The market will grow from $9941.3 million in 2021 to $17267.9 million by 2026

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Dublin, March 15, 2022 (GLOBE NEWSWIRE) — 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.

The Latin America market is expected to reach US$11,293.0 million in 2022. Historically, the Latin America gift card market has witnessed steady growth with a CAGR of 11.7% during the period 2016 -2020.

Despite the short-term challenges in 2022, the medium to long-term growth of gift cards in Latin America remains solid. The gift card industry in 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 increasing over the forecast period, registering a CAGR of 11.2% over the period 2022-2026. The gift card market in the country will grow from US$9941.3 million in 2021 to US$17267.9 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.

The gift card industry in Latin America has weathered the impact of the economic downturn well as well as negative business and consumer sentiment due to the disruptions caused by the Covid-19 outbreak.

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 launch innovative gift card platforms for consumers in 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 Brazilian consumers to select and purchase 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 such as 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 the value-added services offered by gift card providers are driving the industry growth in Brazil and are expected to continue driving the market growth over the next four to eight quarters.

Cash gives way to innovative gift cards in Brazil

While cash remains the most popular payment method in Brazil, where it accounts for more than a third of payments, alternative payment methods such as gift cards are gaining market share quite quickly.

Over the past four to eight quarters, the popularity of gift cards has increased dramatically; mainly due to the growing shift of consumers towards online shopping. While in markets such as the US, UK and India where gift cards are often used for giving, Brazil is the market 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. Overall, 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 looking to Mexico as a potential market to expand their services.

  • In October 2021, Swile, a French employee benefits and gift card company, raised US$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.

Scope

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

Gift card market size by consumer segment

Digital gift card market size

Gift Card Market Size by Retail Consumer

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

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

  • Jewelry

  • Sport stuff

  • Home and kitchen accessories and appliances

  • Travel

  • Entertainment and games

  • Other

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

  • Health

  • Travel

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 Libro SA

  • 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

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