South Africa Gift Card and Incentive Card Market Report 2024: A $1.9 Billion Market by 2028, Recording 10% CAGR During 2024-2028
Dublin, Sept. 27, 2024 (GLOBE NEWSWIRE) — The “South Africa Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q2 2024 Update” report has been added to ResearchAndMarkets.com’s offering.
The gift card industry in South Africa is expected to record a CAGR of 10% during 2024-2028, increasing from US$1.2 billion in 2023 to reach US$1.9 billion by 2028.
The gift card sector in South Africa is rapidly evolving, marked by key innovations from major retailers like Shoprite, Pick n Pay, and Woolworths, strategic partnerships such as InComm’s collaboration with Flash/Pepkor and Spar’s corporate gift solutions, and significant M&A activity with Card Factory’s acquisition of SA Greetings. This dynamic landscape reflects growing consumer demand for digital and versatile gifting options and highlights the sector’s expansion and modernization.
Key Developments in the Gift Card Sector in South Africa
Product Launches and Innovations
- Shoprite Expands Virtual Gift Card Offerings: Shoprite Holdings Ltd. expanded its virtual gift card service, making it easier for people in South Africa to purchase and send digital gift cards. The cards can be redeemed at Shoprite, Checkers, and U-Save stores.
- Pick n Pay Introduces Reloadable Gift Cards: Pick n Pay launched reloadable gift cards in May 2024, providing customers with a convenient way to give and receive gifts. The cards can be loaded with any amount between R50 and R2000 and can be used at any Pick n Pay store.
- Woolworths partnered with several e-gifting platforms to streamline the process of sending and receiving digital gift cards. This initiative aims to cater to the growing demand for online gifting solutions.
Strategic Partnerships
- InComm and Flash/Pepkor Group Partnership – InComm, a payments technology company, has expanded its gift card offerings through a partnership with Flash and Pepkor Group. This collaboration aims to enhance the availability of gaming, ride-sharing, content, and streaming gift cards across South Africa, leveraging Flash and Pepkor’s extensive retail network.
These partnerships reflect the ongoing evolution and growth of the gift card sector in South Africa, driven by increasing consumer demand for digital and flexible gifting options.
Mergers and Acquisitions
- Card Factory Acquires SA Greetings Corporation: In a significant move to expand its international presence, Card Factory, a high street gift card retailer, acquired the South African business SA Greetings Corporation (Pty) Ltd for £2.5 million. This acquisition, completed recently, includes the entire issued share capital of SA Greetings, which operates as a wholesaler of greeting cards and gift packaging. The acquisition is aimed at enhancing Card Factory’s growth strategy by leveraging SA Greetings’ established wholesale accounts and operational capabilities in South Africa.
The gift card market in 2023 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.
This report provides a detailed data centric analysis of gift card market, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of gift card market dynamics, market size and forecast.
Company Coverage:
- Shoprite Holdings Ltd
- Pick ‘n’ Pay Stores Ltd
- Internationale Spar Centrale BV
- Wal-Mart Stores Inc
- Woolworths Holdings Ltd (South Africa)
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 268 |
| Forecast Period | 2024 – 2028 |
| Estimated Market Value (USD) in 2024 | $1.3 Billion |
| Forecasted Market Value (USD) by 2028 | $1.9 Billion |
| Compound Annual Growth Rate | 10.0% |
| Regions Covered | South Africa |
Reasons to buy
- Comprehensive comprehension of the dynamics of the gift card and incentive card markets: Recognise the opportunities in the market, the main drivers and trends, and the five-year projection for gift and incentive cards in South Africa.
- Create strategies tailored to the market: To create your gift card strategy, identify growth categories and target particular opportunities across consumer segments and occasions; evaluate important trends and risks unique to your market.
- Learn about the attitudes and behaviours of consumers in South Africa: Increase ROI by understanding how consumer attitudes and behaviours are evolving. With gift cards, you may obtain comprehensive information about retail spending for both corporate and retail customers.
- Six key performance indicators (KPIs) provide a comprehensive view: the quantity of cards in circulation, load value, unused value, average purchase value, average value per transaction, and transaction value.
- Distribution channel insights: Recognise the differences in gift card sales across online and offline channels as well as between first-party and third-party sales.
Report Scope
Total Spend on Gifts in South Africa
- 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 South Africa
- 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 South Africa
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in South Africa
- 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 South Africa
- By Functional Attribute
- By Occasion
- Festivals & Special Celebration Days
- Milestone Celebration
- Self-Use
- Other
- Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in South Africa
- 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 South Africa
- By Functional Attribute
- By Occasion
- Employee Incentive
- Sales Incentive
- Consumer Incentive
- By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in South Africa
- 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 South Africa
- 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 South Africa
- 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/c4ppvx
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