Dublin, March 21, 2024 (GLOBE NEWSWIRE) -- The "Saudi Arabia Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.
Gift card industry in Saudi Arabia is expected to grow by 9.6% on annual basis to reach US$1.7 billion in 2024
The gift card industry in Saudi Arabia will continue to grow over the forecast period and is expected to record a CAGR of 7.4% during 2024-2028. Gift card market in the country will increase from US$1.5 billion in 2023 to reach US$2.2 billion by 2028.
The gift card market is poised to record strong growth over the medium term in Saudi Arabia. Improved digital payments infrastructure and the thriving e-commerce market are among the factors aiding gift card industry growth in the Kingdom. The publisher expects the adoption of gift cards to increase further in 2024, supporting the growth of the industry over the medium term.
In 2024, new players are also expected to enter the market, as the demand continues to grow, especially in the digital gift card segment. Retailers are also partnering with gift card providers to launch innovative programs. This will aid the competitive landscape in the sector over the medium term. Overall, the publisher maintains a positive growth outlook for the gift card market over the next three to four years in the Kingdom of Saudi Arabia.
Retailers are entering into strategic collaboration with providers to launch gift card solutions
The demand for gift cards is poised to grow even further among consumers in the Kingdom over the medium term. To tap into this growing demand, retailers are forging strategic alliances with gift card providers to launch their own solutions.
eXtra, the leading consumer electronics and home appliance maker in the Kingdom, partnered with YouGotaGift in September 2023. As part of the collaboration, eXtra is using YOUProcess, a new omnichannel gift card processing solution, to launch a branded gift card program in Saudi Arabia. The YOUProcess gift card program will enable consumers to buy and use gift cards across all eXtra stores.
The strategic collaboration will enable YouGotaGift to further strengthen its position in the fast-growing gift card market in the Kingdom. Going forward, the publisher expects more retailers to partner with YouGotaGift. This will support the growth of the broader gift card market in Saudi Arabia from the short to medium-term perspective.
Online gifting platforms are foraying into the gift card sector to diversify revenue growth in 2024
The demand for gift cards, especially digital ones, is set to rise significantly over the medium term in the Kingdom. Consequently, online gifting platforms are entering the gift card market to diversify their revenue stream.
FNP.ae, one of the leading online gifting solutions providers, entered into a strategic partnership with Merit Incentives, a global firm specializing in engagement technology and solutions. This partnership, announced in October 2023, is a big step for FNP as it diversifies its product offerings and revenue stream, bringing FNP gift cards to the Kingdom of Saudi Arabia. Alongside the Kingdom, FNP also launched the gift card service in Qatar and the United Arab Emirates. The FNP gift cards are made available in various denominations through the Merit Incentives gift card platform.
Going forward, the publisher expects more gifting platforms to foray into the gift card category. The entry of new players in the sector is driving innovation and a competitive landscape in the market. This will subsequently support the growth of the gift card market over the next three to four years.
Scope
Gift Card Sales Estimates by Key Retailers
- Jarir
- Panda
- HyperPanda
- Al Nahdi
- Danube
- Abdullah AlOthaim Supermarket
- Al-Dawaa pharmacies
- Max
- Amazon
Total Spend on Gifts in Saudi Arabia
- 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 in Saudi Arabia
- 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 in Saudi Arabia
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in Saudi Arabia
- By Retail Consumer
- By Retail Purchase Occasion
- By Corporate Consumer
- By Corporate Purchase Occasion
- By Company Size
Gift Card Market Size by Retail Consumer in Saudi Arabia
- By Functional Attribute
- By Occasion
- Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in Saudi Arabia
- 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 in Saudi Arabia
- By Functional Attribute
- By Occasion
- By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in Saudi Arabia
- 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) in Saudi Arabia
- 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) in Saudi Arabia
- Gift Card Online Sales
- Gift Card Offline Sales
- 1st Party Sales
- 3rd Party Sales
- Sales Uplift
For more information about this report visit https://www.researchandmarkets.com/r/fjsz9e
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