If you’re a HR or rewards manager gearing up for your 2025 Christmas gifting plan, one thing is clear: gift cards for employees are everywhere. They’ve become a go-to tool for businesses wanting to strike a balance between choice, convenience, and impact. In this post, we’ll walk you through why gift cards have surged in popularity, what benefits they deliver, where the market is headed, and how Virgin Incentives’ own offerings slot into that picture.
The Current State of the B2B Gift Card Industry
First, let’s zoom out a bit. The gift card market, globally and regionally, is experiencing robust growth. In the UK, the gift card and incentive card market is projected to grow by 8.3% annually, reaching US$11.87 billion in 2025. Worldwide, the B2B gift card segment is accelerating at a compound annual growth rate (CAGR) of around 10.23% through 2030. In fact, estimates show the global B2B gift card market size was around US$315.8 billion in 2024 and is expected to reach nearly US$629.7 billion by 2031.
Why the surge? Several forces are converging:
- Digital delivery & convenience: Corporates appreciate instant issuance, easy bulk ordering, and minimal logistics headaches.
- Remote and hybrid work: Dispersed teams make traditional “hand-delivered gifts” less practical.
- Demand for flexibility: Recipients increasingly expect choice, let me pick what I like, not what someone guesses I’ll like.
- Cost sensitivity & ROI scrutiny: Especially in uncertain economic times, companies prefer options that combine perceived value with efficiency.
In the UK, B2B gift card sales have long dominated, accounting for around 60% of total gift card sales and in H2 2023 alone, B2B gift card sales increased by 10% according to the ‘Gift Card and Voucher Sales Analysis and Outlook UK’ report, created by KPMG and the GCVA. This underlines just how essential gift cards have become in corporate rewards strategies.
Why Gift Cards Are Such a Popular Choice at Christmas
So why do so many HR teams reach for gift cards when the festive season approaches? Here are several reasons that consistently come up in conversations and feedback:
1. Flexibility & Choice
Rather than guessing what an employee might want (or risking giving something they’ll never use), gift cards put the power in their hands. Whether someone wants a cozy night in, a high-street spree, or an adventure day out, they decide.
2. Speed & Simplicity
With digital delivery, you can issue cards instantly, even at the eleventh hour, with no printing, packaging, or shipping delays. For busy HR teams, that ease is priceless.
3. Broad Appeal / Inclusivity
Because recipients choose their own gift, gift cards tend to be more inclusive. They sidestep cultural, generational, or personal taste pitfalls that come with physical gifts.
4. Scalability & Cost Control
You can load exactly the amounts you want, for exactly the number of people you need and stay on budget more precisely. Also, issuing digitally lowers overhead.
5. Boost in Engagement & Emotional Impact
It’s not just practicality, gift cards carry meaning too. They say “thank you” in a way that feels personal. Even better when tied to compelling brands or experience options.
6. Resiliency in Uncertain Times
When audiences tighten their belts (as seen in cost-of-living pressures), gift cards afford recipients the freedom to choose something practical over luxury, making them more attractive than many fixed-value gifts.
The Future: Will Gift Cards Keep Growing?
Short answer: yes. The trends strongly favour continued growth:
- The global digital gift card market is projected to grow at 12.5% CAGR through 2032.
- The global B2B gift card market is projected to more than double between 2024 and 2031.
- In the UK specifically, gift card adoption is accelerating, especially in corporate and incentive contexts.
We expect more features around personalisation, brand co-branding, embedded experiences, and API-driven integrations so HR systems can automate issuance and reminders.
Virgin Incentives’ Gift Cards: What We Offer & Why They’re Great for Christmas
Now, let’s see how our own offerings map to all these advantages and why they’re ideal for your 2025 festive gifting.
Virgin Experience Days / Virgin Gifts Gift Cards
- UK: Physical or digital, loadable between £5–£2,500, valid for 12 months.
- USA: Digital only, values between $50–$5,000, and they never expire.
- Perfect when the “gift of experience” is what you want, but you want to let recipients pick their moment.
Virgin Gift Card (UK only)
- Physical or digital, £5–£4,000, valid for 24 months.
- Redeemable across Virgin brands – travel, wine, holidays, experiences, making it a premium, aspirational festive gift.
Merlin Gift Card (UK only)
- Physical or digital, £5–£1,000, valid for 12 months.
- Redeemable across top attractions (SEA LIFE, Thorpe Park, London Eye, etc.)
- Especially appealing for family-friendly Christmas gifts.
Leisure Choice Gift Card (UK & USA)
- UK: 140+ brands (e.g. John Lewis, M&S, Go Ape, Cineworld), £5–£2,500, valid 12 months.
- USA: 160+ brands (Sephora, Disney, Topgolf, Starbucks, etc.), $10–$1,000, never expires.
- An ideal “catch-all” Christmas gift: gives ultimate flexibility and choice, which is exactly what many HR teams want heading into December.
These products let you mix and match, sending digital codes or physical cards, all while leaning on our award winning team for support.
Conclusion: Why Gift Cards for Employees Should Be Central to Your Christmas Strategy
If you’re building your 2025 Christmas rewards roadmap, gift cards for employees deserve a starring role. They tick so many boxes: flexibility, efficiency, inclusivity, scalability, and emotional resonance. And in a world where people increasingly want choice, they deliver.
At Virgin Incentives, we’ve seen firsthand how gift cards unlock joyful, stress-free Christmas rewards for employees, clients, and customers alike. Whether you lean into experiential cards, multi-choice retail cards, or premium travel cards, we’ve got you covered.
So as you begin conversations for your 2025 gifting, let gift cards be front and centre. And if you’d like help designing your Christmas reward strategy or picking the right mix, we’re just a call or email away. Get in touch with us below to find our more:
