Loyalty Programs Market Intelligence and Future Growth Dynamics - 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2025 Update

The global loyalty market is expected to grow by 15.9% on annual basis to reach US$93.79 billion in 2025.

In value terms, the global loyalty market has recorded a CAGR of 17.8% during 2020-2024. The global loyalty market will continue to grow over the forecast period and is expected to record a CAGR of 13.4% during 2025-2029. Loyalty market is expected to increase from US$80.92 billion in 2024 to reach US$155.22 billion by 2029.

This global report is a bundled offering, providing a detailed data-centric analysis of the loyalty market opportunities and risks across a range of end-use sectors and market segments across key economies. With over 50 KPIs at the country and regional level, this report provides a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics.

The publisher’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

This tittle is a bundled offering combining 20 reports, covering global insights along with data centric analysis at global and country level:

1. Global Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
2. Argentina Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
3. Australia Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
4. Brazil Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
5. Canada Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
6. China Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
7. France Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
8. Germany Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
9. India Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
10. Indonesia Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
11. Italy Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
12. Mexico Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
13. Nigeria Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
14. Philippines Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
15. Russia Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
16. South Africa Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
17. Thailand Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
18. United Arab Emirates Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
19. United Kingdom Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
20. United States Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)

Key Insights

Loyalty programs worldwide are fundamentally shifting toward digital integration, AI-powered personalization, and sustainability-driven rewards. While super apps dominate in Asia, subscription-based loyalty thrives in North America, and coalition models lead in Europe; trends such as gamification, financial inclusion incentives, and ESG-linked loyalty programs are becoming global. Over the next few years, businesses that embrace digital engagement, data-driven personalization, and sustainability-linked incentives will lead to customer retention and long-term brand loyalty worldwide.

Digital-First and Mobile-Integrated Loyalty Programs Leading the Market

• Across regions, app-based and digital loyalty ecosystems are replacing traditional paper and card-based programs. In the U.S., Starbucks Rewards allows customers to earn and redeem points via mobile payments. In China, Alipay and WeChat Pay integrate rewards directly into mobile wallets. In Europe, Tesco Clubcard digitized its entire loyalty system, offering personalized discounts through its app.
• The widespread adoption of smartphones, mobile payments, and digital commerce pushes brands to integrate real-time, app-based loyalty programs. Consumers expect seamless, contactless experiences with AI-powered recommendations and instant rewards.
• More businesses will integrate mobile-first loyalty programs into e-commerce, fintech, and digital banking ecosystems, making real-time, data-driven engagement the industry standard.

The Rise of Subscription-Based Loyalty Programs Across Industries

• Paid loyalty programs, offering exclusive perks for a recurring fee, are gaining popularity worldwide. Amazon Prime dominates the U.S., Europe, and India, providing free shipping, entertainment, and premium shopping deals. Walmart+ in the U.S. combines in-store and online benefits. In Latin America, RappiPrime offers delivery discounts and premium merchant access.
• Consumers are willing to pay for premium experiences, convenience, and exclusive benefits. Businesses benefit from higher retention rates and predictable revenue streams, making subscription-based loyalty attractive across retail, entertainment, and travel industries.
• More industries, including healthcare, mobility, and financial services, will introduce tiered subscription loyalty models, offering cashback, free shipping, and VIP customer service to drive engagement.

Expansion of Coalition Loyalty Programs Across Regions

• Multi-brand coalition loyalty programs are expanding, allowing customers to earn and redeem points across various industries. In Germany, Payback integrates with retailers, fuel stations, and airlines. In Canada, Aeroplan partners with hotels, banks, and airlines. Livelo connects banking, retail, and travel rewards in Brazil into a unified system.
• Coalition models increase customer engagement and reduce operational costs for participating businesses. Consumers appreciate flexible redemption options, making coalition programs an attractive alternative to single-brand loyalty schemes.
• Expect cross-industry collaborations in banking, e-commerce, healthcare, and mobility, with AI-driven customer insights enhancing personalized coalition rewards.

Growth of Gamification and Engagement-Based Loyalty Programs

• Gamification is becoming a global standard for enhancing customer engagement. McDonald's Monopoly in the UK and U.S. remains a top-performing interactive loyalty campaign. Shopee Coins and Lazada Rewards use daily check-ins and spin-to-win mechanics to engage users in Asia. In South Africa, SnapnSave offers in-app challenges to earn bonus cashback.
• Younger consumers, particularly Millennials and Gen Z, prefer interactive and engagement-driven loyalty experiences over traditional points-based rewards. The popularity of mobile gaming and social commerce has made brands invest in game-like loyalty experiences.
• Expect brands to expand gamification into banking, fitness, and healthcare loyalty programs, offering milestone-based rewards, leaderboards, and social engagement features.

