Australia Loyalty Programs Market Report 2025: Australia’s Loyalty Market Set to Record a CAGR of 13% During 2025-2029, with Market Forecast to Reach US$1.96 Billion by 2029

Over 86% of Australian consumers are members of at least one loyalty program, and around half actively engage with them. Programs like Flybuys (Coles Group) and Everyday Rewards (Woolworths) continue to dominate due to their broad reach and variety of benefits.

Dublin, Feb. 06, 2025 (GLOBE NEWSWIRE) — The “Australia Loyalty Programs Market Intelligence and Future Growth Dynamics Insights – 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 Australia is expected to grow by 15.5% on annual basis to reach US$1.20 billion in 2025.

In value terms, the loyalty market in Australia has recorded a CAGR of 17.5% during 2020-2024. Australia’s loyalty market will continue to grow over the forecast period and is expected to record a CAGR of 13% during 2025-2029. Loyalty market in this region is expected to increase from US$1.04 billion in 2024 to reach US$1.96 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 Australia. 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.

Key Insights

The loyalty program market in Australia has seen notable developments influenced by evolving consumer behaviors, economic pressures, and technological advancements. Below are the key trends, their underlying drivers, and their projected impact over the next 2-4 years.

Increased Consumer Participation in Loyalty Programs

Australian consumers are increasingly enrolling and actively participating in loyalty programs. Over 86% of Australian consumers are members of at least one loyalty program, and around half actively engage with them. Programs like Flybuys (Coles Group) and Everyday Rewards (Woolworths) continue to dominate due to their broad reach and variety of benefits.

• Rising living costs have pushed consumers to find more value in their spending, making loyalty programs attractive. Programs offering fuel discounts, grocery cashback, and free products are particularly sought after.
• Leading supermarkets like Coles and Woolworths are heavily investing in loyalty schemes, so smaller businesses must follow suit to remain competitive.
• This trend will intensify as consumers rely on loyalty benefits to counterbalance inflationary pressures. Retailers may expand loyalty benefits to target high-frequency shoppers, fostering deeper consumer engagement.

Growing Adoption of Technology in Loyalty Programs

Loyalty programs in Australia are integrating advanced technologies, such as artificial intelligence, mobile apps, and digital wallets, to enhance the customer experience. Woolworths’ Everyday Rewards app provides personalized offers, digital receipts, and a point-tracking system. Qantas Frequent Flyer similarly uses app-based engagement to provide updates on flight points and travel discounts.

• The proliferation of smartphones and digital platforms has increased demand for convenience and personalization.
• Australian businesses, particularly in the retail sector, adopt affordable, scalable technologies to offer tailored rewards. AI and data analytics play a significant role in delivering customized experiences.
• Technology adoption will likely become a standard feature across loyalty programs. Businesses that fail to adapt may lose market relevance, especially among younger, tech-savvy demographics. Increased personalization could also lead to higher consumer retention and spending.

Regulatory Scrutiny on Loyalty Program Structures

Australian loyalty programs, especially those linked to credit cards, are under greater regulatory scrutiny. In 2024, the federal government announced a crackdown on excessive credit card fees tied to loyalty schemes, which could impact programs like Qantas Frequent Flyer and Velocity Rewards.

• Regulatory bodies, such as the Australian Competition and Consumer Commission (ACCC), aim to protect consumers from unfair practices, hidden costs, and opaque point valuation systems.
• Increased consumer demand for transparency and fairness has pushed regulators to intervene.
• As regulations tighten, loyalty programs tied to financial products must revamp their offerings. Retailers may diversify into direct partnerships, focusing on non-credit-based reward mechanisms to maintain consumer trust and participation.

Rise of Coalition Loyalty Programs

Coalition loyalty programs, where multiple brands collaborate to offer shared benefits, are expanding in Australia. Flybuys remains a leading example, with partnerships spanning Coles, Kmart, Target, and Liquorland. This model allows consumers to earn and redeem points across a diverse network.

• Coalition programs appeal to customers by offering broader earning and redemption options.
• Partnering businesses gain access to shared consumer data and expanded customer bases without the cost of developing standalone programs.
• Coalition programs are expected to grow as businesses join networks to increase reach and share consumer insights. This could lead to more competitive, collaborative loyalty ecosystems that benefit both businesses and consumers.

Shift Toward Sustainable and Ethical Rewards

Sustainability is becoming a core component of Australian loyalty programs. Brands are increasingly offering rewards that promote environmental initiatives. For instance, Woolworths allows customers to donate Everyday Rewards points to conservation projects, and Qantas Frequent Flyer has introduced carbon offset options.

• Growing awareness around climate change and ethical consumption has led Australian consumers to prioritize brands aligned with their values.
• Businesses leverage sustainability to strengthen their public image and align with global Environmental, Social, and Governance (ESG) trends.
• Sustainability-linked rewards will likely become mainstream, especially in the retail and travel sectors. Businesses adopting these initiatives may experience stronger brand loyalty and attract environmentally conscious consumers.

Integration of Gamification Elements

Gamification is being incorporated into loyalty programs to increase engagement. For example, MyDanMurphy’s app incorporates gamified challenges and exclusive member offers. Other brands experiment with tiered levels, surprise rewards, and interactive competitions.

• Gamification drives repeat visits and increased engagement, particularly among younger audiences.
• Businesses use gamification to stand out in a crowded loyalty program market.
• Gamification will likely expand across industries as businesses focus on delivering engaging and memorable customer experiences. However, poorly executed initiatives may result in limited long-term success.

Competitive Landscape and Regulatory Changes in Australia’s Loyalty Program Market

Australia’s loyalty program market is dynamic and characterized by innovation, competition, and regulatory evolution. However, the dominance of major players such as Qantas Frequent Flyer, Flybuys, and Woolworths Everyday Rewards presents high entry barriers for new players. To remain competitive, companies are increasingly adopting advanced technologies, such as AI-driven personalization and blockchain, while focusing on partnerships and sustainability initiatives to differentiate their offerings.

Ongoing digital transformation, regulatory changes, and shifts in consumer behavior will likely shape the future of Australia’s loyalty program market. Programs that embrace hyper-personalized rewards, eco-friendly incentives, and transparent policies stand to gain consumer trust and loyalty. Meanwhile, new entrants and smaller players must innovate to carve out a niche in a highly competitive landscape dominated by resource-rich incumbents. By aligning with evolving consumer preferences and ensuring regulatory compliance, businesses can unlock the full potential of loyalty programs in this mature yet fast-evolving market.

Current State of Australia’s Loyalty Program Market

• Australia’s loyalty program market is well-established, driven by major players such as Qantas Frequent Flyer and Woolworths Everyday Rewards. However, evolving customer demands for more personalized rewards and flexible redemption options push companies to innovate. For instance, Woolworths’ Everyday Rewards has expanded its offering to include partnerships with brands such as Bupa for health-related rewards.
• Australians participate in loyalty programs, with retail-focused initiatives such as Flybuys and financial institution rewards programs seeing significant membership. Coles’ Flybuys, for instance, partners with major brands like Kmart and Target, consolidating customer benefits and ensuring high engagement.
• Companies are increasingly adopting digital tools, such as mobile apps for real-time point tracking, to improve user experiences. Flybuys’ app, for instance, allows members to viewpoints and offers and redeem rewards instantly. Programs like Qantas’ “Green Tier” initiative also cater to sustainability-conscious consumers by rewarding eco-friendly behavior.

Competition Intensity in Australia’s Loyalty Market

• The market is led by dominant players like Qantas Frequent Flyer, Woolworths, and Coles, making it challenging for smaller programs to compete. These major players leverage extensive partner networks, such as Qantas’ tie-ups with Woolworths and BP, which amplify the program’s value and customer reach.
• Companies compete to integrate cutting-edge technology for loyalty point security, such as AI-powered personalization and blockchain. For instance, Virgin Australia’s Velocity program uses AI to analyze member preferences and deliver personalized travel offers, enhancing customer retention.
• Australian consumers are highly price-conscious, pushing companies to design lucrative rewards and easy redemption processes. Woolworths Everyday Rewards, for instance, attracts price-sensitive shoppers by offering immediate cash discounts at checkout or converting points into Qantas Frequent Flyer miles, making it an attractive choice for a broad consumer base.

