Gift card and voucher sales soared by 11 per cent in the second half of 2024, according to new research.

A study from the Gift Card & Voucher Association (GCVA) and KPMG UK demonstrates that B2B growth and digital adoption have fuelled the strongest market performance since 2021, with sales reaching double-digit growth for the first time in over four years.

The performance bucks the trend in the wider UK retail market, with total sales growing by just 0.7 per cent during the same six-month-period, according to the British Retail Consortium-KPMG Retail Sales Monitor.

The stronger performance was driven by the grocery sector, which saw a sales uptick of 20 per cent, with the study suggesting that both employers and consumers turned to food-related gift cards to help manage household budgets amid ongoing cost-of-living pressures.

Additionally, the data reflects the "increasing popularity" of employer-sponsored gift card schemes.

Digital gift cards also for the first time made up over half of market share on a rolling year basis, with sales up by 21 per cent year-on-year.

The research says that growth of digital sales underlines shifting consumer habits and the growing demand for flexible, instant gifting options.

“The strong growth we’re seeing, shows that amidst wider retail struggles, gift cards remain an essential part of the UK’s shopping landscape for consumers, and that consumers continue to see gift cards as fantastic gifts," said Hannah Shimko, GCVA managing director. "As we celebrate these results at our GCVA Conference, I’m excited about the future opportunities for our industry, particularly in the digital space and through B2B channels.”

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