Consumers Are Turning to Gift Cards As a Way To Manage Inflation

Consumers plan to increase the number of gift cards they purchase this year by 12%, compared to 2022, and increase the value loaded on those cards by 7%, according to research from card platform Blackhawk Inc. released Tuesday. Blackhawk’s survey found that 37% of respondents have purchased more gift cards for self-use, primarily to help manage or control spending.

Blackhawk surveyed 2,000 consumers ages 18 and up in early February.

The trend of consumers purchasing gift cards as a way to manage their spending stems from ongoing concerns about inflation, according to the research. Some 97% of respondents say they are concerned about cost-of-living pressures and 61% plan to change their shopping behaviors to navigate inflation.

Some of the ways consumers are managing their spending include buying less expensive brands or generic store-brand products (55%); buying more products on sale (44%); buying the same brands or products, just fewer of them (34%); buying more products on promotion (27%); buying products in bulk to reduce costs (26%); and using more coupons (26%).

The annual rate of inflation in the United States, as measured by the Consumer Price Index, slowed to 3% in June, the lowest monthly inflation rate since March 2021 and down from 4% in May, according to The Bureau of Labor Statistics. But inflation remains above the Federal Reserve’s long-term target of 2%.

“As retailers continue to adapt to changing consumer behaviors, it will be crucial to recognize the continued increase in demand for gift cards and the shifting preferences among gift givers,” Jay Jaffin, chief marketing officer at Blackhawk Network, says in a statement. “The findings emphasize the growing significance of gift cards, not just as a go-to gift, but as a strategic tool for consumers.”

While gift cards typically provide consumers with flexibility when giving a gift, as they allow recipients to purchase what they want, 63% of respondents say they are buying gift cards to help recipients get what they need. In comparison, 17% say they purchase gift cards so recipients can purchase what they want and 20% say they purchase gift cards so recipients can get what they need and want.

In addition, Blackhawk’s research found that gift card buyers purchase 43% more gifts than consumers purchasing physical gifts.