Diwali gifting makes for a whopping `2.50 lakh-cr market proposition

The Food Safety and Standards Authority of India (FSSAI) 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 kg 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

Even as colour of lights is done with, let’s dive into the Rs. 2,50,000crore Diwali gifting industry, where traditions blend into commerce. Gifting practices in India can be categorized into three main segments: Festival Gifting, which accounts for $7.5 billion, Personal Gifting, with a value of $20 billion and Corporate Gifting with a market worth of $2.5 billion.

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

From diyas to office supplies to soanpapdi, Diwali gifts include it all. More than five crore items are purchased every Diwali for gifting purposes! According to Technopak Advisors, the Diwali gifting market is worth over Rs. 2,00,000crore. And this is just 66.6% of the global Diwali gifting market, which is valued at a mindboggling Rs. 3,00,000 crore!

Corporates also leverage the 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 Rs. 94 lakh crore.

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

Ferns N Petals, a leading gifting platform, expects a 60% increase in sales every Diwali season.

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

Sustainable gifts: Eco-friendly gifts have taken centrestage, with consumers increasingly opting for gifts that are not only delightful, but also honour 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.

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 as corporates are increasingly opting for functional choices.

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” into the Indian market, which is 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.

Sweets: While most traditional sweets have been replaced by modern chocolates, is it even Diwali if one pack of soanpapdi hasn't made its way into your homes?India's packaged sweets market (including soanpapdi, rasgulla, gulabjamun, barfi, peda, ladooetc) is on a delightful journey, poised to reach Rs. 15,057 crore 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) 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 kg 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 seven per cent last month, 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 for a very happy Diwali to them. 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 and happiness!