Market Trends of Saudi Arabia Gift Card and Incentive Card Industry
This section covers the major market trends shaping the Saudi Arabia Gift Card & Incentive Card Market according to our research experts:
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.
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.
