Growth in Iran’s Gift Card Market

Growth in Iran’s Gift Card Market
Growth in Iran’s Gift Card Market

Gift card market in 2020 was driven by a wide range of factors, which supported growth across retail and corporate segments. 
The primary factors included growth of ecommerce, increased use to incentivize employees working remotely, digital gifting and initiatives undertaken by government, hospitality and travel industries to revive growth. 
Though the gift card market was affected by Covid-19, the market is expected to bounce back in the coming quarters, especially in H1 2021.
The gift card industry in Iran has done well to withstand the impact of economic slowdown and overcome negative consumer sentiments due to disruptions caused by the virus outbreak, according to a new report by Research and Markets.
Historically, the gift card market in Iran has registered steady growth with a CAGR of 8.4% during 2016-20. 
According to the publisher's Q4 2020 Global Gift Card Survey, the Iranian gift card industry is expected to grow by 13.5% on an annual basis to reach $628.1 million in 2021.
Despite near-term challenges in 2021, the medium- to long-term growth of gift card sector in Iran remains strong. It is expected to grow steadily in H1 2021 and record a strong growth in H2 2021. The growth momentum is expected to continue over the forecast period, recording a CAGR of 11.0% during 2021-25. The gift card market in the country will increase from $553.2 million in 2020 to reach $954 million by 2025.

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