Market Size of Middle East 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 | 7.00 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Middle East Gift Card & Incentive Card Market Analysis
Middle East Gift Card and Incentive Card Market has generated a revenue of USD 27 billion in the current year and is poised to achieve a CAGR of 7% for the forecast period.
The Middle East Gift Card and Incentive Card Market were 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 smartphones and a high 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 the 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.
Middle East Gift Card & Incentive Card Industry Segmentation
A gift card is a prepaid debit card that contains a specific amount of money available to 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 & Beverages, Personal Care (Apparel, Beaty products & Footwear), Books & Media Products, Consumer Electronics, Restaurants & Bars, Others), By Distribution Channel (Online and Offline), and By User Type (Individual and Corporate). The report offers market size and forecasts for the Middle East Gift Card and Incentive Card Market in value (USD Billion) for all the above segments.
By Product Type | |
Food & Beverages | |
Personal Care (Apparel, Beauty products, & Footwear) | |
Books & Media Products | |
Consumer Electronics | |
Restaurants & Bars | |
Others |
By Distribution Channel | |
Online | |
Offline |
By User Type | |
Individual | |
Corporate |
Middle East Gift Card and Incentive Card Market Size Summary
The Middle East Gift Card and Incentive Card Market has experienced robust growth, driven by the increasing adoption of digital payment solutions and the expansion of the e-commerce sector. The market has been moderately affected by the COVID-19 pandemic, which accelerated the shift towards cashless transactions and digitalization. This shift has led to a significant increase in the use of e-Gift cards, particularly in the retail and corporate segments, where they are used for various purposes beyond traditional gifting. The region's high smartphone penetration and internet connectivity have further facilitated this growth, with consumers increasingly inclined towards online shopping. The diverse retail landscape, featuring both international and locally-developed brands, has also contributed to the market's expansion, as merchants leverage gift cards to boost online sales and enhance customer loyalty.
The market is characterized by a moderate level of consolidation, with major players like Carrefour SA, Landmark Group, and Sharaf DG LLC dominating the landscape. However, technological advancements and product innovations have enabled mid-size and smaller companies to expand their market presence by securing new contracts and exploring untapped markets. Notable developments include the launch of the multi-brand e-Gift card by YOUGotaGift and the strategic partnership between the Commercial Bank of Dubai and Samsung to introduce the virtual Samsung Pay Gift Card. These initiatives highlight the ongoing evolution and competitive dynamics within the market, as companies strive to meet the growing demand for digital gift and incentive solutions across the region.
Middle East Gift Card and Incentive Card Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Key Gifting Market Trends Shaping the Card Space in Middle East Market
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1.5 Industry Attractiveness- Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargainning Power of Buyers
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1.5.3 Bargainning Power of Suppliers
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1.5.4 Threat of Substitutes
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1.5.5 Intensity of Competative Rivalry
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1.6 Insights into Latest Technological Innovations and Recent Trends in the Industry
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1.7 Insights on Government Regulations in the Industry
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1.8 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Product Type
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2.1.1 Food & Beverages
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2.1.2 Personal Care (Apparel, Beauty products, & Footwear)
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2.1.3 Books & Media Products
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2.1.4 Consumer Electronics
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2.1.5 Restaurants & Bars
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2.1.6 Others
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2.2 By Distribution Channel
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2.2.1 Online
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2.2.2 Offline
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2.3 By User Type
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2.3.1 Individual
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2.3.2 Corporate
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Middle East Gift Card and Incentive Card Market Size FAQs
What is the current Middle East Gift Card and Incentive Card Market size?
The Middle East Gift Card and Incentive Card Market is projected to register a CAGR of 7% during the forecast period (2024-2029)
Who are the key players in Middle East Gift Card and Incentive Card Market?
Carrefour SA, Consumer Co-operative Union (CCU), Landmark Group, Damas International Ltd and T Choithram & Sons are the major companies operating in the Middle East Gift Card and Incentive Card Market.