Dublin, Aug. 15, 2022 (GLOBE NEWSWIRE) -- The "Mexico Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
Mexico's gift card industry in the country is expected to grow by 12.4% on annual basis to reach US$3224.1 million in 2022.
Despite near-term challenges in 2022, medium to long term growth story of gift cards in Mexico remains strong. The gift card industry in Mexico 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 9.4% during 2022-2026. The gift card market in the country will increase from US$2868.9 million in 2021 to reach US$4613.1 million by 2026.
Supply chain crisis is expanding the gift card market's growth in Mexico
The ongoing global supply chain crisis has led to inventory shortages among retailers around the world. The Mexican gifting market also experienced the same during the 2021 holiday season. The unavailability of desired gift products led many consumers to turn towards gift cards during this period.
According to the Q4 Global Gift Card Market Survey, consumers spent more than 54.5% of their holiday shopping budget on gift cards in Mexico. Moreover, Mexico is expected to report the most significant increase in year-over-year holiday gift card spending. the publisher expects the trend to remain the same over the next three to four quarters as the new wave of coronavirus is expected to disrupt the supply chain further.
Retailers and online streaming services are offering gift cards to attract new customers in Mexico
The global pandemic has accelerated the adoption of e-commerce platforms in Mexico over the last four to eight quarters. According to the publisher, the domestic e-commerce market valued more than US$16 billion in 2021. As more and more shoppers continue to buy products and services online, retailers are looking to capitalize on the rising e-commerce trend to offer gift cards and attract new customers in Mexico.
During the global pandemic, online streaming services gained increased traction in the country. Consequently, on-demand entertainment service providers such as Netflix started offering gift cards to attract more customers.
This growing demand for online streaming services is expected to further boost the demand for gift card products among consumers in the country over the next four to eight quarters. the publisher expects that the growing shift towards online services will keep supporting the growth of the gift card segment from the short to medium-term perspective in Mexico.
The entry of international players will further drive innovation and competition in the Mexican gift card market
The global gift card industry is expected to record significant growth over the next four to eight quarters. To capitalize on this global growth, international players are considering Mexico as a potential market to expand their services.
- In October 2021, Swile, a France-based employee benefits and gift card firm, raised US$200 million in its Series D funding round, which was led by SoftBank Group International. After raising the funding round, Swile announced that the firm is looking to expand its international presence over the next few quarters and is eyeing the Mexican market.
- Notably, some international gift card players already have a presence in the country. For instance, the US-based Tango Card, the digital rewards and incentive provider, offers digital gift cards of several brands, including Uber, Starbucks, Domino's, and Burger King, among others.
The publisher expects more global players to launch their services in the country over the next four to eight quarters, which will subsequently boost innovation and competition in the Mexican gift card industry.
The ability to buy digital assets such as cryptocurrencies using gift cards is driving market growth in Mexico
The popularity of cryptocurrencies among Gen Z and Millennials has grown significantly over the last four to eight quarters in Mexico. However, with not everyone having formal bank accounts in the country, consumers are seeking different ways to purchase their preferred digital assets in Mexico.
Gift cards are providing consumers with a convenient and easy way to invest in cryptocurrencies such as bitcoins. There are several platforms available for consumers in Mexico which allow them to trade in bitcoins using gift cards. Some of these platforms include Paxful and Bitrefill, among others. the publisher expects the growing popularity of cryptocurrencies to further boost the growth of the gift cards industry in Mexico over the next four to eight quarters.
Closed Loop Gift Card Market Share by Key Retailers
- Wal-Mart Stores Inc
- Organizacion Soriana SAB de CV
- Grupo Comercial Chedraui Sa de CV
- Controladora Comercial Mexicana SAB de CV
- Farmacias Similares SA de CV
- Corporativo Fragua Sa de CV
- Home Depot Inc, The
Total Spend on Gifts in Mexico
- 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 Mexico
- 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 Mexico
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in Mexico
- 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 Mexico
- By Functional Attribute
- By Occasion1. Festivals & Special Celebration Days
2. Milestone Celebration
- Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in Mexico
- 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 Mexico
- 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 Mexico
- Food & Beverage
- Health, Wellness & Beauty
- Apparel, Footwear & Accessories
- Books & Media Products
- Consumer Electronics
- Restaurants & Bars
- Toys, Kids, and Babies
- Sporting Goods
- Home & Kitchen Accessories & Appliances
- Entertainment & Gaming
Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in Mexico
- Ecommerce & Department Stores
- Restaurants & Bars
- Supermarket, Hypermarket, Convenience Store
- Entertainment & Gaming
- Specialty Stores
- Health & Wellness
Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in Mexico
- Gift Card Online Sales
- Gift Card Offline Sales
- 1st Party Sales
- 3rd Party Sales
- Sales Uplift
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