Dublin, Sept. 02, 2022 (GLOBE NEWSWIRE) -- The "Saudi Arabia Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
Saudi Arabia's gift card industry is expected to grow by 14.4% on annual basis to reach US$1429.9 million in 2022
Despite near-term challenges in 2022, medium to long term growth story of gift cards in Saudi Arabia remains strong. The gift card industry in Saudi Arabia 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 12.1% during 2022-2026. The gift card market in the country will increase from US$1249.5 million in 2021 to reach US$2256.6 million by 2026.
Saudi Vision 2030 is significantly contributing to a high level of interest in digital gift cards among consumers
The government in the Kingdom is putting tremendous efforts to push digitization in every aspect of life in the country. This has resulted in creating increased interest in digital gift cards among consumers in Saudi Arabia. Consequently, the publisher attributes Saudi Vision 2030 as one of the major growth driver for the digital gift card industry in Saudi Arabia.
Both individuals and corporates have identified several use cases of gift cards over the last four to eight quarters in the country. From traditional rewards and incentives to sending Eidiya or even just helping the ones in need during the global pandemic, gift cards have found a place for themselves in the Kingdom.
In Saudi Arabia, both private corporates and government entities prefer digital gift cards to reward their employees and customers, owning to which the adoption rate of gift cards has surged recently. the publisher expects the trend to continue and, therefore, maintains a stable outlook for the digital gift card industry in Saudi Arabia over the short to medium-term perspective.
Digital gift card companies are strengthening their position in Saudi Arabia
Innovation in the digital gift card segment has driven the growth of the gift card industry in Saudi Arabia over the last four to eight quarters. With the increasing demand, digital gift card providers are focusing on their product innovation and client acquisition to expand rapidly in Saudi Arabia.
YouGotaGift, which is the region's first fully digital gift card marketplace, has massively expanded its digital gift card offerings in the Kingdom over the last four to eight quarters. The firm has partnered with more than 800 corporates in Saudi Arabia during this period, thereby helping them to digitize their rewards and incentives programs for employees. The company is working with more than 700 retail brands and serves over 2,000 corporates in the region. Notably, it has served more than five million consumers.
Regional gift card providers are expanding their businesses in Saudi Arabia
The demand for gift card solutions has surged over the last few quarters in Saudi Arabia. Therefore, regional gift card companies are filling this gap for gift cards in the Saudi Arabian market.
LikeCard, the Dubai-based prepaid card firm which also operates in Saudi Arabia, is looking to fill the demand gap in the country. In the region, the firm has served more than four million users with 80,000 purchase orders daily. Moreover, it also partnered with more than 70 regional and international e-commerce firms that are accepting its gift card solution.
Robust growth in the e-commerce sector will further drive the adoption of gift cards in Saudi Arabia
Over the last few quarters, the e-commerce market has witnessed rapid growth on the back of the sustained progress to its Vision 2030. In Saudi Arabia, e-commerce sales have surged more than 30% annually.
The publisher expects the projected robust growth in the Saudi Arabian e-commerce market to further drive the adoption and popularity of gift cards among consumers. Moreover, retailers are also expected to increasingly adopt gift cards as a way to acquire new customers in the Kingdom, thereby subsequently boosting the growth of the gift card market over the next four to eight quarters.
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 (2017-2026) for gift cards and incentive cards in Saudi Arabia.
- 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 in Saudi Arabia: 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.
Scope
Companies Mentioned
- Savola Group
- Landmark Group
- Saudi Co For Hardware (SACO)
- Inter Ikea Systems BV
- Jarir Marketing Co
- United Electronics Co
- Inditex, Industria de Diseno Textil SA
Total Spend on Gifts in Saudi Arabia
- 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 Saudi Arabia
- 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 Saudi Arabia
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in Saudi Arabia
- 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 Saudi Arabia
- 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 Saudi Arabia
- 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 Saudi Arabia
- 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 Saudi Arabia
- 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 Saudi Arabia
- 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 Saudi Arabia
- 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/3lsrjc
