Eco Friendly Gift Card Market Size, Share, Growth, and Industry Analysis, By Types ( Eco-friendly Plastic, Wood, Cardboard), By Applications Covered ( Restaurant, Retail, Coffee Shop, Entertainment, Others), Regional Insights and Forecast to 2033

Eco-Friendly Gift Card Market Size

The Eco-Friendly Gift Card Market was valued at USD 4,416.55 million in 2024 and is expected to reach USD 4,703.63 million in 2025, growing to USD 7,784.48 million by 2033, reflecting a CAGR of 6.5% during the forecast period.

The U.S. Eco-Friendly Gift Card Market holds a dominant share, contributing approximately 40% of the global market. Driven by consumer demand for sustainable products, the retail and restaurant sectors are key growth drivers in this region.

The global eco-friendly gift card market is experiencing substantial growth, valued at approximately USD 6.59 billion in 2023 and projected to reach USD 11.44 billion by 2031. This growth is driven by an increasing consumer preference for sustainable products and eco-conscious business practices. Eco-friendly gift cards, made from biodegradable plastics, wood, and cardboard, currently dominate the market. These types of cards make up around 40%, 35%, and 25% of the market share, respectively. The restaurant sector holds the largest share, comprising about 30% of the market, followed by retail, coffee shops, and entertainment sectors, contributing 25%, 20%, and 15%, respectively.

Eco-Friendly Gift Card Market Trends

The eco-friendly gift card market is witnessing several key trends, particularly the growing shift towards sustainable materials. Biodegradable plastics, wood, and cardboard are gaining popularity, with 40% of consumers preferring biodegradable plastic cards, 35% opting for wood-based cards, and 25% choosing cardboard variants. This trend is being driven by increasing environmental awareness and the desire to reduce plastic waste. The restaurant industry leads in the adoption of eco-friendly gift card, contributing to 30% of the market share, with retail, coffee shops, and entertainment venues following at 25%, 20%, and 15%, respectively. Furthermore, 50% of consumers express interest in personalizing or customizing their gift cards, adding to the appeal of eco-friendly options.

Eco-Friendly Gift Card Market Dynamics

The eco-friendly gift card market is influenced by several key dynamics. Firstly, advancements in supply chain technologies have led to a 30% reduction in the production cost of eco-friendly gift cards over the last five years, making them more affordable for businesses. Additionally, 70% of millennials and 65% of Gen Z consumers prefer eco-friendly gift cards, which is driving the demand in the market. However, there are challenges, such as the higher initial production costs of eco-friendly cards, which are 15% more expensive than traditional plastic cards. Furthermore, there is a need for standardized certifications to verify the environmental claims of these products, ensuring consumer trust and transparency. Despite these challenges, the market outlook remains positive, as businesses align with consumer preferences for sustainability.

DRIVER

"Rising demand for eco-friendly products and sustainability initiatives"

The increasing consumer preference for sustainable products is a significant driver of the eco-friendly gift card market. Approximately 60% of consumers prefer eco-friendly gift cards over traditional plastic options, reflecting the growing environmental awareness. This trend is particularly prominent among younger generations, with 70% of millennials and 65% of Gen Z indicating a preference for sustainable gift products. Businesses are also prioritizing green initiatives, with 55% of retailers offering eco-friendly gift card options as part of their sustainability efforts. The adoption of eco-friendly materials such as biodegradable plastic, wood, and cardboard, which collectively make up 100% of the eco-friendly gift card market, has contributed to this growth. Additionally, regulatory pressures and environmental policies are encouraging companies to reduce their environmental footprint, boosting the demand for sustainable alternatives like eco-friendly gift cards.

RESTRAINT

"High production costs of eco-friendly materials"

One of the key restraints in the eco-friendly gift card market is the higher production cost of materials compared to traditional plastic. Eco-friendly plastic, wood, and cardboard cards are typically 15-20% more expensive to produce, which can limit adoption, particularly in price-sensitive markets. Despite growing consumer demand for sustainable products, many small and medium-sized enterprises face challenges in switching to eco-friendly gift cards due to the increased cost of raw materials. Additionally, the production and distribution processes for these eco-friendly cards can be more complex, adding to operational costs. While major companies are investing in sustainable product lines, the higher upfront costs could deter smaller businesses from offering eco-friendly options, affecting market penetration and overall adoption.

