Dublin, Feb. 06, 2026 (GLOBE NEWSWIRE) — The “Europe Loyalty Market Size & Forecast by Spend Value Across 100+ KPIs by Program Type, Channel Mix, Sector, Embedded Loyalty Penetration, and Platform Spend Segmentation – Databook Q1 2026 Update” report has been added to ResearchAndMarkets.com’s offering.
The loyalty market in Europe is expected to grow by 14.1% annually, reaching US$18.8 billion by 2026. The loyalty market in the region has experienced robust growth during 2021-2025, achieving a CAGR of 16.2%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 11.9% from 2026 to 2030. By the end of 2030, the loyalty market is projected to expand from its 2025 value of US$16.5 billion to approximately US$29.5 billion.
Competitive Landscape
Fewer, larger platforms will provide the loyalty operating layer (wallet passes, offer decisioning, and identity), while airlines and coalitions deepen partner networks to protect the relevance of earn/burn. Expect more vendor consolidation and retailer build-vs-buy decisions driven by checkout integration needs and compliance requirements.
Current State of the Market
- Competitive intensity is high because loyalty is now tied to pricing, payments, and identity at checkout, not just points and campaigns. Retailers and platforms are competing to control the customer relationship across channels (store, app, delivery, marketplace).
- The market is split between (a) scaled “owner ecosystems” (grocers, marketplaces, airlines) that run loyalty as a core operating system, and (b) technology vendors that sell the tooling (personalisation, challenges, wallet passes, offer decisioning) to everyone else. This creates constant pressure on mid-tier retailers to modernise or risk losing share of wallet.
Key Players and New Entrants
- Retail / platform-led loyalty owners: Tesco Clubcard (UK), Carrefour (France), REWE/Payback ecosystem (Germany/Austria), and airline groups using loyalty as a profit engine (IAG’s Avios; Air France-KLM’s Flying Blue; Lufthansa Group’s Miles & More).
- Loyalty & promotion tech vendors (Europe-based): Eagle Eye (UK), Voyado (Sweden), Talon.One (Germany), Antavo (UK/Europe delivery). These firms increasingly compete with marketing clouds by owning “decisioning” at the transaction layer.
- New entrants/adjacent players: wallet-native “pass” mechanics are expanding as an alternative to standalone apps (e.g., PAR Punchh Smart Passes positioning).
Key Trends and Drivers
- Shift loyalty from a marketing layer to a core transaction mechanic
- Loyalty in Europe is increasingly embedded directly into checkout, payment, and fulfilment flows, rather than operating as a separate engagement layer. In France, Carrefour has continued to integrate Club Carrefour benefits directly into its omnichannel checkout experience, aligning discounts and personalised pricing with identified customers at the point of sale. In Germany, REWE Group has reinforced app-based identification at checkout, ensuring loyalty benefits trigger automatically without requiring the customer to take any additional steps.
- European retailers face sustained pressure on margins and are prioritising repeat behaviour and basket consistency over campaign-led engagement. Fragmented loyalty apps have shown limited impact; embedding loyalty into the transaction reduces friction and increases certainty of benefit delivery. Advances in POS-app integration across European grocery and convenience formats make this operationally feasible at scale.
- Loyalty will increasingly be evaluated as part of retail infrastructure, not a marketing programme. Programs that remain optional or detached from payment flows are likely to lose relevance.
Use coalition and ecosystem models to extend loyalty reach beyond a single retailer
- European markets are seeing renewed emphasis on multi-partner loyalty ecosystems that aggregate daily spend categories. In Italy, Nexi continues to position loyalty as a service layer for banks and merchants, enabling rewards to operate across multiple acceptance points. In Austria, Payback remains central to grocery, fuel, and pharmacy spend, reinforcing coalition loyalty as a distribution channel rather than a promotion tool.
- Single-merchant programs struggle to achieve daily relevance outside grocery or fuel. Coalition models allow cost sharing while increasing the frequency of earn-and-burn opportunities. Banks and payment players view loyalty as a method to defend transaction volumes and customer stickiness.
- Coalition loyalty is likely to consolidate around fewer, larger-scale platforms per country. Retailers outside essential categories will increasingly rely on ecosystems rather than standalone schemes.
Reposition loyalty value from long-term rewards to immediate, usable benefits
- European loyalty programs are reducing emphasis on deferred rewards and focusing on instant value, such as price reductions, checkout credits, or immediate vouchers. In Switzerland, Coop continues to promote point redemption directly at checkout, positioning points as a spendable balance rather than a future reward. In Spain, El Corte Ingles has reinforced its card-linked benefits, which deliver value at the time of purchase.
- High inflation sensitivity across Europe has reduced consumer appetite for delayed gratification. Retailers seek clearer attribution between loyalty and sales outcomes, which immediate benefits enable. Accounting and liability management also favour faster redemption cycles.
Programs will increasingly resemble pricing and payment mechanisms rather than aspirational reward clubs. Breakage-dependent models will become less defensible.
- Align loyalty with financial services to influence payment choice and frequency
- Loyalty is increasingly tied to cards, wallets, and banking relationships, influencing how consumers pay rather than just where they shop. In the United Kingdom, Tesco continues to link Clubcard pricing with Tesco Bank products, reinforcing payment-linked loyalty. In France, BNP Paribas has expanded merchant-linked offers within its banking apps, positioning rewards as part of everyday money management.
- Payment providers are competing for primary transaction status. Loyalty provides a non-interest-based lever to shift consumer behaviour. Regulatory scrutiny limits aggressive pricing incentives, increasing reliance on rewards instead.
- The boundary between loyalty, payments, and banking will continue to blur. Retailers without financial services partnerships may struggle to influence payment behaviour.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 1658 |
| Forecast Period | 2026 – 2030 |
| Estimated Market Value (USD) in 2026 | $18.8 Billion |
| Forecasted Market Value (USD) by 2030 | $29.5 Billion |
| Compound Annual Growth Rate | 11.9% |
| Regions Covered | Europe |
A Bundled Offering, Combining the Following 17 Reports, Covering 1300+ Tables and 1800+ Figures
- Austria Loyalty Market Business and Investment Opportunities Databook
- Belgium Loyalty Market Business and Investment Opportunities Databook
- Denmark Loyalty Market Business and Investment Opportunities Databook
- Finland Loyalty Market Business and Investment Opportunities Databook
- France Loyalty Market Business and Investment Opportunities Databook
- Germany Loyalty Market Business and Investment Opportunities Databook
- Greece Loyalty Market Business and Investment Opportunities Databook
- Ireland Loyalty Market Business and Investment Opportunities Databook
- Israel Loyalty Market Business and Investment Opportunities Databook
- Italy Loyalty Market Business and Investment Opportunities Databook
- Netherlands Loyalty Market Business and Investment Opportunities Databook
- Poland Loyalty Market Business and Investment Opportunities Databook
- Russia Loyalty Market Business and Investment Opportunities Databook
- Spain Loyalty Market Business and Investment Opportunities Databook
- Switzerland Loyalty Market Business and Investment Opportunities Databook
- United Kingdom Loyalty Market Business and Investment Opportunities Databook
For more information about this report visit https://www.researchandmarkets.com/r/c722l3
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