The UK gift card market hit £8-9 billion, up from £7 billion in recent years. But here’s the thing, that growth didn't come from simply more plastic. It mostly came from alternative mediums such as our eco friendly Green Gift Cards, digital as well as a general negative shift in brand perception that PVC is an environmental disaster.
This isn’t a feel-good trend. It's a structural shift driven by regulation, consumer perception, and technology that works.
The Numbers That Broke the Industry
A single PVC gift card produces 21 grams of CO2 during manufacturing. The paperboard equivalent? 0.66 grams. That’s a 96% reduction in carbon emissions per card.
Scale that across the hundreds of million of cards issued annually in the UK alone, and you’re looking at thousands of tonnes of carbon completely eliminated.
Here’s the breakdown:
| Material Metric |
PVC |
FSC Paperboard |
| Carbon per card |
21g |
0.66g (91% reduction) |
| Decomposition time |
500+ years |
Biodegradable, Compostable |
| Recyclability |
Very low in practice
|
Household recycling compatibility |
The waste output tells the real story here. PVC breaks down into microplastics when disposed and releases dioxins when incinerated. Both working their way into the environment. In contrast, paperboard returns to the earth as organic fibre either via disposal through household waste or recycling. That’s not just marketing. That’s chemistry.
70% of gift cards get thrown away within six months. If you’re issuing plastic, you’re choosing to create waste that outlives your customers by centuries.
Performance Without Compromise
Modern paperboard cards, like those made from invercote by Holmen Iggesund in Sweden, survive over 400 swipes in magnetic stripe readers without data loss or physical degradation. They
The Swedish mills behind Green Gift Cards plant 40 million trees annually, three trees for every one harvested for paper products. This isn’t just sustainable, it’s regenerative forestry which powers our plastic-free gift cards.
Regulation became key
The corporate sustainability reporting directive (CSRD) came into force in January 2025, affecting tens of thousands of companies across Europe particularly in the EU, with around 50,000 businesses once fully phased in. If you’re large enough of an organisation, your ESG data may now be audited in a similar way to your financials. This would likely include your carbon footprint of your operations.
Furthermore, the corporate sustainability due diligence directive (CSDDD) takes it further, for companies that operate or trade in the EU, you’re responsible for the environmental impacts across your entire supply chain. Procurement teams can’t ignore this anymore.
| Regulation |
Date |
Impact |
| CSRD Initial Wave |
January 2025 |
Mandatory ESG disclosure for large firms |
| USPS Sustainability Add-On |
2025 |
Up to a 1% postage discount in specific USPS incentive programs when using certified sustainable papers (e.g. SFI®/FSC®), signalling that lower-impact materials are being financially rewarded. |
| CSDDD Transposition |
Late 2020s |
Value-chain environmental due diligence obligations phased in for large companies |
The Consumer Trust Problem
Here's the credibility gap that is hurting brands. Most consumers report they value sustainability. For example, three-quarters (78%) of consumers feel sustainability is an important factor when shopping (The Round UP). Despite this overwhelming trend, a minority of consumers actually trust corporate sustainability claims, according to recent surveys.
Gen Z and Millenials are the main drivers in this category, especially as a large majority of these age groups consider environmental practices deeply before making any purchasing decisions. For these groups a genuinely sustainable gift card option is vital to gain support.
Major brands have caught on fast. For example, Clarins, one of market leaders in the cosmetics industry in the UK switched to our FSC certified gift cards. Read the full case study to discover more.
What This Means for your Business
If you’re still utilising PVC cards in 2026, you’re missing out on the benefits of making the switch and signalling to stakeholders that you value sustainability as a priority, not a burden.
The strategic win is bigger. You’re aligning your businesses operations with where the market is heading. Our truly sustainable cards carry a verifiable impact.
Make the Switch
Ready to audit your current card programme? Get in touch for a quote.