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Latin America Gift Card and Incentive Card Market Report 2022: Market will Increase from $9941.3 Million in 2021 to Reach $17267.9 Million by 2026

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Dublin, March 15, 2022 (GLOBE NEWSWIRE) -- The "Latin America Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.

Latin America market is expected to reach US$11293.0 million in 2022. Historically, the gift card market in Latin America has recorded a steady growth with a CAGR of 11.7% during 2016-2020.

Despite near-term challenges in 2022, medium to long term growth story of gift cards in Latin America remains strong. The gift card industry in Latin America 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 11.2% during 2022-2026. The gift card market in the country will increase from US$9941.3 million in 2021 to reach US$17267.9 million by 2026.

Gift card market in 2021 was driven a wide range of factors, which supported growth across retail and corporate segments. The primary factors included growth of ecommerce, increased adoption to incentivize employees working remotely, digital gifting, and initiatives undertaken by government, hospitality, and travel industries to revive growth. Though the gift card market was impacted due to COVID-19, the market is expected to bounce back in the coming quarters, especially in H1 2022.

Gift card industry in Latin America has done well to withstand the impact of economic slowdown along with negative business and consumer sentiment due to disruption caused by Covid-19 outbreak.

With the rising demand for gift cards, the Latin American gift card market attracted global gift cards companies to expand their businesses in this region in 2021. Moreover, mergers and acquisitions along with fundraising activities increased in the gift card industry in the last four to six quarters.

Payment technology firms are launching innovative gift card platforms for consumers in Brazil

As more and more consumers are shifting towards digital payment methods such as gift cards, payment technology companies are launching innovative gift card platforms for consumers in Brazil.

  • In April 2021, InComm Payments, a payments firm, announced the launch of its full-service gift card mall, TheGiftCardShop.com. The new platform will allow consumers in Brazil to select and shop from a wide range of innovative gift cards. Moreover, the platform also allows consumers to send gift cards directly to friends and families through digital channels such as emails.

  • The platform offers gift cards from more than 100 brands across categories such as restaurant, entertainment, sports, home goods, and travel brands. For further enhancing the user experience, InComm Payments gift cards powered by American Express, Visa, and MasterCard are also loadable into mobile wallets such as Google Pay, Apple Pay, and Samsung Pay, thereby making it much easier and secure for consumers to make purchases anywhere, anytime.

Such innovative gift cards solution and value-added services offered by gift card providers are driving the growth of the industry in Brazil and are expected to continue to drive market growth over the next four to eight quarters.

Cash is ceding ground to innovative gift cards in Brazil

While cash still remains the most dominant payment method in Brazil, where it accounts for more than a third of the payments, alternative payment methods such as gift cards are gaining market share quite rapidly.

Over the last four to eight quarters, the popularity of gift cards increased significantly; primarily due to the growing shift towards online shopping among consumers. While in markets such as the United States, United Kingdom, and India, where gift cards are often used for gifting, Brazil is the market where consumers buy gift cards for themselves. Notably, consumers have cited convenience as one of the major factors for using gift cards to complete their offline and online purchases in the country.

Brazilian culture is another reason why cash is ceding ground to gift cards in Brazil. By and large, Brazil is a prepaid country. Consumers use prepaid cards (gift cards) for almost everything. Around 55% of the mobile phones are prepaid, transportation cards are prepaid, and even meal vouchers are prepaid. Moreover, gift card penetration is also rising because of the low usage of credit cards in Brazil.

The entry of international players will further drive innovation and competition in the Mexican gift card market

The global gift card industry is expected to record significant growth over the next four to eight quarters. To capitalize on this global growth, international players are considering Mexico as a potential market to expand their services.

  • In October 2021, Swile, a France-based employee benefits and gift card firm, raised US$200 million in its Series D funding round, which was led by SoftBank Group International. After raising the funding round, Swile announced that the firm is looking to expand its international presence over the next few quarters and is eyeing the Mexican market.

  • Notably, some international gift card players already have a presence in the country. For instance, the US-based Tango Card, the digital rewards and incentive provider, offers digital gift cards of several brands, including Uber, Starbucks, Domino's, and Burger King, among others.

Scope

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 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

  • 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 Occasion1. Employee Incentive
    2. Sales Incentive
    3. 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

Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:

  • Cencosud SA

  • Carrefour SA

  • Coto CICSA

  • MercadoLibre Inc

  • Importadora y Exportadora de la Patagonia SA

  • Wal-Mart Stores Inc

  • Garbarino SA

  • Casino Guichard-Perrachon SA

  • Natura Cosmeticos SA

  • Lojas Americanas SA

  • Adeo Groupe

  • Magazine Luiza SA

  • Falabella SACI

  • SMU SA

  • Feria Chilena del Libro SA

  • PriceSmart Inc

  • Inditex, Industria de Diseno Textil SA

  • Confecciones Leonisa SA

  • Organizacion Soriana SAB de CV

  • Grupo Comercial Chedraui Sa de CV

  • Controladora Comercial Mexicana SAB de CV

  • Farmacias Similares SA de CV

  • Corporativo Fragua Sa de CV

  • Home Depot Inc, The

For more information about this report visit https://www.researchandmarkets.com/r/geatf7

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