Dublin, March 20, 2025 (GLOBE NEWSWIRE) — The “Japan Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2025” report has been added to ResearchAndMarkets.com’s offering.
The gift card market in Japan is expected to grow by 8.2% on annual basis to reach US$25.12 billion in 2025. Japan’s gift card market experienced robust growth during 2020-2024, achieving a CAGR of 9.6%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 7.3% during 2025-2029. By the end of 2029, the gift card sector is projected to expand from its 2024 value of USD 23.22 billion to approximately USD 33.32 billion.
This report provides a detailed data-centric analysis of the gift card sector in Japan, covering market opportunities and risks across consumer segments (retail and corporate); product categories; retail sectors; and store formats. 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.
Key Insights
The Japanese gift card market is transforming significantly, fueled by digital adoption, corporate engagement, and increased retail collaborations. The expansion of e-commerce and advancements in payment technologies have accelerated the shift toward digital gift cards, making them a preferred choice among consumers. Additionally, corporate adoption of gift cards as employee incentives and customer loyalty tools is expected to drive market growth, with companies exploring new ways to integrate gift cards into their business strategies.
Regulatory changes aimed at consumer protection and market standardization will shape the competitive landscape over the next few years. While businesses will face compliance-related costs, these regulations are expected to enhance consumer trust and encourage greater adoption of gift cards. Companies focusing on seamless digital experiences, strategic partnerships, and consumer-centric innovations will be well-positioned to capitalize on Japan’s expanding gift card sector.
Digital Transformation in Gift Card Offerings
- The Japanese gift card market is undergoing a major digital transformation as consumers increasingly favor electronic gift cards over traditional physical formats. The rise of digital payment solutions and the seamless integration of gift cards with e-commerce platforms have contributed to this shift. Major retailers and online platforms now offer digital gift cards that can be easily purchased and redeemed through mobile apps, improving accessibility and convenience for consumers.
- The rapid expansion of Japan’s e-commerce sector and advancements in digital payment technologies are key drivers of this trend. Consumers prefer digital gift cards due to their instant availability, ease of storage, and security features. Additionally, the increasing reliance on smartphones and mobile wallets has made digital gift cards a more attractive option, allowing users to buy, store, and redeem them effortlessly.
- Businesses will likely invest in more personalized and feature-rich digital gift card offerings, integrating them with loyalty programs and e-commerce platforms to enhance customer engagement. As digital gifting continues to evolve, companies focusing on seamless user experiences and technological innovation will gain a competitive edge in the market.
Strategic Collaborations Between Retailers and Gift Card Providers
- Retailers in Japan are increasingly forming strategic partnerships with gift card providers to expand their distribution and enhance consumer accessibility. These collaborations allow gift cards to seamlessly integrate into multiple retail channels, including physical stores, e-commerce platforms, and digital wallets. Companies such as 7-Eleven Japan have expanded their digital gift card offerings, reflecting the rising consumer demand for convenient, flexible gifting solutions.
- The key drivers behind this trend include growing market demand and advancements in payment technologies. Consumers actively seek more versatile gifting options, prompting retailers to incorporate gift cards into their product portfolios. At the same time, technological advancements in digital payments have enabled the seamless integration of gift card systems into existing retail infrastructures, making them easier for businesses to manage and for consumers to use.
- Over the next two to four years, these partnerships are expected to significantly expand the availability of gift cards across Japan’s retail ecosystem. As more retailers integrate gift card solutions into their business models, the overall market size is expected to grow, with greater consumer adoption and increased transaction volumes. Companies that invest in innovative and frictionless gift card solutions will be well-positioned to benefit from this evolving trend.
Corporate Utilization of Gift Cards
- Japanese businesses are increasingly leveraging gift cards as a key tool for employee recognition, customer loyalty, and promotional strategies. Gift cards offer a flexible alternative to traditional rewards, allowing companies to personalize incentives while maintaining cost efficiency. This trend is particularly evident in retail, hospitality, and e-commerce industries, where businesses use gift cards to enhance engagement and drive repeat transactions.
- The growing emphasis on employee engagement and customer retention fuels the corporate adoption of gift cards. Companies use them as performance-based incentives to recognize and motivate employees, fostering a positive workplace culture. Similarly, businesses are integrating gift cards into loyalty programs, effectively attracting and retaining customers while offering added value through discounts and promotional rewards.
- Over the next two to four years, corporate gift card utilization is expected to contribute significantly to the expansion of Japan’s gift card market. As demand rises, companies may introduce tailored corporate gift card solutions, such as reloadable cards, co-branded options, and integrations with employee benefit programs. This diversification will drive market growth while offering businesses a more customizable and scalable approach to incentive management.
Addressing Unused Gift Card Balances
- A significant portion of gift card balances in Japan remains unredeemed, creating a substantial amount of unused value in the market. Consumers often fail to use the full balance of their gift cards, either due to small leftover amounts that are difficult to spend or because they forget about their cards altogether. This results in lost consumer value and allows businesses to develop strategies that encourage full utilization.
