Gift Cards in the U.S.
The goal of this research is to identify the amount of money Americans spend on gift cards annually and, of that total, how much goes unused annually. This information will be used for market research purposes.
- A January 2020 article from CBS News (citing data from Mercator Advisory Group) stated that the percentage of gift card dollars that are unused by Americans each year ranges from one to three percent. Thus, we can use the average of that range (two percent) in our calculation below.
- From October 2017 to October 2018, $42 billion was spent by Americans on gift cards. If we assume that two percent (previously mentioned) of that total is unused, the annual total of unused gift cards in the U.S. is $840 million ($42 billion x 0.02 (representing two percent)).
- Of that total ($42 billion), $14 billion worth of gift cards were purchased by Americans for their personal use.
- A survey conducted in January 2020 found that the total value of "unused gift cards" (overall, not annually) among U.S. adults is approximately $21 billion.
- That same January 2020 survey determined that an adult in the U.S. has an average of approximately $167 in used gift cards.
Proposed next steps:
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As a next step, we can identify five of the most-popular categories of gift cards in the U.S. (e.g. grocery, entertainment, etc.) & how much Americans spend on each gift-card category per year. We would explain the reason(s) why each category is one of the most popular. Additionally, we would calculate the amount that goes unspent for each category by using the two percent value provided during the Strategy phase of our research.
Additionally or alternatively, we can provide demographics of Americans who have unused gift cards (e.g. X% of Millennials have unused gift cards). The demographics of income level and generation would be included in our research findings, as well as any other demographics that we can find during our research.