DUBLIN--(BUSINESS WIRE)--The "Canada Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
Canada's gift card industry in the country is expected to grow by 8.6% on annual basis to reach US$6901.5 million in 2022
Despite near-term challenges in 2022, medium to long term growth story of gift cards in Canada remains strong. The gift card industry in Canada is expected to grow steadily in H1 2022 and record a strong growth in H2 2022.
The growth momentum is expected to continue to grow over the forecast period, recording a CAGR of 6.4% during 2022-2026. The gift card market in the country will increase from US$6353.2 million in 2021 to reach US$8850.5 million by 2026.
Innovative digital gift card solutions will drive market growth in Canada
The increased spending on gift cards is majorly driven by innovative gift card solutions that elevate the shopper experience in Canada. To further boost the consumer experience and to provide convenience for shoppers to pay and gift, the major Canadian retail and office property group is providing innovative, first-to-market digital gift card solutions.
In November 2021, Cadillac Fairview (CF) announced further enhancements to its gift card program in Canada. Consumers from coast-to-coast have the option to buy and receive CF digital gift cards using the new CF SHOP! Mastercard Gift Card through the LiVE by CF app. Moreover, consumers can purchase the single load prepaid gift card using the cfshopcard.ca platform.
The gift card is compatible to be used with leading digital wallets such as Google Pay and Apple Pay, thereby allowing consumers to experience seamless contactless payment methods at all CF shopping centers in the country.
Additionally, shoppers also have the option to link the physical CF gift card with the app for easily accessing their remaining card balances. Notably, the launch of the CF SHOP! Mastercard Gift Card is supported by Mastercard and EML Payments, among others.
Gift card program launches to stimulate spending among consumers in Canadian Downtowns
To support local business in Canada and to stimulate spending, which has been affected by the global pandemic, gift card companies are launching innovative programs in Canada.
In August 2021, Downtown gift card firm, Miconex announced that the firm is launching a new gift card program in a strategic partnership with EML Payments Limited. The launch of new programs comes on the back of the success of existing gift card systems for Prince Edward Island and Peterborough.
In September 2020, the Food Island Partnership launched Food Island Gift Card to stimulate the Canadian economy. The gift card program, which was supported by the Prince Edward Island Government, sold gift cards at a 20% discount. As of August 2021, more than US$3.7 million has been loaded onto the Food Island Gift Cards.
In December 2020, the Peterborough Downtown Business Improvement Area (DBIA) launched the Boro Gift Card. Within the first month of its launch, the gift card program achieved US$70,000 in sales, which is equivalent to around five years of sales for their old paper system. As of August 2021, more than US$120,000 has been sold in gift cards.
Looking at the success in these provinces, Downtown Sudbury Business Improvement Association (BIA) and Downtown London are also launching gift card programs to encourage consumers to visit and shop in Canada. the publisher expects more such innovative gift card program launches in Canada over the next four to eight quarters, which will keep supporting the growth of the industry from the short to medium-term perspective.
Gift card providers are expanding physical presence through strategic partnerships with convenience stores in Canada
As the demand for gift cards among consumers continues to grow in the country, providers are also expanding their physical presence through strategic partnerships with convenience stores in Canada.
In June 2021, InComm Payments, one of the leading global gift cards companies, announced that the firm is expanding its prepaid gift cards presence through a strategic partnership with ONroute convenience store as a partner. Under the strategic partnership, InComm Payments will provide the convenience store with popular branded food, retail, and fuel prepaid gift cards, across different categories such as apparel, entertainment, gaming, and restaurants.
Provinces offering gift cards to boost vaccination rate in Canada
With the threat of the global pandemic still looming in Canada, provinces are taking different approaches to boost the vaccination rate in the country.
In September 2021, Alberta announced that the province would offer a US$100 gift card to anyone who gets vaccinated. Notably, the gift card program is not extended to people who are already fully vaccinated. Similar trends are visible around the world, where regional governments are offering gift card incentives to boost and accelerate their vaccination program in the country.
The publisher expects more provinces in Canada to launch similar gift card programs over the next four to eight quarters as they continue to fight the deadly virus. This will subsequently boost the growth of the gift card market in the country over the next few quarters.
Scope
Closed Loop Gift Card Market Share by Key Retailers
- George Weston Ltd
- Wal-Mart Stores Inc
- Empire Co Ltd
- Costco Wholesale Corp
- Metro AG
- Canadian Tire Corp Ltd
- Home Depot Inc, The
- Liquor Control Board of Ontario
- Hudson's Bay Co
- Home Hardware Stores Ltd
- Best Buy Co Inc
- Apple Inc
Total Spend on Gifts in Canada
- 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 in Canada
- 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 Canada
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in Canada
- By Retail Consumer
- By Retail Purchase Occasion
- By Corporate Consumer
- By Corporate Purchase Occasion
- By Company Size
Gift Card Market Size by Retail Consumer in Canada
- By Functional Attribute
-
By Occasion1. Festivals & Special Celebration Days
2. Milestone Celebration
3. Self-Use
4. Other - Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in Canada
- 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 in Canada
- By Functional Attribute
-
By Occasion1. Employee Incentive
2. Sales Incentive
3. Consumer Incentive - By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in Canada
- 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) in Canada
- 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) in Canada
- Gift Card Online Sales
- Gift Card Offline Sales
- 1st Party Sales
- 3rd Party Sales
- Sales Uplift
For more information about this report visit https://www.researchandmarkets.com/r/6dku5a
