United States Loyalty Programs Market Report 2024: A $42.83 Billion Industry by 2029

U.S. Loyalty Programs Market

Dublin, Feb. 14, 2024 (GLOBE NEWSWIRE) — The “United States Loyalty Programs Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics – Q1 2024 Update” report has been added to ResearchAndMarkets.com’s offering.

Loyalty market in the United States is expected to grow by 10.4% on an annual basis to reach US$30.38 billion in 2024.

In value terms, the loyalty market in the country has recorded a CAGR of 11.8% during 2019-2023. The loyalty market in the country will continue to grow over the forecast period and is expected to record a CAGR of 9.0% during 2024-2028. The loyalty market in the country will increase from US$27.52 billion in 2023 to reach US$42.83 billion by 2028.

The loyalty program market is poised for steady growth over the medium term in the United States. Firms, across sectors, are seeking to revamp their loyalty programs to meet the changing consumer needs and drive accelerated revenue growth. This trend is expected to drive the competitive landscape in the United States loyalty programs industry over the medium term.

The loyalty program market is also experiencing innovation in the food delivery sector in the United States. Firms are integrating with merchant’s loyalty programs to outcompete rival aggregators on discounts and deals. Overall, the publisher maintains a positive growth outlook for the United States loyalty and reward programs industry from the short to medium-term perspective.

Firms are expanding their loyalty programs to new categories to aid business growth in the United States

To attract more customers and generate accelerated revenue, firms are seeking to leverage their loyalty and reward programs by expanding the benefits to new categories in the United States.

American Airlines, in October 2023, launched the AAdvantage Business loyalty program targeting business customers. The new loyalty program will enable businesses and their employees to earn points and miles for booking trips directly through the airline. As corporate travel continues to recover, American Airlines is hoping to generate higher revenue through the business travel category over the medium term.

Story continues

Visa, in October 2023, also expanded loyalty offers and access to innovative products to small businesses. This is part of the firm’s strategy to support the growth of the SME sector in the United States. The Instant Savings program, offered by Visa to small businesses, provides over 40 discounted offers, which can be redeemed at merchant websites without enrolment.

From the short to medium-term perspective, the publisher expects more firms to expand their loyalty and reward program offerings to new categories. This will support the growth of the broader market in the United States.

Food and grocery delivery firms are integrating with merchant loyalty programs to beat the competition in 2024

The food and grocery delivery sectors are poised for accelerated growth over the medium term. However, with the projected growth rate, competition in the sector is also rising rapidly in the United States. Consequently, to stay ahead of the competition firms are adopting innovative strategies to aid growth and market share.

Instacart, for instance, has integrated with the merchant’s loyalty program in 2023. This is part of the firm’s strategy to outcompete rival aggregators on discounts and deals in the United States. In a letter to shareholders, the firm revealed that the loyalty program integrations with retailers like Albertsons, Kroger, and Wegmans have helped the firm drive sales. Notably, the purchases linked to loyalty memberships have also grown nearly 25% in the previous quarter.

With online grocery penetration expected to increase substantially over the next few years, these strategic initiatives are expected to aid the growth of Instacart in the United States. This will also support the growth of the broader loyalty programs industry over the next three to four years.

The United States Department of Transportation is investigating airline loyalty programs

Loyalty programs are a lucrative business opportunity for airlines. United Airlines, for instance, created a separate entity valued at US$22 billion for its United MileagePlus frequent flier program. Delta Air Lines, in 2022, earned US$5.7 billion through its partnership with American Express for co-branded credit cards. However, amid rising inflation, airline carriers have revamped their loyalty programs. These changes require consumers to earn more points to achieve the initially marketed benefits.

There have been reports indicating that airlines are modifying their point systems in manners perceived as unfair to consumers. This includes the devaluation of points, wherein it now requires more points than initially advertised to attain the promised rewards. The Consumer Financial Protection Bureau report has highlighted unfair and deceptive practices in frequent flyer programs.

This has urged the Department of Transportation (DOT) to investigate loyalty programs. The DOT is investigating whether airlines have made it harder for customers to use their loyalty program miles by lowering their value, making it tougher to book tickets with rewards. Furthermore, the government agency is also looking into how airlines inform their customers about changes to the loyalty program.

This report provides a detailed data-centric analysis of the loyalty market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics.

Key Attributes:

Scope

United States Retail Sector Spend Value Trend Analysis

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

Value Accumulated and Value Redemption Rate of Loyalty programs in United States

United States Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains

• Loyalty Schemes

• Loyalty Platforms

United States 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

United States Loyalty Spend Market Size and Future Growth Dynamics by Channel

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

United States 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

United States 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

United States 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

United States 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

United States 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

United States Loyalty Spend Market Size and Future Growth Dynamics by Accessibility

• Card Based Access

• Digital Access

United States Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type

• B2C Consumers

• B2B Consumers

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

• Free

• Free + Premium

• Premium

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

• Analytics and AI Driven

• Management Platform

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

• In House

• Third Party Vendor

United States Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment

United States Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms

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

• Custom Built Platform

• Off the Shelf Platform

United States Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour

• By Age Group

• By Income Level

• By Gender

For more information about this report visit https://www.researchandmarkets.com/r/3ftl2p

About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Attachment

CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood,Senior Press Manager [email protected] For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900