Australia Gift Card and Incentive Card Market Report 2022: Market Value will Increase from $5446.5 Million in 2021 to Reach $8504.0 Million by 2026
DUBLIN, Aug. 15, 2022 /PRNewswire/ -- The "Australia Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
Australia's gift card industry is expected to grow by 11.3% on annual basis to reach US$6060.3 million in 2022. Despite near-term challenges in 2022, medium to long term growth story of gift cards in Australia remains strong.
The gift card industry in Australia 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 8.8% during 2022-2026. The gift card market in the country will increase from US$5446.5 million in 2021 to reach US$8504.0 million by 2026.
Leading digital gift card providers are eyeing public issue in Australia
In the midst of growing consumer demand for digital gift card solutions because of the global pandemic and the related global supply chain crisis, providers have experienced strong growth over the last few quarters. On the back of this substantial growth, digital gift card players are also eyeing stock market float in Australia.
Prezzee, one of the leading digital gift card players in Australia, is considering a stock market debut as it looks to capitalize on investor attention in the fintech and payments space. Founded in 2014, Australia-based Prezzee is expected to issue more than 20 million gift cards in 2021. Notably, the firm has experienced strong growth, with sales increased by 222% on the previous year.
Prezzee also revealed that the firm is on track to process more than AUD$1 billion in corporate and retail cards in its 2022 fiscal year, which is up from above AUD$430 million in 2021. Along with its public issue, the firm is also planning to have a large share in the global gift card market.
The publisher expects more digital gift card players in the country to consider the public issue for their fundraising strategies over the next four to eight quarters, as consumer sentiment for fintech and payments sector firm remains strongly positive and at an all-time high.
Traditional banking firms are acquiring stakes in digital gift card firms to stay competitive in Australia
As the demand for efficient and innovative gift card solutions continues to grow among consumers in Australia, even banking players are looking to enter the sector through strategic investment and partnerships.
In October 2021, the Commonwealth Bank of Australia (CBA) announced a strategic partnership with Australia-based digital gift card startup Karta. Notably, the strategic partnership between the two business entities is expected to support the gift experience for both consumers as well as businesses.
Notably, Karta brings together gifting experiences and technology, which aims to simplify gift cards for consumers and businesses. This strategic partnership with Karta is expected to help the CBA to strengthen its shopping offering. Moreover, the new partnership will allow consumers to buy digital gift cards from any participating businesses.
Australia-based gift card providers are expanding globally
With the global gift card market expected to see strong growth in the short to medium term, Australia-based digital gift card providers are looking to expand their services into the global market.
In November 2021, Prezzee rolled out its services in the United Kingdom, ahead of the peak gifting season. Similarly, the firm is planning to expand its business in other European countries as well such as France and Germany, in 2022.
Globally, the firm has partnered with 750 retailers, which also includes 120 in the United Kingdom. Its expansion in the United Kingdom comes on the back of the strong demand for innovative gift card solutions. According to Prezzee, over 108 million gift cards were sold in the United Kingdom in 2019, totaling £5 billion. This is expected to increase by 25% to £8.8 billion by 2025, which the firm is looking to capitalize on ahead of the festival season in the country.
Apart from Australia, the firm is also operational in the United States. Its partnership with Macy's and Uber Eats in the United States helped the firm to drive revenues by 400%. Prezzee also entered into a strategic partnership with MasterCard to tap into more customers. The firm is estimated to have more than a 5% market share by 2023 because of its deal with MasterCard.
Reasons to buy
- In-depth understanding of gift card and incentive card market dynamics: Understand market opportunity, key trends and drivers along with five-year forecast (2017-2026) for gift cards and incentive cards in Australia.
- Develop market specific strategies: Identify growth segments and target specific opportunities across consumer segments and occasions to formulate your gift cards strategy; assess market specific key trends and risks.
- Get insights into consumer attitude and behaviour in Australia: Understand changing consumer attitude and behaviour and boost ROI. Get detailed insights into retail spend through gift cards for both retail and corporate consumers.
- Get complete perspective through six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction, and value of transactions.
- Distribution channel insights: Understand gift cards sales dynamics by channels - online vs offline and by 1st party vs 3rd party sales.
Scope
Closed Loop Gift Card Market Share by Key Retailers
- Wesfarmers Ltd
- Woolworths Ltd (Australia)
- Metcash Ltd
- Aldi Group
- Harvey Norman Holdings Ltd
- JB Hi-Fi Ltd
- Apple Inc
Total Spend on Gifts in Australia
- 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 Australia
- 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 Australia
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in Australia
- 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 Australia
- By Functional Attribute
- By Occasion1. Festivals & Special Celebration Days
2. Milestone Celebration
3. Self-Use
4. Other - Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in Australia
- 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 Australia
- By Functional Attribute
- By Occasion1. Employee Incentive
2. Sales Incentive
3. Consumer Incentive - By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in Australia
- 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 Australia
- 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 Australia
- 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/6w7i52
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SOURCE Research and Markets
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