Dublin, March 08, 2021 (GLOBE NEWSWIRE) -- The "Canada Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook): Spend Analysis by Digital/e-Gift Card, Retail & Corporate Consumers, Top Retailers, Distribution Channel, Occasions, and Demographics - Jan 2021 Update" report has been added to ResearchAndMarkets.com's offering.
Overall spending on gifts remained stable in Canada in 2020, despite economic slowdown and reduced celebrations due to lockdowns and people staying away from gatherings. The overall spending on gifts recorded a decline in 2020, with a shift towards gift cards. This has resulted in increased penetration for gift card. Gift card growth over the next 4 quarters in 2021 is expected to improve significantly with improved business and consumer sentiment.
Despite a challenging near-term outlook, the gift card industry in Canada is expected to experience steady growth over the medium term, starting Q2 2021. This will be driven by consumer confidence and retail spending in the country along with increased adoption of corporate incentive and loyalty cards.
In the wake of COVID-19, gift card adoption due to additional use cases. For instance, the Province of Prince Edward Island has partnered with Sobeys to offer gift cards to Islanders who have been laid off due to the pandemic. The Employee Gift Card Program will offer approximately US$ 78.11 (C$100) Sobeys gift card to individuals who are undergoing economic hardships.
According to the publisher's Q4 2020 Global Consumer Gift Card Survey, over 43% of Canadians prefer gifting/receiving gift cards. This is significantly higher than previous year, when gift card was seen as a last minute gifting option. Gift card adoption in sectors such as travel and restaurants sector is expected to increase as companies leverage discounted gift cards to attract consumers.
Interestingly, adoption of digital gift cards and digital channel recorded strong growth in 2020, with Canadian customers reflecting a fundamental shift in behaviour. This trend is expected to continue over the short to medium term.
Moreover, technology is also transforming the way people use gift cards in Canada. In particular, millennials are increasingly purchasing digital gift cards (such as Starbucks) and loading them onto the corresponding retailer app. Increasing number of Canadians are showing a preference for mobile apps that allow for reloading gift cards on their devices compared to carrying around traditional plastic gift cards.
The gift card market in Canada is seeing entrance of international players. Miconex, a Scottish based FinTech firm announced plans expand its footprint to offer gift card programmes in Canada, the US and Ireland, in October 2020. Miconex is engaged with Food Island Partnership to provide Food Island gift card programme for Prince Edward Island. The Food Island Gift Card allows visitors and locals to spend on the Island which could boost tourism.
According to the publisher's Q4 2020 Global Gift Card Survey, gift card industry in Canada is expected to grow by 9.5% on annual basis to reach US$ 6312.2 million in 2021. Despite near-term challenges in 2021, medium to long term growth story of gift cards in Canada remains strong. The gift card industry in Canada is expected to grow steadily in H1 2021 and record a strong growth in H2 2021. The growth momentum is expected to continue to grow over the forecast period, recording a CAGR of 7.3% during 2021-2025. The gift card market in the country will increase from US$ 5764.6 million in 2020 to reach US$ 8368.4 million by 2025.
Below is a summary of country level trend analyses covered across gift card segments:
Total gift market: This report provides detailed view of overall spend on gifts, broken down by retail and consumer segments. For both retail and consumer segments, this report provides a breakdown of spend on gifts by product categories (13 segments) and retail sectors (7 segments).
Gift cards: Drawing from proprietary survey results, this report provides in-depth analysis of opportunities in both open loop and closed loop prepaid gift card categories. Assesses consumer behaviour by type of consumer (retail and corporate - SMB, Mid-Tier, Large Enterprise), gifting occasion, digital gift card (e-gift card), and market share by retail sectors.
Details six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction, and value of transactions.
Corporate incentive & loyalty cards: This report provides detailed market dynamics of corporate incentive cards, broadly segmented in three categories - consumer incentive card, employee incentive card, and sales/partner incentive card. It details market size and forecast at category level, by functional attribute (open loop and closed loop), and by corporate consumer segments (small scale business, mid-size business, and enterprise business).
Digital gift card (e-gift card) analysis: Provides market size and forecast for digital gift cards, broken down by retail and corporate buyers. It also includes gift card spend by occasion (retail - festivals & special celebration days, milestone celebration, self-use, other; Corporate incentive cards -consumer incentive card, employee incentive card, and sales/partner incentive card). The report also includes digital gift card adoption by company size.
Open loop and closed loop: Provides market estimates and forecasts to assess opportunities in open loop and closed loop gift and incentive card segments across consumer segments.
Consumer attitude and behaviour: Drawing from proprietary survey results, this report identifies and interprets key KPIs related to gift card dynamics including spend by age, gender, and income level.
Retail spend: Breaks down retail spend across retail sectors (7 segments) to provide detailed insights on consumer behaviour and changing dynamics of gift card spend.
Market share by retailer: Provides market share of closed loop gift cards by key retailers in Canada.
Distribution channel analysis: Provides market share by distribution channel - online vs offline sales and 1st party vs 3rd party sales (sales through outlet of other retailers).
Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
George Weston Ltd
Wal-Mart Stores Inc
Empire Co Ltd
Costco Wholesale Corp
Canadian Tire Corp Ltd
Home Depot Inc, The
Liquor Control Board of Ontario
Hudson's Bay Co
Home Hardware Stores Ltd
Best Buy Co Inc
For more information about this report visit https://www.researchandmarkets.com/r/co52oy
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