Meal Vouchers & Employee Benefits Solutions Market Size, Share & Industry Analysis, By Product Type [Meal Vouchers (Book Card and Digital Card) and Employee Benefits (Meal, Gift, Travel, and Others)], and Regional Forecast, 2024-2032

The global meal vouchers & employee benefits solutions market size was valued at USD 221.99 billion in 2023 and is anticipated to grow from USD 232.61 billion in 2024 to USD 407.04 billion by 2032, exhibiting a CAGR of 7.24% during the forecast period. Europe dominated the meal voucher and employee benefit solutions market with a market share of 32.82% in 2023. Moreover, the meal voucher and employee benefit solutions market size in the U.S. reaching an estimated value of USD 112.4 billion by 2032, driven by the increasing focus on employee wellness and engagement by the employers.

Business organizations primarily capitalize on meal vouchers and employee benefit solutions with the aim of enhancing the fiscal health and welfare of their employees. These solutions cover a variety of offerings, including meal vouchers, travel and gift coupons, health-related policies, and others. Moreover, the adoption of such solutions aids employers in maintaining high levels of motivation among their workforce, thereby contributing to overall workplace productivity. Notably, leading companies in the meal vouchers & employee benefits solutions sector, such as Circula GmbH, Sodexo Group, Edenred SA, and others, are actively providing meal cards, travel vouchers, gift coupons, and diverse benefits to support the health and financial well-being of working professionals, thereby contributing to the increasing application of quality meal vouchers & employee benefits solutions market’s growth. For instance, in May 2021, Sodexo introduced the 'Lunch Pass card,' a digital meal voucher in Luxembourg, offering benefits to office professionals, restaurant staff, and also remote employees.

The COVID-19 pandemic also had a severe impact on the employee benefits market. With widespread lockdowns and remote work becoming the norm, there has been a notable shift in work patterns. Many employees began working from home, which led to changes in the utilization of traditional benefits such as meal vouchers tied to office locations. Additionally, the pandemic accelerated the digital transformation of various industries, including employee benefits. Companies increasingly adopted digital solutions such as digital meal cards and online benefits platforms to accommodate remote work scenarios. For instance, in May 2021, the Sodexo Group introduced the 'Lunch Pass,' an electronic voucher designed to assist individuals in adhering to social distancing measures amid the pandemic.

Meal Vouchers & Employee Benefits Solutions Market Trends

Inclination toward e-Voucher Systems Acts as a Key Trend for the Market

The adoption of electronic vouchers (e-vouchers) plays a pivotal role in driving the demand for meal vouchers & employee benefits solutions in the market. E-vouchers offer unparalleled convenience, allowing users to access their benefits digitally. Therefore, the ease of use and accessibility contribute to a higher adoption rate among employees, thereby increasing the overall demand for meal vouchers & employee benefits solutions. Besides, e-vouchers enable real-time redemption and tracking of benefits, providing employers with valuable insights into employee spending patterns and preferences. This transparency and data-driven approach enhance the overall management of employee benefits programs, along with increasing the preference for making online payments and digital payment methods.

Moreover, the emphasis on hygiene and safety, particularly during the COVID-19 pandemic, has led to an increased preference for contactless transactions. E-vouchers eliminate the need for physical cards or paper vouchers, contributing to a safer and more hygienic distribution of benefits. For instance, in 2020, the Czech Republic government initiated a "flat-rate meal program" to facilitate employers nationwide in offering meal vouchers to their employees.

Meal Vouchers & Employee Benefits Solutions Market Growth Factors

Rising Working Population to Intensify Product Demand

The growing number of individuals in the working population has a direct impact on the heightened demand for meal vouchers & employee benefits solutions. With a larger working population, there is a broader base of employees who are eligible for various employment benefits, including meal vouchers. The sheer size of the workforce contributes to an increased demand for such solutions. Therefore, as the workforce expands, companies recognize the importance of employee retention and motivation. Providing attractive benefits, such as meal vouchers, becomes a prominent factor in retaining old employees, thereby driving the demand for employee benefit solutions. According to the data provided by the U.S. Bureau of Labor Statistics, the participation rate of the nation's civilian labor force rose from 61.5% in March 2021 to 62.4% in March 2022.

