Dublin, March 18, 2022 (GLOBE NEWSWIRE) — The report “Europe Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2022 Update” has been added to from ResearchAndMarkets.com offer.
Despite the short-term challenges in 2022, the medium to long-term growth story for gift cards in Europe remains strong. The gift card industry in Europe 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 increasing over the forecast period, registering a CAGR of 8.6% during the period 2022-2026. The gift card market in the country will grow from US$57,753.7 million in 2021 to US$88,747.1 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, particularly in the first half of 2022.
The gift card industry in Europe has weathered the impact of the economic downturn well as well as negative business and consumer sentiment due to the disruption caused by the Covid-19 outbreak.
Historically, the gift card market in Europe has seen steady growth with a CAGR of 8.6% over the period 2016-2020. According to the Global Gift Card Survey Q4 2021, the gift card industry in the country is expected to grow 0.0% on an annual basis to reach US$63,755.6 million in 2022.
Despite the fact that the region has gone through many socio-economic challenges due to the coronavirus pandemic, the gift card market has witnessed stable growth over the past four to eight quarters. When key players engaged in mergers and acquisitions to increase their market share, fintech startups were busy raising funds to offer niche products in the European gift card market over the past 24 months.
Gift card retailers allow consumers to buy gift cards using cryptocurrencies in the UK
Amid the growing adoption of cryptocurrencies by consumers nationwide, gift card retailers are also innovating in their services by offering consumers a variety of different payment options, including cryptocurrencies.
- In November 2021, UK-based online gift card retailer Giftchill announced that the company had added new payment options allowing consumers to purchase gift cards with cryptocurrencies. Notably, the company accepts Bitcoin, Ethereum, Dogecoin, Bitcoin Cash, Litecoin, and USD Coin, among others, as payment methods for gift card purchases in the UK.
- According to Giftchill, once the gift card purchase is made through the use of an encrypted payment method, consumers receive the gift card code instantly to their email address.
As more and more consumers invest in cryptocurrencies, the publisher expects the adoption of gift cards to increase in the future in the UK, as it is one of the most efficient and affordable way to spend cryptocurrencies.
Mergers and acquisitions are on the rise in the French gift card sector
While the gift card industry in France is expected to see robust growth over the next four to eight quarters, mergers and acquisitions activity is also gaining momentum.
- In September 2021, Sodexo, the Paris-based global catering services provider, announced that the company had acquired a majority stake in French gift card startup, Wedoogift. This acquisition is made in particular through its subsidiary Sodexo Benefits & Rewards Services in France.
- Wedoogift offers corporate gift card solutions in France. The company has partnered with more than 7,000 enterprise clients, including SMBs and marketing agencies.
- Thus, with this acquisition, the publisher expects Sodexo to further gain market share in the corporate gift card segment in the short and medium term.
The publisher also expects more mergers and acquisitions in the gift card sector over the next four to eight quarters in France. This will further intensify competition and innovation in the French gift card industry.
Major German retailers launch overseas gift card programs
Across Europe, the popularity of gift cards has grown over the past four to eight quarters. With consumers demanding innovative gift card solutions, Germany-based retailers are launching their gift cards for shoppers in other European countries.
- In October 2021, Aldi, the Germany-based discount supermarket, announced the launch of its first-ever UK gift cards, which can be spent on anything inside the supermarket.
- Notably, the launch of gift cards comes in time for Christmas and will be available to shoppers in all of its 920 stores across the UK. The launch of the gift card is also strategic from the perspective of the supply chain crisis, which has raised widespread concerns about food shortages.
- Shoppers can purchase and gift gift cards of up to £500 to friends and family in the UK.
This Bundle Offers the Following Detailed Nationwide Gift Card Market Opportunity
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:
- Aldi Group
- XXXLutz Group
- Schwarz Beteiligungs GmbH
- Steinhoff International Holdings AG
- M-Preis Warenvertriebs GmbH (Molk)
- Amazon.com Inc.
- Etn Franz Colruyt SA
- Delhaize Group SA
- Inter Ikea Systems B.V.
- Blokker Nederland BV
- FDB Group
- Dansk Supermarked A/S
- Dagrofa ApS
- Reitangruppen AS
- Dixons Carphone Plc
- Jysk Holding A/S
- Kesko Oyj
- Alko Oy
- Suomen Lahikauppa Oy
- Stockmann Oyj Abp
- Carrefour S.A.
- E Leclerc
- ITM Enterprises SA
- Auchan Group SA
- System U Central National Sa
- Edeka Zentral AG & Co KG
- Rewe Group
- dm-Drogerie Markt GmbH & Co KG
- Tengelmann Group, The
- Dirk Rossmann KG
- Globus Holding GmbH & Co
- H&M Hennes & Mauritz AB
- Sklavenite J&S SA
- Marinopoulos SA
- Diamantis Masoutis SA
- Inditex, Industria de Diseno Textil SA
- Hondos Bros.
- Scarf Coop Italia
- CONAD – Consorzio Nazionale Dettaglianti Scrl
- Esselunga Spa
- Selex Gruppo Commerciale SpA
- Eurospin Group
- Crai Secom SpA
- Apple Inc.
- Royal Ahold SA
- Jumbo Supermarkten B.V.
- Sperwer Holding B.V.
- Intergamma B.V.
- Hema B.V.
- Detailed result Groep NV
- Jeronimo Martins SGPS SA
- Tesco Plc
- Eurocash SA
- Metro AG
- Euro-net Sp zoo
- Magnit OAO
- X5 Retail Group SA
- Dixy Group OAO
- Slow OOO
- M Video OAO
- DNS Group
- El Corte Inglés SA
- Eroski Group
- Migros Genossenschaftsbund eG
- Coop Genossenschaft
- Maus Freres SA
- fenaco-LANDI Gruppu
- Associated British Foods Plc
- Next Plc
- J Sainsbury Plc
- Wal-Mart Stores Inc.
- TJX Cos Inc, The
- Wm Morrison Supermarkets Plc
For more information about this report visit https://www.researchandmarkets.com/r/hfgs0x