ROCKVILLE, Md.—Consumer spending on gift cards reached $46 billion in the last 12 months, according to a new report.
Packaged Facts’ study—Prepaid and Gift Cards in the U.S., 5th Edition—shows that of that total, $28 billion was spent on gift cards for others, while $11 billion went right back to the gift card buyer.
“Consumers also received $7 billion worth of gift cards from their employers,” stated Chain Store Age in its analysis.
Not surprising, Christmas was the largest gift card giving occasion by dollar value, with consumers spending more than $9 billion on gift cards for others, accounting for 33% of gift card spend.
Birthdays followed, with almost $7 billion spent on gift cards as birthday gifts. Another 26% of spending on others falls outside of holidays, with giving tied to "doing something nice," "rewarding someone," and "saying thank you," the report said.
Breaking the spend down by age group, the report reveals that 25-34 year-olds are heavy gift card givers, spending more than $7 billion on others (26% of the total), while 18-24 year-olds spend the least.
“Adults aged 35-44 also account for a disproportionate share of gift card spending on others ($6 billion),” Chain Store Age noted.