The country has faced strict lockdown since 2020 due to coronavirus outbreak. The socio-economic environment was negatively impacted due to COVID-19, which has led to fewer celebrations and gifting. However, the pandemic had a positive impact on e-commerce, a trend which is expected to remain the same over the coming quarters. This has also positively impacted the gift card market.
According to the Q4 2021 Global Gift Card Survey, gift card industry in the country is expected to grow by 11.7% on annual basis to reach USD 1183.5 million in 2022. Despite near-term challenges in 2022, medium to long term growth story of gift cards in Singapore remains strong. The gift card industry in Singapore 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 9.5% during 2022-2026. The gift card market in the country will increase from USD 1059.9 million in 2021 to reach USD 1700.1 million by 2026.
The Singapore gift card market has recorded a strong growth in the recent years across retail and corporate consumer segments. There is participation across various retail sectors and increased adoption has attracted travel companies, OTT and content platforms, as well as mobile payment providers.
The factor driving the Singapore gift and incentive card market is adopting strategies that are being pursued by gift card providers to increase their market share are having an extensive merchant network and market expansion. For instance, both Giftano and Mooments offer gift cards for well-known brands such as Lazada, Grab, and Zalora, among several others.
In times of the global pandemic, businesses across industry verticals in Singapore are looking for ways to improve their employee engagement programs. This has led to increased spending on corporate incentives such as gift cards and meal coupons over the last four to eight quarters. The trend also supported the virtual gift cards market’s growth in Singapore.
For instance, according to Q3 2021 data from Deliveroo for Work (DfW), the corporate arm of Deliveroo, DfW has experienced an increase of 400% month-on-month in the sales of virtual gift cards, which allows firms to provide one-time-off incentives. According to the company, businesses from the tech and fintech sectors have purchased the most virtual gift cards for their employees in Singapore in Q3 2021. For individual meal allowances, DfW has experienced an increase of 135% compared to Q3 2020.
The announcement and extension of the Stabilization Phase in Singapore have further set the tone for the growth of the corporate gift card segment. Consequently, virtual gift cards are projected to stay in demand for corporate firms in the next three to four quarters.
Despite being a small island nation, the e-commerce market in Singapore is one of the largest in Southeast Asia. The growth in the e-commerce sector has been accelerated ever since the start of the global pandemic.
Notably, e-commerce sales are projected to hit US$8.2 billion in 2021. This growth in the Singaporean e-commerce industry, along with the rising number of online shoppers, is driving the adoption of gift cards in the country.
The Saudi Arabia gas hobs market is moderatly consolidated in nature, In terms of market share. Some of the major international players operating currently dominate the market. However, with technological advancements and product innovation, mid-size to smaller companies is increasing their market presence by securing new contracts and by tapping new markets. Some of the major players in the market include NTUC FairPrice Co-operative Pte Ltd, Dairy Farm International Holdings Ltd, Shen Siong Supermarket Pte Ltd, and Takashimaya Co Ltd.
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According to the Q4 2021 Global Gift Card Survey, gift card industry in the country is expected to grow by 11.7% on annual basis to reach USD 1183.5 million in 2022. Despite near-term challenges in 2022, medium to long term growth story of gift cards in Singapore remains strong. The gift card industry in Singapore 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 9.5% during 2022-2026. The gift card market in the country will increase from USD 1059.9 million in 2021 to reach USD 1700.1 million by 2026.
The Singapore gift card market has recorded a strong growth in the recent years across retail and corporate consumer segments. There is participation across various retail sectors and increased adoption has attracted travel companies, OTT and content platforms, as well as mobile payment providers.
The factor driving the Singapore gift and incentive card market is adopting strategies that are being pursued by gift card providers to increase their market share are having an extensive merchant network and market expansion. For instance, both Giftano and Mooments offer gift cards for well-known brands such as Lazada, Grab, and Zalora, among several others.
Key Market Trends
Increase in Corporate Incentives Boosting Sales of Virtual Gift Cards in Singapore
In times of the global pandemic, businesses across industry verticals in Singapore are looking for ways to improve their employee engagement programs. This has led to increased spending on corporate incentives such as gift cards and meal coupons over the last four to eight quarters. The trend also supported the virtual gift cards market’s growth in Singapore.
For instance, according to Q3 2021 data from Deliveroo for Work (DfW), the corporate arm of Deliveroo, DfW has experienced an increase of 400% month-on-month in the sales of virtual gift cards, which allows firms to provide one-time-off incentives. According to the company, businesses from the tech and fintech sectors have purchased the most virtual gift cards for their employees in Singapore in Q3 2021. For individual meal allowances, DfW has experienced an increase of 135% compared to Q3 2020.
The announcement and extension of the Stabilization Phase in Singapore have further set the tone for the growth of the corporate gift card segment. Consequently, virtual gift cards are projected to stay in demand for corporate firms in the next three to four quarters.
Projected Growth in E-Commerce is Expected to Drive the Adoption of Gift Cards in Singapore
Despite being a small island nation, the e-commerce market in Singapore is one of the largest in Southeast Asia. The growth in the e-commerce sector has been accelerated ever since the start of the global pandemic.
Notably, e-commerce sales are projected to hit US$8.2 billion in 2021. This growth in the Singaporean e-commerce industry, along with the rising number of online shoppers, is driving the adoption of gift cards in the country.
Competitive Landscape
The Saudi Arabia gas hobs market is moderatly consolidated in nature, In terms of market share. Some of the major international players operating currently dominate the market. However, with technological advancements and product innovation, mid-size to smaller companies is increasing their market presence by securing new contracts and by tapping new markets. Some of the major players in the market include NTUC FairPrice Co-operative Pte Ltd, Dairy Farm International Holdings Ltd, Shen Siong Supermarket Pte Ltd, and Takashimaya Co Ltd.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Table of Contents
1 INTRODUCTION
4 MARKET INSIGHTS AND DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- NTUC FairPrice Co-operative Pte Ltd
- Dairy Farm International Holdings Ltd
- Shen Siong Supermarket Pte Ltd
- Takashimaya Co Ltd
- Mustafa Holdings Pte Ltd
- Courts Asia Ltd
- Al Futtaim Group LLC
- Yamada Denki Co Ltd*
Methodology
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