Consumers find gift cards to be a flexible way to manage money across a variety of use cases despite the unsettled economy and general spending caution, according to a study commissioned by financial services provider Blackhawk Network.
The Blackhawk study identified key shopper trends and gift card preferences, according to the company:
- Increased Demand Amid Economic Uncertainty. Consumers plan to purchase 10% more gift cards this year compared to 2024.
- Digital Gifting Growth via Messaging and Social Media. Digital gifting has seen significant year-over-year growth, particularly through messaging and social media apps, with one-third of younger consumers having already purchased gift cards via messaging platforms and almost 60% expressing interest in using this channel. This presents critical opportunities for businesses to engage consumers digitally, Blackhawk concluded.
- Self-Gifting Phenomenon. Almost a third of consumers today are buying gift cards for their own use.
- Increased Use of Loyalty Programs for Gift Card Purchases. Younger consumers now are participating in loyalty programs more often than they have in recent years, with some redeeming loyalty points for gift cards. This gives brands a chance to strategically integrate gift cards into their rewards programs, drive repeat visits and boost customer engagement, according to Blackhawk.
- Adoption of AI for Gift Shopping. Almost half of consumers leverage AI tools to find deals, compare products and personalized gift suggestions, with adoption rates among younger consumers twice as high as those for older generations, highlighting AI as an essential component for targeted customer experiences.
Blackhawk concluded the study showcases gift card resilience even amid ongoing inflation and cost-of-living concerns. Gift cards provide a balanced solution for giving during uncertain times, allowing people to offer something that can provide for what recipients want while controlling costs. Then, social media and messaging of digital gifting present critical opportunities for businesses to engage consumers digitally.
During the past 12 months, four of five consumers purchased gift cards were led by GenZers and Millennials, Blackhawk said. The typical gift card shopper is male, married or in a relationship with kids at home and living in an urban environment, Blackhawk added. Holidays represent a large proportion of gift card sales, but birthdays trail the year-end festive season as number two occasion for card giving with thank yous and life events generating a significant proportion of purchases. The top five retail sectors tapped for gift card purchasing are mass merchants, grocery stores, restaurants, dollar stores and beauty stores, according to Blackhawk.
As for AI in shopping for presents, the Blackhawk study indicates half of consumers who use it are looking for the best price, while 42% are comparing products and brands, 38% are trying to generate creative gift ideas, 30% want product recommendations and 26% want to make shopping trips easier and quicker.
“Gift cards have become valuable financial tools for consumers navigating economic uncertainty, offering flexibility, convenience and value that other gifting options often can’t match,” said Jay Jaffin, Blackhawk chief marketing officer. “Growth in e-gifts and preference for purchasing and delivering gifts via app or social media networks indicates a continued shift toward digital-first shopping, particularly among younger consumers. We’ve also seen significant adoption of AI to personalize and streamline shopping experiences, alongside a growing consumer preference for sustainable gift card options. Brands that align with these trends can capture greater consumer spending and build deeper customer loyalty.”
