In India’s vibrant business landscape, corporate gifting has transformed from a seasonal formality into a strategic year-round practice. This evolution reflects deeper changes in how Indian businesses in corporate gift build relationships, recognize achievements, and strengthen their brand presence in an increasingly competitive market.
Market Size and Trajectory in Corporate Gift
The Indian corporate gift market currently stands at approximately ₹12,000 crore ($2.5-3 billion), growing at an impressive 10-12% annually. This growth outpaces many other B2B service sectors, highlighting the increasing value businesses place on thoughtful gifting. Analysts project the market to reach ₹18,000 crore by 2027, driven by the expansion of India’s formal corporate sector and evolving gifting practices.
The Cyclical Nature of Corporate Gift
While Diwali remains the pinnacle of corporate gifting—accounting for nearly 60% of annual gifting budgets—businesses are increasingly distributing their gifting initiatives throughout the year. This shift creates a more balanced market with multiple gifting peaks coinciding with New Year, company anniversaries, and other festivals.
Evolving Gift Categories
Traditional corporate gifts like diaries, calendars, and generic sweets are rapidly losing market share to more meaningful alternatives. Today’s leading gift categories include:
- Premium electronics: From branded earbuds to smart devices that enhance productivity
- Personalized luxury items: Monogrammed accessories that convey exclusivity and attention to detail
- Wellness hampers: Curated collections focusing on health and work-life balance
- Experience-based gifts: Workshop vouchers, streaming subscriptions, and virtual experiences
- Sustainable products: Eco-friendly items that align with corporate ESG initiatives
- Gourmet food and beverage selections: Artisanal produce, premium tea/coffee collections, and craft beverages
Regional Nuances
Corporate gifting practices vary significantly across India’s regions. Metropolitan centers like Mumbai, Delhi, and Bengaluru favor premium international brands and innovative concepts, while Tier-2 cities often blend traditional gifting values with contemporary presentations. The southern markets show stronger preference for culturally significant gifts, while northern regions typically allocate higher per-gift budgets.
Key Market Drivers
Several factors are propelling the market’s evolution:
Digital transformation: E-commerce platforms have democratized access to premium gifting options while enabling better customization, expanding the market beyond major urban centers.
Professionalization of gifting services: Specialized corporate gifting consultancies now offer end-to-end solutions including procurement, personalization, logistics, and analytics.
Brand alignment: Companies increasingly view gifts as brand extensions rather than obligatory gestures, driving demand for higher quality and more distinctive items.
Employee engagement: The competitive talent market has elevated the importance of recognition programs, with thoughtful gifts playing a central role in retention strategies.
Post-Pandemic Shifts
The COVID-19 pandemic catalyzed several lasting changes in corporate gifting:
- Accelerated adoption of digital gifting solutions including e-vouchers and virtual experiences
- Heightened emphasis on health and wellness-focused gifts
- Greater appreciation for utility and practicality over mere symbolism
- Increased preference for locally-sourced products supporting Indian artisans and small businesses
Emerging Trends in Corporate gift
As the market matures, several trends are gaining prominence:
Personalization at scale: Leveraging data analytics to create individualized gifts while maintaining operational efficiency
Sustainability focus: Rising demand for eco-conscious products with transparent supply chains
Subscription models: Recurring gifting programs that maintain touchpoints throughout the year
Experiential gifting: Shift toward creating memorable experiences rather than providing physical items
Corporate gift cards: Offering recipient choice while maintaining brand association
Challenges and Opportunities
Despite its growth, the market faces challenges including fluctuating import regulations, logistical complexities across India’s diverse geography, and determining ROI metrics for gifting programs. However, these challenges have spawned innovative solutions, with specialized gifting platforms offering analytics to measure engagement and impact.
For brands entering this space, the opportunity lies in creating authentic connections through thoughtful curation rather than competing solely on price or extravagance. As Indian businesses increasingly recognize the strategic value of meaningful gifts, providers who can deliver personalization, quality, and seamless execution will find themselves well-positioned in this growing market.