The digital revolution has transformed many aspects of our lives, and gift-giving is no exception. From e-gift cards to virtual experiences, digital gifting is reshaping how we express appreciation and build relationships.
Here are 8 compelling stats and trends that showcase the profound impact of digital gifting.
1. Explosive Growth in Digital Gift Cards
The global digital gift card market is experiencing remarkable growth.
According to The Business Research Company, the market size was $418.74 billion in 2023 and is projected to reach $495.05 billion in 2024, growing at an impressive CAGR of 18.2%.
This rapid expansion underscores the increasing popularity of digital gift cards as a convenient and flexible gifting option.
2. Rise of Online Greeting Cards
The United States E-card market is also seeing significant growth. Market Statsville Group reports that the market size is expected to expand from USD 263.9 million in 2021 to USD 801.6 million by 2030, with a CAGR of 14.9% from 2022 to 2030.
This trend highlights the growing preference for digital expressions of sentiment.
3. Charitable Donations as Gifts Gain Popularity
A YouGov survey reveals a striking statistic. 58% of Americans would consider a donation made in their name to be a good gift.
This trend underscores a growing preference for gifts that create positive change and align with personal values.
As consumers increasingly seek ways to make a difference, charitable donations as gifts are emerging as a powerful way to combine generosity with social responsibility.
4. Gifting Experiences Over Material Gifts
Research by Goodman and Lim in the Journal of Consumer Research reveals intriguing insights into gift-giving behavior.
They found that gift givers are more likely to give experiential gifts to socially close recipients than to those who are socially distant.
This preference stems from the perception that experiences are more unique and individualized than material goods.
Some popular online experiential gifts include virtual tours, cooking classes and online courses.
5. Digital Gifts in the Workplace
A study on e-hongbao (digital monetary gifts) in China reveals fascinating insights into the impact of digital gifting in professional settings. The research shows that e-hongbao has positive impacts at all organizational levels, with ‘group’ e-hongbao having the strongest influence on intra-organizational relationships.
This suggests that digital gifting can play a significant role in strengthening team bonds and improving employee engagement. It opens up new possibilities for companies to leverage digital gifting as part of their employee recognition and team-building strategies.
6. The Case for Phygital (Physical + Digital) Gifts
A study by Spence and Koleva introduces an exciting new trend: hybrid gifting. This approach combines physical and digital elements to create a more comprehensive gifting experience.
Imagine receiving a beautifully wrapped box containing both a physical item and a QR code leading to a personalized video message. This hybrid approach balances the tangible appeal of a physical gift with the personalization of digital elements. It offers a unique solution to a common gifting dilemma: balancing the recipient’s preferences with the giver’s desire to show thoughtfulness.
We have already seen this trend in action. Some of our clients are adding QR codes on gift packaging (and sometimes printing on the product itself) that links to interactive Gift Stories or goes directly to their Forest profiles.
7. Social Influence and Reciprocity in Online Gift Giving
A large-scale study examining 1.5 million gift exchanges on Facebook provides compelling evidence of the power of social influence in digital gifting.
The research shows that receiving a gift causes individuals to be 56% more likely to give a gift in the future.
We’ve observed similar behavior with our Tree Kits. Often, when someone receives a Tree Kit, they visit the sender’s Forest profile and are inspired to plant trees themselves. This creates a positive cycle of giving and engagement, extending the impact of the original gift.
8. The Perception Challenge of Digital Gifts
A recent study comparing digital gifts to traditional physical gifts highlights some challenges in the world of digital gifting.
Researchers found that people often see digital gifts as requiring less effort from the giver. Sometimes, recipients don’t even view these digital items as real gifts.
The study also noticed that people are less likely to think about digital gifts afterward or feel the need to give something in return.
These findings suggest that digital gifting still has some hurdles to overcome to match the emotional impact of physical gifts.
Digital gifts designed to evoke emotion and engage your employees with positive impact. Send your first Gift story for free.
Over To You
As we’ve explored these eight trends, it’s clear that digital gifting is transforming how we express appreciation and build relationships.
While digital gifts often have a lower environmental impact than physical ones, it’s important to recognize that they still have a carbon footprint.
At ForestNation, we’ve taken this challenge as an opportunity to innovate. We’ve introduced Gift Stories – a unique digital gifting solution that not only delivers a personalized message but also contributes to global reforestation efforts. With each Gift Story, trees are planted, creating a lasting positive impact on our planet.
Please let us know in comments how we can improve this digital gift 👇
