The is the most comprehensive list of up-to-date corporate gifting statistics in India and the global market for 2024.
On this statistical roundup, I have covered:
- Overview of market size and growth projections.
- Insights into the overall gifting market and corporate segment.
- Most preferred corporate gifting products in India.
- Typical corporate gifting budgets allocated by companies for employee gifts.
- Effects of corporate gifting on client retention and value.
- Significance and growth of the gift card industry in India.
- Role of originality and presentation in corporate gifts.
- Trends toward sustainable and locally-made gifts.
Key corporate gifting statistics at a glance
- The global corporate gifting market was valued at $765.46 billion in 2023 and is projected to reach $839.57 billion in 2024.
- The overall gifting market in India was valued at USD 72.56 billion in 2023, with the corporate gifting segment reaching ₹12,000 crores (approximately USD 45 billion) in 2022.
- The top three most popular corporate gifting products in India are gift vouchers (24%), bags & luggage (16%), and stationery (15%).
- 25% of companies in India spend between Rs 500 – 2,000 on employee gifts, while 23% spend up to Rs 500
- Corporate gifting increases customer lifetime value by 306% and client retention by 47%, while unique gifts are 2.3 times more likely to influence favorable action
- The gift card industry in India was valued at US$7.6 billion in 2023 and is expected to reach US$15.7 billion by 2028
- 73% of individuals believe that originality and packaging are highly important when purchasing corporate gifts
- 80% of individuals want to buy environmentally-friendly corporate gifts, 60% prefer to purchase gifts made in India, and 80% prefer digital gift cards
- South India is identified as the largest market for gifting in India
- 67% of respondents report having a well-defined corporate gifting budget
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How big is the corporate gifting market globally?
The global corporate gifting market is substantial, with a size of $765.46 billion in 2023, projected to grow to $839.57 billion in 2024. This significant market size indicates the widespread practice of corporate gifting across industries worldwide.
The projected growth of over $74 billion in just one year suggests a robust and expanding market.
This trend reflects the increasing recognition of corporate gifting as a valuable tool for building and maintaining business relationships. Companies are likely investing more in gifts to strengthen their relationship with clients, employees, and partner— recognizing the potential ROI in terms of loyalty, retention, and overall brand reputation.
What’s the state of the gifting market in India?
The overall gifting market in India was valued at USD 72.56 billion in 2023, with the corporate gifting segment reaching ₹12,000 crores (approximately USD 1.45 billion) in 2022.
The corporate gifting market is projected to grow to ₹18,000 crores (about USD 2.17 billion) by 2027.
This data indicates a thriving gifting culture in India, with corporate gifting playing a significant role. The projected growth of 50% in the corporate gifting market over five years suggests increasing adoption of gifting strategies by Indian businesses.
This trend highlights the growing recognition of gifting as a vital tool for relationship building and employee engagement in India, reflecting cultural values that prioritize gift-giving in both social and professional settings.
What are the most popular corporate gifting products in India?
In India, the top three most popular corporate gifting products are gift vouchers (24%), bags & luggage (16%), and stationery (15%). This data reveals a preference for practical and versatile gifts in the Indian corporate gifting landscape.
The popularity of gift vouchers suggests a trend towards giving recipients more choice in their gifts, allowing them to select items that best suit their needs or preferences.
The high ranking of bags, luggage, and stationery indicates a focus on items that have everyday utility in professional settings.
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How much do companies typically spend on employee gifts?
In India, 25% of companies spend between Rs 500 – 2,000 on employee gifts, while 23% spend up to Rs 500. This data suggests that a significant portion of companies in India allocate modest budgets for employee gifting, with nearly half spending Rs 2,000 (approximately $24) or less per gift.
These spending patterns indicate a balanced approach to employee gifting in Indian companies. While gifts are seen as important for employee engagement and appreciation, the budgets are kept relatively conservative. This could reflect a corporate gift strategy of frequent, smaller gifts rather than infrequent, expensive ones.
It also suggests that companies are finding ways to show appreciation within budget constraints, possibly focusing on the gesture and thoughtfulness of the gift rather than its monetary value.
How does corporate gifting impact business relationships?
Corporate gifting significantly impacts business relationships, with studies showing a 306% increase in customer lifetime value for those receiving branded corporate gifts and a 47% increase in client retention for companies offering corporate gifts.
