India Gift Card and Incentive Card Market Intelligence Report 2025 Featuring Reliance Retail, Amazon, Flipkart, Tanishq, Croma, BigBasket, Myntra, Nykaa, Shoppers Stop, and Lifestyle - ResearchAndMarkets.com

The "India Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2025 Update" report has been added to ResearchAndMarkets.com's offering.

The gift card market in India is expected to grow by 16.6% on annual basis to reach US$10.45 billion in 2025. The gift card market in the country experienced robust growth during 2020-2024, achieving a CAGR of 18.6%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 14.6% during 2025-2029. By the end of 2029, the gift card sector is projected to expand from its 2024 value of USD 8.96 billion to approximately USD 18.03 billion.

With over 100+ KPIs at the country level, this report provides a comprehensive understanding of gift card market dynamics. It offers a comprehensive analysis of market dynamics in the gift card sector, segmented by digital and e-gift card sales, distribution channels, key occasions, demographic trends, and market share statistics of leading retailers. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

India's gift card market is poised for significant growth, driven by digital adoption, strategic partnerships, and evolving regulatory frameworks. While established players currently dominate the market, the entry of new competitors and evolving consumer preferences are expected to intensify competition. Companies that prioritize innovation, strategic collaborations, and regulatory compliance will be well-positioned to capitalize on the opportunities in this expanding market. As the landscape evolves, staying attuned to consumer needs and regulatory developments will be key to sustaining success.

The rise of digital gift cards, fueled by e-commerce expansion and technological advancements, will continue to shape the industry, while partnerships between retailers and providers will enhance accessibility. Corporate adoption of gift cards as incentives and rewards will further drive market growth, reinforcing their role as an essential financial and gifting tool in India's evolving consumer landscape.

Regulatory changes will play a key role in defining the future competitive landscape, ensuring transparency and consumer protection while requiring businesses to adjust their policies accordingly. Addressing unredeemed balances through innovative solutions and regulatory reforms will help build consumer trust and maximize the potential of the gift card ecosystem. Over the next few years, companies focusing on digital innovation, compliance, and customer-centric solutions will be well-positioned to capitalize on India's growing gift card market.

Current Market Dynamics

• India's gift card market is experiencing rapid growth, driven by the expansion of digital payment systems and increased consumer acceptance
• This upward trajectory is supported by the proliferation of e-commerce platforms and a shift towards cashless transactions among Indian consumers.
• The market's expansion is further bolstered by innovative offerings from companies such as QwikCilver, which provides customizable gift card solutions across various retail brands. Such initiatives reflect a broader trend towards personalized and convenient gifting options in the Indian market.

Key Players and Market Share

• Prominent players in India's gift card market include EbixCash and QwikCilver, which have established extensive distribution networks and technological platforms.
• These companies have enhanced their offerings through strategic partnerships to broaden distribution and appeal.
• New entrants such as LivQuik and GyFTR have entered the market, partnering with various retailers to enhance digital adoption and customer engagement. These collaborations aim to integrate gift card solutions into multiple retail channels, both online and offline, increasing accessibility for consumers.

Accelerated Adoption of Digital Gift Cards

• The Indian gift card market is transforming significantly, with digital gift cards gaining widespread consumer acceptance. As more people shift towards online shopping and digital transactions, electronic gift cards are becoming a preferred alternative to traditional physical ones. Major retailers and e-commerce platforms are responding to this trend by integrating digital gift cards into their offerings, making them easily accessible through mobile apps and online stores.
• The expansion of India's e-commerce sector and advancements in digital payment technologies are driving this shift. Consumers increasingly favor the convenience of digital gift cards, which offer instant delivery and seamless redemption through smartphones and digital wallets. Additionally, the growing penetration of mobile commerce has made it easier for businesses to engage with consumers and encourage the adoption of digital gifting solutions.
• Businesses will likely focus on enhancing consumer engagement through personalized digital gift card options and integrating them with loyalty programs. As digital gifting becomes more mainstream, companies that invest in seamless and customer-friendly experiences will be well-positioned to capitalize on the expanding market.

Strategic Partnerships Between Retailers and Gift Card Providers

• Retailers in India are increasingly forming strategic partnerships with gift card providers to expand the reach and accessibility of gift cards. These collaborations allow gift cards to be integrated into multiple retail channels, including e-commerce platforms, digital wallets, and physical stores. Companies such as QwikCilver have partnered with major retail brands to offer customizable gift cards, making them a convenient gifting solution for businesses and consumers.
• The rising demand for flexible and convenient gifting options drives this trend, prompting retailers to incorporate gift cards into their product offerings. Additionally, advancements in payment technologies have enabled the seamless integration of gift card systems into existing retail infrastructures, making transactions smoother for consumers. As digital payment ecosystems evolve, more retailers leverage technology to enhance their gift card programs.
• Over the next two to four years, these strategic partnerships are expected to significantly expand the availability of gift cards across various online and offline platforms. As a result, India's overall gift card industry is projected to experience strong growth, driven by increased adoption among consumers and businesses. Companies that invest in robust gift card distribution networks and digital integration will be better positioned to capitalize on this expanding market.

