Brazil Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q2 2024 Update

The gift card industry in the region is expected to grow by 11.5% on annual basis to reach US$7.2 billion in 2024.

The gift card industry in Brazil will continue to grow over the forecast period and is expected to record a CAGR of 8.9% during 2024-2028. Gift card market in the country will increase from US$6.5 billion in 2023 to reach US$10.1 billion by 2028.

The Brazilian gift card sector has seen substantial growth through strategic partnerships, such as those by Givex Brasil with Vivara, WeWork Brasil, and iFood, resulting in significant sales and transaction volumes. The rapid adoption of Pix and the fintech regulatory sandbox have further supported innovation and integration in digital payments, though there have been no specific regulatory changes targeting the gift card market.

Key Developments in the Gift Card Sector in Brazil

Product Launches and Innovations: Givex Brasil's E-Gift Solutions. Givex Brasil has made significant strides by partnering with prominent brands. Notably, they launched an e-gift solution in collaboration with Vivara, a leading jewelry brand. Additionally, Givex partnered with WeWork Brasil to enhance its gift card offerings, expanding digital gift card distribution through the GivexHub platform. This initiative contributed to Givex surpassing BRL 1.5 billion in gift card sales in 2023 and reaching a transaction value of BRL 14 billion.

Strategic Partnerships

Partnership with Vivara - Givex Brasil partnered with leading jewelry brand Vivara to launch the brand's e-gift solution in the GivexHub platform. This collaboration allows Vivara to offer digital gift cards to its customers through Givex's extensive distribution network.

Collaboration with WeWork Brasil - Givex Brasil entered into a partnership with WeWork Brasil to develop its gift card program and distribute digital gift cards in the GivexHub. This initiative enables WeWork Brasil to provide convenient gift card options to its members and customers.

iFood Collaboration - As part of its collaboration with iFood, a major food delivery platform in Brazil, Givex Brasil surpassed BRL 1.5 billion in gift card sales through the GivexHub platform. This partnership has been instrumental in driving gift card adoption and sales in the country.

Regulatory Changes

There have been no major regulatory or government policy changes specifically targeting the gift card sector in Brazil. The gift card market continues to operate under the existing regulatory framework in the country.

Pix Instant Payment System - The Brazilian Central Bank launched Pix, an instant payment system, in November 2020. Pix has gained rapid adoption, with over 114 million users as of June 2024. The widespread use of Pix has contributed to the growth of digital payments in Brazil, creating opportunities for gift card providers to integrate their solutions with this popular payment method.

Fintech Regulatory Sandbox - The Brazilian Securities and Exchange Commission (CVM) launched a fintech regulatory sandbox in 2021 to foster innovation in the financial sector. While no gift card-specific projects have been highlighted, the sandbox program provides a controlled environment for testing new financial technologies, potentially leading to the development of innovative gift card solutions.

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.

Scope

Total Spend on Gifts in Brazil

• 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 Brazil

• 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 Brazil

• Retail Consumer
• Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)

Digital Gift Card Market Size in Brazil

• 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 Brazil

• 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 Brazil

• 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 Brazil

• 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 Brazil

• 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 Brazil

• 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 Brazil

• Gift Card Online Sales
• Gift Card Offline Sales
• 1st Party Sales
• 3rd Party Sales
• Sales Uplift

Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:

• Casino Guichard-Perrachon SA
• Natura Cosméticos SA
• Wal-Mart Stores Inc
• Lojas Americanas SA
• Adeo Groupe
• Cencosud SA
• Magazine Luiza SA

Reasons to buy

• Comprehensive understanding 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 Brazil.
• 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 Brazil: 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.