Types of Players

• Retail giants such as Woolworths and Coles dominate with well-established programs (Everyday Rewards and Flybuys), leveraging strong brand equity and vast customer bases. Their partnerships with third-party brands provide additional value to members.
• Banks like the Commonwealth Bank and ANZ integrate loyalty into their credit card offerings, linking rewards to spending on retail and travel. These institutions focus on seamless redemption processes to attract high-value customers.
• Startups innovate with digital platforms that offer multi-brand loyalty schemes, catering to tech-savvy consumers seeking flexibility. Cryptocurrency-based rewards and gamified platforms are gaining traction among younger audiences.

Market Structure

• The market features dominant players like Woolworths and Qantas but includes niche players targeting specific demographics. While larger firms benefit from extensive resources and partnerships, smaller programs often rely on innovation to stand out.
• Smaller players compete by introducing eco-friendly rewards or unique models, while dominant firms rely on their established presence. This fragmentation creates opportunities for niche players but challenges their scalability.
• New entrants must offer unique value propositions to compete with established loyalty programs, providing attractive rewards and seamless customer experiences.
• Building an extensive network for reward redemption is costly and time-consuming, limiting smaller players from scaling quickly.
• Adhering to evolving data privacy and consumer protection regulations increases operational complexity, especially for new entrants.

Future Competitive Landscape

• Loyalty programs are expected to increasingly adopt advanced technologies such as AI for hyper-personalized recommendations and blockchain for secure point management. For instance, Qantas uses AI to analyze member preferences and offer tailored travel deals, enhancing customer satisfaction. Similarly, startups like Loyyal leverage blockchain to streamline reward tracking and prevent fraud, providing a secure and transparent loyalty ecosystem.
• Collaborative loyalty ecosystems will likely grow, allowing businesses to provide more value through coalition programs. Flybuys, for instance, has successfully expanded partnerships to include brands like Bunnings and Officeworks, enabling members to earn and redeem points across various sectors. This trend will encourage more businesses to align with coalition models to attract diverse customer segments.
• Programs offering sustainability-focused incentives will gain traction as consumer preferences increasingly prioritize ethical and eco-friendly practices. Qantas’ “Green Tier” initiative, which rewards members for reducing their environmental footprint through carbon offsetting and sustainable travel choices, is a prime example of how loyalty programs can align with sustainability goals.

Regulatory Changes Impacting Loyalty Programs

• The proposed Privacy Legislation Amendment aims to enhance customer data collection, storage, and use. Programs must invest in secure systems to comply with these evolving regulations.
• Stricter ACCC guidelines will require programs to ensure transparency in redemption policies and point expiration practices, improving consumer trust.
• Programs offering sustainability incentives must ensure adherence to new greenwashing regulations, requiring evidence-based claims about their environmental impact.

Key Attributes:

Report Scope

This report provides in-depth, data-centric analysis of loyalty programs in Australia. Below is a summary of key market segments.

Australia Retail Sector Spend Value Trend Analysis

• Ecommerce Spend
• POS Spend

Australia Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators

Value Accumulated and Value Redemption Rate of Loyalty programs in Australia

Australia Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains

• Loyalty Schemes
• Loyalty Platforms

Australia 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

Australia Loyalty Spend Market Size and Future Growth Dynamics by Channel

• In-Store
• Online
• Mobile

Australia Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model

• Seller Driven
• Payment Instrument Driven
• Others

Australia 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

Australia 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

Australia 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

Australia 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

Australia 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

Australia Loyalty Spend Market Size and Future Growth Dynamics by Accessibility

• Card Based Access
• Digital Access

Australia Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type

• B2C Consumers
• B2B Consumers

Australia Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type

• Free
• Free + Premium
• Premium

Australia Loyalty Platform Spend Market Size and Future Growth Dynamics by Software Use Case

• Analytics and AI Driven
• Management Platform

Australia Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner

• In House
• Third Party Vendor

Australia Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment

• Cloud
• On-Premise

Australia Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms

• Software
• Services

Australia Loyalty Spend Market Size and Future Growth Dynamics by Software Use Case Platforms

• Custom Built Platform
• Off the Shelf Platform

Australia 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/u4r8xn

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• Australian Loyalty Programs Market

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