India’s Gift Card Market to Reach $10.45 Billion in 2025, Driven by Digital Growth
India’s gift card market is set to grow by 16.6% in 2025, reaching $10.45 billion, with a projected CAGR of 14.6% through 2029. The rise of digital gift cards, fueled by e-commerce expansion and mobile payment integration, is transforming the industry. Leading players such as Reliance Retail, Amazon India, Flipkart, Tanishq, Nykaa, and Croma dominate the market, while companies like EbixCash and QwikCilver drive innovation. New entrants like LivQuik and GyFTR are intensifying competition through strategic retailer partnerships.
Corporate adoption of gift cards for employee rewards and customer incentives is increasing, further fueling demand. Retailers are collaborating with gift card providers to enhance accessibility across digital and physical channels. However, unredeemed balances pose a challenge, prompting businesses to develop innovative redemption solutions. Regulatory changes requiring extended validity and transparency aim to protect consumers, though compliance costs may rise. Companies focusing on personalized digital gift card solutions and seamless user experiences will gain a competitive advantage. The market remains dynamic, driven by technological advancements, evolving consumer preferences, and increasing corporate usage.
India’s Gift Card Market to Reach $10.45 Billion in 2025, Driven by Digital Growth
India’s gift card market is on an upward trajectory, with projections showing significant growth over the next few years. The market, which stood at $8.96 billion in 2024, is expected to grow at an annual rate of 16.6%, reaching $10.45 billion by 2025. This steady expansion is part of a broader trend, with a compound annual growth rate (CAGR) of 18.6% recorded between 2020 and 2024. Looking ahead, experts predict the industry will continue growing at 14.6% annually, nearly doubling in size to $18.03 billion by 2029.
A recently published report, India Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2025 Update, available on ResearchAndMarkets.com, provides detailed insights into the sector. The study examines more than 100 key performance indicators (KPIs), shedding light on digital and e-gift card adoption, consumer spending habits, distribution channels, and the role of major retailers in shaping the industry.
Key Drivers of Growth
Several factors are fueling the rapid growth of India’s gift card industry. The increasing adoption of digital payments, driven by a shift toward cashless transactions, is one of the primary contributors. Additionally, strategic collaborations between businesses, evolving regulatory frameworks, and the growing use of gift cards as incentives and rewards by companies are strengthening the market. As businesses continue to recognize the value of gift cards for employee appreciation and customer engagement, their demand is set to rise further.
The market is currently dominated by major players such as Reliance Retail, Amazon India, Flipkart, Tanishq, Croma, and Nykaa. However, competition is heating up with new entrants like EbixCash and QwikCilver leveraging extensive distribution networks. Additionally, emerging companies such as LivQuik and GyFTR are making inroads by forming strategic retail partnerships, which are helping expand market reach.
The Rise of Digital Gift Cards
Digital gift cards are becoming the preferred choice among Indian consumers, mainly due to their convenience, instant delivery, and seamless redemption via smartphones and digital wallets. The surge in e-commerce activity has further accelerated this shift, with businesses integrating digital gift card solutions into their mobile apps and online platforms. This trend is expected to continue as companies look for innovative ways to enhance customer experience and drive engagement.
Strategic Partnerships and Market Expansion
Retailers are increasingly collaborating with gift card service providers to make their products more accessible. Companies like QwikCilver have been instrumental in enabling brands to offer personalized and flexible digital gifting options. Such collaborations are expanding the availability of gift cards across both online and offline channels, making them a mainstream financial tool for gifting and rewards.
Corporate Adoption and Employee Rewards
The corporate sector, particularly in IT, retail, and financial services, is playing a crucial role in the expansion of the gift card market. Many businesses are now using gift cards for employee rewards, incentives, and customer loyalty programs. The introduction of reloadable gift cards and co-branded corporate offerings is further boosting adoption rates in the professional space.
Challenges in the Industry
Despite its rapid growth, the market faces some challenges, including unredeemed gift card balances. Many consumers either forget to use their gift cards or find it inconvenient to redeem small remaining amounts. To address this issue, businesses are exploring solutions like automated reminders, balance consolidation features, and alternative redemption options. These measures could encourage consumers to fully utilize their gift cards, reducing wasted funds and increasing customer satisfaction.
Regulatory Developments and Compliance
The Indian government has introduced new regulations to improve transparency and consumer protection in the gift card industry. Some of the key measures include extending gift card validity to up to three years and ensuring clear disclosure of terms and conditions. While businesses may face higher compliance costs, these changes are expected to build consumer trust and promote responsible gift card usage.
Future Outlook
Looking ahead, India’s gift card market is poised for further expansion, with both established players and new entrants focusing on innovation, personalization, and regulatory adherence. Companies that invest in seamless digital integration, customer-centric experiences, and strategic partnerships will be well-positioned to capitalize on the growing demand. As digital payments continue to dominate, gift cards will become an even more integral part of India’s financial and retail landscape.
