Market Size of South Africa Gift Card and Incentive Card Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 6.00 % |
| Market Concentration | Medium |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
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South Africa Gift Card & Incentive Card Market Analysis
The South Africa Gift Card and Incentive Card Market is poised to grow at a CAGR of 6% during the forecast period.
Globally, different governments are offering their citizens several incentives, including gift cards to boost the vaccination rate in their respective countries. Similar trends are visible in South Africa, where the Department of Health announced a grocery gift card program in November 2021. Notably, the gift card program aims to encourage the elderly to get themselves vaccinated in the country. Through the gift card program, the health department is aiming to achieve 70% vaccination coverage among the older age group before December 2021. The pilot scheme, which is valued at R26 million, is designed to benefit 260,000 consumers over the age of 60. Initially, the grocery gift card vouchers were announced for consumers aged 60 and above. However, the Department of Health extended the offer of R100 grocery gift cards to consumers aged 50 and above. The recipient of the grocery gift card can redeem the vouchers at Shoprite, Checkers, and U-Save stores.
Despite near-term challenges in 2021, the medium to long-term growth story of gift cards in South Africa remains strong. The gift card industry in South Africa is expected to grow steadily in H1 2021 and record a strong growth in H2 2021. The gift card market in the country will increase from USD 794.1 million in 2020 to reach USD 1552.4 million by 2025. The gift card industry in South Africa is expected to grow steadily in H1 2022 and record a strong growth in H2 2022.
The rising trend of gift card usage has drawn foreign companies to explore the market in South Africa. For instance, in March 2020, InComm, a payments technology company, launched its gift cards in partnership with Flash and Pepkor Group. The gift cards include gaming, ride-sharing, content, and streaming gift cards via Flash and Pepkor's retail network making these cards available in every South African region. Apart from this, corporate spending is also boosting the gift card market in South Africa. Organizations are increasingly making use of gift cards to rewards their employees on popular holidays in the country such as Christmas and New Year.
