DUBLIN, September 7, 2022 /PRNewswire/ — The report “Saudi Arabia Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2022 Update” has been added to from ResearchAndMarkets.com offer.
Saudi Arabia The gift card industry is expected to grow 14.4% on an annual basis to reach US$1429.9 million in 2022
Despite the short-term challenges in 2022, the medium and long-term growth of gift cards in Saudi Arabia stay strong. The gift card industry Saudi Arabia is expected to grow steadily in H1 2022 and record strong growth in H2 2022.
The growth momentum is expected to continue increasing over the forecast period, registering a CAGR of 12.1% over the period 2022-2026. The domestic gift card market will grow from US$1,249.5 million in 2021 to reach US$2,256.6 million by 2026.
Saudi Vision 2030 contributes significantly to a high level of interest in digital gift cards among consumers
The Kingdom government is making tremendous efforts to push digitalization in all aspects of life in the country. This has led to increased interest in digital gift cards among consumers of Saudi Arabia. Therefore, the publisher credits Saudi Vision 2030 as one of the key growth drivers for the digital gift card industry in Saudi Arabia.
Individuals and businesses have identified several use cases for gift cards over the past four to eight quarters in the country. From traditional rewards and incentives to sending Eidiya or even just helping those in need during the global pandemic, gift cards have found their way into the Kingdom.
In Saudi Arabia, private companies and government entities prefer digital gift cards to reward their employees and customers, whose adoption rate of gift cards has recently increased. the publisher expects the trend to continue and therefore maintains a stable outlook for the digital gift card industry in Saudi Arabia from a short to medium term perspective.
Digital gift card companies are strengthening their position in Saudi Arabia
Innovation in the digital gift card segment has driven the growth of the gift card industry in Saudi Arabia over the past four to eight quarters. With growing demand, digital gift card providers are focusing on product innovation and customer acquisition to grow rapidly in Saudi Arabia.
YouGotaGift, which is the region’s first all-digital gift card marketplace, has significantly expanded its digital gift card offerings in the Kingdom over the past four to eight quarters. The company has partnered with more than 800 companies in Saudi Arabia during this time, helping them digitize their employee rewards and incentive programs. The company works with more than 700 retail brands and serves more than 2,000 businesses in the region. In particular, it has served more than five million consumers.
Regional gift card providers are expanding into Saudi Arabia
Demand for gift card solutions has exploded in recent quarters in Saudi Arabia. Hence, regional gift card companies fill this gap for gift cards in the Saudi market.
LikeCard, the dubaiprepaid card company that also operates in Saudi Arabia, seeks to fill the demand gap in the country. In the region, the company served more than four million users with 80,000 purchase orders per day. Moreover, it has also partnered with more than 70 regional and international e-commerce businesses that accept its gift card solution.
Robust growth in the e-commerce sector will further drive the adoption of gift cards in Saudi Arabia
In recent quarters, the e-commerce market has experienced rapid growth thanks to the steady progress of its 2030 Vision. Saudi Arabiae-commerce sales have jumped more than 30% annually.
The publisher expects the predicted robust growth in the Saudi e-commerce market to further drive the adoption and popularity of gift cards among consumers. Additionally, retailers are also expected to increasingly adopt gift cards as a means of acquiring new customers in the Kingdom, thereby driving the growth of the gift card market over the next four to eight quarters.
Reasons to buy
- In-Depth Understanding of Gift Cards and Incentive Cards Market Dynamics: Understand the market opportunities, key trends and drivers along with the five-year forecast (2017-2026) for Gift Cards and Incentive Cards in Saudi Arabia.
- Develop market-specific strategies: identify growth segments and target specific opportunities across consumer segments and occasions to formulate your gift card strategy; assess key market-specific trends and risks.
- Get insights into consumer attitude and behavior in Saudi Arabia: Understand changing consumer attitude and behavior and increase return on investment. Get detailed insights into retail spend with gift cards for individuals and businesses.
- Get a complete perspective with six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction and value of transactions.
- Distribution channel insights: Understand the dynamics of gift card sales by channel – online vs. offline sales and first-party vs. third-party sales.
- Savola Group
- historical group
- Saudi Co For Hardware (SACO)
- Inter Ikea Systems B.V.
- Jarir Marketing Co
- United Electronics Co.
- Inditex, Industria de Diseno Textil SA
Total spend on gifts in Saudi Arabia
- By consumer segment (retail and business)
- By product categories (13 segments)
- By retail sectors (7 segments)
Gift Card Market Size by KPIs in Consumption Segments Saudi Arabia
- 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 in Saudi Arabia
- retail consumer
- Corporate consumer (small scale, intermediate, large enterprise)
Digital gift card market size in Saudi Arabia
- Per retail consumer
- Per Retail Opportunity
- By Corporate Consumer
- By Business Buying Opportunity
- By business size
Gift Card Market Size by Retail Consumer in Saudi Arabia
- 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 Saudi Arabia
- 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 in Saudi Arabia
- By functional attribute
- By Occasion1. Employee incentive
2. Sales incentive
3. Consumer incentive
- By activity scale
Spending on gifts by product categories (disaggregated by individuals and businesses) in Saudi Arabia
- 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
Spending on gift cards by retail sector (split between retail consumers and businesses) in Saudi Arabia
- E-commerce and department stores
- Restaurants & Bars
- Supermarket, hypermarket, convenience store
- Entertainment and games
- Specialty stores
Spending on gift cards by distribution channel (split between individuals and businesses) in Saudi Arabia
- Online gift card sales
- Offline gift card sales
- First party sales
- Sales to third parties
- Increase in sales
For more information about this report visit https://www.researchandmarkets.com/r/kkel30
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