Dublin, Feb. 10, 2025 (GLOBE NEWSWIRE) — The “Canada Loyalty Programs Market Intelligence and Future Growth Dynamics – 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics – Q1 2025 Update” report has been added to ResearchAndMarkets.com’s offering.
The loyalty market in Canada is expected to grow by 14.6% on annual basis to reach US$1.78 billion in 2025. In value terms, the loyalty market in Canada has recorded a CAGR of 16.4% during 2020-2024. Canada’s loyalty market will continue to grow over the forecast period and is expected to record a CAGR of 12.3% during 2025-2029, increasing from US$1.55 billion in 2024 to reach US$2.83 billion by 2029.
This report provides a detailed data-centric analysis of the loyalty market opportunities and risks across a range of end-use sectors and market segments in Canada. 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.
Increase in Digital-First Loyalty Programs
Canadian loyalty programs are increasingly adopting digital-first strategies to enhance customer engagement. Programs like PC Optimum and Starbucks Rewards rely on apps to allow customers to earn and redeem points seamlessly. Similarly, the Aeroplan loyalty program has transitioned into a digital-first platform, offering personalized recommendations and easier redemptions through its app and website.
- Consumer demand for convenience: With growing smartphone usage, Canadian consumers expect digital and mobile access to their loyalty programs.
- Advancements in technology: Businesses are leveraging mobile apps, artificial intelligence, and data analytics to provide a seamless user experience.
- Shift to online retail: The growth of e-commerce, accelerated by the pandemic, has pushed businesses to offer loyalty solutions that cater to online shoppers.
- The transition to digital-first programs will continue to intensify as companies compete to attract younger, tech-savvy consumers. Businesses that fail to adopt digital strategies risk losing relevance in an increasingly online-first marketplace.
Expansion of Coalition Loyalty Programs
Coalition loyalty programs remain a significant part of Canada’s loyalty landscape. Programs like Aeroplan and Air Miles bring together retail, travel, and financial service partners, allowing consumers to earn and redeem points across a diverse network of businesses. For example, Air Miles works with brands like Shell, Metro, and Sobeys, while Aeroplan partners with Air Canada and other retailers.
- Mutual benefits for businesses: Coalition programs provide businesses access to a wider customer base while minimizing the cost of operating standalone programs.
- Consumer preference for flexibility: Canadians value the ability to earn and use rewards across multiple categories, which coalition programs offer.
- Coalition programs will likely expand as more businesses recognize the benefits of collaboration. However, the competitive landscape may push coalitions to evolve, offering more flexible redemption options and personalized benefits to retain customer interest.
Rise of Subscription-Based Loyalty Programs
Subscription-based loyalty models are gaining momentum in Canada. Amazon Prime leads the market with its combination of benefits, including free shipping, exclusive deals, and access to streaming services. Indigo’s Plum Plus membership offers discounts and free shipping for an annual fee, while Loblaw Companies Limited has piloted PC Insiders, providing exclusive perks for PC Optimum members.
- Demand for premium experiences: Consumers are willing to pay for memberships that provide added value and exclusivity.
- Revenue diversification: Businesses see subscription models as a steady revenue stream and a way to deepen customer relationships.
- Subscription-based loyalty programs are expected to grow as businesses refine their offerings to include exclusive perks and align with consumer preferences. This trend may intensify brand competition to provide meaningful value that justifies the subscription cost.
Focus on Sustainability in Loyalty Programs
Canadian loyalty programs are increasingly incorporating sustainability initiatives into their offerings. Programs like Aeroplan allow members to use points to offset flight carbon emissions. Additionally, loyalty programs like PC Optimum encourage customers to support local farmers or purchase eco-friendly products through targeted promotions.
- Consumer preference for ethical practices: Canadian consumers prioritize sustainability, and businesses respond by integrating environmentally conscious rewards.
- Corporate responsibility goals: Companies are aligning loyalty programs with broader Environmental, Social, and Governance (ESG) initiatives.
- Sustainability-focused rewards will become more common as businesses seek to differentiate themselves in a competitive market. Programs that fail to integrate sustainability may face challenges in appealing to eco-conscious consumers.
Increased Use of Personalization in Loyalty Programs
Canadian loyalty programs are leveraging data to offer personalized experiences. PC Optimum uses purchase history to provide targeted discounts, while Starbucks Rewards offers personalized drink recommendations. Aeroplan uses analytics to suggest flights and other rewards tailored to individual preferences.
- Advancements in data analytics: Improved technology enables businesses to analyze customer data and deliver tailored experiences.
- Consumer expectations for relevance: Canadians expect loyalty programs to understand their preferences and offer meaningful rewards.
- Personalization is expected to become a standard feature of loyalty programs. Businesses that invest in data analytics and customer insights will likely see stronger customer engagement and loyalty.
Adoption of Gamification Elements
Gamification is being used to enhance engagement in Canadian loyalty programs. Programs like McDonald’s MyMcD Rewards include challenges, streaks, and milestones to keep users engaged. Gamified rewards have also been integrated into platforms like PC Optimum and Starbucks Rewards, where members can unlock bonus points through specific activities.
- Need for engagement: Gamification helps businesses keep customers actively participating in loyalty programs.
- Appeal to younger demographics: Millennials and Gen Z respond positively to gamified elements, making this strategy effective for targeting these groups.
- Gamification is expected to grow as businesses seek innovative ways to engage consumers and stand out in a crowded loyalty market. However, poorly executed gamification could fail to deliver long-term engagement.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 130 |
| Forecast Period | 2025 – 2029 |
| Estimated Market Value (USD) in 2025 | $1.78 Billion |
| Forecasted Market Value (USD) by 2029 | $2.83 Billion |
| Compound Annual Growth Rate | 12.3% |
| Regions Covered | Canada |
Report Scope
This report provides in-depth, data-centric analysis of loyalty programs in Canada. Below is a summary of key market segments.
Canada Retail Sector Spend Value Trend Analysis
Canada Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators
Value Accumulated and Value Redemption Rate of Loyalty programs in Canada
Canada Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains
- Loyalty Schemes
- Loyalty Platforms
Canada 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
Canada Loyalty Spend Market Size and Future Growth Dynamics by Channel
Canada Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model
- Seller Driven
- Payment Instrument Driven
- Others
Canada 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
Canada 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
Canada 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
Canada 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
Canada 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
Canada Loyalty Spend Market Size and Future Growth Dynamics by Accessibility
- Card Based Access
- Digital Access
Canada Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type
- B2C Consumers
- B2B Consumers
Canada Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type
- Free
- Free + Premium
- Premium
Canada Loyalty Platform Spend Market Size and Future Growth Dynamics by Software Use Case
- Analytics and AI Driven
- Management Platform
Canada Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner
- In House
- Third Party Vendor
Canada Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment
Canada Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms
Canada Loyalty Spend Market Size and Future Growth Dynamics by Software Use Case Platforms
- Custom Built Platform
- Off the Shelf Platform
Canada 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/qcuyfn
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.
- Canadian Loyalty Programs Market