Financial Inclusion-Driven Loyalty Programs in Emerging Markets

• Loyalty programs are becoming financial tools in underbanked regions, offering incentives for digital banking adoption. In Africa, M-Pesa's Bonga Points allow customers to redeem rewards for mobile services. Mercado Pago in Latin America rewards users for digital payments. India's Paytm First provides discounts on transactions to encourage cashless adoption.
• Millions in emerging markets lack traditional banking access, making mobile wallets and fintech platforms key drivers of financial inclusion. Businesses are using cashback and rewards to encourage the adoption of digital financial services.
• More fintech companies, banks, and governments will introduce loyalty incentives for financial inclusion, rewarding consumers for bill payments, savings, and microloans.

ESG and Sustainability-Linked Loyalty Programs Gaining Traction

• Sustainability is becoming a key loyalty driver, with brands offering green rewards. Etihad Airways' Conscious Choices Program encourages eco-friendly travel. H&M's Conscious Points in Sweden rewards customers for recycling clothes. In Australia, Qantas' Green Tier Program incentivizes sustainable travel choices.
• Governments worldwide are introducing ESG regulations, and consumers demand more eco-conscious loyalty incentives. Brands are aligning sustainability goals with customer engagement strategies.
• More industries, from fashion to finance, will integrate carbon offset rewards, sustainable product discounts, and green loyalty incentives to appeal to ethical consumers.

Competitive Landscape of the Global Loyalty Market

The global loyalty market remains highly competitive, with consolidation in mature markets and fragmentation in emerging regions. The rise of super apps, AI-driven personalization, and ESG-linked loyalty programs will drive the next phase of industry transformation. Over the next 2-4 years, businesses that integrate data-driven insights, flexible redemption options, and sustainability-linked incentives will maintain a strong competitive advantage in the evolving loyalty landscape.

Competitive Intensity and Market Structure

• High competition across industries: The loyalty market is highly competitive, with brands from retail, banking, travel, and telecom offering rewards to increase customer retention. The rise of digital-first platforms such as Rakuten Rewards (Japan, U.S.), Amazon Prime (Global), and Mercado Puntos (Latin America) has intensified competition, forcing traditional loyalty providers to innovate.
• Super apps and fintech firms driving disruption: In Southeast Asia, Latin America, and Africa, super apps and fintech startups are reshaping the loyalty market by integrating rewards with mobile payments and financial services. Platforms like WeChat Pay (China), GrabRewards (Southeast Asia), and RappiPrime (Latin America) challenge traditional coalition programs by offering multi-service loyalty ecosystems.
• Differentiation through personalization: The saturation of loyalty programs means brands must leverage AI, machine learning, and behavioral analytics to customize rewards and engagement strategies. Companies like Starbucks Rewards (U.S.), Carrefour MyClub (Middle East), and Tesco Clubcard (UK) use AI-driven insights to deliver targeted promotions and predictive discounts.

Types of Players in the Loyalty Market

• Coalition loyalty programs leading in mature markets: In Europe, North America, and parts of Latin America, coalition programs such as Payback (Germany, India, Mexico), Nectar (UK), and Aeroplan (Canada) dominate. These programs offer consumers cross-brand earning and redemption flexibility, making them highly attractive.
• Fintech-driven and e-commerce loyalty programs rising: In emerging markets, fintech and e-commerce players like Shopee Coins (Southeast Asia), Mercado Puntos (Latin America), and Nubank Rewards (Brazil) are creating cashback-driven and digital-first loyalty ecosystems to drive mobile engagement.
• Retail, travel, and hospitality players investing in standalone programs: Industry-specific loyalty programs such as McDonald's MyRewards (Global), Qantas Frequent Flyer (Australia), and Marriott Bonvoy (Global) differentiate by offering exclusive benefits, status-based perks, and gamified engagement.

