According to the Q1 2022 Global Loyalty Programs Survey, Loyalty Programs Market in Singapore is expected to grow by 12.4% on annual basis to reach US$ 700.1 million in 2022. In value terms, the Loyalty Programs Market in Singapore has recorded a CAGR of 13.1% during 2017-2021. The Loyalty Programs Market in Singapore will continue to grow over the forecast period and is expected to record a CAGR of 12.0% during 2022-2026. Loyalty Programs Market in the country will increase from US$ 622.7 million in 2021 to reach US$ 1101.5 million by 2026.
In Singapore, consumers are always on the lookout for ways to add more value to their purchases. With the ever-changing consumer behavior, Singaporeans not only expect to be instantly rewarded for shopping at their favorite brands and use the rewards immediately at the point of sale, but they also expect optimal engagement with brands. As consumers continue to seek personalization, loyalty programs have started to become a key growth factor for businesses in Singapore.
According to the Q1 2022 Global Loyalty and Rewards Market Survey, more than 80% of the consumers stated that they would want to shop from a brand that has a loyalty program. Moreover, around 75% of the consumers stated that being part of the loyalty program encourages them to spend more with the retailers in Singapore. Based on these insights, brands and retailers need to prioritize giving their customers a personalized loyalty program that will meet the demand of the consumers in the country.
As consumers in increasing number seek out ways to add more value to their purchases, loyalty programs are helping retailers in Singapore to drive more consumer visits and heavier purchasing, especially in a saturated retail landscape. Over the next two to three years, the publisher expects more brands and businesses across different industry verticals to launch personalized loyalty programs for consumers in the country.
The growing loyalty and rewards programs landscape in Singapore has also given rise to startups that are launching innovative products to gain a market share in the industry. Notably, to compete with big players and drive their growth, startups in Singapore are also raising funding rounds from global and regional private equity and venture capital firms. As these startups continue to innovate in the industry, the publisher expects the competition to further intensify from the short to medium-term perspective, which will subsequently.
Mergers and acquisitions are rising in the Singaporean loyalty and rewards programs market
In the midst of the growing loyalty market industry in Singapore, global Fintech firms are looking to expand their footprint in Singapore and in other Southeast Asian markets. Consequently, firms are entering into mergers and acquisition deals to acquire Singapore-based loyalty and rewards programs providers. For instance,
In April 2021, Pine Labs, the India-based merchant payments startup, announced that the firm had acquired Fave, one of the leading loyalty program providers in Singapore. The deal, which valued Fave at US$45 million, will allow Pine Labs to grow its consumer payments business across the Southeast Asian market.
The merger and acquisition deal also means that the Singapore-based loyalty program provider will be able to expand its operations in India. With more and more merchants in India looking to drive customer engagement, the publisher expects Fave loyalty programs to gain considerable market share in India from the short to medium-term perspective.
Startups are raising funds to disrupt the loyalty industry in Singapore
Globally, there are billions of dollars in unused air miles. Consumers either find redeeming their loyalty points inconvenient, or they simply have no use for the promotions offered. To change this and to let consumers use their loyalty points more effectively, startups are innovating with their services and are also raising funding rounds to disrupt the loyalty industry in Singapore and globally. For instance,
In January 2022, Giift, one of the leading loyalty management solutions startups, announced that the firm had raised US$50 million in its Series C funding round, which was led by Apis Growth Fund II. Acting on the belief that the in-house, traditional points and redemption system were outdated, the startup developed an end-to-end technology that reduces touch points and covers all needs of point issuers, merchants, and users.
Notably, the firm is planning to use the funding round to further expand its footprint in the global loyalty program industry. Through the newly infused capital, the firm is aiming to expand resources in the APAC and Africa region while building its market share in North America and Europe. In addition to this, the firm is also expected to invest further in its proprietary loyalty technology and platform.
As these startups continue to innovate and expand their market share in the global loyalty program industry, the publisher expects these firms to raise more funding round from the short to medium-term perspective. This will further intensify competition and innovation in the sector, thereby driving the growth of the overall industry over the next four to eight quarters.
Buy now, pay later firms are launching loyalty programs for their users in Singapore
Over the last two to three years, the popularity of innovative payment methods such as buy now pay later (BNPL) has surged significantly globally. Notably, the trends are similar in Singapore, where an increasing number of consumers, especially the young generation, are flocking toward the use of BNPL payment solutions. With the growing competition among BNPL providers, firms are now resorting to the use of loyalty programs to make their service more attractive to consumers in Singapore. For instance,
In September 2021, Atome, one of the leading BNPL providers in Singapore, announced that the firm is launching a new loyalty program for its users in Singapore. Through Atome+, the loyalty program service of Atome, shoppers in Singapore will earn loyalty points for every in-store and online purchase made through Atome.
Notably, consumers can then redeem their accumulated loyalty points against future purchases at selected merchants, including Pedro, Melissa, Kinohimitsu, and LEGO. Moreover, they can also use the points to offset future transactions. Notably, each Atome+ point is equivalent to US$1, which makes the loyalty program more attractive for consumers in the country.