Additionally, unique corporate gifts are 2.3 times more likely to influence favorable action.
These statistics underscore the powerful effect of corporate gifting on business outcomes.
The significant increase in customer lifetime value suggests that gifts can transform casual clients into long-term, high-value relationships. The improvement in client retention rates indicates that gifting can be a key factor in maintaining business partnerships.
How important is the gift card industry in India?
The gift card industry in India was valued at US$7.6 billion in 2023 and is expected to reach US$15.7 billion by 2028. This represents a significant market size and projects substantial growth over the next five years.
The importance of the gift card industry in India is evident from its large market value and projected growth. This trend aligns with the popularity of gift vouchers in corporate gifting, which account for 24% of corporate gifts. The rapid expansion of the gift card market suggests a shift in gifting preferences towards more flexible options that allow recipients to choose their own gifts.
What’s the tax implication of corporate gifting in India?
In India, the maximum tax-free amount for gifts is 50,000 rupees (approximately $600). This means that gifts valued up to this amount can be given or received without incurring tax liability.
This tax threshold has significant implications for corporate gifting strategies in India.
It provides a clear guideline for companies to structure their gifting programs, ensuring they maximize the benefits of gifting while staying within tax-efficient limits.
For employees and business partners receiving gifts, this threshold allows for substantial value without immediate tax concerns. However, it also means that high-value gifts exceeding this amount could have tax implications for the recipient.
How do Indian shoppers prefer to give gifts during festive seasons?
In India, 32% of respondents express a preference for festive corporate gifting. This statistic indicates a significant inclination towards aligning corporate gifting with festive seasons in the Indian business context.
This preference reflects the cultural importance of festivals in India and how it intersects with business practices. Festive seasons provide natural opportunities for corporate gifting, allowing companies to participate in cultural celebrations while strengthening business relationships.
The timing of gifts during festivals can add to their perceived value and emotional impact, as it shows cultural awareness and respect.
Here are some common festivals in India for corporate gifting:
- Diwali (explore the best corporate Diwali gifts)
- Christmas (Buy Christmas corporate gifts)
- Ramzan
- New Year
- Durga Puja
- Onam
- Pongal
Which sectors are the top buyers of corporate gifts in India?
In India, the pharmaceutical sector leads in corporate gifting, followed by Banking, Financial Services and Insurance (BFSI), Travel, Tourism, Hospitality & Leisure (TTHL), and Information Technology (IT) sectors.
The prominence of these sectors in corporate gifting reflects their business models and relationship-driven nature.
The pharmaceutical industry’s lead may be due to its focus on maintaining relationships with healthcare professionals and institutions.
BFSI’s high ranking could be attributed to the importance of trust and long-term client relationships in financial services. The TTHL sector likely uses gifting to enhance customer experiences and loyalty.
IT’s inclusion suggests the importance of relationship management in technology services.
This sectoral distribution indicates that industries with high client interaction and relationship dependency are more likely to invest in corporate gifting as a strategic tool for business development and client retention.
How important is the packaging and originality of corporate gifts?
A significant 73% of individuals believe that originality and packaging are highly important when purchasing corporate gifts. This statistic underscores the crucial role that presentation and uniqueness play in the perceived value of corporate gifts.
The high importance placed on packaging and originality reflects a sophisticated approach to corporate gifting in India. It suggests that recipients and givers alike view the gift’s presentation as an integral part of its overall impact.
Originality in gifts can help a company stand out and leave a lasting impression, potentially influencing business relationships positively.
The importance on corporate gift packaging indicates that the unboxing experience is considered part of the gift itself.
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What’s the preference for eco-friendly and locally-made corporate gifts?
There’s a strong preference for sustainable and local gifts in India, with 80% of individuals wanting to buy environmentally-friendly corporate gifts and 60% preferring to purchase corporate gifts made in India.
In fact, 80% prefer digital gift cards as corporate gifts.
These statistics reveal a significant shift towards sustainability and local support in corporate gifting practices. The high preference for eco-friendly gifts reflects growing environmental consciousness among Indian consumers and businesses.
The inclination towards locally-made gifts suggests a desire to support the domestic economy and potentially aligns with the “Make in India” initiative.