Market Fragmentation vs. Consolidation

• Mature markets are more consolidated: In North America, Europe, and Japan, the loyalty market is dominated by a few major players, such as Visa and Mastercard's co-branded credit card programs, subscription-based Amazon Prime, and multi-brand coalition networks. New entrants struggle to disrupt these markets due to established consumer habits and strong brand loyalty.
• Emerging markets remain highly fragmented: In Southeast Asia, Latin America, and Africa, loyalty programs are localized, with multiple small players competing in fintech, e-commerce, and retail sectors. Platforms such as Twiga Foods (Kenya), Cencosud Points (Chile), and Paytm First (India) thrive in these highly competitive but fragmented ecosystems.
• Super apps are consolidating regional markets: Digital platforms such as Grab (Southeast Asia), WeChat (China), and Rappi (Latin America) are consolidating loyalty rewards across ride-hailing, banking, shopping, and entertainment, forcing standalone loyalty providers to adapt or integrate with these ecosystems.
• High customer acquisition and retention costs: Establishing a new loyalty program requires significant technological investment, AI-driven personalization, and marketing to compete with established players. Programs like Amazon Prime and Starbucks Rewards have a strong first-mover advantage, making it difficult for new entrants to gain traction.
• Regulatory and data privacy constraints: Strict data protection laws such as GDPR (Europe), CCPA (California), and China’s PIPL create challenges for loyalty providers looking to scale internationally. Loyalty programs like Payback (Germany) and Aeroplan (Canada) must navigate complex compliance frameworks to ensure data privacy.
• Evolving consumer expectations make differentiation difficult. Consumers now expect real-time rewards, instant cashback, and AI-driven personalization, making traditional point-based systems less appealing. To stay competitive, brands like McDonald's, MyRewards (Global), and Walmart+ (U.S.) integrate digital convenience, gamification, and subscription models.

Outlook: Competitive Shifts Over the Next 2-4 Years

• Mergers and acquisitions will drive market consolidation: Leading loyalty providers will acquire fintech startups, AI-driven personalization platforms, and digital rewards companies to expand their capabilities. For instance, Visa's acquisition of Plaid will likely influence how payment-based loyalty programs evolve, while major retailers will continue acquiring smaller loyalty tech firms to enhance customer engagement.
• AI-driven and blockchain-based loyalty programs will emerge: AI will enhance real-time predictive rewards, while blockchain technology could revolutionize decentralized loyalty points and transparent coalition programs. For instance, Lufthansa’s Uptrip blockchain-powered loyalty program is an early indicator of how blockchain-based rewards could gain traction.
• Sustainability-linked loyalty programs will become a competitive advantage: Consumers prefer brands that reward eco-conscious behaviors, pushing companies to introduce carbon offset rewards, green product discounts, and ESG-integrated loyalty strategies. For instance, Qantas' Green Tier Program in Australia and Etihad Airways' Conscious Choices Program are among the first to integrate sustainability into loyalty tiers.

Scope

Regional and country reports in this bundled offering provide in-depth analysis of loyalty programs. Below is a summary of key market segments.

Retail Sector Spend Value Trend Analysis

• Ecommerce Spend
• POS Spend

Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators

Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains

• Loyalty Schemes
• Loyalty Platforms

Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type

• Points programs
• Tier-based programs
• Mission-driven programs
• Spend-based programs
• Gaming programs
• Free perks programs
• Subscription programs
• Community programs
• Refer a friend program
• Paid programs
• Cashback programs

Loyalty Spend Market Size and Future Growth Dynamics by Channel

• In-Store
• Online
• Mobile

Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model

• Seller Driven
• Payment Instrument Driven
• Others

Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Online

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by In-Store

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Mobile App

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Loyalty Spend Market Size and Future Growth Dynamics by Retail

• Diversified Retailers
• Department Stores
• Specialty Stores
• Clothing, Footwear & Accessories
• Toy & Hobby Shops
• Supermarket and Convenience Store
• Home Merchandise
• Other

Loyalty Spend Market Size and Future Growth Dynamics by Accessibility

• Card Based Access
• Digital Access

Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type

• B2C Consumers
• B2B Consumers

Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type

• Free
• Free + Premium
• Premium

Loyalty Platform Spend Market Size and Future Growth Dynamics by Software Use Case

• Analytics and AI Driven
• Management Platform

Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner

• In House
• Third Party Vendor

Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment

• Cloud
• On-Premise

Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms

• Software
• Services

Loyalty Spend Market Size and Future Growth Dynamics by Software Use Case Platforms

• Custom Built Platform
• Off the Shelf Platform

Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour

• By Age Group
• By Income Level
• By Gender

Reasons to buy

• Insights on Strategy & Innovation: Navigate through future direction of the loyalty programs and platforms market by understanding strategic initiatives taken by key players to gain market share and innovation.
• In-depth Understanding of Loyalty Market Dynamics at Regional and Country Level: Understand emerging opportunities and future direction of the loyalty programs and platforms market, key drivers, and trends. Benefit from a detailed market segmentation with 50+ KPIs.
• Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics.
• Competitive Landscape: Get a snapshot of competitive landscape with key players and market share in your strategy by gaining insights into the current structure of the market.
• Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the loyalty sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.
• Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments.