The UK gift card market is thriving, with employee benefits retaining the largest market share, new research has found.
Analysis by the Gift Card and Voucher Association (GCVA) and KPMG UK showed performance in the industry was strong through the second half of last year, with most UK sales increasing by 11.8% annually and growing by 7.2% when compared to the same period in 2022.
Workplace perks accounted for 55% of sales – a small reduction from the previous period as the pandemic-induced benefits surge levels out.
The research revealed that the B2B market, rewards and incentives grew by 44.6%, which the GCVA believes reflects a change in way businesses are using gift cards to reward employees.
Gail Cohen, GCVA’s director general, said: “The strong performance and growth of the gift card sector, despite ongoing economic challenges, is testament to the industry’s resilience and versatility. Not only do they remain a crucial pillar for choice-centric gifting, but they continue to evolve and offer much-needed solutions for both consumers and businesses with rewards, incentives and discounts.”
Don Williams, retail partner at KPMG UK, added: “With employee benefit schemes maintaining their dominance in the B2B market, gift card providers have renewed opportunity to work with employers in supporting their staff through this challenging economic environment.”