DUBLIN, May 15, 2023 /PRNewswire/ — The “India Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2023 Update” report has been added to ResearchAndMarkets.com’s offering.
The gift card industry in the country is expected to grow by 16.5% on annual basis to reach US$ 7,556.2 million in 2023.
In value terms, the gift card market in India has recorded a CAGR of 15.0% during 2018-2022. The gift card industry in India will continue to grow over the forecast period and is expected to record a CAGR of 15.0% during 2023-2027. The gift card market in the country will increase from US$ 6,486.9 million in 2022 to reach US$ 13,237.3 million by 2027.
The primary factors included growth of ecommerce, increased adoption to incentivize employees working remotely, digital gifting, and initiatives undertaken by government, hospitality, and travel industries to revive growth.
There has been a substantial shift in the Indian gift card industry over the last three to four years. Previously, the gift cards were largely an urban phenomenon. However, the rapid adoption of e-commerce and technology has driven the consumer’s shift towards gift cards, and as a result, the payment instrument has reached a wider demographics in the country. With a greater focus on practicality, convenience, and power of choice, the gift cards are projected to further experience an increase in demand.
The share of the gift card buyers is rapidly increasing in Tier II and III cities. Brands and businesses are also taking note of changing consumer behavior, and as a result, many have launched innovative gift card programs in the country. Along with brands, corporates have also increased their usage of the gift cards in India to boost employee engagement and incentivize good work. All of these trends, along with the growing e-commerce market, are projected to keep driving the growth of the Indian gift card industry over the next three to four years.
The gift cards have emerged as a strong festive gift-giving options among Indians in 2022
India is one of the largest gifts giving industries. Festivals are celebrated across the year and billions of dollars are spent on buying gifts in the country. Over the last few years, people have turned to gift cards as a gift giving option. Now, the gift cards have emerged as the most preferred gifting option.
From online retail to clothing and accessories, personal care, grocery, and dining, the gift cards are getting increasingly adopted across different industry verticals. These trends are projected to further increase from the short to medium-term perspective, thereby supporting industry growth in India.
Digital gaming gift card marketplaces are raising funding rounds to accelerate their global expansion
The online gaming market has recorded strong growth since the global pandemic outbreak. In India, online gamers are projected to grow at a steady rate, meaning a lucrative growth opportunity for firms operating in the segment. The trend is similar in the global market, and consequently, digital gaming gift card marketplaces are raising capital to build their presence in more countries.
In November 2022, Driffle, an India-based gaming, and digital gift card marketplace, announced that the firm had raised US$3.4 million in a seed funding round, which was led by Beenext. The firm provides a marketplace that allows gamers to buy games and digital gift cards in their local currencies. Currently, the firm has a presence in over 100 markets globally and is planning to further expand its reach to capitalize on the growing online gaming industry.
Along with the global expansion, the firm is also planning to invest in tech infrastructure and product development. The publisher expects the firm to raise more such capital rounds from the short to medium-term perspective.
Cryptocurrency exchanges are launching gift card features to capitalize on the Indian gift-giving market
The popularity of cryptocurrencies has been on the rise in India. An increasing number of millennials and Gen Z Indians have invested in the digital asset class. To capitalize on the growing popularity, cryptocurrency exchanges are launching gift card features during the festive and holiday gift-giving season in India.
In October 2022, WazirX, one of the leading cryptocurrency exchanges in the country, announced the launch of a gift card feature, which allows users to gift cryptocurrencies to their loved ones during the festive season.
In September 2022, Flitpay, another cryptocurrency exchange, announced that the firm had launched a physical gift card option under its new Diwali campaign. The firm targeted the crypto gift cards towards Indians who are craving financial stability.
From the short to medium-term perspective, the publisher expects more such innovative gift card launches that cater to the growing cryptocurrency community in India. This will further assist the gift card industry’s growth over the next three to four years.
Scope
Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
- Flipkart Online Services Pvt Ltd
- Tata Group
- Future Group
- Reliance Group
- Amazon.com Inc
- Aditya Birla Group
- K Raheja Corp
Total Spend on Gifts in India
- By Consumer Segment (Retail and Corporate)
- By Product Categories (13 Segments)
- By Retail Sectors (7 Segments)
Gift Card Market Size by KPIs across Consumer Segments in India
- Gross Load Value
- Transaction Value
- Unused Value
- Average Value Per Transaction
- Transaction Volume
- Average Value of Card Purchased
- Number of Cards
Gift Card Market Size by Consumer Segment in India
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in India
- By Retail Consumer
- By Retail Purchase Occasion
- By Corporate Consumer
- By Corporate Purchase Occasion
- By Company Size
Gift Card Market Size by Retail Consumer in India
- By Functional Attribute
- By Occasion
- Festivals & Special Celebration Days
- Milestone Celebration
- Self-Use
- Other
- Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in India
- Consumer Purchase Behaviour
- Gift Card Buyer by Age Group
- Gift Card Buyer by Income Level
- Gift Card Buyer by Gender
Gift Card Market Size by Corporate Consumer in India
- By Functional Attribute
- By Occasion
- Employee Incentive
- Sales Incentive
- Consumer Incentive
- By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in India
- Food & Beverage
- Health, Wellness & Beauty
- Apparel, Footwear & Accessories
- Books & Media Products
- Consumer Electronics
- Restaurants & Bars
- Toys, Kids, and Babies
- Jewelry
- Sporting Goods
- Home & Kitchen Accessories & Appliances
- Travel
- Entertainment & Gaming
- Other
Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in India
- Ecommerce & Department Stores
- Restaurants & Bars
- Supermarket, Hypermarket, Convenience Store
- Entertainment & Gaming
- Specialty Stores
- Health & Wellness
- Travel
Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in India
- Gift Card Online Sales
- Gift Card Offline Sales
- 1st Party Sales
- 3rd Party Sales
- Sales Uplift
For more information about this report visit https://www.researchandmarkets.com/r/ydkrm5
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