India Gift Card And Incentive Card Market Size

India Gift Card & Incentive Card Market Analysis

The India Gift Card And Incentive Card Market size is estimated at USD 11.88 billion in 2024, and is expected to reach USD 26.81 billion by 2029, growing at a CAGR of 17.67% during the forecast period (2024-2029).

India, a nation renowned for its cultural heritage and steadfast traditions, has always held the significance of gifting in high regard as a means to convey love, gratitude, and appreciation towards loved ones. Over the years, the gifting landscape in India has witnessed a remarkable evolution, with gift cards emerging as a popular and convenient choice for consumers nationwide. These cards come preloaded with a specific monetary value and can be redeemed at various retail outlets or e-commerce platforms, granting recipients the freedom to select their desired products or services. The Indian gift card market has witnessed substantial growth in recent times, fueled by factors such as increased digital adoption, evolving consumer preferences, and the thriving e-commerce industry.

The changing consumer behavior, especially among the younger generations, is a key factor contributing to the increasing popularity of gift cards in India. Millennials and Gen Z, known for their tech-savviness and preference for cashless transactions, are the driving force behind the demand for gift cards. These demographics perceive gift cards as practical, customizable, and environmentally friendly, making them the best choice for gifting. Additionally, gift cards cater to the evolving gifting needs of these consumers, who often face challenges in finding the ideal gift amidst the vast range of options available in the market.

The robust growth of the e-commerce industry in India is a significant driver behind the expansion of the gift card market. Over the past few years, both the retail and business sectors of the Indian gift card market have experienced substantial growth. Various retail sectors have participated in this growth, and with the increasing popularity of mobile payments, travel companies, OTT and content platforms, as well as mobile payment providers, have all joined in.

In India, OTT and content platforms like SonyLiv and Zee5 utilize gift cards as coupons, offering discounts of 50% and 25% respectively. This trend is evident across various OTT and content platforms. Additionally, travel companies such as MakeMyTrip and Yatra have placed a strong emphasis on selling digital gift cards. Alongside gift cards, Cleartrip, Thomas Cook, and Ola are providing discounts of up to 10% for staycations, short trips, and workations. In the food and beverage industry, renowned brands like Pizza Hut, Starbucks, Domino's, Chaayos, and KFC in metropolitan areas are enticing customers with gift cards that come with attractive discounts.