Market Size of India Gift Card And Incentive Card Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 11.88 Billion |
Market Size (2029) | USD 26.81 Billion |
CAGR (2024 - 2029) | 17.67 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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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.
India Gift Card & Incentive Card Industry Segmentation
A gift card refers to a prepaid card that is loaded with funds for future use and can be used to make purchases and other financial transactions. The Indian gift card and incentive card market is segmented based on card type e-gift card and physical card). By consumer type, the market is segmented by retail consumers and corporate consumers. By distribution channel, the market is broken into online and offline. The market size and forecast are provided in terms of value (USD) for all the above segments.
By Card Type | |
E-Gift card | |
Physical card |
By Consumer Type | |
Retail Consumer | |
Corporate Consumer |
By Distribution Channel | |
Online | |
Offline |
India Gift Card And Incentive Card Market Size Summary
The Indian gift card and incentive card market is experiencing significant growth, driven by the country's cultural appreciation for gifting and the increasing adoption of digital solutions. Gift cards have become a popular choice among consumers, offering convenience and flexibility in selecting products or services. This trend is particularly pronounced among younger generations, such as Millennials and Gen Z, who favor cashless transactions and value the practicality and customization that gift cards provide. The market's expansion is further supported by the robust growth of the e-commerce industry, with various sectors, including retail, travel, and entertainment, actively participating in the promotion and sale of gift cards. The integration of gift cards with mobile payments and digital platforms has enhanced their appeal, making them a preferred option for both personal and business gifting needs.
The surge in internet penetration and smartphone usage in India has revolutionized the gift card market, facilitating a shift towards digital transactions. The 'Digital India' initiative has significantly improved internet connectivity, encouraging consumers to engage in e-commerce activities and embrace online financial transactions. This digital transformation has led to the emergence of new customer journeys, with gift cards becoming a strategic tool for businesses to boost sales and ensure steady cash flow. The market is becoming increasingly competitive, with new players entering and existing participants focusing on brand penetration and promotional strategies. Collaborations, such as those between Pine Labs' Qwikcilver and Foodpanda, and YES Bank with ONDC, highlight the ongoing innovation and expansion within the market, offering advanced solutions that enhance the convenience of using gift cards.
India Gift Card And Incentive Card Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Strong Growth in the E-Commerce Market is Driving the Gift Card Industry
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1.3 Market Restraint
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1.3.1 The Lack of Security for Gift Cards Hinders the Market Growth
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1.4 Market Opportunities
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1.4.1 Partnership and Collaborations Between Gift Card Issuers and Technology Providers
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1.4.2 Intergration with Digital Wallets and Payment Platforms
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1.5 Industry Value Chain Analysis
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1.6 Industry Attractiveness - Porter's Five Forces Analysis
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1.6.1 Threat of New Entrants
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1.6.2 Bargaining Power of Suppliers
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1.6.3 Bargaining Power of Buyers
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1.6.4 Threat of Substitute Products
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1.6.5 Intensity of Competitive Rivalry
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1.7 Insights on Key Trends and Technological Innovations in the Market
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1.8 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Card Type
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2.1.1 E-Gift card
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2.1.2 Physical card
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2.2 By Consumer Type
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2.2.1 Retail Consumer
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2.2.2 Corporate Consumer
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2.3 By Distribution Channel
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2.3.1 Online
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2.3.2 Offline
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India Gift Card And Incentive Card Market Size FAQs
How big is the India Gift Card And Incentive Card Market?
The India Gift Card And Incentive Card Market size is expected to reach USD 11.88 billion in 2024 and grow at a CAGR of 17.67% to reach USD 26.81 billion by 2029.
What is the current India Gift Card And Incentive Card Market size?
In 2024, the India Gift Card And Incentive Card Market size is expected to reach USD 11.88 billion.