Report Description

The gift card market in Africa and Middle East region has recorded a steady growth during the past few years. Though, the growth of gift card market has been impacted, it has outperformed the overall gift industry.

The socio-economic environment in Africa is expected to rebound which could have a positive impact on the gift card market. The Kenyan economy is expected to recover in 2021 with increase in real GDP by 6.9% YoY. While South Africa, Africa’s second-largest economy recorded GDP expansion of 13.5% quarter-on-quarter in July-September 2020, recovering from the pandemic crash.

The strong growth in the e-commerce sector primarily supported the overall gift card industry during 2020, a trend expected to continue over the forecast period. Increasing smartphone penetration and consumer’s inclination towards online shopping has positively impacted e-commerce sector. In South Africa, for instance, the growth in e-commerce market is one of the factors driving gift card market growth in the country. With growing online sales the spending on gift cards is also likely to increase in the country.

The gift card market in Kenya recorded substantial growth in the last few years. As one of East Africa’s largest economies, technological advancements in the payment industry widened the scope of gift card market in Kenya. The market growth has been primarily backed by the rising adoption of gift cards by the millennials and Gen Z consumers, expansion of the retail sector, and growing inclination towards cryptocurrencies.

Nigeria’s e-commerce sector is dominated by domestic e-commerce companies such as Jumia and Konga. Therefore, gift cards from these online retailers are also gaining popularity among the Nigerians. Additionally, international grocery retailers such as Spar have a strong presence in the Nigerian gift card market.

Consumers are widely accepting alternative payment options such as mobile wallets and electronic money transfer, instead of cash. The presence of the international brands in the Nigerian mobile payment system such as Visa with mVisa platform makes the mobile payment system more competitive. Moreover, it is expected that the global economic slowdown is unlikely to affect Africa’s economy and the gift card market in the coming years.

The demand for gift cards is also increasing in line with the demand for cryptocurrencies. The trend of converting gift cards into bitcoins and then into cash is gaining popularity among the Nigerians and Kenyans. Cryptocurrencies and gift cards are driving the remittance market in Africa, and more specifically in Nigeria. Key players such as Paxful allow Nigerians to trade gift cards offered by domestic players such as Konga or Blessing Computer for bitcoins. Other notable players offering this service in the country are Cardnosh and Cardtonic. Also, the demand for cryptocurrencies is increasing in Kenya which is alternatively driving the growth of gift cards. This is due to the ease of buying gift cards with cash and trading them for cryptocurrencies, without revealing the user’s identity.

The gift card market in the Middle East region has witnessed strong growth over the last few years. Adoption of gift card has increased across retail and corporate segments with a range of use cases which go beyond “gifting”. One of the factors driving growth of gift cards is e-commerce market. Merchants are incentivizing customers for shopping online and offering gift cards to increase sales and drive customer loyalty. The growth of e-commerce is expected to drive adoption of digital gift cards.

In the UAE, in particular, the e-commerce market grew in 2020 as more consumers shopped online due movement restrictions because of the fear of spread of COVID-19. Also, the need for greater online presence has supported e-commerce growth. Consequently, the adoption of digital gift cards has increased rapidly.

Due to the pandemic there has been a change in consumer behavior. There has been shift from physical gifts and gift cards to e-gift cards, driven by restricted movements due to Covid-19. Consequently, penetration of e-gift cards has increased significantly in 2020. Over the forecast period, PayNXT360 expects e-gift cards to continue to gain market share.

Entertainment based gift cards are gaining popularity in the region especially in the UAE backed by increasing smartphone penetration as well as the rising popularity of over-the-top (OTT) media or internet streaming services. The OTT traffic has further accelerated in COVID times as individuals are confined to their houses and are spending more time on leisure activities.

In October 2020, Mastercard partnered with Amazon to offer Amazon Prime members in UAE 20% cash back in form of a gift card during prime day, when paid with Mastercard. Also, customers registering for Mastercard Platinum, World and World Elite Mastercard debit and credit cards issued by banks in the UAE, were provided an annual Amazon Prime membership.

