DUBLIN, March 16, 2022 /PRNewswire/ — The report “Latin America Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2022 Update” has been added to from ResearchAndMarkets.com offer.
Latin America market should reach US$11,293.0 million in 2022. Historically, the gift card market Latin America recorded steady growth with a CAGR of 11.7% during the period 2016-2020.
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 Latin America held up well to the impact of the economic downturn as well as negative business and consumer sentiment due to the disruption caused by the Covid-19 outbreak.
Despite the short-term challenges in 2022, the medium and long-term growth of gift cards in Latin America stay strong. The gift card industry Latin America 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 11.2% over the period 2022-2026. The domestic gift card market will grow from US$9,941.3 million in 2021 to reach $17,267.9 million by 2026.
With the growing demand for gift cards, the Latin America gift card market has attracted global gift card companies to expand their business in this region in 2021. Additionally, mergers and acquisitions along with the business of fundraising have increased in the gift card industry over the past four to six years. quarters.
Payment technology companies are launching innovative gift card platforms for consumers of Brazil
As more consumers turn to digital payment methods such as gift cards, payment technology companies are launching innovative gift card platforms for consumers in Brazil.
- In April 2021, InComm Payments, a payment company, announced the launch of its full-service gift card shopping mall, TheGiftCardShop.com. The new platform will allow consumers to Brazil to select and shop from a wide range of innovative gift cards. Additionally, the platform also allows consumers to send gift cards directly to friends and family through digital channels such as email.
- The platform offers gift cards from over 100 brands in categories including dining, entertainment, sports, homeware, and travel. To further enhance the user experience, InComm Payments gift cards powered by American Express, Visa and MasterCard can also be loaded into mobile wallets such as Google Pay, Apple Pay and Samsung Pay, allowing consumers to make purchases much easier and safer. anywhere anytime.
This innovative gift card solution and value-added services offered by gift card providers are driving industry growth in Brazil and are expected to continue driving market growth over the next four to eight quarters.
Cash is giving way to innovative gift cards in Brazil
Although cash remains the most common form of payment in Brazilwhere it represents more than a third of payments, alternative means of payment such as gift cards are gaining market share fairly quickly.
Over the past four to eight quarters, the popularity of gift cards has increased dramatically; mainly due to the increasing shift of consumers towards online shopping. While in markets such as United States, UKand Indiawhere gift cards are often used to offer, Brazil is the marketplace where consumers buy gift cards for themselves. Notably, consumers cited convenience as one of the top drivers for using gift cards to shop offline and online in the country.
Brazilian culture is another reason why cash is giving way to gift cards in Brazil. Generally, Brazil is a prepaid country. Consumers use prepaid cards (gift cards) for almost everything. About 55% of mobile phones are prepaid, transport cards are prepaid and even meal vouchers are prepaid. Moreover, the penetration of gift cards is also increasing due to the low usage of credit cards in Brazil.
The entry of international players will further drive innovation and competition in the Mexican gift card market
The global gift card industry is expected to register significant growth over the next four to eight quarters. To capitalize on this global growth, international players are considering Mexico as a potential market to expand their services.
- In October 2021Swile, a France-business based on employee benefits and gift cards, increased $200 million in its Series D funding round, led by SoftBank Group International. After raising the financing round, Swile announced that the company is looking to expand its international presence over the next few quarters and is looking at the Mexican market.
- Notably, some international gift card players are already present in the country. For example, the American company Tango Card, the provider of digital rewards and incentives, offers digital gift cards from several brands, including Uber, Starbucks, Domino’s and Burger King, among others.
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:
- Cencosud SA
- Carrefour S.A.
- Coto CICSA
- MercadoLibre Inc
- Importer and Exporter of Patagonia SA
- Wal-Mart Stores Inc.
- Garbarino S.A.
- Casino Guichard Perrachon SA
- Natura Cosmeticos SA
- Lojas Americanas S.A.
- Adeo Group
- Magazine Luiza S.A.
- Falabella SACI
- SMU S.A.
- Feria Chilena del SA Bookstore
- PriceSmart Inc
- Inditex, Industria de Diseno Textil SA
- Confecciones Leonisa SA
- Organization Soriana SAB de CV
- Grupo Comercial Chedraui Sa de CV
- Controladora Comercial Mexicana SAB de CV
- Similar Farmacias SA de CV
- Corporativo Fragua Sa de CV
- The Home Depot Inc, The
For more information about this report visit https://www.researchandmarkets.com/r/xcwmyv
Research and Markets
For EST office hours, call +1-917-300-0470
For USA/CAN call toll free +1-800-526-8630
For GMT office hours call +353-1-416-8900
US Fax: 646-607-1904
Fax (outside the US): +353-1-481-1716
SOURCE Research and Markets