DUBLIN–(BUSINESS WIRE)–The “Asia Pacific Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2022 Update” report has been added to ResearchAndMarkets.com’s offering.
Historically, the gift card market in Asia Pacific has recorded a steady growth with a CAGR of 11.2% during 2016-2020. According to the Q4 2021 Global Gift Card Survey, gift card industry in the country is expected to reach US$205618.0 million in 2022.
Gift card market in 2021 was driven a wide range of factors, which supported growth across retail and corporate segments. The primary factors included growth of ecommerce, increased adoption to incentivize employees working remotely, digital gifting, and initiatives undertaken by government, hospitality, and travel industries to revive growth. Though the gift card market was impacted due to COVID-19, the market is expected to bounce back in the coming quarters, especially in H1 2022.
Gift card industry in Asia Pacific has done well to withstand the impact of economic slowdown along with negative business and consumer sentiment due to disruption caused by Covid-19 outbreak.
Despite near-term challenges in 2022, medium to long term growth story of gift cards in Asia Pacific remains strong. The gift card industry in Asia Pacific is expected to grow steadily in H1 2022 and record a strong growth in H2 2022. The growth momentum is expected to continue to grow over the forecast period, recording a CAGR of 9.6% during 2022-2026. The gift card market will increase from US$184982.4 million in 2021 to reach US$296946.4 million by 2026.
With the rising demand and favorable regulatory framework, the Asia-Pacific gift card market remained most attractive for global gift cards companies to expand their businesses in this region in 2021. Moreover, mergers and acquisitions along with fundraising activities increased in the gift card industry in the last four to six quarters.
Global gift card players are launching their services in China to expand consumer base
As the demand for gift cards continues to grow in China, global gift cards players are also considering to launch their services in the country and gaining market share for themselves in the largest internet economy.
In October 2021, Prezzee, an Australia-based gift card firm, announced its expansion plan outside of Australia, the United States, and Europe, where it currently operates. The company is also planning a public issue in Australia and considering broadening its growth plan. According to the company, it intends to launch the company’s services in China and other Asian countries. In Australia, the firm is projected to process more than AUD$1 billion in corporate and retail cards in its 2022 fiscal year.
The publisher expects the entry of global players such as Prezzee to further intensify competition and growth of the gift card market in China over the next four to eight quarters.
Government owned-businesses are launching gift card programs to expand their market share in India
The gifting industry in India is one the biggest globally, with billions of dollars being spent each year on physical gifts in the country. Consequently, to promote cashless ways of gifting and to expand the gift card market, Government-owned businesses are launching gift card programs in India.
In June 2021, LIC Card Services entered into a strategic partnership with IDBI Bank to launch a contactless prepaid gift card Shagun for consumers in India. Through the launch of this prepaid gift card solution, LIC Card Services is foraying into the high-growth Indian digital gift card market.
Being launched on the RuPay platform, the prepaid gift card can be used at millions of merchants and e-commerce websites in the country. Therefore, helping the firm to diversify the consumer spending options on the card.
Gift card providers are focusing on launching digital platforms and merchant acquisition to gain market share in Singapore
With more and more consumers are adopting digital channels in the country, the majority of the gift card players are launching a fully digital platform to gain market share in Singapore.
Several players, including Giftano and Mooments, have launched an online digital gifting platform, which allows both individuals as well as corporates in the country to buy gift cards seamlessly. Notably, this is helping gift card providers to reach more consumers efficiently, thereby increasing their market share.
Some of the other strategies that are being pursued by gift card providers to increase their market share are having an extensive merchant network and market expansion. For instance, both Giftano and Mooments offer gift cards for well-known brands such as Lazada, Grab, and Zalora, among several others.
The ability to buy cryptocurrencies using gift cards is boosting the market growth in Japan
Another trend that is supporting the gift card market growth in Japan is the ability to buy cryptocurrencies through gift cards. Over the last few quarters, the popularity of cryptocurrencies has surged globally, and Japan is no different. This has led to the growing investment in digital coins, including Bitcoin and Ethereum.
With gift cards making it easier for consumers and investors to buy cryptocurrencies, the use of gift cards has also surged significantly over the last few quarters. Some of the platforms that allow consumers to buy cryptocurrencies using gift cards include Paxful and localbitcoins.com.
Apart from the ability to buy cryptocurrencies, payment firms are also allowing consumers to complete their purchases using cryptocurrencies through gift cards. For instance, Bitrefill is one such platform that allows consumers in Japan to convert their cryptocurrencies into gift cards at the point-of-sale transaction.
Scope: This bundled offering provides the following detailed gift card market opportunity at country level
Total Spend on Gifts
Gift Card Market Size by KPIs across Consumer Segments
Gift Card Market Size by Consumer Segment
Digital Gift Card Market Size
Gift Card Market Size by Retail Consumer
Gift Card Spend by Consumer Behavior and Demographics
Gift Card Market Size by Corporate Consumer
Gift Spend by Product Categories (Split by Retail and Corporate Consumers)
Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers)
Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers)
Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
For more information about this report visit https://www.researchandmarkets.com/r/ekxxul
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