Reasons to buy
In-depth Understanding of Loyalty Programs Market Dynamics: Understand market opportunities and key trends along with forecast (2017-2026).
Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate loyalty strategy; assess market specific key trends, drivers, and risks in the industry.
Key Topics Covered:
1 About this Report
2 Singapore Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators, 2017-2026
3 Singapore Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains, 2017-2026 3.1 Singapore Loyalty Spend Share by Functional Domains, 2017-2026 3.2 Singapore Loyalty Spend Value by Loyalty Schemes, 2017-2026 3.3 Singapore Loyalty Spend Value by Loyalty Platforms, 2017-2026
4 Singapore Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type, 2017-2026 4.1 Singapore Loyalty Spend Share by Loyalty Program Type, 2021 Vs 2026 4.2 Singapore Loyalty Spend Value by Point-based Loyalty Program, 2017-2026 4.3 Singapore Loyalty Spend Value by Tiered Loyalty Program, 2017-2026 4.4 Singapore Loyalty Spend Value by Subscription Loyalty Program, 2017-2026 4.5 Singapore Loyalty Spend Value by Perks Loyalty Program, 2017-2026 4.6 Singapore Loyalty Spend Value by Coalition Loyalty Program, 2017-2026 4.7 Singapore Loyalty Spend Value by Hybrid Loyalty Program, 2017-2026
5 Singapore Loyalty Spend Market Size and Future Growth Dynamics by Channel, 2017-2026 5.1 Singapore Loyalty Spend Share by Channel, 2017-2026 5.2 Singapore Loyalty Spend Value by In-Store, 2017-2026 5.3 Singapore Loyalty Spend Value by Online, 2017-2026 5.4 Singapore Loyalty Spend Value by Mobile, 2017-2026
6 Singapore Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors, 2017-2026 6.1 Singapore Loyalty Spend Share by Key Sectors, 2021 Vs 2026 6.2 Singapore Loyalty Spend Value in Retail, 2017-2026 6.3 Singapore Loyalty Spend Value in Financial Services, 2017-2026 6.4 Singapore Loyalty Spend Value in Healthcare & Wellness, 2017-2026 6.5 Singapore Loyalty Spend Value in Restaurants & Food Delivery, 2017-2026 6.6 Singapore Loyalty Spend Value in Travel & Hospitality (Cabs, Hotels, Airlines), 2017-2026 6.7 Singapore Loyalty Spend Value in Telecoms, 2017-2026 6.8 Singapore Loyalty Spend Value in Media & Entertainment, 2017-2026 6.9 Singapore Loyalty Spend Value in Others, 2017-2026
7 Singapore Loyalty Spend Market Size and Future Growth Dynamics by Retail, 2017-2026 7.1 Singapore Loyalty Spend Share by Retail Segments, 2021 Vs 2026 7.2 Singapore Loyalty Spend Value by Diversified Retailers, 2017-2026 7.3 Singapore Loyalty Spend Value by Department Stores, 2017-2026 7.4 Singapore Loyalty Spend Value by Specialty Stores, 2017-2026 7.5 Singapore Loyalty Spend Value by Clothing, Footwear & Accessories, 2017-2026 7.6 Singapore Loyalty Spend Value by Toy & Hobby Shops, 2017-2026 7.7 Singapore Loyalty Spend Value by Supermarket and Convenience Store, 2017-2026 7.8 Singapore Loyalty Spend Value by Home Merchandise, 2017-2026 7.9 Singapore Loyalty Spend Value by Other, 2017-2026
8 Singapore Loyalty Spend Market Size and Future Growth Dynamics by Accessibility, 2017-2026 8.1 Singapore Loyalty Spend Share by Accessibility, 2021 Vs 2026 8.2 Singapore Loyalty Spend Value by Card Based Access, 2017-2026 8.3 Singapore Loyalty Spend Value by Digital Access, 2017-2026
9 Singapore Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type, 2017-2026 9.1 Singapore Loyalty Spend Share by Consumer Type, 2021 Vs 2026 9.2 Singapore Loyalty Spend Value by B2C Consumers, 2017-2026 9.3 Singapore Loyalty Spend Value by B2B Consumers, 2017-2026
10 Singapore Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms, 2017-2026 10.1 Singapore Loyalty Spend Share by Loyalty Platform, 2021 Vs 2026 10.2 Singapore Loyalty Spend Value by Software, 2017-2026 10.3 Singapore Loyalty Spend Value by Services, 2017-2026
11 Singapore Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms, 2017-2026 11.1 Singapore Loyalty Spend Share by Software Platforms, 2021 Vs 2026 11.2 Singapore Loyalty Spend Value by Custom Built Platform, 2017-2026 11.3 Singapore Loyalty Spend Value by Off the Shelf Platform, 2017-2026
12 Singapore Loyalty Spend Market Size and Forecast by Consumer Demographics & Behavior, 2021 12.1 Singapore Loyalty Spend Share by Age Group, 2021 12.2 Singapore Loyalty Spend Share by Income Level, 2021 12.3 Singapore Loyalty Spend Share by Gender, 2021
