Market Trends of Singapore Gift Card and Incentive Card Industry
This section covers the major market trends shaping the Singapore Gift Card & Incentive Card Market according to our research experts:
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 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. DfW has experienced an increase of 135% for individual meal allowances 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 e-commerce sector's growth has 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.