OPPORTUNITY

"Expansion in the retail and hospitality sectors"

There are significant opportunities for growth in the eco-friendly gift card market within the retail and hospitality industries. In the retail sector, around 40% of the market share is driven by gift cards used for retail purchases, including clothing, electronics, and accessories. Eco-friendly gift cards are increasingly being adopted by large retail chains looking to meet sustainability goals and appeal to eco-conscious consumers. The hospitality and restaurant sectors present another opportunity, with 30% of eco-friendly gift cards being used in these industries. Restaurants and coffee shops, in particular, are adopting sustainable products as part of their green initiatives. As consumer preferences shift toward sustainability, these sectors are increasingly offering eco-friendly alternatives, representing a high-growth opportunity for businesses involved in the production and distribution of eco-friendly gift cards.

CHALLENGE

"Limited awareness and consumer education on eco-friendly gift cards"

One of the challenges facing the eco-friendly gift card market is the limited consumer awareness regarding the availability and benefits of eco-friendly alternatives. Despite growing demand for sustainability, many consumers are not fully aware of the environmental impact of traditional plastic gift cards and the benefits of using eco-friendly options. Market research indicates that 40% of consumers are still unaware of the different types of eco-friendly gift cards available in the market, such as wood and cardboard options. Additionally, there is a lack of uniformity in certification for eco-friendly products, which creates confusion and mistrust among consumers. This challenge is exacerbated by the slow pace of adoption in some regions, where traditional plastic gift cards still dominate the market. Educating consumers and businesses on the environmental advantages of eco-friendly gift cards is crucial for accelerating market growth.

Segmentation Analysis

The eco-friendly gift card market is segmented based on the type of materials used, including eco-friendly plastic, wood, and cardboard. Eco-friendly plastic cards are the most widely used, comprising approximately 40% of the market share, followed by wood-based gift cards at 35%, and cardboard-based cards at 25%. Each material type offers unique benefits. Eco-friendly plastic cards are biodegradable, providing a sustainable alternative to traditional plastic. Wood cards offer a natural aesthetic and are highly durable, while cardboard cards are often used for one-time or short-term gifts due to their lower cost. The market is also segmented by applications, including restaurant, retail, coffee shops, and entertainment sectors, each contributing a distinct portion to the overall market share. The retail sector holds the largest share at 40%, followed by restaurants at 30%, with coffee shops and entertainment venues accounting for 20% and 10%, respectively.

By Type

• Eco-friendly Plastic: Eco-friendly plastic gift cards account for approximately 40% of the total eco-friendly gift card market share. These cards are made from biodegradable plastics, offering a sustainable alternative to traditional PVC cards. The demand for eco-friendly plastic cards is driven by their versatility and widespread acceptance across various sectors, including retail, restaurants, and coffee shops. Consumers are increasingly opting for these cards as part of their desire to reduce plastic waste. Retailers, especially large brands, are adopting eco-friendly plastic cards as part of their sustainability initiatives, capitalizing on the growing demand for green alternatives. 

• Wood: Wooden gift cards make up around 35% of the eco-friendly gift card market. These cards offer a premium, natural look and are often used by high-end retailers and businesses in the hospitality sector, particularly restaurants and cafes. Wood-based cards are highly durable, reusable, and easily customizable, which has made them a popular choice for premium gifting options. The market for wooden gift cards is growing as businesses seek to differentiate themselves by offering unique, eco-friendly alternatives. Wood-based cards are often used as part of exclusive or limited-edition promotions, particularly in industries where the perception of luxury and sustainability matters to consumers.

• Cardboard: Cardboard gift cards account for around 25% of the eco-friendly gift card market. These cards are made from recycled paperboard and are often used for one-time or short-term gifts. Cardboard gift cards are an affordable and eco-friendly option for businesses that wish to reduce waste while offering a sustainable gifting experience. While cardboard cards are more commonly used for promotional purposes, their adoption in the consumer gift card market is steadily increasing, particularly among environmentally conscious companies. These cards are biodegradable and recyclable, making them an attractive choice for businesses focused on reducing their environmental impact while still providing a functional and thoughtful gifting option.

By Application

• Restaurant: The restaurant sector holds a significant share of the eco-friendly gift card market, accounting for approximately 30%. This is driven by the increasing demand for sustainable solutions within the food service industry. Many restaurants are adopting eco-friendly gift cards as part of their sustainability initiatives, appealing to environmentally conscious consumers. Restaurants are increasingly offering these gift cards as part of promotional campaigns, loyalty programs, and holiday gift options, contributing to the growth of this application segment.

• Retail: The retail sector is the largest application segment in the eco-friendly gift card market, representing around 40% of the total market share. Retailers are embracing eco-friendly alternatives to traditional plastic gift cards as part of their sustainability efforts. This adoption is driven by consumer demand for green products, particularly in sectors such as clothing, electronics, and home goods. Retailers are now offering a wide range of eco-friendly gift card options, including those made from biodegradable plastics, wood, and cardboard, to appeal to environmentally conscious shoppers.

• Coffee Shop: Coffee shops make up approximately 20% of the eco-friendly gift card market. Many coffee shop chains are adopting sustainable gift cards as part of their green initiatives, which is especially important in attracting millennials and Gen Z consumers who prioritize sustainability. Coffee shops offer these cards as part of loyalty programs or holiday promotions, further contributing to the demand for eco-friendly gift cards in this sector. The use of wood and biodegradable plastic materials is particularly popular in this application due to their balance of sustainability and brand image.

• Entertainment: The entertainment sector accounts for about 10% of the eco-friendly gift card market. This application includes movie theaters, amusement parks, and concert venues, where eco-friendly gift cards are becoming a preferred option for gifting. The entertainment industry is increasingly adopting these sustainable alternatives as part of their environmental commitment, with eco-friendly gift cards used in promotions, season passes, and gift vouchers. The shift towards more sustainable options reflects growing consumer expectations for eco-conscious practices within the entertainment industry.

• Others: The "Others" category, encompassing a variety of other industries such as travel, gaming, and specialty retailers, represents approximately 10% of the eco-friendly gift card market. As more businesses across various sectors adopt sustainable practices, this segment is experiencing gradual growth. Eco-friendly gift cards in this category are used for loyalty rewards, promotions, and gifting purposes, and are increasingly recognized for their environmental benefits. This trend is driven by the growing awareness of sustainability and the consumer preference for eco-friendly options.

Regional Outlook

The eco-friendly gift card market is experiencing growth across multiple regions, with North America, Europe, and Asia-Pacific holding significant shares. North America leads the market, contributing approximately 40% of the overall market share, followed by Europe at 30%. North America’s dominance is attributed to the high level of consumer awareness and the growing adoption of sustainable products. The retail sector in North America is particularly strong, with large retailers increasingly adopting eco-friendly gift cards as part of their sustainability strategies. Europe holds a 30% share, with countries such as Germany, the U.K., and France driving the demand for eco-friendly cards. 

North America

North America holds the largest share of the eco-friendly gift card market, contributing approximately 40% in 2024. The U.S. is the key market driver, with a significant portion of retailers, restaurants, and coffee shops offering eco-friendly gift cards. Consumer demand for sustainable products is strong in North America, particularly among millennials and Gen Z, who are more likely to prioritize sustainability in their purchasing decisions. This has led to increased adoption of eco-friendly gift cards across various sectors, including retail, dining, and entertainment. Furthermore, many companies in North America are actively investing in sustainability efforts, with eco-friendly gift cards serving as a central part of their green initiatives.

Europe

Europe accounts for approximately 30% of the global eco-friendly gift card market, with significant growth in countries such as Germany, the U.K., and France. In these regions, consumer awareness of environmental issues has led to an increasing preference for sustainable products, including gift cards. The retail and restaurant sectors are particularly prominent in Europe, as businesses look for ways to align with consumer demand for eco-friendly alternatives. The adoption of eco-friendly gift cards is also driven by government regulations promoting sustainability and reducing plastic waste. With growing consumer interest in eco-conscious products, the European market for eco-friendly gift cards is expected to continue its upward trajectory.

Asia-Pacific

The Asia-Pacific region is emerging as a key growth market for eco-friendly gift cards, with an increasing share of approximately 20% in 2024. Countries like China, India, and Japan are seeing a surge in demand for sustainable products as awareness of environmental issues rises. The retail and hospitality sectors are the primary drivers of eco-friendly gift card adoption in Asia-Pacific, with businesses looking to appeal to environmentally conscious consumers. Additionally, governments in several countries are implementing sustainability initiatives, encouraging the adoption of eco-friendly practices across industries. This region is expected to see continued growth as consumers increasingly opt for sustainable gift options.

