Meal Voucher Market Size, Share & COVID-19 Impact Analysis, By Product Type (Book Card and Digital Card), and Regional Forecast, 2023-2030

The global meal voucher market size stood at USD 65.57 billion in 2022 and is projected to grow from USD 67.91 billion in 2023 to USD 105.56 billion by 2030, exhibiting a CAGR of 6.5% during the forecast period of 2023-2030. Europe dominated the meal voucher market with a market share of 38.01% in 2022.

Employers consider issuing lunch and food vouchers an efficient tool to build employees’ motivation while working. In addition, such products better fulfill the employees’ food needs at the workplace. Nowadays, companies partner with technology firms to develop innovative food ordering platforms and build user engagement in availing meal couponing schemes. Such efforts by companies are effectively contributing to the global meal voucher market growth. For instance, in April 2022, Tazz, a food delivery platform, in collaboration with Sodexo, a French food services and facility management company, launched 'The Gusto Pass Power Card'. This meal voucher was launched to offer an enhanced food ordering experience to working professionals.

COVID-19 IMPACT:

Closure of Restaurants Due to COVID-19-Induced Lockdowns Lowered Product Demand

The closure of restaurants and dine-in outlets due to the COVID-19-related lockdowns lowered the demand for meal vouchers in many countries globally. During the pandemic, the widespread adoption of the work-from-home culture among corporate professionals reduced the necessity to use meal coupons in restaurants. This aspect negatively impacted the market growth. According to the data presented by the National Restaurant Association, during the COVID-19 pandemic, around 90,000 drinking and eating establishments in the U.S. remained permanently closed.

LATEST TRENDS

Shifting Consumer Preference Toward Digital Employee Benefit Solutions to Favor Market Growth

Shifting consumer preference toward digital meal cards and continuous efforts by companies to develop innovative meal coupon platforms are favoring the market growth. In addition, increasing trends of cashless and contactless payment transactions will likely accelerate the digital food coupon demand globally. As per Edenred S.A.’s Food Survey published in 2021, more than 67% of European workers said that they had used the click-and-collect meal delivery services either at their office or while working from home.

DRIVING FACTORS

Growing Investments by Companies in Employee Benefit Solutions to Boost Market Growth

Investing in employee benefit plans, such as meal vouchers is a strategic decision that has a range of benefits for the company and its employees. Increase in employers' spending on employee benefit services is driving the market growth. Nowadays, offering lunch card plans can set a firm apart from its competitors in terms of benefit packages, which is a strategic move by companies to achieve a competitive advantage in the job market. This aspect will likely increase employers’ spending on food couponing-related services and accelerate the market growth. According to the data published by the U.S. Bureau of Labor Statistics (BLS), as of 2022, employee benefits accounted for around 29.6% of the average cost per U.S.-based industry employee, which is USD 11.42 per hour.

Increasing Number of Working Professionals to Augment Product Demand

The rising number of working professionals and significant consumer demand for food coupons and gift cards are driving the global market growth. According to the statistical data published by the Ministry of Statistics and Programme Implementation (MOSPI), the employment rate in India increased to 45.20% in the first quarter of 2023 from 44.70% in the fourth quarter of 2022. Furthermore, the growing trend of online food ordering will likely increase the usage of digital food coupons among employees and accelerate the global market growth.

RESTRAINING FACTORS

Rising Incidence of Data Theft While Using Digital Vouchers to Impact Market Progres

Digital meal programs often require users to upload personal information, such as their names, email addresses, and sometimes even financial details for transactions. Rising incidence of data theft or transaction failure during the usage of digital coupons are limiting the product demand globally. In addition, loss of physical meal cards by employees are restraining the market development.

SEGMENTATION

By Product Type Analysis

Significant Adoption of Digital Vouchering Solutions among Employers to Boost Demand for Digital Cards

Based on product type, the market is segmented into book cards and digital cards. Significant adoption of digital vouchering solutions among employers will help the digital cards segment hold a major meal voucher market share. Furthermore, the rising number of online food delivery services accepting digital food coupons is accelerating the segment’s revenue. For instance, Just Eat, a Netherlands-based online food delivery platform, processed around 984 million food orders from its 90 million active customers in 2022.

Employers are trying to provide their employees with paper-based meal vouchers to avoid data theft and smartphone network issues while using digital meal vouchers. This factor is expected to drive the book card segment’s growth.

