Africa & Middle East Loyalty Programs Market Report 2022: Market is Expected to Grow by 12.7% to Reach $6.57 Billion in 2022 - Forecast to 2026
DUBLIN, July 25, 2022 /PRNewswire/ -- The "Africa & Middle East 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 2022 Update" report has been added to ResearchAndMarkets.com's offering.
According to the Q1 2022 Global Loyalty Programs Survey, Loyalty Programs Market in Africa & Middle East is expected to grow by 12.7% on annual basis to reach US$6573.8 million in 2022.
In value terms, the Loyalty Programs Market in Africa & Middle East has recorded a CAGR of 13.1% during 2017-2021. The Loyalty Programs Market in Africa & Middle East will continue to grow over the forecast period and is expected to record a CAGR of 12.3% during 2022-2026. Loyalty Programs Market in the country will increase from US$5832.7 million in 2021 to reach US$10442.3 million by 2026.
The adoption of loyalty and reward programs has been on a constant rise in the Africa & Middle East region over the two to three years. Several start-ups and global loyalty players are offering their innovative products to capture a larger market share in the region. Moreover, the adoption from different industries is also on the rise as more and more consumers are demanding customized rewards programs.
Over the last three to four years, the customer loyalty landscape has developed rapidly across the United Arab Emirates (the UAE). Before the global pandemic outbreak, the country was witnessing a higher per capita income and was gearing up with its increasing population of foreign workers, growing tourism industry, and a large number of development projects. However, the impact of the Covid-19 outbreak, resulting in the closure of offline stores, brought major changes to the economy.
During the period of the global pandemic, an increasing number of consumers changed their shopping behavior. According to the Global Loyalty and Rewards Market Survey, nearly 95% of the consumers started to explore different brands and stores even for their regular day-to-day purchases. This resulted in a number of brands revisiting their loyalty and rewards programs initiatives to stay relevant in testing times of the global pandemic outbreak.
Online marketplaces are launching AI and blockchain-enabled rewards platforms in the UAE
Through innovative loyalty and rewards programs that are powered by artificial intelligence and blockchain technology, online marketplaces in the country are looking to disrupt the UAE retail landscape.
- In February 2022, Aladdin.life, the online marketplace for mobile and broadband services, announced that the start-up is expanding to a smart, multi-sector, AI, and blockchain-enabled rewards and shopping platform. Notably, the new rewards platform offers customers 100% value back in the form of discounts on its online Reward store.
- For every AED 1 spent on the purchase of telecom products and services from Aladdin.life or its retail partner network, customers get a discount of AED 1 on the Aladdin Reward store. Notably, the full value offered to the customers is in the form of Aladdin Reward Coins. Customers can trade these coins for discounts when shopping from the Reward store, which features consumer electronic products from different brands and retailers.
The publisher expects more such rewards program launches over the next four to eight quarters as online marketplaces seek ways to acquire new customers and drive incremental revenue in the UAE.
In 2022, consumers in South Africa expect rewards as loyalty programs grow even more popular. According to the Q1 2022 Global Loyalty and Rewards Market Survey, nearly 75% of the consumers used loyalty programs in 2021. The global pandemic outbreak caused a significant shift in consumer behavior in South Africa.
During the Covid-19 outbreak, more and more consumers turned to loyalty programs compared to the pre-pandemic period. With consumers in South Africa even more invested in loyalty programs today than ever before, the trend is expected to record steady growth over the next four to eight quarters, as loyalty programs have become a part of consumer expectation in the country.
Travel loyalty program providers are entering into strategic partnerships with airline carriers to expand their growth in South Africa
To have more customers enjoy the benefits of their loyalty program, travel loyalty program providers are entering into strategic partnerships with airline carriers, which will also assist them in accelerating their growth in South Africa.
