Dublin, March 22, 2024 (GLOBE NEWSWIRE) -- The "Latin America 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 Latin America is expected to grow by 10.9% on annual basis to reach US$14.3 billion in 2024. The gift card industry in Latin America will continue to grow over the forecast period and is expected to record a CAGR of 9.1% during 2024-2028. Gift card market in the region will increase from US$12.9 billion in 2023 to reach US$20.2 billion by 2028.
The gift card market is expected to record steady growth over the medium term in Latin America. The thriving e-commerce market, coupled with increased investment in digital payments infrastructure, will support the uptake of gift cards in the Latin American region in 2024. Gift card providers are also increasing their investment in the region to further strengthen their position. The industry will also receive growth support from gift card giveaway campaigns in Latin America. Overall, the publisher maintains a positive growth outlook for the industry over the next three to four years.
Gift card firms are experiencing strong growth through strategic collaborations and product launches in Latin America
Amid the increasing adoption of gift cards in the Brazilian market, providers are experiencing a strong growth period, and this trend is projected to continue further over the medium term in 2024. Firms like Givex Brasil have reported strong growth over the last 12 months. The firm, notably, entered into various strategic collaborations to launch new products and expand its distribution network.
Givex Brasil, for instance, partnered with leading jewelry brand Vivara to launch the brand's e-gift solution in the GivexHub. Furthermore, the firm also entered into a collaboration with WeWork Brasil to develop its gift card program and distribute the digital gift cards in the GivexHub.
The firm, in 2023, also secured a partnership with one of the leading hospitality chains. As a result, Givex Brasil has added more than 500 locations to its extensive network. As part of its collaboration with iFood, the firm has surpassed BRL 1.5 billion in gift card sales through GivexHub.
The firm, in 2023, reached BRL 14 billion in transaction value. In 2024, the firm is planning more product launches and strategic collaborations, as part of its commitment to deliver cutting-edge solutions in the Brazilian gift card market. The publisher expects this to keep supporting the growth of the gift card market in Brazil from the short to medium-term perspective.
The uptake of alternate payment methods to support gift card industry growth in Latin America
Latin America's payment landscape is undergoing a significant transformation driven by shifting consumer behavior and regulatory initiatives. The increasing use of the internet and smartphones has fueled the rise of e-commerce, spurring the adoption of various payment methods like gift cards over the last few years. Regulatory frameworks such as CoDi in Mexico and Pix in Brazil have played a pivotal role in promoting faster, simpler, and more secure digital payments across the region.
CoDi in Mexico has streamlined and enhanced instant payments, making them more accessible and convenient for both merchants and consumers. Similarly, Pix in Brazil has incentivized digital payments, challenging traditional methods and fostering the growth of alternate payment solutions. These initiatives, along with others like Transferencias 3.0 in Argentina, have significantly improved accessibility to digital payments, also supporting the growth of the gift card industry.
Global gift card providers have continued to increase their investment in the Brazilian market
With Brazil offering a promising growth opportunity, global gift card providers are increasing their investment in the Latin American market to further strengthen their position in the region.
InComm Payments, the US-based one of the leading gift card providers globally, announced further investment in the Brazilian market in 2023. The investment is part of the firm's strategy to further strengthen its position in the fast-growing Brazilian gift card industry. The firm, notably, is developing an IT hub in Brazil. The hub will focus on software development and quality assurance automation, among other things.
Brazil has emerged as one of the strong focus markets for InComm Payments over the last decade. The strong banking system, coupled with a robust middle-class group, InComm Payments is seeing a strong growth opportunity in the retail, financial services, and mobile payment space. The firm, in 2020, also acquired gift card payment processor Todo Cartoes.
Going forward, the publisher expects InComm Payments to further increase its investment in the Brazilian market over the medium term. This will not only aid the competitive landscape but will also drive the growth of the gift card industry over the next three to four years in Brazil.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 1608 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value (USD) in 2024 | $14.3 Billion |
| Forecasted Market Value (USD) by 2028 | $20.2 Billion |
| Compound Annual Growth Rate | 9.1% |
| Regions Covered | Latin America |
This title is a bundled offering, comprising 1 regional and 5 country reports:
- Latin America Gift Card and Incentive Card Market Intelligence (Databook)
- Argentina Gift Card and Incentive Card Market Intelligence (Databook)
- Brazil Gift Card and Incentive Card Market Intelligence (Databook)
- Chile Gift Card and Incentive Card Market Intelligence (Databook)
- Colombia Gift Card and Incentive Card Market Intelligence (Databook)
- Mexico Gift Card and Incentive Card Market Intelligence (Databook)
Gift Card Sales Estimates by Key Retailers
- Alkosto
- Ara
- Carrefour Hypermarket
- Carrefour Market
- Carulla supermarkets
- Changomas
- Coto Supermercado
- Cruz Verde
- DIA
- Disco
- Easy Cencosud
- Exito hypermarkets
- Falabella
- Jumbo Cencosud
- K-Tronix
- La Anonima
- Lider Express
- Lider Hiper
- MercadoLibre
- Olimpica
- Paris Cencosud
- Ripley
- Santa Isabel Cencosud
- Sodimac
- Sodimac Homecenter
- Superbodega Acuenta
- Unimarc
- Vea
Scope
Total Spend on Gifts
- 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
- 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
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size
- By Retail Consumer
- By Retail Purchase Occasion
- By Corporate Consumer
- By Corporate Purchase Occasion
- By Company Size
Gift Card Market Size by Retail Consumer
- By Functional Attribute
- By Occasion
- Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics
- 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
- By Functional Attribute
- By Occasion
- By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers)
- 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)
- 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)
- 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/yxi9xe
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