attract and retain customers, making them a key driver of corporate gifting trends.
• Several factors contribute to this growing adoption, including the need for effective employee engagement strategies and customer loyalty programs. Gift cards provide companies with a cost-effective and customizable way to reward their workforce while also serving as an attractive option for customer incentives. Their flexibility allows businesses across various industries to tailor rewards to recipients' preferences, increasing the perceived value of these incentives.
• Over the next two to four years, corporate gifting is expected to significantly boost Canadian gift card market revenue. The demand for personalized and business-branded gift card solutions will likely grow as organizations seek innovative ways to strengthen employee and client relationships. As corporate adoption rises, gift card providers may introduce enhanced offerings, such as reloadable gift cards and integrated loyalty programs, to cater to evolving business needs.

Key Attributes:

Companies Featured

• Real Canadian Superstore
• Shoppers Drug Mart
• Home Depot
• Canadian Tire
• Dollarama
• Home Hardware
• Amazon
• Safeway
• Loblaw
• Foodland

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