- In February 2022, Legacy Lifestyle, one of the leading travel-focused loyalty program providers in South Africa, announced that the firm had entered into a strategic partnership with Airlink, Southern Africa's premier airline. Under the strategic collaboration, Legacy Lifestyle has launched a loyalty program that provides passengers with the ability to earn cashback rewards when they book tickets with Airlink.
- Notably, the passengers receive cashback rewards regardless of the type of ticket booked. In addition to the cashback rewards, passengers also get a host of other benefits, including 15% off on all Legacy Hotels and up to 8% additional cashback when the passengers stay with them. With cashback rewards being one of the preferred reward types among South Africans, the publisher expects the Airlink loyalty program to gain increasing traction among flyers in the country.
- Established in 2011, Legacy Lifestyle has more than 1.2 million members who earn and spend cashback rewards across its partner network of 250 retailers, thereby making it one of the largest multi-partner programs in South Africa.
The publisher expects Legacy Lifestyle to partner with more travel-focused brands and launch new loyalty programs over the forecast period. This will keep boosting the growth of the overall loyalty and rewards programs industry from the short to medium-term perspective in South Africa.
In Egypt, the loyalty and rewards programs industry has recorded strong growth over the last three to four years. Consumers in Egypt are increasingly looking to shop from brands and businesses that reward them for shopping. Consequently, leading businesses operating in the telecom, FMCG, oil, and gas, and retail sectors, are implementing loyalty and rewards programs strategy to increase customer loyalty and retention in the country.
Egypt-based loyalty solution providers are raising funds to expand their market share in the MENA region
Amid the growing loyalty and rewards programs industry in the MENA region, Egypt-based loyalty solution providers have raised funds over the last eight quarters to expand their operations and gain market share in the region.
- In December 2020, Dsquares announced that the firm had raised fresh investment for private equity firm Lorax Capital Partners in Egypt. According to the firm, the fund would support its growth and expand its presence across Egypt and internationally.- Zeal, another loyalty platform operational in Egypt, announced that it had raised a six-figure investment from an angel investor in December 2020. Notably, the firm offers mobile payment app, which replaces loyalty cards with a digital solution built on top of the payment product.
- Moreover, in August 2020, Ordera, the Egypt-based food ordering start-up that also provides a loyalty program, announced that it has raised a six-figure investment round. Notably, the firm is planning to use the investment for scaling its operations across the country.
As the loyalty and rewards programs market continue to grow in Egypt and globally, the publisher expects these firms to keep raising more investment rounds over the next two to three years to expand their footprint in the global market.
Scope
Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators, 2017-2026
Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains, 2017-2026
- Loyalty Schemes
- Loyalty Platforms
Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type, 2017-2026
- Point-based Loyalty Program
- Tiered Loyalty Program
- Subscription Loyalty Program
- Perks Loyalty Program
- Coalition Loyalty Program
- Hybrid Loyalty Program
Loyalty Spend Market Size and Future Growth Dynamics by Channel, 2017-2026
- In-Store
- Online
- Mobile
Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors, 2017-2026
- Retail
- Financial Services
- Healthcare & Wellness
- Restaurants & Food Delivery
- Travel & Hospitality (Cabs, Hotels, Airlines)
- Telecoms
- Media & Entertainment
- Others
Loyalty Spend Market Size and Future Growth Dynamics by Retail, 2017-2026
- Diversified Retailers
- Department Stores
- Specialty Stores
- Clothing, Footwear & Accessories
- Toy & Hobby Shops
- Supermarket and Convenience Store
- Home Merchandise
- Other
Loyalty Spend Market Size and Future Growth Dynamics by Accessibility, 2017-2026
- Card Based Access
- Digital Access
Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type, 2017-2026
- B2C Consumers
- B2B Consumers
Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms, 2017-2026
- Software
- Services
Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms, 2017-2026
- Custom Built Platform
- Off the Shelf Platform
For more information about this report visit https://www.researchandmarkets.com/r/u7sgea
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SOURCE Research and Markets
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