The popularity of digital gift cards indicates a move towards more flexible and potentially more sustainable gifting options.
Put simply, businesses of all sizes should integrate sustainability and local sourcing into their gifting strategies to align with recipient preferences and enhance their brand reputation.
👉 Buy Eco-friendly corporate gifts
How does the global gifts retailing market look?
The global gifts retailing market was valued at $65 billion in 2021 and is expected to reach $94 billion by 2031. This represents a significant market size and projects substantial growth over the next decade.
The projected growth of nearly $30 billion over ten years indicates a robust and expanding global market for gift retailing. This trend suggests increasing consumer spending on gifts across various occasions, including corporate gifting.
The substantial market size reflects the universal importance of gift-giving in both personal and professional contexts.
If your business is involved in corporate gifting, this growth trajectory points to expanding opportunities and potentially increased competition in the gifting sector.
It may also indicate a diversification of gifting options and channels, possibly including more personalized and experience-based gifts to meet evolving consumer preferences in the global market.
What’s the largest market for gifting within India?
South India is identified as the largest market for gifting within India. This regional prominence in the gifting market reflects unique cultural and economic factors influencing gift-giving practices in the southern states.
The dominance of South India in the gifting market could be attributed to various factors such as higher disposable incomes, strong cultural traditions of gift-giving, or a more developed retail infrastructure in southern states.
This regional variation suggests that companies operating nationwide in India might need to tailor their gifting strategies to align with regional preferences and practices.
This insight could inform decisions about inventory, distribution, and marketing strategies, potentially concentrating efforts in the South Indian market to maximize impact.
It also highlights the importance of understanding regional nuances in gift-giving cultures within India.
How popular are experience gifts?
Experience gifts are highly popular, with 85% of adults believing they are a great way for both giver and receiver to enjoy something together. This statistic indicates a strong preference for gifts that provide shared experiences rather than traditional material items.
The high popularity of experience gifts reflects a shift in gifting trends towards valuing memories and shared moments over physical possessions.
This trend aligns with broader consumer preferences for experiences and could be particularly relevant in the corporate gifting context.
For businesses, offering experience gifts could provide a unique way to strengthen relationships with clients or employees by creating memorable shared experiences.
This approach to gifting could potentially lead to stronger emotional connections and longer-lasting impact than traditional material gifts.
How large is the corporate gifting market worldwide?
The global corporate gifting market is substantial, valued at $765.46 billion in 2023 and projected to reach $839.57 billion in 2024. This represents a significant growth of approximately $74 billion in just one year.
This massive market size underscores the importance of corporate gifting as a widespread business practice globally. The projected growth of nearly 10% in a single year indicates a robust and rapidly expanding market.
This trend suggests that companies worldwide are increasingly recognizing the value of corporate gifting in building and maintaining business relationships.
The substantial market size also implies a diverse range of gifting options and strategies being employed across various industries and cultures, reflecting the global nature of modern business practices.
How do companies approach corporate gifting budgets?
A significant 67% of respondents report having a well-defined corporate gifting budget. This statistic indicates that a majority of companies take a structured approach to their corporate gifting strategies.
The high percentage of companies with defined gifting budgets suggests that corporate gifting is viewed as an important and planned business expense rather than an ad hoc activity. This approach likely allows for more strategic and effective gifting practices, as companies can allocate resources deliberately and track the impact of their gifting efforts.
It also highlights that corporate gifting is increasingly seen as a valuable tool for relationship management and business development.
How does corporate gifting impact business relationships?
Corporate gifting significantly impacts business relationships, with data showing a 306% increase in customer lifetime value for those receiving branded corporate gifts, a 47% increase in client retention for companies offering corporate gifts, and unique corporate gifts being 2.3 times more likely to influence favorable action.
The increase in customer lifetime value shows that gifts can turn casual clients into long-term partners.
Data sources
- Researchandmarkets.com
- Eyantra.com
- Cxotoday.com
- Prnewswire.com
- Giftsenda.com
- Shiksha.com
- Researchnxt.com
- Financialexpress.com
- Offineeds.com
- Businessresearchinsights.com
- Techsciresearch.com
- Eventbrite.com
Final Words
That’s all. I hope you found this listicle guide useful to understand the current state of the corporate gifting industry.
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