DUBLIN, March 16, 2022 /PRNewswire/ — The “Middle East and Africa Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2022 Update” report has been added to from ResearchAndMarkets.com offer.
The MEA gift card industry in the country is expected to reach US$10,904.8 million in 2022. Historically, the gift card market Africa and Middle East recorded steady growth with a CAGR of 11.8% during the period 2016-2020.
Despite the short-term challenges in 2022, the medium and long-term growth of gift cards in Africa and Middle East stay strong. The gift card industry Africa and Middle East is expected to grow steadily in the first half of 2022 and register strong growth in the second half of 2022. The growth momentum is expected to continue to grow over the forecast period, registering a CAGR of 11.4% during the period 2022-2026. The domestic gift card market will grow from US$9,555.0 million in 2021 to reach US$16,817.1 million by 2026.
The gift card market in 2021 was driven by a wide range of factors, which supported growth in the retail and corporate segments. Key drivers included the growth of e-commerce, increased adoption to entice employees to work remotely, digital gifts, and initiatives undertaken by the government, hospitality, and travel industries to jump-start growth. Although the gift card market has been impacted by COVID-19, the market is expected to rebound in the coming quarters, especially in the first half of 2022.
Gift card industry in Africa and Middle East held up well to the impact of the economic downturn as well as negative business and consumer sentiment due to the disruptions caused by the Covid-19 outbreak.
In recent years, the Middle East and Africa region has become a destination with strong growth opportunities for gift card providers. The demand for gift cards among millennials and the unbanked population has increased several times since the start of the coronavirus (Covid-19) pandemic. Additionally, with the growing interest in cryptocurrencies, gift card providers are focusing on integrating crypto trading with gift cards in this region. The trend is expected to remain the same over the next four to six quarters, further supporting market growth.
Rise in product launches expected to further boost consumer adoption of gift cards in UAE
As the popularity of gift cards among consumers continues to grow, several new product launches have taken place over the past quarters in the UAE. In October 2021YouGotaGift, one of the nation’s leading digital gift card providers, announced the launch of new gift card products for The Blue Salon and Kunooz.
With hundreds of thousands of Indians residing in the United Arab EmiratesYouGotaGift also launched Kalyan Jewelers gift cards during the Diwali celebration week in November 2021. As the popularity of gift cards continues to grow in the country, the publisher expects more product launches over the next four to eight quarters. This will subsequently contribute to the growth of the gift card market in the United Arab Emirates from a short to medium term perspective.
Global payment companies launch gift card services for consumers in UAE
As the popularity of gift card payment methods continues to grow in the GCC region, global payment companies are entering the market to capitalize on the opportunity and gain market share.
In June 2021Dutch payments fintech Recharge.com has announced the launch of its services, including gift cards, in Saudi Arabia and the United Arab Emirates. The fast-growing startup focuses on a number of global brands, including Netflix, Spotify and Xbox. Notably, the company has grown rapidly in recent quarters following the growing popularity of digital gift cards. Its launch in the UAE follows the recent $12 million debt financing round, which the company raised to expand its presence internationally.
The publisher expects more global gift card players and fintech companies to launch their services in the United Arab Emirates over the next four to eight quarters, which will then drive the growth of the market in a short to medium term perspective.
Bitrefill partners with physical stores to enable crypto purchases via gift cards in South Africa
The popularity of cryptocurrencies has surged in recent quarters in South Africa. With this resurgence in popularity, global payments are entering the South African market through strategic partnerships with physical stores that allow consumers to pay for their purchases in crypto through gift vouchers.
In November 2021Bitrefill, the global payment company, launched its services in South Africa. The company allows consumers to convert their cryptocurrencies such as bitcoins into gift cards during point-of-sale transactions. Since its launch in the country, Bitrefill has entered into strategic partnerships with several physical stores such as Pick n Pay, Cape Union Mart, Incredible Connection, and Toys R Us, among others.
Apart from physical stores, the company has also partnered with online retailers including Mr Delivery, Grabitall and Netflorist. Bitrefill’s entry into the South African market will allow consumers to pay using their bitcoins across multiple industries, including telecom operators, brick-and-mortar stores, and restaurants. Currently, Bitrefill offers support for major cryptocurrencies such as Bitcoin, Ethereum, Dash, Dogecoin, Litecoin, and USDT.
Total spend on gifts
- By consumer segment (retail and business)
- By product categories (13 segments)
- By retail sectors (7 segments)
Gift Card Market Size by KPIs in Consumer Segments
- Gross load value
- Transaction value
- Unused value
- Average value per transaction
- Transaction volume
- Average value of card purchased
- Number of cards
Gift Card Market Size by Consumer Segment
- retail consumer
- Corporate consumer (small scale, intermediate, large enterprise)
Digital gift card market size
- Per retail consumer
- Per Retail Opportunity
- By Corporate Consumer
- By Business Buying Opportunity
- By business size
Gift Card Market Size by Retail Consumer
- By functional attribute
- By Occasion1. Festivals and special days of celebration
2. Milestone Celebration
- Value by buying channel
Gift Card Spending by Consumer Behavior and Demographics
- Consumer buying behavior
- Gift card buyer by age group
- Gift card buyer by income level
- Gift card buyer by gender
Gift Card Market Size by Company
- By functional attribute
- By Occasion1. Employee incentive
2. Sales incentive
3. Consumer incentive
- By activity scale
Spending on gifts by product categories (split between individuals and businesses)
- food and drinks
- Health, well-being and beauty
- Clothing, shoes and accessories
- Books and multimedia products
- Consumer electronics
- Restaurants & Bars
- Toys, children and babies
- Sport stuff
- Home and kitchen accessories and appliances
- Entertainment and games
Gift card spending by retail sector (distribution between personal and business)
- E-commerce and department stores
- Restaurants & Bars
- Supermarket, hypermarket, convenience store
- Entertainment and games
- Specialty stores
Gift card spend by distribution channel (split between personal and business)
- Online gift card sales
- Offline gift card sales
- First party sales
- Sales to third parties
- Increase in sales
Closed-loop gift card market share by major retailers. Major retailers covered include:
- Shufersal SA
- Super Pharm (Israel)Ltd
- Rami Levi Shivuk Hashikma
- Yeynot Bitan Ltd
- Hamashbir 365 Holdings Ltd
- Dor Alon Israel Ltd
- Inter Ikea Systems B.V.
- Shoprite Holdings Ltd
- Pick ‘n’ Pay Stores Ltd
- International Spar Central BV
- Wal-Mart Stores Inc.
- Woolworths Holdings Ltd (South Africa)
- BIM Birlesik Magazacilik AS
- Migros Tic AS
- LC Waikiki Magazacilik Hizemetleri Tic AS
- Koc Holding AS
- Teknosa Ic ve Dis Ticaret AS
- Carrefour S.A.
- A101 Yeni Magazacilik AS
- Yildiz Holding AS
- Union of consumer cooperatives (CCU)
- historical group
- Emke Group
- Damascus International Ltd
- T Choithram & Sons
- Sharaf DG LLC
- Savola Group
- Saudi Co For Hardware (SACO)
- Jarir Marketing Co
- United Electronics Co.
- Inditex, Industria de Diseno Textil SA
For more information about this report visit https://www.researchandmarkets.com/r/6u8i21
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