- The main reasons behind unused gift card balances include challenges utilizing low remaining amounts and consumer forgetfulness. Many consumers find it inconvenient to use small leftover balances, especially when minimum transaction requirements apply. Physical and digital gift cards are often misplaced or overlooked, leading to a significant percentage of unredeemed funds.
- Over the next two to four years, businesses and regulators may implement measures to address this issue and enhance consumer protection. Policy changes could mandate more transparent balance tracking and extended validity periods. Companies may also introduce innovative solutions such as automated reminders, balance consolidation options, or the ability to donate small remaining amounts, improving consumer engagement and maximizing the value of gift cards.
Navigating Regulatory Changes in the Gift Card Industry
- The Japanese government is implementing new regulations to improve consumer protection and increase transparency in the gift card market. These measures aim to prevent unfair practices, such as hidden fees and unclear expiration policies, and ensure that consumers receive the full value of their purchases. Standardizing the industry will create a more predictable and reliable consumer experience, ultimately fostering trust in gift card use.
- The need for greater consumer protection and market standardization drives the regulatory push. As gift cards become more prevalent in retail and corporate sectors, there is increasing pressure to ensure that customers fully understand the terms and conditions associated with their use. By enforcing stricter guidelines, regulators aim to create a fairer environment where businesses must communicate the validity periods, usage limitations, and any applicable fees.
- Over the next two to four years, these regulatory changes will likely increase compliance costs for businesses as they adapt their gift card policies. However, these changes are also expected to improve consumer confidence, encouraging wider adoption of gift cards as a preferred payment and gifting method. Companies proactively aligning with these new regulations while maintaining competitive and consumer-friendly offerings will be better positioned for long-term success in the evolving market landscape.
Competitive Landscape of the Japan Gift Card Market
Japan’s gift card market is set for continued expansion, supported by strong e-commerce growth, digital payment adoption, and evolving consumer preferences. Established players such as Amazon Japan and Rakuten and fintech firms such as Infcurion are shaping the competitive landscape by offering innovative and diversified gift card solutions. Additionally, regulatory measures introduced by the Financial Services Agency (FSA) aim to enhance transparency and consumer protection, further strengthening market trust.
Over the next two to four years, increased competition from new entrants and strategic collaborations will drive further market development. Businesses that invest in technological advancements and personalized gift card solutions will gain a competitive edge in meeting consumer demand. As the regulatory environment evolves, companies must ensure compliance while maintaining flexibility in their offerings to sustain long-term growth in Japan’s dynamic gift card sector.
Key Players and Market Share
- The Japanese gift card market features established players such as Amazon Japan, Rakuten, and Apple, which offer a variety of gift card options to consumers. These companies have a significant presence in physical and digital gift card segments, catering to diverse consumer preferences.
- New entrants, including fintech firms such as Infcurion, are entering the market with innovative payment solutions. Infcurion, for instance, provides technology for digital wallets and credit cards and has plans for an initial public offering in Tokyo in 2025 to support its growth and potential mergers and acquisitions.
Anticipated Market Evolution (Next 2-4 Years)
- The competitive landscape of Japan’s gift card market is anticipated to become more dynamic, with increased participation from both established companies and new entrants. The focus will be on digital innovation, personalized offerings, and strategic partnerships to meet evolving consumer demands.
- Companies investing in technology and forming strategic alliances will likely strengthen their market positions. Additionally, adherence to regulatory changes will be crucial for maintaining consumer trust and ensuring sustainable growth in the competitive landscape.
Companies Featured
- Infcurion
- Amazon Japan
- Rakuten
- 7-Eleven Japan
- Lawson
- FamilyMart
- AEON Retail
- Ito-Yokado
- Daimaru Matsuzakaya Department Stores
- Yodobashi Camera
- Uniqlo
- Foodpanda
- Qwikcilver
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 325 |
| Forecast Period | 2025 – 2029 |
| Estimated Market Value (USD) in 2025 | $25.12 Billion |
| Forecasted Market Value (USD) by 2029 | $33.32 Billion |
| Compound Annual Growth Rate | 7.3% |
| Regions Covered | Japan |
Report Scope
This report provides in-depth, data-centric analysis of gift card industry in Japan through 100+ tables and 280+ charts. Below is a summary of key market segments.
- Japan Total Spend on Gifts
- Japan Gift Card Market Size by KPIs across Consumer Segments
- Japan Gift Card Market Size by Consumer Segment
- Japan Digital Gift Card Market Size
- Japan Gift Card Market Size by Retail Consumer
- Japan Gift Card Spend by Consumer Behavior and Demographics
- Japan Gift Card Market Size by Corporate Consumer
- Japan Gift Spend by Product Categories (Split by Retail and Corporate Consumers)
- Japan Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers)
- Japan Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers)
- Japan Gift Card Purchase by Payment Method
For more information about this report visit https://www.researchandmarkets.com/r/kj15lf
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- Japanese Gift Card and Incentive Card Market
