Dublin, April 12, 2024 (GLOBE NEWSWIRE) -- The "Global Loyalty Programs Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.
Global loyalty market is expected to grow by 11.1% on an annual basis to reach US$150.97 billion in 2024.
In value terms, global loyalty market has recorded a CAGR of 12.4% during 2019-2023.The global loyalty market will continue to grow over the forecast period and is expected to record a CAGR of 9.5% during 2024-2028. The global loyalty market will increase from US$135.90 billion in 2023 to reach US$217.37 billion by 2028.
The global loyalty program industry is poised for accelerated growth over the medium term. Inflation and higher food prices have been driven by the adoption of loyalty schemes in markets like Europe and Africa. This trend is projected to further continue in 2024, supporting industry growth. Innovation in the sector is also rising significantly, with firms forging strategic alliances to launch Web3 loyalty programs for better customer engagement.
Quick service restaurants (QSR) and food delivery platforms are also betting on loyalty schemes to aid business growth. This trend is gaining widespread momentum across regions, including Asia Pacific, North America, and Europe. Overall, the publisher maintains a robust growth outlook for the global loyalty program industry over the next three to four years.
QSRs are planning to drive business growth by leveraging the popularity of loyalty schemes in 2024
The adoption of loyalty programs has increased significantly over the last 12 months and the trend is projected to continue further over the medium term. To tap into the growing popularity, QSRs are expanding their loyalty schemes to drive business growth in the global market.
McDonald's, in December 2023, revealed that the firm is planning to open 10,000 new outlets in the global market by 2027. Furthermore, the firm is also planning to double its sales from the loyalty program to US$45 billion. By 2027, McDonald's aims to have 250 million loyalty members. Currently, the program has 150 million members, who are generating more than US$20 billion in sales annually for the QSR.
Domino's, another leading QSR in the global market, is also planning to launch a loyalty program in more global markets to drive business growth. The firm, in 2024, aims to launch a loyalty scheme for its customers in the United Kingdom. The firm has been able to increase the purchase frequency by 1.7 times in the first year of the scheme launch in the United States. The QSR aims to replicate the success in the United Kingdom too.
The expansion strategy adopted by these QSRs will further support the competitive landscape in the fast-growing sector, driving innovation and market growth over the next three to four years.
Businesses are leveraging Web3 capabilities to innovate with their loyalty program offerings
A rising number of businesses, across industry verticals, are seeking to leverage Web3 capabilities to innovate with their loyalty programs and build better engagement for their customers.
Visa, in January 2024, announced the launch of a Web3 loyalty service involving gamified giveaways and other experiences. The solution will enable brands to create digital wallets, which will be used for storing reward points and experiences on behalf of the consumers.
Moonbeam Network, a platform for creating applications that can interact across different blockchains, has revealed collaborations with DUX, a provider of Web3 infrastructure, and Grupo RAO, the biggest Japanese food delivery service in Brazil. Together, the firms plan to introduce an innovative Web3 Loyalty Program in Brazil.
Lufthansa, the German airline carrier, entered into a strategic partnership with Polygon in September 2023. As part of the collaboration, the airline aims to launch an NFT-powered loyalty program, which will gamify the flight experience for flyers. Notably, the airline carrier will enable flyers to collect NFTs, which can be utilized for rewards like accumulating miles and accessing the lounge.
Going forward, in 2024, the publisher expects more global firms to launch Web3-powered loyalty programs. This will drive the trend of strategic partnerships in the sector, while also aiding the competitive landscape over the medium term.
Supermarket loyalty programs are gaining widespread adoption among consumers globally
Food inflation has reached multi-year highs across many European nations. Consumers, throughout 2023, have been reeling under the impact of higher inflation and food prices. Consequently, to drive consumer spending, supermarkets have been leveraging loyalty programs.
Tesco and Sainsbury's have made changes to their loyalty program to better meet the demands of their consumers. These programs have also resulted in higher sales numbers for firms like Tesco. Nearly, 21 million households have a Tesco Clubcard in the United Kingdom.
For Tesco, these 21 million households are responsible for 80% of the sales. Tesco holds a significant 27.4% of the market share. More than 8,000 products are offered under its Clubcard Prices scheme. Sainsbury's, on the other hand, offers 6,000 products under its loyalty scheme.
In France, Netto also launched a digital loyalty card in September 2023. The digital loyalty card provides access to offers and electronic vouchers. The launch is part of the firm's strategy to lessen the impact of higher food prices faced by consumers. The adoption of loyalty programs is also strong in the African markets. Naivas, one of the leading supermarket chains in Kenya, signed up its two millionth loyalty member in November 2023. The firm is leveraging loyalty programs to retain customers and drive sales growth. It has achieved an annual profit of more than Sh2 billion.
A bundled offering provides detailed 20 reports, covering global insights along with data centric analysis at global and country level:
- Global Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- Argentina Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- Australia Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- Brazil Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- Canada Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- China Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- France Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- Germany Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- India Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- Indonesia Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- Italy Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- Mexico Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- Nigeria Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- Philippines Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- Russia Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- South Africa Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- Thailand Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- United Arab Emirates Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- United Kingdom Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- United States Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 2457 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value (USD) in 2024 | $150.97 Billion |
| Forecasted Market Value (USD) by 2028 | $217.37 Billion |
| Compound Annual Growth Rate | 9.5% |
| Regions Covered | Global |
For more information about this report visit https://www.researchandmarkets.com/r/q5c2dp
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