The changing socio-economic condition primarily due to the coronavirus pandemic is changing the overall retail ecosystem. Sustainability has become the prime importance for manufacturers and retailers during the ongoing pandemic. Therefore, retailers are focusing on expanding their reach and building long term relationships with manufacturers and consumers. Importantly, the new trend in the retail ecosystem is creating substantial growth opportunities for hyperlocal retailing and co-branding gift cards.

Moreover, given the current situation, corporates have been focusing on motivating and incentivize their employees via digital gift cards. Also, multi-purpose cards help corporates to offer employees flexible gifting option.

The rising consumer interest in cryptocurrencies is also driving the gift card market growth. In Israel, for instance, consumers can buy bitcoins and other altcoins through gift cards or vice-versa. This has also created scope for third party players such as paxful.com and bitrefill.com to allow consumers to trade with bitcoins for gift cards.

This report details the impact of economic slowdown along with change in business and consumer sentiment due to disruption caused by Covid-19 outbreak on gift card industry.

Though growth of gift card industry has been impacted due to pandemic, there are certain segments which will gain market share. There are interesting trends emerging across various segments, which are expected to fundamentally reshape gift card industry dynamics. Despite near-term challenges, medium to long term growth story of gift cards remains strong.

This offering from PayNXT360 is a bundled offering, combining 8 country reports (Egypt, Israel, Kenya, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates).

Country reports included in this bundled offering provide a detailed data centric analysis of gift cards and corporate incentive cards market along with consumer behaviour and retail spend dynamics. With over 200 KPIs at regional and country level, these reports provide comprehensive understanding of gift and incentive card market dynamics.

The report includes raw data along with structured dashboards, charts, and tables in an interactive Excel format.

This bundled offering includes regional and country level trend analyses across the following gift card segments:

  • Total gift market: This report provides detailed view of overall spend on gifts, broken down by retail and consumer segments. For both retail and consumer segments, this report provides a breakdown of spend on gifts by product categories (13 segments) and retail sectors (7 segments).
  • Gift cards: Drawing from proprietary survey results, this report provides in-depth analysis of opportunities in both open loop and closed loop prepaid gift card categories. Assesses consumer behaviour by type of consumer (retail and corporate – SMB, Mid-Tier, Large Enterprise), gifting occasion, digital gift card, and market share by retail sectors.
  • Details six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction, and value of transactions.
  • Corporate incentive & loyalty cards: This report provides detailed market dynamics of corporate incentive cards, broadly segmented in three categories – consumer incentive card, employee incentive card, and sales / partner incentive card. It details market size and forecast at category level, by functional attribute (open loop and closed loop), and by corporate consumer segments (small scale business, mid-size business, and enterprise business).
  • Digital gift card (e-gift card) analysis: Provides market size and forecast for digital gift cards, broken down by retail and corporate buyers. It also includes gift card spend by occasion (retail – festivals & special celebration days, milestone celebration, self-use, other; Corporate incentive cards –consumer incentive card, employee incentive card, and sales / partner incentive card). The report also includes digital gift card adoption by company size.
  • Open loop and closed loop: Provides market estimates and forecasts to assess opportunities in open loop and closed loop gift and incentive card segments across consumer segments.
  • Consumer attitude and behaviour: Drawing from proprietary survey results, this report identifies and interprets key KPIs related to gift card dynamics including spend by age, gender, and income level. In addition, it provides an overview of how consumers are currently using gift cards across key retail sectors.
  • Retail spend: Breaks down retail spend across retail sectors (7 segments) to provide detailed insights on consumer behaviour and changing dynamics of gift card spend.
  • Market share by retailer: Provides market share of closed loop gift cards by key retailers.
  • Distribution channel analysis: Provides market share by distribution channel – online vs offline sales and 1st party vs 3rd party sales (sales through outlet of other retailers).




