TSG and Bank of America’s annual gift card survey investigates what will drive gift card purchasing and use during the holidays. Gift cards are one of the most popular holiday gifts, with holiday spending reaching nearly $30 billion on gift cards each year. Their popularity can be attributed to a couple of factors: 1) Gift cards are a unique type of gift that allows the recipient more choice in how to allocate their holiday resources. 2) Buyers also rate them as easier to purchase than physical gifts, creating a win-win for both the shopper and their recipients.
Key Insights (Download Infographic)
Gift Card Recipients
- Gift Cards were a popular holiday gift last year: Over 6 out of 10 consumers received gift cards during the holiday season last year.
- Generation Z was the generation most likely to receive a gift card during the holiday season last year (79%), followed by Millennials (75%), Generation X (69%), Baby Boomers (52%), and the Silent Generation (46%).
- 99% of people enjoy getting gift cards, and 35% even prefer a gift card over a traditional gift. 61% are happy with whatever gift they receive.
- Consumers use holiday gift cards quickly: Two-thirds (66%) had used all or most of their holiday gift cards by Valentine’s Day this year.
- Nearly half of consumers (47%) used all their holiday gift cards by Valentine’s Day, and 19% had used most of them.
Gift Card Buyers
- Large retailers likely to win on variety: Large retailers (88%) were the most popular types of gift cards purchased last year, followed by food & beverage (78%). Large retailers may give the recipient more variety of choice in what they purchase using their gift cards.
- Other popular categories for gift cards included grocery (65%), clothing & fashion (61%), home improvement (52%) and gas (50%). These were followed by health & beauty (45%) and movie theater (43%).
- Most plan to wait until November: Holiday gift cards tend to be purchased in the late stages of the year. Promotions are more likely to be in play that late in the year, and consumers want to search for the best deals.
- 13% of consumers will start purchasing gifts in October, 35% in November, and 27% will wait until the last month of the year.
- Demand for holiday and birthday gift cards is strong: 87% of consumers plan to purchase gift cards for the holidays, and 83% plan to buy them to celebrate a birthday.
- 75% of consumers would prefer to purchase a physical gift card this holiday season, a 13% increase from last year (62%).
- Demand for holiday gift cards remained consistent year-over-year at 87%.
- All generations are at least 85% likely to purchase any gift card for the holidays this year, with Millennials being the most likely to purchase (93%).
- Demand for digital gift cards is strongest amongst the Millennial generation at 39%, compared to the average 28%.
Methodology
- TSG and Bank of America conducted a survey of 1,007 U.S. consumers in February 2024 to understand their usage of holiday gift cards, as well as their attitudes, preferences, and habits around gift card use.
- The survey was conducted between February 9, 2024 and February 13, 2024. The survey includes feedback from consumers ages 18 and above across all 50 states, with a margin of error of +/- 4% at a 99% confidence level.
Related: Digital Cards Gain Favor While Physical Ones Still Dominate | 2024 Consumer Gift Card Trends