Brazil Loyalty Programs Market Report 2022: Market to Reach $5.132 Billion by 2026 - Loyalty Program Firms are Launching Initial Public Offerings to Raise Funding and Boost Their Growth

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May 25, 2022, 15:45 ET

DUBLIN, May 25, 2022 /PRNewswire/ -- The "Brazil 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.

Loyalty Programs Market in Brazil is expected to grow by 14.1% on annual basis to reach US$ 3058.4 million in 2022

In value terms, the Loyalty Programs Market in Brazil has recorded a CAGR of 14.4% during 2017-2021. The Loyalty Programs Market in Brazil will continue to grow over the forecast period and is expected to record a CAGR of 13.8% during 2022-2026. Loyalty Programs Market in the country will increase from US$ 2679.9 million in 2021 to reach US$ 5132.6 million by 2026.

The loyalty and rewards programs market is majorly driven by mass merchants and international brands in Brazil, with local business loyalty programs being a rarity in the country. However, as the demand among consumers for local business loyalty programs continues to rise, the publisher expects more and more local businesses to invest in developing and launching loyalty programs over the next two to three years in Brazil.

According to the Q1 2022 Loyalty and Rewards Market Survey, credit card firms have the majority of the market share in the Brazilian loyalty and rewards program industry, with nearly 60% of the consumers being enrolled in loyalty programs offered by credit card firms.

Apart from the credit card firms, banks and mass merchants also have a substantial share with nearly 40% and 32%, respectively. This is followed by online-only stores and airline programs. In contrast, around 15% of the consumers are enrolled in loyalty programs offered by local retail stores in Brazil.

However, with consumers largely invested in local commerce along with the growing preference for local loyalty and rewards programs, the publisher expects the market share to shift significantly towards the local retail store category over the next three to four years in Brazil. Overall, the publisher expects the loyalty and rewards programs market to grow significantly from the short to medium-term perspective in Brazil.

One of the common strategies adopted by businesses seeking to provide loyalty and rewards programs to their customers in Brazil is to partner with leading loyalty program providers in the country. Some of the major players driving the growth of the loyalty and rewards programs industry in Brazil include SMILES, Dotz, and Livelo.

Apart from these loyalty program providers, international foodservice providers such as Starbucks have launched and rebranded their loyalty schemes for consumers in Brazil, thereby driving the industry growth over the last three to four quarters. As the demand for such programs continues to grow among consumers, the publisher expects more new players to enter the segment from the short to medium-term perspective.

Brazilian fintech companies are targeting bridge millennials to expand their business in the country

With the rising income level among bridge millennials (population between 32 and 41 years), spending behavior is also changing in the country. The publisher expects consumers of this demographics to make for the perfect target market for small and medium-sized merchants seeking to launch their loyalty and rewards programs in the country.

The publisher in its recent survey, found that the Brazilian bridge millennials have a better spending power compared to other consumer demographics. This makes bridge millennials a more powerful consumer segment for small and medium-sized businesses who are considering designing their loyalty programs and attracting higher spending power consumer groups to boost their growth and revenue.

Loyalty program firms are launching initial public offerings to raise funding and boost their growth in Brazil

Over the next two years, the loyalty and rewards programs market is expected to grow significantly in Brazil. Consequently, to tap into this growing loyalty and rewards programs market, firms are taking the route of the initial public offering to raise funds to accelerate their growth in the country from the short to medium-term perspective.

Dotz, one of the leading loyalty program firms in Brazil, launched its initial public offering of nearly 815 million reais or US$146 million. As of April 2021, the company had more than 20 million active users in the country. According to the company, the fund will be used for its expansion in the Brazilian market.

Moreover, the firm also partnered with global technology firms to raise funds and explore new opportunities for digital financial services in Brazil.

In April 2021, the firm announced that it had entered into a strategic agreement with Ant Group. Under the partnership, Ant Group had acquired a 5% stake in Dotz. Through strategic collaboration, both the firms will explore opportunities for digital financial services in the country. Notably, Ant Group has an option to buy an additional 10% stake in Dotz up to two years after the initial public offering.

As the loyalty and rewards programs market continues to mature and grow in Brazil over the next four to six quarters, the publisher expects more firms to raise funds through an initial public offering or through strategic partnerships with global players.

Scope

Brazil Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators, 2017-2026

Brazil Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains, 2017-2026

Loyalty Schemes
Loyalty Platforms

Brazil 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

Brazil Loyalty Spend Market Size and Future Growth Dynamics by Channel, 2017-2026

In-Store
Online
Mobile

Brazil 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

Brazil 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

Brazil Loyalty Spend Market Size and Future Growth Dynamics by Accessibility, 2017-2026

Card Based Access
Digital Access

Brazil Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type, 2017-2026

B2C Consumers
B2B Consumers

Brazil Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms, 2017-2026

Software
Services

Brazil Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms, 2017-2026

Custom Built Platform
Off the Shelf Platform

Brazil Loyalty Spend Market Size and Forecast by Consumer Demographics & Behavior, 2021

By Age Group
By Income Level
By Gender

For more information about this report visit https://www.researchandmarkets.com/r/jl5qe4

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