🪔 Diwali Gifting: An INR 2,00,00 Cr Grand Affair!

This festive season, dive into the INR 2,00,000 Cr Diwali gifting industry, where traditions blend into commerce. Read on.

Streets bustling with activity, vibrant colours adorning every corner, and the sweet aroma of homemade delicacies filling the air. 

That’s the essence of Diwali.

From parties to paramparas, Diwali is one of the biggest “holiday seasons” of India.

And what is a celebration without the joy of giving and receiving gifts?

As the festive season unfolds, let us walk you through India’s Diwali Gifting industry.

🪔 India’s Diwali Gifting: An INR 2,00,00 Cr Industry 

From diyas to office supplies to the innocent soan papdi, Diwali gifts include it all. 

Did you know? More than 5 crore items are purchased every Diwali for gifting purchases! 

According to Technopak Advisors, the Diwali gifting market is worth over INR 2,00,000 Crores.

And this is just 66.6% of the global diwali gifting market, worth over INR 3,00,000 Crores!

While this time calls for friends and families exchanging love through carefully selected gifts, corporates also leverage this auspicious festival to cultivate their company culture and make employees feel like family. 

The global corporate gifting market size is estimated to reach a whopping $1,132 billion (~Rs. 94 lakh crore)! 

In India, the corporate gifting market is close to INR 12,000 crore and has been showing an exponential 200% annual growth rate. 

Ferns N Petals, a leading gifting platform, is expecting a 60% increase in sales during the Diwali season. 

While the tradition of Diwali gifting is age-old, the market is seeing new trends and gifts.

💡 Key Trends and Gifts

Changing lifestyles and consumer preferences have made personalized gifts and conscious gifting the new normal:

1. Sustainable Gifts

Eco-friendly gifts have taken center stage, with consumers increasingly opting for gifts that are not only delightful, but also honor the earth. So much so that 80% preference is attributed to sustainable gifts. Phool, a flower waste management startup, is also seeing a surge in demand for sustainable gifting options. From biodegradable decor to plantable greeting cards, the sustainable movement is not just a trend but a harmonious ode to our planet. 

2. Utilitarian Gifts

Blending tradition with usefulness, some corporates are looking at utilitarian gifts and wellness products that employees can use. Wellness brand, The Body Shop, expects 2x growth this Diwali as corporates are opting for functional choices.

3. Chocolates

Adding a 'meetha' flavour to the festivities, chocolates remain a popular gifting choice among consumers. Customised chocolates, branded chocolates, and heavily marketed chocolate boxes - all bring a touch of “modern sweetness” in the Indian market. The Indian chocolate market is all set to double from $2.4 billion in 2023 to $4.1 billion by 2028, tracking a CAGR of 8.8% as per IMARC’s report. 

From engraved office supplies to personalized chocolate boxes, personalization has also emerged as a key theme in the gifting space.

4. Sweets

While most traditional sweets have been replaced by modern chocolates, is it even Diwali if one pack of soan papdi hasn't made its way into your homes?

India's packaged sweets market (including soan papdi, rasgulla, gulab jamun, barfi, peda, ladoo etc) is on a delightful journey, poised to reach INR 15,057 crores by 2028, with a promising CAGR of 19.27%. 

With the rise of the packaged sweets market, also comes the increased risk of adulteration and quality-control. 

The Food Safety and Standards Authority of India (FSSAI) has instructed over 4000 officers across the nation to check the quality of sweets since milk is the most adulterated product and most sweets are dairy-based. Recently, over 500 kgs of sweets were destroyed in Coimbatore because they contained artificial colours that were beyond the permissible limits.

But, a small pebble on the way isn’t going to stop this rapidly growing industry from reaping the benefits that Diwali brings. 

Sales of FMCG products, excluding branded products, have reportedly grown by 7% in October 2023 compared to the same period last year. Sales in rural areas witnessed a surprising increase of over 10%. More than commodities, confectioneries witnessed a 27% YoY annual sales growth, making a very happy Diwali for them indeed. Beverages sales were also up by 16.3%, hinting towards consumers stocking up for hosting Diwali parties.

Diwali gifting is a tradition, rooted in the very fabric of Indian culture, where gifts are seen as tokens of affection, gratitude, and prosperity.

It is a time when consumers are happy, businesses are happy and India, in its true sense, is lit up with joy.

Team ReadOn wishes you and your loved ones a very Happy Diwali. May this festival of lights shine bright in your lives :)

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