DUBLIN--(BUSINESS WIRE)--The "Middle East and Africa Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The gift card industry in the region is expected to grow by 10.7% on annual basis to reach US$12.4 billion in 2024. The gift card industry in Africa and Middle East will continue to grow over the forecast period and is expected to record a CAGR of 9.1% during 2024-2028. Gift card market in the country will increase from US$11.2 billion in 2023 to reach US$17.6 billion by 2028.
The African gift card sector is evolving rapidly with significant innovations, strategic partnerships, and regulatory changes. Key developments include Shoprite's grocery gift card program to boost vaccination, Pick n Pay's reloadable gift cards, and strategic alliances like SureGifts with Eat'N'Go and YouGotaGift with Carrefour. Additionally, regulatory updates in South Africa mandate longer expiry periods and improved transparency for gift cards, while international expansions, such as Card Factory's acquisition of SA Greetings, highlight the sector's growth and increasing competition.
The gift card sector in the Middle East is rapidly evolving, driven by innovative product launches, strategic partnerships, and a surge in digital adoption. Key developments include major giveaway campaigns, the expansion of digital gift card offerings, and significant collaborations like those between YouGotaGift and Carrefour. As consumer interest grows, regulatory changes are likely to emerge, focusing on consumer protection and fintech integration to ensure a secure and seamless experience for users.
Product Launches and Innovations
The Galleria Al Maryah Island Gift Card Giveaway: To celebrate its 10th anniversary, The Galleria in Abu Dhabi launched a gift card giveaway campaign worth Dh1 million. Shoppers could enter a prize draw by spending Dh500 or more, with 100 winners receiving Dh10,000 worth of gift cards. This initiative not only incentivized shopping but also aimed to increase foot traffic in the mall.
YouGotaGift, a leading digital gift card provider, has expanded its product lineup with new gift cards for brands like The Blue Salon and Kunooz. Additionally, during the Diwali celebrations, they launched Kalyan Jewellers gift cards, catering to the large Indian expatriate community in the UAE. These launches reflect the growing demand for diverse gift card options among consumers.
Recharge.com Expansion: The Dutch fintech company Recharge.com has expanded its services in Saudi Arabia and the UAE, offering digital gift cards for popular brands such as Netflix and Spotify. This move aligns with the increasing trend of digital gift card adoption in the region, particularly among younger consumers.
Shoprite Introduces Grocery Gift Card Program to Boost Vaccination Rates - In November 2023, the South African Department of Health announced a grocery gift card program in partnership with Shoprite to encourage the elderly to get vaccinated. The R26 million pilot scheme aims to benefit 260,000 consumers over the age of 60 by providing them with R100 grocery gift cards redeemable at Shoprite, Checkers, and U-Save stores.
Pick n Pay Introduces Reloadable Gift Cards - Pick n Pay launched reloadable gift cards in May 2024, providing customers with a convenient way to give and receive gifts. The cards can be loaded with any amount between R50 and R2000 and can be used at any Pick n Pay store.
Strategic Partnerships
YouGotaGift and Carrefour Partnership - In January 2024, YouGotaGift, a leading digital gift card marketplace, announced a strategic collaboration with Carrefour in the UAE. This partnership allows YouGotaGift to widen the distribution of its multi-brand gift cards through Carrefour's retail channels, catering to the growing demand for gift cards among consumers in the Emirates.
During the Diwali celebrations, YouGotaGift launched Kalyan Jewellers gift cards, catering to the large Indian expatriate community in the UAE. This launch reflects the growing demand for diverse gift card options among consumers and the importance of strategic partnerships in meeting the needs of specific target segments.
SureGifts and Eat'N'Go Partnership - In Q4 2023, SureGifts, a leading gift card platform in Nigeria, entered into a strategic partnership with Eat'N'Go, the master franchise for Domino's Pizza, Cold Stone Creamery, and Pinkberry in Nigeria. This collaboration led to the launch of gift cards for these brands, available in various denominations starting from N5,000. This partnership aims to tap into the growing demand for gift cards in the Nigerian market, targeting both individual consumers and corporate clients.
YouGotaGift and Carrefour Collaboration - In January 2024, YouGotaGift, a prominent digital gift card marketplace, announced a strategic collaboration with Carrefour in the UAE. This partnership allows YouGotaGift to distribute its multi-brand gift cards through Carrefour's retail outlets, significantly widening its distribution network in the region. This move is particularly important as competition in the digital gift card market intensifies.
Mergers and Acquisitions
Card Factory Acquires SA Greetings Corporation - In a significant move to expand its international presence, Card Factory, a high street gift card retailer, acquired the South African business SA Greetings Corporation (Pty) Ltd for £2.5 million. This acquisition, completed recently, includes the entire issued share capital of SA Greetings, which operates as a wholesaler of greeting cards and gift packaging. The acquisition is aimed at enhancing Card Factory's growth strategy by leveraging SA Greetings' established wholesale accounts and operational capabilities in South Africa.
Regulatory Changes
Consumer Protection Initiatives: As the popularity of gift cards rises, there may be a push from governments and regulatory authorities to implement policies aimed at safeguarding consumers against issues such as expiration dates, fees, and fraud. This could lead to the development of standardized regulations governing the issuance and management of gift cards.
Fintech Regulations: With the thriving fintech sector in the region, regulatory bodies may introduce policies that facilitate the integration of gift cards within broader digital payment ecosystems. This could include guidelines on how gift cards can be used in conjunction with mobile wallets and other digital payment platforms.
South Africa Introduces New Regulations for Gift Card Expiry Dates - In July 2024, the South African government implemented new regulations regarding the expiry dates of gift cards. Under the updated rules, gift cards issued in South Africa must have a minimum expiry period of 3 years from the date of issuance or last reload.
This title is a bundled offering, comprising 1 regional and 8 country reports:
- Regional Report - Africa and Middle East Gift Card and Incentive Card Market Intelligence (Databook)
- Country Report 1 - Egypt Gift Card and Incentive Card Market Intelligence (Databook)
- Country Report 2 - Israel Gift Card and Incentive Card Market Intelligence (Databook)
- Country Report 3 - Nigeria Gift Card and Incentive Card Market Intelligence (Databook)
- Country Report 4 - South Africa Gift Card and Incentive Card Market Intelligence (Databook)
- Country Report 5 - Kenya Gift Card and Incentive Card Market Intelligence (Databook)
- Country Report 6 - Saudi Arabia Gift Card and Incentive Card Market Intelligence (Databook)
- Country Report 7 - Turkey Gift Card and Incentive Card Market Intelligence (Databook)
- Country Report 8 - United Arab Emirates Gift Card and Incentive Card Market Intelligence (Databook)
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 2412 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value (USD) in 2024 | $12.4 Billion |
| Forecasted Market Value (USD) by 2028 | $17.6 Billion |
| Compound Annual Growth Rate | 9.1% |
| Regions Covered | Africa, Middle East |
Scope for Each Report
Closed Loop Gift Card Market Share by Key Retailers
- 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
- Koc 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 Diseno Textil SA
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
- Festivals & Special Celebration Days
- Milestone Celebration
- Self-Use
- 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
- Employee Incentive
- Sales Incentive
- Consumer Incentive
- By Scale of Business
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
For more information about this report visit https://www.researchandmarkets.com/r/98xilr
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