South Africa Gift Card and Incentive Card Market Size (2024 - 2029)

The South Africa Gift Card and Incentive Card Market is experiencing significant growth, driven by various factors including government initiatives and corporate spending. The market size is expanding as the government implements programs, such as grocery gift cards, to encourage vaccination among the elderly, reflecting a broader global trend. Despite initial challenges, the market's medium to long-term outlook remains positive, with steady growth anticipated. The increasing adoption of gift cards by foreign companies and their use as employee rewards during major holidays further contribute to the market's expansion.

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Market Size of South Africa Gift Card and Incentive Card Industry

South Africa Gift Card and Incentive Card Market Summary
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

South Africa Gift Card and Incentive Card Market Major Players

*Disclaimer: Major Players sorted in no particular order

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 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
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South Africa Gift Card and Incentive Card Market Size Summary

The South Africa Gift Card and Incentive Card Market is experiencing a robust growth trajectory, driven by various factors including government initiatives and corporate spending. The market is witnessing an increasing adoption of gift cards as a means to incentivize behaviors such as vaccination, as seen with the Department of Health's grocery gift card program aimed at encouraging the elderly to get vaccinated. This trend is further supported by the entry of international companies like InComm, which has expanded the gift card offerings across South Africa's retail network, and Bitrefill, which allows cryptocurrency holders to convert their digital assets into gift cards for use in physical and online stores. The integration of cryptocurrencies into the gift card market is indicative of the evolving payment landscape in South Africa, where digital payments are gaining traction.

The growth of the gift card market is also bolstered by the surge in e-commerce and online sales, which have seen significant increases over recent quarters. This growth has prompted retailers to adopt e-gift cards as a strategy to enhance customer acquisition and drive traffic to their online platforms. Major players in the market, such as Shoprite Holdings Ltd and Pick 'n' Pay Stores Ltd, are actively participating in this trend by offering various gift card options. Additionally, innovative products like Airlink's flexible gift vouchers highlight the diverse applications of gift cards beyond traditional retail settings. As the market continues to expand, it is expected to play a crucial role in the broader digital payment ecosystem in South Africa.

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South Africa Gift Card and Incentive Card Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porters Five Force Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Insights into Technological Advancements in the Industry

    6. 1.6 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Product Type

      1. 2.1.1 E-Gift Card

      2. 2.1.2 Physical Card

    2. 2.2 By Consumer

      1. 2.2.1 Individual

      2. 2.2.2 Corporate

    3. 2.3 By Distribution Channel

      1. 2.3.1 Online

      2. 2.3.2 Offline

South Africa Gift Card and Incentive Card Market Size FAQs

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)

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.

South Africa Gift Card and Incentive Card Report Snapshots

South Africa Gift Card and Incentive Card Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)