Corporate Adoption of Gift Cards

• Indian businesses are increasingly adopting gift cards as a key tool for employee rewards, customer incentives, and promotional activities. Companies recognize the flexibility and convenience that gift cards offer over traditional incentives, making them an attractive option for corporate engagement. This trend is particularly prominent in IT, retail, and financial services industries, where businesses leverage gift cards to enhance employee satisfaction and customer loyalty.
• The growing emphasis on employee engagement and customer retention drives corporate gift card adoption. Companies use them to reward employees for performance, achievements, and festive bonuses, offering a personalized and flexible alternative to cash rewards. Additionally, businesses utilize gift cards as part of loyalty programs and promotional campaigns, providing added value to customers and encouraging repeat purchases.
• Over the next two to four years, corporate adoption of gift cards is expected to contribute significantly to expanding the Indian gift card market. As demand increases, businesses will likely introduce customized corporate gift card solutions tailored to different industry needs. This evolution will lead to greater product diversification, with companies developing new offerings such as reloadable gift cards, co-branded options, and integrated employee benefit programs to maximize engagement and retention.

Addressing Unused Gift Card Balances

• A significant portion of gift card balances in India remains unredeemed, creating substantial unused value within the market. Many consumers either forget to use their gift cards or struggle to utilize small remaining balances, which often go unused. This issue impacts consumers, who lose out on their gift card value, and businesses, which must account for these unclaimed balances in their financial planning.
• The primary reasons for unredeemed gift card balances include difficulty in spending low remaining amounts and consumer forgetfulness. Many recipients misplace or forget about their gift cards before fully utilizing them, leading to unspent funds. Additionally, some gift cards have restrictions that make it challenging for consumers to redeem small leftover balances, further contributing to the problem.
• Regulatory changes may be introduced over the next two to four years to ensure consumers can fully utilize their gift card balances. Businesses may also implement innovative solutions such as digital reminders, balance consolidation features, or alternative redemption methods to encourage full utilization. These measures could enhance consumer trust in gift cards and improve overall market efficiency, benefiting both businesses and consumers.

Navigating Regulatory Changes in the Gift Card Industry

• The Indian government is implementing stricter regulations to enhance consumer protection in the gift card market. These regulations are designed to improve transparency and prevent unfair practices, such as hidden fees and short expiration periods. A key requirement mandates that gift cards have a validity period of up to three years, ensuring consumers have sufficient time to redeem their balances.
• These regulatory changes are driven by the push for stronger consumer protection and market standardization. Authorities aim to ensure that consumers are fully informed of the terms and conditions of gift cards before purchase, reducing instances of unexpected fees or expirations. These measures align with broader financial regulations to increase transparency and trust in India's growing digital payment ecosystem.
• Over the next two to four years, businesses must adjust their gift card policies to comply with new regulations, potentially increasing compliance costs. However, these changes are expected to enhance consumer trust, leading to higher adoption rates of gift cards. As regulations evolve, companies proactively aligning with these standards will likely gain a competitive advantage in the expanding Indian gift card market.

Anticipated Market Evolution (Next 2-4 Years)

• Over the next 2-4 years, the Indian gift card market is expected to become more dynamic, with increased competition from established players and new entrants. Companies will likely focus on technological innovations, personalized offerings, and strategic partnerships to maintain and enhance their market positions.
• Staying abreast of regulatory changes and ensuring compliance will be crucial for sustaining consumer trust and achieving long-term success. As the market evolves, businesses prioritizing innovation and customer-centric strategies will be better positioned to capitalize on emerging opportunities.

Regulatory Changes

• The Indian government has implemented regulations to increase consumer protection in the gift card market. Key measures include restrictions on expiry dates and fees associated with gift cards, designed to ensure greater fairness and transparency in the industry.
• These regulatory changes require businesses to align their gift card policies accordingly, potentially increasing operational costs and enhancing consumer trust. Compliance with these regulations is essential for companies to maintain their reputation and customer loyalty in the evolving market landscape.

Key Attributes:

Companies Featured

• Reliance Retail
• Amazon India
• Flipkart
• Tanishq
• Croma
• BigBasket
• Myntra
• Nykaa
• Shoppers Stop
• Lifestyle

For more information about this report visit https://www.researchandmarkets.com/r/mfwsjr

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