Increasing Corporate Wellness Programs to Propel Market Growth

As corporate businesses employ millions of people in their workplaces, there has been an increasing importance for corporate wellness programs. These programs often emphasize the importance of a healthy lifestyle, including nutrition. Meal vouchers can be integrated into these programs to encourage employees to make healthier food choices, contributing to overall well-being. Moreover, wellness programs that include meal vouchers can boost employee engagement and productivity. When employees feel that their employer cares about their health, they are more likely to be motivated and focused at work, along with expanding their meal vouchers & employee benefits solutions market share in improving purchasing power and the motivation level of their employees. Thus, the perception of a company as one that prioritizes employee health and well-being can contribute to higher job satisfaction and loyalty, along with improving purchasing power and the motivation level of their employees. For instance, as outlined in the 'EBRI Financial Wellbeing Employer Survey of 2021,' issued by the Employee Benefit Research Institute (EBRI), there was a rise in the proportion of U.S. employers considering the introduction of financial well-being initiatives within their companies. Therefore, the adoption of such well-being programs in the U.S. surged from 20% in 2018 to 34% in 2021.

RESTRAINING FACTORS

Increasing the Price of Employee Benefit Solutions, Including Meal Vouchers, to Hinder Market Growth

The elevated expenses associated with meal vouchers & employee benefits solutions may impose constraints on their adoption among small-scale enterprises. Furthermore, concerns about data security in digital meal vouchers have the potential to diminish their appeal. Additionally, the utilization of paper-based meal vouchers may introduce challenges for employers due to the risk of misuse. However, some employees may encounter transactional issues and express security apprehensions. Collectively, these factors contribute to a hindrance in the demand for employee benefits solutions, including meal voucher benefits. According to information from the U.S. Bureau of Labor Statistics (BLS), the average total cost borne by employers for their civilian workers in the U.S. was USD 42.48 per hour in December 2022.

Meal Vouchers & Employee Benefits Solutions Market Segmentation Analysis

By Product Type Analysis

Increasing Adoption for Employee Motivation Activities to Surge the Demand for Employee Benefits

Based on product type, the market is divided into meal vouchers and employee benefits.

The employee benefits segment is anticipated to dominate the global market, primarily driven by the considerable demand for solutions aimed at enhancing the motivation of employees within business organizations. Furthermore, the increasing emphasis on improving operational performance has led companies to prioritize employee benefits related to health and well-being, fostering a healthier workplace environment. The growing commitment to maintaining a balanced work-life equilibrium for both male and female employees has resulted in heightened productivity levels in workplaces. Consequently, there is an escalating demand for employee benefits services, encompassing medical insurance, mental health services, gift hampers, coupons, and various other offerings.

The employee benefits segment is further sub-divided into meal, gift, travel, and others.

The meal category commands the primary share within the employee benefits segment, driven by increasing apprehensions about the negative impact of subpar meals on the health and well-being of employees. This concern enables employers to give precedence to health by providing fresh meal benefits, aiming to enhance physical health conditions and the overall well-being of their workforce. Additionally, the growing awareness among companies about diverse employee benefit alternatives, including health and sports vouchers and cultural coupons, contributes to expanding the others' segment within this domain.

The segment for meal vouchers is predicted to experience rapid growth between 2024 and 2032. This is attributed to the flexibility provided by meal vouchers, enabling employees to dine at their preferred restaurants. Additionally, these vouchers offer the convenience of selecting meals from specific restaurants, allowing employees to cater to their meal preferences. This feature is expected to enhance employee engagement, contributing to the overall improvement of the company's internal and external reputation.

The meal vouchers segment is further subdivided into book cards and digital cards.

The increasing uptake of sophisticated corporate management solutions by employers is propelling the growth of the digital cards segment. Moreover, ongoing advancements in e-meal vouchering solutions by enterprises are likely to encourage employers to embrace these innovations, leading to the expansion of the digital card segment.

Conversely, the rising inclination among employers to use economic meal vouchers, along with tax benefits of meal vouchers, is boosting the demand for book-based meal vouchers, fostering growth in the book card segment. Due to the growing instances of data theft associated with the use of digital meal voucher cards, companies are opting for book-based alternatives, thereby amplifying their sales of book cards.

REGIONAL INSIGHTS

Based on region, the global market is sectioned into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Europe held a dominant market share in 2023 for meal vouchers & employee benefits solutions, mainly due to robust government support for companies. Additionally, global players in the employee solutions market are actively expanding their presence in European countries by acquiring regional employee benefit providers such as CIRFOOD, the UP Group, and Circula GmbH. For instance, in March 2022, EML Payments Limited (EML) entered the European meal vouchers & employee benefits solutions industry through a multi-year agreement with Up Spain, signaling a strategic move to establish its regional footprint. The rapid growth of infrastructure in the hospitality and hotel industry further contributes to the anticipated fast growth rate of the European market.

North America is anticipated to capture a substantial market share, driven by the presence of prominent employee benefit solution providers and a heightened awareness of employee perks among businesses in the U.S. The extensive workforce in the U.S. is poised to facilitate the expansion of companies offering employee benefits solutions. Additionally, the region boasts a strong innovation hub characterized by intense competition among organizations striving to deliver cutting-edge solutions. These factors are expected to contribute to the accelerated meal vouchers & employee benefits solutions market growth in North America.

Asia Pacific is estimated to exhibit significant growth, driven by the employment of millions of individuals by numerous businesses in the region. Market players actively pursue diverse strategies, including partnerships and collaborations, to provide value-added solutions to clients and enhance their market share. Developing countries such as India present abundant opportunities, with employers in the region making concerted efforts to preserve high-quality talent and adopt employee benefits solutions. For example, in August 2020, Axis Bank Ltd. revolutionized traditional employment processes by introducing GIG-A-Opportunities, which embraces alternative work models to attract top-tier talent.

The rising rate of female employment is set to drive the demand for employee benefits solutions in South America. For instance, World Bank data reveals that Argentina's female labor force participation rate reached 43.21% in 2020. Additionally, the market in the region has received extensive support for its growth from the presence of leading companies such as VR Beneficios, Edenred SA, Monizze Nv SA, and others operating in Brazil, Belgium, and Argentina.

The market for meal vouchers & employee benefits solutions in the Middle East & Africa (MEA) is projected to experience gradual growth during the forecast period. The anticipated expansion is attributed to heightened business-related investments in the region and increased participation of major players in the employee benefits market, aiming to support working professionals throughout the forecast period.

List of Key Companies in Meal Vouchers & Employee Benefits Solutions Market

Growing Partnerships and Collaboration Activities Implemented by Leading Players to Favor Market Development

Major players in the meal vouchers & employee benefits solutions market are extending their partnerships and collaborations to enlarge geographical reach and enhance their competitive advantage. A notable example is Edenred's acquisition of the client portfolio of Brazil-based Cooper Card in May 2020, focusing on employee benefits solutions. The strategic move aimed to bolster Edenred's position in the South American market. Consequently, using subsidies and voucher systems stands out as one of the most effective employee retention strategies organizations adopt. This approach aims to enhance employee engagement, boost productivity, and mitigate the risk of losing valuable talent.

LIST OF KEY COMPANIES PROFILED

• Edenred SA (France)


• Sodexo Group (France)


• Circula GmbH (Germany)


• CIRFOOD (Italy)


• Monizze NV SA (Belgium)


• Spendit AG (Germany)


• Alelo Brasil (Brazil)


• Axis Bank Ltd (India)


• Rakuten Group Inc. (Japan)


• Unum Group (U.S.)


• Cinqo Group (Bahrain)

KEY INDUSTRY DEVELOPMENTS

• March 2023: Empyrean Benefit Solutions, a subsidiary of Securian Financial based in Texas, U.S., acquired Enspire, a platform focused on employee communication and engagement. This acquisition would provide American businesses with people-centric technologies for employee benefit administration and compassionate support services.


• February 2023: Edenred SA introduced the 'Ticket Superflex' multi-benefit employee platform in 2021, catering to employees in Brazil, Mexico, and France. This platform allows employees to securely, swiftly, and conveniently utilize restaurant vouchers and other gift certificates.


• December 2022: PIB Group Ltd. (PIB) bolstered its employee benefits solutions business through the acquisition of the employee benefits separation of Creative Benefit Solutions Limited in the U.K.


• July 2022: Alera Group, an independent national firm specializing in insurance and wealth management services, acquired Core Benefit Solutions, a prominent provider of employee benefits, compliance, and human resource outsourcing services. This move would help strengthen Alera Group's market presence in the U.S.


• August 2021: Up Group acquired Leeto to enhance its services by offering a complimentary digital solution to Up Group's current offerings, which include a platform enabling employees to access their benefits.

REPORT COVERAGE

The meal vouchers & employee benefits solutions market research report provides a detailed analysis of the industry and focuses on crucial aspects such as leading companies and product types. Besides, the report encompasses the latest market trends and market segments and highlights key industry developments. In addition to the factors mentioned above, the market analysis contains several factors that have contributed to the market growth in recent years.

Report Scope & Segmentation