The gift card industry in India is expected to continue growing at a rapid pace. The market is projected to reach $13.237 billion by 2027, with a compound annual growth rate of 15.0% during the period of 2023-2027. This growth is driven by several factors, including the rise of e-commerce, increased adoption of remote work, and initiatives by the government, hospitality, and travel industries to stimulate growth.
One interesting trend in the Indian gift card industry is the shift in consumer behavior. In the past, gift cards were primarily popular in urban areas. However, with the rise of e-commerce and technology, gift cards have become more widely accepted across different demographics in the country. The focus on practicality, convenience, and choice has contributed to the increased demand for gift cards.
Furthermore, the gift card market is expanding beyond Tier II and III cities, with brands and businesses launching innovative gift card programs to cater to the changing consumer behavior. Corporates are also utilizing gift cards to boost employee engagement and incentivize good work.
In addition to traditional gift cards, digital gaming gift card marketplaces are also experiencing growth. The online gaming industry has seen significant growth in India, presenting a lucrative opportunity for firms operating in this space. Digital gaming gift card marketplaces are raising funding rounds to expand their global presence and invest in tech infrastructure and product development.
Another interesting development is the entry of cryptocurrency exchanges into the gift card market. With the increasing popularity of cryptocurrencies in India, exchanges such as WazirX and Flitpay have launched gift card features that allow users to gift cryptocurrencies during the festive season. This capitalizes on the growing demand for both gift cards and cryptocurrencies in the country.
Overall, the Indian gift card industry is poised for continued growth, driven by various factors such as changing consumer behavior, the rise of e-commerce, and the increasing popularity of online gaming and cryptocurrencies. This presents a compelling opportunity for tech investors looking to capitalize on the evolving gifting landscape in India.