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The Global Meal Vouchers and Employee Benefit Solutions Market size is forecast to increase by USD 23.15 billion at a CAGR of 4.95% between 2022 and 2027. The market is influenced by various key factors. Tax benefits associated with meal vouchers incentivize their adoption by employers, driving the market growth. Furthermore, the rising employment rates globally contribute to increased demand for employee benefit solutions, including meal vouchers. Moreover, the active involvement of banks in facilitating these solutions adds to the market's expansion, fostering convenience and accessibility for both employers and employees. This market analysis and report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The meals voucher segment is estimated to witness significant growth during the forecast period. The feast vouchers portion represented the most noteworthy piece of the pie in the market in the center in 2021. Meal vouchers, which can be used to buy food at restaurants or grocery stores, must be provided to employees by their employers. The tax regime's tax exemption benefits are primarily responsible for the growth of this market segment.
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The meal voucher segment was the largest segment and was valued at USD 50.78 billion in 2017. Some of the Companies operating in this segment are expanding their service offerings by launching new meal vouchers. They will have the flexibility of loading, transferring, and withdrawing funds to Obopay's wallet as part of their meal voucher which contains a primary digital account. Such developments in the market in focus are expected to positively influence the demand for more meal vouchers during the forecast period.
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Europe is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in Europe is growing, primarily due to the evolving buying patterns of consumers, such as the preference for making online payments and digital payment methods. The establishment of new regulations on the provision of meal vouchers is a priority for some countries in this region. Such regulations can encourage employees in the region to use electronic or digital meal vouchers during the forecast period.
The market offers a comprehensive range of financial and health-related employee benefits solutions, including meal vouchers, travel vouchers, and gift vouchers, aimed at promoting financial well-being, overall health, and workforce satisfaction. By leveraging leading industry players and innovative technologies such as meal cards and electronic vouchers, businesses can effectively motivate employees, increase workplace productivity, and foster team engagement across various sectors, from office professionals to restaurant staff and employees working from home. With the integration of real-time data and flat-rate meal programs, companies can enhance employee welfare policies, improve employee retention rates, and optimize employee productivity within the Human Resource & Employment Services and Commercial & Professional Services Type industries. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The tax benefits of meal vouchers are driving the growth of the market. The tax advantages associated with meal vouchers are propelling the growth of the market. Across the globe, companies offering vouchers, food coupons, or prepaid cards to employees often receive tax exemptions, contributing to their financial well-being. In India, for instance, meal vouchers availed by employees are excluded from taxable income, as per the regulations of the Income Tax Department, Government of India, there are tax benefits associated with free food and beverages provided to employees. For instance, meals exceeding INR 50 (USD 0.77) per meal are fully taxable, with the excess amount minus the contribution by the employee considered a taxable prerequisite. These tax benefits extend to various scenarios, including the provision of meals and beverages during working hours in remote areas or offshore installations, fostering overall health and workforce satisfaction.
Such initiatives not only motivate employees but also increase workplace productivity and foster team engagement. Leading industry players in human resource and employment services capitalize on these benefits by offering meal cards and other health wellness solutions. Whether through paper-based coupons or electronic vouchers, these offerings align with employee welfare policies and contribute to higher employee retention rates and productivity levels. This trend is expected to drive significant growth in the global market during the forecast period.
The shift toward digital meal vouchers and employee benefit solutions is a primary trend in the market. A major reason for a shift to digital wallets and payment methods was an increasing number of internet users in developing countries, as well as the growing use of mobile Internet and smartphones. Some government organizations also provide support for the development of Internet infrastructure in various countries. Companies like Sodexo Group and Edenred, the key players in the market, processes will be automated and digitized, giving clients and staff associated with them a personalized service.
However, this means that, in addition to technological progress in the sector, Companies will have new opportunities to increase their returns through the innovation of their products and services. Favorable government policies also drive the adoption of digital payment modes. Such regulations also encourage employees to use electronic or digital meal vouchers, thereby, it is expected to drive the growth of the market during the forecast period.
Data privacy and security issues are major challenges in the market. Businesses have reaped tremendous benefits from technological advancements and digitization, but these advantages and opportunities often come with hazards. Data theft is one major threat to the market. Personal data of workers and staff employed by business partners shall be collected and stored through applications and cards offered by service providers. This data is protected by a number of Companies that use secure technologies available to them.
However, any vulnerability in the servers or mobile apps could pose a threat to privacy and may impact the businesses of the considerable players in the market. In this age of digitization, data plays a huge role in everyday life. Food delivery platforms can also be used by consumers to order online. All apps store and synchronize the details of your personal consumer information. If there is not sufficient security, this critical data and information can be stolen by hackers or phishing attacks. Therefore, Companies should ensure that all their beneficiary- and client-related data are safe and protected. These factors will hinder the growth of the global market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Meal Vouchers and Employee Benefit Solutions Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alelo - The company offers meal vouchers and employee benefit solutions such as Alelo Benefit, a comprehensive employee benefits program including meal vouchers, transportation benefits, and more.
This market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market addresses the financial well-being and overall health of the workforce, offering solutions such as meal coupons, travel vouchers, and gift vouchers. These health-related policies not only motivate employees but also increase workplace productivity and foster team engagement. Leading industry players provide various options like meal cards, digital cards, and gift coupons to support financial wellness and health wellness among professionals. These solutions, offered by Human Resource & Employment Services and other commercial & professional services, cater to business organizations globally, promoting productivity and well-being in the workplace. Whether through lunch pass cards for office professionals or electronic vouchers for employees working from home, these solutions facilitate real-time data management and are supported by government agencies.
The market offers various options, including commercial & professional services types, book cards, and paper-based coupons, to address the welfare of the working-class population. Solutions such as flat-rate meal programs and lunch and breakfast coupons are designed to enhance employee productivity and satisfaction, while also contributing to employee retention rates. Government initiatives, like those in the Czech Republic, influence social insurance changes and impact the purchasing power of employees. Companies like Circula Benefits provide products that cater to employee engagement and address financial benefits. However, concerns such as data security issues may hamper demand, especially among small-sized organizations. It's essential to navigate these challenges to ensure the effective implementation of employee benefit policies.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Meal Vouchers And Employee Benefit Solutions Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.95% |
Market growth 2023-2027 |
USD 23.15 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.87 |
Regional analysis |
Europe, South America, APAC, North America, and Middle East and Africa |
Performing market contribution |
Europe at 35% |
Key countries |
Japan, France, Italy, Spain, and Brazil |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alelo, Alera Group Inc., Axis Bank Ltd., Certify Inc., Circula GmbH, CIRFOOD s.c., Edenred SE, Electrum Fintech Solutions Pvt. Ltd., Empyrean Benefits Solutions Inc., Hrmony GmbH, ICICI Bank Ltd., Monizze NV SA, PayPal Holdings Inc., PIB Group Ltd., Set Corporate Services Inc., Sodexo SA, SPENDIT AG, SWILE, The Up Group Ltd., UniCredit SpA, Unum Group, VA Tech Ventures Pvt. Ltd., and Zaggle Prepaid Ocean Services Pvt. Ltd. |
Market dynamics |
Market trends and analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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