REGIONAL INSIGHTS

The international market is segregated into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Europe has been dominating the global market share due to the greater usage of gift vouchers and lunch cards among corporate professionals in the U.K., Italy, and Germany. In addition, an increasing number of mid-sized organizations prefer giving meal vouchers to their employees for tax benefit purposes in the U.K., Belgium, and the Netherlands. This factor will favor the regional market’s growth. According to the data published by the House of Commons Library, the Government of U.K., as of January 2022, 5.5 million private sector businesses were operating in the U.K.

North America accounted for a considerable market share in 2022 due to a significant demand for food coupons among employers to provide perks to their employees in the U.S. and Canada, and better contribute to their well-being. Furthermore, Uber Technologies, Inc., Sodexo Group, Edenred S.A., and other companies’ efficient food vouchering systems are elevating the employees' meal experiences with budget-friendly offers. These factors are accelerating the adoption of such solutions among employers across the region. For instance, in May 2022, Uber Technologies, Inc., an American food delivery and ride-hailing services company, announced that it had redesigned its lunch card dashboard to elevate the experience of Canadian customers, guests, and employees while using their card during weddings, gatherings, and corporate functions.

Nowadays, Chinese and Japanese employers are providing shopping gift cards and food vouchers to build the motivation of employees while working at offices. This aspect will significantly increase the product demand in Asia Pacific.

The market in South America is mainly driven by the significant presence of local and international companies, such as Edenred S.A., VR Beneficious, and Monizze Nv SA in Brazil and Argentina.

Employers are also providing paper-based meal vouchers to encourage employees to adopt the work-from-office culture post the COVID-19 pandemic. This will support the product demand in South Africa. As per the surveyed data published by M-Kula, an African meal benefit solutions provider, 80% of African firms started giving staff snacks to the employees working remotely during the COVID-19 pandemic.

KEY INDUSTRY PLAYERS

Key Players’ Continuous Efforts to Upgrade Products Will Help Them Cope with Market Competition

The key players in the global market are focusing on adopting various strategies to strengthen their foothold in the market. They are introducing upgraded versions of digital meal vouchers to build a merchant and customer base in the global market. For instance, in May 2021, Sodexo launched the ‘Lunch Pass card,’ a meal card in the Luxembourg market. The card is beneficial to customers, including the office, restaurant, and home employees. The product was claimed to be equipped with special features, including take-away and home delivery solutions. The new pass card was an electronic voucher that helped individuals comply with social distancing norms during the COVID-19 pandemic.

LIST OF KEY COMPANIES PROFILED:

• Edenred SA (France)


• The Up Group (France)


• Sodexo Group (France)


• Alelo (Brazil)


• Asinta (U.S.)


• Axis Bank Limited (India)


• Cinqo Group (Bahrain)


• Circula GmbH (Germany)


• CIRFOOD International (Italy)


• Emburse, Inc. (U.S.)


• Monizze Nv SA (Belgium)


• Rakuten Group Inc. (Japan)


• SPENDIT AG (Germany)


• Swile (France)


• Unum Group (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2023: Alelo established a partnership with WeWork to expand its business of Alelo Workpass office vouchers among the latter’s employer network in Argentina, Mexico, Colombia, and Chile.


• May 2023: Up Luxembourg, a business intelligence start-up, announced its plan to launch digital meal voucher services as a part of its employee benefit solutions in Luxembourg.


• January 2022: Sodexo Group acquired Frontline Food Services, an American provider of break-time food service refreshments, and VendEdge, a vending services provider, to expand its digital food service capabilities in North America.


• October 2021: Swile raised funds worth USD 183.53 million (EUR 173 million) in a Series D round of investment led by SoftBank Group to improve its business presence in France, Brazil, and Latin America.


• May 2021: Sodexo launched the ‘Lunch Pass card,’ a meal card in the Luxembourg market. The card is beneficial to anyone, including the office, restaurant, or home employees. The product is equipped with special features, including take-away and home delivery solutions. The new pass card was an electronic voucher that helped individuals comply with social distancing norms during the COVID-19 pandemic.

REPORT COVERAGE

The research report provides a detailed analysis of the market and focuses on key aspects, such as leading companies and key product types. Besides this, the report offers insights into the current market trends and highlights key industry developments. In addition to the aforementioned factors, the report has covered several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation