Despite persistent economic uncertainty, American consumers are planning to buy more gift cards in 2025—10% more than they did in 2024, according to new research from Blackhawk Network (BHN). With inflation and cost-of-living pressures still top-of-mind, gift cards are becoming a strategic tool for consumers who want to stay on budget while still giving meaningfully. Whether for birthdays, holidays, or everyday use, gift cards offer a unique blend of flexibility and financial control.
“Gift cards have become valuable financial tools for consumers navigating economic uncertainty, offering flexibility, convenience, and value that other gifting options often can’t match,” said Jay Jaffin, chief marketing officer at BHN. “Growth in eGifts and preference for purchasing and delivering gifts via app or social media networks indicates a continued shift toward digital-first shopping, particularly among younger consumers.”
Messaging Apps Drive New Growth
Digital gifting is experiencing rapid growth, especially across social and messaging platforms. One-third of younger consumers have already purchased gift cards through messaging apps, and nearly 60% say they’re interested in doing so in the future. This shift highlights an urgent opportunity for retailers and brands to meet consumers where they are—on mobile devices and social media—by offering seamless, digital-first gifting experiences.
AI Becomes a Trusted Shopping Assistant
Artificial intelligence is becoming a go-to tool for gift shopping. Nearly half of consumers now rely on AI to discover personalised gift ideas, compare products, and find the best deals. Younger generations are leading the charge, adopting AI tools at more than twice the rate of older shoppers. For retailers, integrating AI-powered recommendations and search into their shopping experiences isn’t just a nice enhancement—it’s now a competitive necessity.
Self-Gifting and Loyalty Programs
The concept of “self-gifting” is on the rise, with nearly one in three consumers now purchasing gift cards for themselves. Whether it’s to lock in savings, stick to a budget, or earn rewards, consumers use gift cards as personal spending tools. At the same time, loyalty programs are becoming an increasingly important part of the picture. More consumers—especially younger ones—are redeeming loyalty points for gift cards, creating a flywheel of repeat business for brands that embrace this integration.
The report also notes the growing influence of Generation Alpha, the digitally native cohort under age 13. While young, this group is already shaping family purchasing decisions and developing strong preferences for digital, customizable experiences. Brands that want to stay ahead of the curve should be watching this generation closely as they begin to enter the marketplace more actively.