Scope

This bundled offering provides the following detailed gift card market opportunity at country level

Total Spend on Gifts

  • By Consumer Segment (Retail and Corporate)
  • By Product Categories (13 Segments)
  • By Retail Sectors (7 Segments)



Gift Card Market Size by KPIs across 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, Mid-Tier, Large Enterprise)



Digital Gift Card Market Size

  • By Retail Consumer
  • By Retail Purchase Occasion
  • By Corporate Consumer
  • By Corporate Purchase Occasion
  • By Company Size



Gift Card Market Size by Retail Consumer

  • By Functional Attribute
  • By Occasion


1. Festivals & Special Celebration Days
2. Milestone Celebration
3. Self-Use
4. Other

  • Value by Purchase Channel



Gift Card Spend by Consumer Behavior and Demographics

  • Consumer Purchase Behaviour
  • Gift Card Buyer by Age Group
  • Gift Card Buyer by Income Level
  • Gift Card Buyer by Gender



Gift Card Market Size by Corporate Consumer

  • By Functional Attribute
  • By Occasion


1. Employee Incentive
2. Sales Incentive
3. Consumer Incentive

  • By Scale of Business
  • Budget Allocation Trend for 2021



Gift Spend by Product Categories (Split by Retail and Corporate Consumers)

  • Food & Beverage
  • Health, Wellness & Beauty
  • Apparel, Footwear & Accessories
  • Books & Media Products
  • Consumer Electronics
  • Restaurants & Bars
  • Toys, Kids, and Babies
  • Jewelry
  • Sporting Goods
  • Home & Kitchen Accessories & Appliances
  • Travel
  • Entertainment & Gaming
  • Other



Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers)

  • Ecommerce & Department Stores
  • Restaurants & Bars
  • Supermarket, Hypermarket, Convenience Store
  • Entertainment & Gaming
  • Specialty Stores
  • Health & Wellness
  • Travel



Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers)

  • Gift Card Online Sales
  • Gift Card Offline Sales
  • 1st Party Sales
  • 3rd Party Sales
  • Sales Uplift



Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:

Shufersal Ltd
Super-Pharm (Israel) Ltd
Rami Levi Shivuk Hashikma
Yeynot Bitan Ltd
Hamashbir 365 Holdings Ltd
Dor Alon Israel Ltd
Inter Ikea Systems BV
Shoprite Holdings Ltd
Pick ’n’ Pay Stores Ltd
Internationale Spar Centrale BV
Wal-Mart Stores Inc
Woolworths Holdings Ltd (South Africa)
BIM Birlesik Magazacilik AS
Migros Tic AS
LC Waikiki Magazacilik Hizemetleri Tic AS
Ko? Holding AS
Teknosa Ic ve Dis Ticaret AS
Carrefour SA
A101 Yeni Magazacilik AS
Yildiz Holding AS
Consumer Co-operative Union (CCU)
Landmark Group
Emke Group
Damas International Ltd
T Choithram & Sons
Sharaf DG LLC
Savola Group
Saudi Co For Hardware (SACO)
Jarir Marketing Co
United Electronics Co
Inditex, Industria de Dise?o Textil SA


Reasons To Buy

  • In-depth understanding of gift card and incentive card market dynamics: Understand market opportunity, key trends, and drivers along with five-year forecast (2016-2025) for gift cards and incentive cards at regional and country level.
  • Develop market specific strategies: Identify growth segments and target specific opportunities across consumer segments and occasions to formulate your gift cards strategy; assess market specific key trends and risks.
  • Get insights into consumer attitude and behaviour: Understand changing consumer attitude and behaviour and boost ROI. Get detailed insights into retail spend through gift cards for both retail and corporate consumers.
  • Get complete perspective through 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 gift cards sales dynamics by channels – online vs offline and by 1st party vs 3rd party sales