South Africa Gift Card & Incentive Card Market Size
| 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 "South Africa Gift Card and Incentive Card Market Major Players")
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
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.
South Africa Gift Card & Incentive Card Market Trends
This section covers the major market trends shaping the South Africa Gift Card & Incentive Card Market according to our research experts:
Availability of Crypto Purchases Through Gift Cards in South Africa is Anticipated to Boost the Market Growth
The popularity of cryptocurrencies has surged over the last few quarters in South Africa. With this surge in popularity, global payments are entering the South African market through strategic partnerships with physical stores that allow consumers to pay for their purchases in crypto through gift vouchers.
In November 2021, Bitrefill, the global payments firm, launched its services in South Africa. The firm allows consumers to convert their cryptocurrencies such as bitcoins into gift cards at the point-of-sale transactions. Since its launch in the country, Bitrefill has entered into strategic partnerships with several physical stores such as Pick n Pay, Cape Union Mart, Incredible Connection, and Toys R Us, among others.
Apart from physical stores, the firm has partnered with online retailers as well including Mr Delivery, Grabitall, and Netflorist. The entry of Bitrefill in the South African market will allow consumers to pay using their bitcoins across several industries, including telcos, brick-and-mortar stores, as well as restaurants. Currently, Bitrefill offers support for major cryptocurrencies such as Bitcoin, Ethereum, Dash, Dogecoin, Litecoin, and USDT.
Increasing Online Sales is Expected to Drive the Growth of the Gift Card Market in South Africa
Over the last few quarters, online sales have surged significantly in South Africa. According to the publisher, online sales in the country increased by more than 65%. This growth in the e-commerce sector has supported the growth of digital payments, including gift cards in South Africa, over the last four to eight quarters.
With the e-commerce industry expected to continue its upward momentum, the publisher projects the e-commerce market to further drive the adoption of gift cards among both consumers as well as retailers in South Africa. Notably, retailers in the country are expected to offer gift cards to consumers to drive more traffic to their online platform, thereby helping them with customer acquisition. All of these factors will subsequently boost the gift card market growth in the country from the short to medium-term perspective.
South Africa Gift Card & Incentive Card Industry Overview
Online retailers are focusing on strengthening their customer acquisition strategy by offering e-gift cards. Consequently, the adoption of e-Gift cards is expected to increase significantly over the next 4-6 quarters. Some of the major players in the market include Shoprite Holdings Ltd, Pick 'n' Pay Stores Ltd, Internationale Spar Centrale BV, Wal-Mart Stores Inc, etc.
South Africa Gift Card & Incentive Card Market Leaders
-
Shoprite Holdings Ltd
-
Pick 'n' Pay Stores Ltd
-
Internationale Spar Centrale BV
-
Wal-Mart Stores Inc
-
Woolworths Holdings Ltd (South Africa)
*Disclaimer: Major Players sorted in no particular order
South Africa Gift Card & Incentive Card Market News
- November 2021 - Airlink has introduced an innovative new product. The South African airline is offering customers the ability to purchase flexible gift vouchers which are redeemable against air tickets and a variety of services on the Airlink website. The vouchers are perfect for personal and corporate gifts up to a maximum of R25,000 value. They are valid for three years and can be used multiple times until the remaining value is completely used up. They are transferrable and can be redeemed against all Airlink fares and classes of travel as well as ancillary services such as extra baggage allowances.
- July 2021 - Shoprite Holdings Ltd., a leading supermarket chain based in South Africa launched the service for the purchase of virtual vouchers for people in KwaZulu-Natal and Gauteng owing to the public unrest in the region. The vouchers can be sent through SMS and can be used at Checkers, Shoprite, and Unsave stores across the country.
South Africa Gift Card & Incentive Card Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
-
4.4 Porters Five Force Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
- 4.5 Insights into Technological Advancements in the Industry
- 4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
-
5.1 By Product Type
- 5.1.1 E-Gift Card
- 5.1.2 Physical Card
-
5.2 By Consumer
- 5.2.1 Individual
- 5.2.2 Corporate
-
5.3 By Distribution Channel
- 5.3.1 Online
- 5.3.2 Offline
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
-
6.2 Company Profiles
- 6.2.1 Shoprite Holdings Ltd
- 6.2.2 Pick 'n' Pay Stores Ltd
- 6.2.3 Internationale Spar Centrale BV
- 6.2.4 Wal-Mart Stores Inc
- 6.2.5 Woolworths Holdings Ltd (South Africa)
- 6.2.6 Cape Union Mart
- 6.2.7 Checkers
- 6.2.8 Carrefour SA
- 6.2.9 Creative Incentives
- 6.2.10 Innervation Rewards*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
South Africa Gift Card & Incentive Card Industry Segmentation
This report provides a detailed data-centric analysis of the gift cards and corporate incentive cards market along with consumer behavior and dynamics in South Africa. The Market is Segmented By Product (E-Gift Card, Physical Card), By Consumer (Individual, Corporate), and By Distribution Channel (Online, Offline). The report offers market size and forecasts for the South Africa gift card and incentive card market in value (USD Million) for all the above segments.
| By Product Type | E-Gift Card |
| Physical Card | |
| By Consumer | Individual |
| Corporate | |
| By Distribution Channel | Online |
| Offline |
South Africa Gift Card & Incentive Card Market Research FAQs
What is the current South Africa Gift Card and Incentive Card Market size?
The South Africa Gift Card and Incentive Card Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)
Who are the key players in South Africa Gift Card and Incentive Card Market?
Shoprite Holdings Ltd, Pick 'n' Pay Stores Ltd, Internationale Spar Centrale BV, Wal-Mart Stores Inc and Woolworths Holdings Ltd (South Africa) are the major companies operating in the South Africa Gift Card and Incentive Card Market.
What years does this South Africa Gift Card and Incentive Card Market cover?
The report covers the South Africa Gift Card and Incentive Card Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Gift Card and Incentive Card Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Africa Gift Card and Incentive Card Industry Report
Statistics for the 2024 South Africa Gift Card and Incentive Card market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Africa Gift Card and Incentive Card analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