Middle East & Africa

The Middle East & Africa region represents around 10% of the eco-friendly gift card market, with countries like South Africa, the UAE, and Saudi Arabia gradually increasing their market shares. The market in this region is driven by growing awareness of sustainability and the increasing adoption of eco-friendly products. Retailers, restaurants, and entertainment venues are adopting eco-friendly gift cards as part of their corporate sustainability initiatives. As consumers in the region become more aware of environmental issues and sustainability practices, the demand for eco-friendly gift cards is expected to rise, creating opportunities for businesses to capitalize on this emerging trend.

List of Key Companies Profiled

• Green Gift Cards
• Wearth
• The Green Turtle
• All-Green
• Life Before Plastic
• Good Things
• Nitecrest
• Buyagift
• Zero Waste Store
• Intercard
• FLON
• Love Heartwood
• Vera-Bee
• Plastic Resource
• Eco Replenishers
• Green Island Co
• Ecobnb
• Billi
• Kindhumans
• Dinkm
• The Eco Friendly Living
• Nkuku
• Wild & Stone
• Asiki
• Sister Collective
• Rapanui
• Earthmother
• GRÜNBAG

Top Companies with Highest Market Share

• Green Gift Cards – 15% market share
• Wearth – 12% market share

Investment Analysis and Opportunities

The eco-friendly gift card market presents a wealth of investment opportunities, particularly in the production and distribution of sustainable cards made from biodegradable plastics, wood, and cardboard. In 2023, around 60% of the market was dominated by eco-friendly plastic gift cards, with wood-based cards capturing a 35% market share, and cardboard variants accounting for 25%. The increasing global demand for sustainability and eco-conscious products is driving investment in this space. In particular, businesses that focus on enhancing the durability and aesthetic appeal of eco-friendly materials are poised to capture a significant share of the market. The growing popularity of eco-friendly gift cards in industries such as retail, restaurants, coffee shops, and entertainment sectors is expected to fuel further growth. The adoption of eco-friendly gift cards by large retail chains, which now account for nearly 40% of the total market, is encouraging small and medium-sized businesses to follow suit. 

New Products Development

The eco-friendly gift card market has seen substantial growth in the development of new products, particularly in terms of innovative materials. In 2023, Green Gift Cards introduced a new line of biodegradable plastic cards that break down within six months, contributing to a 15% increase in market share. Similarly, Wearth launched a premium wood-based gift card, which garnered attention in high-end retail sectors due to its sustainable yet elegant appeal. Both products cater to the rising demand for eco-friendly solutions across various industries. These companies are also exploring new technologies, such as embedding seeds in gift cards, which are designed to grow into plants when the cards are disposed of. This development not only meets the growing demand for sustainability but also adds an experiential element for consumers, making the cards more appealing. The introduction of these products reflects the industry's broader trend of combining sustainability with innovation. 

Recent Developments by Manufacturers 

• Green Gift Cards launched a new line of fully biodegradable plastic cards in Q4 2023, which degrade in six months, catering to consumers seeking both sustainable and practical solutions.
• Wearth introduced a wood-based gift card in early 2024, which has become popular among high-end retailers due to its premium appearance and environmentally friendly nature.
• Nitecrest unveiled a new cardboard gift card in late 2023, which is 100% recyclable and compostable, attracting businesses in the food service and retail sectors.
• Buyagift added new eco-friendly gift card options in 2024, integrating personalized designs and sustainable materials, with a focus on attracting millennials and Gen Z consumers who prefer environmentally responsible products.
• Zero Waste Store released a line of eco-friendly gift cards made from recycled paper in early 2024, capturing a significant portion of the eco-conscious gift card market.

Report Coverage 

The eco-friendly gift card market is segmented by types and applications. The market is dominated by eco-friendly plastic gift cards, which make up approximately 40% of the market share, followed by wood-based cards at 35%, and cardboard cards at 25%. These products are used in various industries, including retail, restaurants, coffee shops, and entertainment. The retail sector leads the market with 40% of the share, driven by the increasing consumer demand for sustainable products. The restaurant sector follows closely at 30%, with coffee shops and entertainment venues accounting for 20% and 10%, respectively. The growing trend towards sustainability, coupled with increasing consumer demand for eco-friendly products, has led to innovations in the production of gift cards. Additionally, digital eco-friendly gift cards are gaining traction, offering a solution that eliminates the need for physical cards altogether. The market is expected to continue its growth trajectory, fueled by a growing emphasis on sustainability and innovation across various industries. The widespread adoption of eco-friendly materials is likely to increase as businesses align with consumer preferences and environmental regulations.