Middle-East Gift Card and Incentive Card Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

Middle-East Gift Card and Incentive Card Market Is Segmented By Product Type (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), By Distribution Channel (Gift Card Online Sales, Gift Card Offline Sales, 1st Party Sales, 3rd Party Sales, Sales Uplift), and By End User(Retail and Corporate).

Market Snapshot

Middle East Gift Card and Incentive Card Market Size
Study Period: 2018-2027
Base Year: 2021
CAGR: >6.5 %
Middle East Gift Card and Incentive Card Market Major Players

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Market Overview

The Middle-East Gift Card and Incentive Card Market had moderately affected by COVID-19 as it accelerated the cashless system that was propelled during the Pandemic. The COVID crisis accelerated digitalization by forcing merchants, programs, and customers to adapt to lockdown restrictions. Adoption of e-Gift cards increased by over 250% in the first quarters of 2020, compared to the same period in 2019.

The gift card market in the Middle East region has witnessed strong growth over the last few years. Adoption of the gift card has increased across retail and corporate segments with a range of use cases that go beyond “gifting”. One of the factors driving growth is the e-commerce market. Merchants are incentivizing customers for shopping online and offering gift cards to increase sales and drive customer loyalty. The vast majority of the population is working class, with a high smartphone and internet penetration rate. The retail landscape is well diversified from high-end to mass retail brands, with a large representation of international brands, together with locally-developed concepts. In 2020, the growth of digital gift cards was further expanded, with a shift to digital standing now at over 90% of the customers’ redemption in our B2B programmes. The COVID crisis accelerated further digitalisation by forcing merchants, programmes and customers to adapt to lockdown restrictions. Adoption of e-Gift cards have increased by over 250% in the first quarters of 2020, compared to the same period in 2019.

Scope of the Report

A gift card is a prepaid debit card that contains a specific amount of money available for use for a variety of purchases. Incentive Card is distributed for loyalty, award, incentive or promotional purposes and funded by a business and not available for purchase by the general public Middle East Gift Card and Incentive Card Market Is Segmented By Product Type (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), By Distribution Channel (Gift Card Online Sales, Gift Card Offline Sales, 1st Party Sales, 3rd Party Sales, Sales Uplift), and By End User(Retail and Corporate).

By Product Type
Food & Beverage
Health
Convection
Wellness & Beauty
Apparel
Footwear & Accessories
Books & Media Products
Consumer Electronics
Restaurants & Bars
Toys
Jewelry
Sporting Goods
Home & Kitchen Accessories & Appliances
Travel
Entertainment & Gaming
Other
By Distribution Channel
Gift Card Online Sales
Gift Card Offline Sales
1st Party Sales
3rd Party Sales
Sales Uplift
By Application
Retail
Corporate

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Key Market Trends

Rise in E-Commerce in the Middle East Region

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 Middle-East, the growth in the 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. Corporates and individual customers have both identified various ways to use Gift cards and Incentive cards over the last several months; from traditional incentives and rewards to sending Eidiya or just helping the ones in need during the pandemic.

Middle East Gift Card and Incentive Card Market Trends

COVID-19 Boosted the Adaptation of Digitalization in Middle East

Customers have adapted very quickly to the “new normal” by redeeming or purchasing gift cards. Due to restaurants and bars closure, customers spent heavily on groceries and other supermarket’s purchases; As work from home and online schooling became the new norm, customers had to reorganise their house in a short time spam; New devices, gaming and streaming options were of course popular; Fashion and lifestyle are still listed in the top categories with a clear shift on beauty products. Some categories were seriously impacted: travel, experiences, transportation, jewellery and F&B. However, in the second part of the year, we can see that staycations and experiences are catching up again. The UAE’s expat population immediately saw the benefit of sending digital gift cards to their relatives in their country of origin with a click of a button and without any fees associated to it. As a conclusion, customers were highly adaptive and willing to use gift cards across countries, currencies and brands.

Middle East Gift Card and Incentive Card Market Growth

Competitive Landscape

The Middle-East Gift Card and Incentive Card Market are moderately consolidated in nature. Some of the major players operating currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.

Recent Development

  • On March 2020, Carrefour launched its first recruitment operation in the Metaverse. This would affect the growth of didgitization in the country.
  • On July 2020, there was opening of a new store in The Loft Towers, Opp Dubai Opera, Downtown Boulevard. The new store was inaugurated by Kishore Pagarani, Director, Choithrams.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Defination

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Study Deliverables

    2. 2.2 Study Assumptions

    3. 2.3 Analysis Methodology

    4. 2.4 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Market Opportunities

    5. 4.5 Industry Attractiveness- Porter's Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargainning Power of Buyers

      3. 4.5.3 Bargainning Power of Suppliers

      4. 4.5.4 Threat of Substitutes

      5. 4.5.5 Intensity of Competative Rivalry

    6. 4.6 Insights into Latest Technological Innovations and Recent Trends in the Industry

    7. 4.7 Consumer Buying Behaviour Analysis

    8. 4.8 Insights on Government Regulations in the Industry

    9. 4.9 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product Type

      1. 5.1.1 Food & Beverage

      2. 5.1.2 Health

      3. 5.1.3 Convection

      4. 5.1.4 Wellness & Beauty

      5. 5.1.5 Apparel

      6. 5.1.6 Footwear & Accessories

      7. 5.1.7 Books & Media Products

      8. 5.1.8 Consumer Electronics

      9. 5.1.9 Restaurants & Bars

      10. 5.1.10 Toys

      11. 5.1.11 Jewelry

      12. 5.1.12 Sporting Goods

      13. 5.1.13 Home & Kitchen Accessories & Appliances

      14. 5.1.14 Travel

      15. 5.1.15 Entertainment & Gaming

      16. 5.1.16 Other

    2. 5.2 By Distribution Channel

      1. 5.2.1 Gift Card Online Sales

      2. 5.2.2 Gift Card Offline Sales

      3. 5.2.3 1st Party Sales

      4. 5.2.4 3rd Party Sales

      5. 5.2.5 Sales Uplift

    3. 5.3 By Application

      1. 5.3.1 Retail

      2. 5.3.2 Corporate

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Carrefour SA

      2. 6.2.2 Landmark Group

      3. 6.2.3 Damas International Ltd

      4. 6.2.4 T Choithram & Sons

      5. 6.2.5 Emke Group

      6. 6.2.6 Sharaf DG LLC

      7. 6.2.7 Inter Ikea Systems BV

      8. 6.2.8 Shufersal Ltd

      9. 6.2.9 Super-Pharm (Israel) Ltd*

    3. *List Not Exhaustive
  7. 7. FUTURE TRENDS AND MARKET OPPORTUNITIES

  8. 8. APPENDIX

  9. 9. DISCLAIMER

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Frequently Asked Questions

The Middle-East Gift Card and Incentive Card Market market is studied from 2018 - 2027.

The Middle-East Gift Card and Incentive Card Market is growing at a CAGR of >6.5% over the next 5 years.

Carrefour SA, Consumer Co-operative Union (CCU), Landmark Group, Damas International Ltd, T Choithram & Sons are the major companies operating in Middle-East Gift Card and Incentive Card Market.

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