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

Saudi Arabia Gift Card and Incentive Card Market is segmented By Consumer (Individual and Corporate), By Distribution Channel (Online and Offline) and By Product (E-Gift Card and Physical Card).

Market Snapshot

Saudi Arabia Gift Card and Incentive Card Market
Study Period: 2018-2027
Base Year: 2021
CAGR: >7 %

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Market Overview

After the COVID-19 impact, the demand for gift cards has experienced significant growth due to the limited use of cash payments in the market. Apart from this, as consumers have increased the usage of more effective and secured payments for shopping online.

With several gifting occasions, the growth potential for the gift card market is huge in Saudi Arabia.The gift card adoption has been increasing in Tier 2 and Tier 3 cities though it is still dominated by Tier 1 cities. Apart from this, the wide acceptance of corporate gift cards in the form of rewards and sales incentives to recognize employee performance is further boosting the market growth. Consistent connection of consumers with shopping, owing to rapid growth in digital commerce and increase in number of new technologies that provide customers with innovative & seamless payment options are the major growth factors for the market growth. In addition, ongoing technological innovations in gift cards enable high sales in companies by making their product offerings more unique & attractive, therefore, propels the gift cards market growth.

However, ensuring secure management & privacy of consumer data is one of the major factors that limit the market growth. In addition to this, technological advancements associated with payment solutions and increase in demand for branded products are expected to provide lucrative opportunities during the forecast period. The closed-loop gift card segment dominated the gift cards market , and is projected to maintain its dominance during the forecast period. This is attributed to several benefits such as benefits providing an opportunity to businesses to make money on products purchased using gift cards and free activation for users, which, in turn, drive adoption of closed loop gift card.

Scope of the Report

Gift Cards and Incentive Cards are used as a developmental strategy for promoting businesses, to attract new customers, increase brand awareness, reduce fraud, and improve business sales. Moreover, a gift card or incentive card can be utilized as an alternative source for money at a particular store or business store for purchases related to goods or services. An Incentive Card innovative way to reward employees. Saudi Arabia Gift Card and Incentive Card Market is segmented By Consumer, Distribution Channel and Product. By Consumer, the market is segemented into Individual and Corporate. By Distribution, the market is segmented into Online and Offline. By Product, the market is segmented into e-gift card and physical card.

By Consumer
Individual
Corporate
By Distribution Channel
Online
Offline
By Product
E-Gift Card
Physical Card

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Key Market Trends

Increase in the E-Commerce market in Saudi Arabia

One of the major factors that are driving the growth of the gift card market in Saudi Arabia is the robust growth of the e-commerce industry. The number of consumers who turned to online shopping has increased significantly over the last four to eight quarters on the back of the prolonged lockdown restriction and rising internet and smartphone penetration rate in the country. The online retail market will be largely driven by younger generation consumers in India, who prefer a mobile-first approach while shopping. Also online buying options form various e-commerce sites is fueling its growth. Notably, this growth in the e-commerce industry will continue to support the growth of digital gift cards and the overall gift cards industry in the coming years in Saudi Arabia. 

Saudi Arabia Gift Card and Incentive Card Market 1

Retail Segment Accounts for Largest Market Share

Growing retail sector is expected to play a key role in facilitating growth in the adoption of Gift Cards in the country. Growth in the retail sector was the highest in 2019 since the past five years. The sector includes supermarkets and food products, hypermarkets, pharmaceutics and medicines, computers, and other communication equipment. Growing retail sector is itself an indicator that points out toward a bright future for Gift Card sales in the country. Increasing penetration of supermarkets/hypermarkets and other food and restaurant chains is likely to contribute to high gift card adoption compared to corporate or government institutions. These factors are accounting for the growth in the retail sector which is subsequentially boosting thr growth of Gift Card and Incentive Card Market in Saudi Arabia.

Saudi Arabia Gift Card and Incentive Card Market 2

Competitive Landscape

The report includes an overview of the top players in the Gift Card and Incentive Card Market operating across Saudi Arabia. The Saudi Arabia Gift Card and Incentive Card Market is characterized by moderately consolidated players along with some other local players. Although the major players make a significant portion of the market, it can be infered that the market is moderately concentrated and other significant portion being occupied by the new players.

Recent Development

  • On September 2021, Amazon One has expanded beyond retail with first third-party customer, ticketing company AXS. Amazon One from then was available on AXS’s mobile ticketing pedestals, giving Red Rocks Amphitheatre event goers the option to enter using just their palm across the globe including Saudi Arabia.
  • On August 2021, Hub Engage and Tango Card have launched strategic partnership to bring Gift Card Incentives to companies seeking to enhance employee engagement and rewards. This collaboration will allow both company's existing and future customers access to an enhanced employee communications platform with the power of automated and convenient fulfillment of a bigger Gift Card catalog across the Gulf countries including Saudi Arabia.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. INDUSTRY DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Insights on Varous Regulatory Trends Shaping Gift Card and Incentive Card in Saudi Arabia

    5. 4.5 Insights on impact of technology and innovation in Operations in Gift Card and Incentive Card

    6. 4.6 Insights on Performance of Gift Card and Incentive Card in Saudi Arabia

    7. 4.7 Industry Attractiveness - Porters 5 Force Analysis

      1. 4.7.1 Threat of New Entrants

      2. 4.7.2 Bargaining Power of Buyers/Consumers

      3. 4.7.3 Bargaining Power of Suppliers

      4. 4.7.4 Threat of Substitute Products

      5. 4.7.5 Intensity of Competitive Rivalry

    8. 4.8 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Consumer

      1. 5.1.1 Individual

      2. 5.1.2 Corporate

    2. 5.2 By Distribution Channel

      1. 5.2.1 Online

      2. 5.2.2 Offline

    3. 5.3 By Product

      1. 5.3.1 E-Gift Card

      2. 5.3.2 Physical Card

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Competition Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Amazon

      2. 6.2.2 Tango Card

      3. 6.2.3 Swile

      4. 6.2.4 Qwikcliver

      5. 6.2.5 Alyce

      6. 6.2.6 Givingli

      7. 6.2.7 Ininal

      8. 6.2.8 Transcard

      9. 6.2.9 Riskified

      10. 6.2.10 One4all*

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

  8. 8. DISCLAIMER AND ABOUT US

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Frequently Asked Questions

The Saudi Arabia Gift Card and Incentive Card Market market is studied from 2018 - 2027.

The Saudi Arabia Gift Card and Incentive Card Market is growing at a CAGR of >7% over the next 5 years.

Amazon, Tango Card, Swile, Qwikcliver, Alyce are the major companies operating in Saudi Arabia Gift Card and Incentive Card Market.

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