The corporate gifting market in India is estimated at ₹12,000–14,000 crore (2022–2024) and projected to reach approximately ₹18,000 crore by 2027. While the size is compelling, the consumer preference is more telling: surveys indicate an 80% preference for eco-friendly gifts that send a positive message, moving away from traditional, disposable items.
This massive expenditure, particularly around high-visibility moments—including employee onboarding rituals (accounting for over 26% of spending) and the festive season (45.3% of companies gift only during festivals)—is where the ESG opportunity lies. Corporates typically budget between ₹1,000–₹2,000 per gift for employees and up to ₹5,000 for business clients, with a clear willingness to pay more for environmentally conscious products.
The market has also evolved beyond physical goods, with a rise in utility-driven items (like branded electronic accessories and stationery) and experiential gifts (such as travel vouchers or wellness packages) designed to enhance employee engagement in hybrid work models.
Gifts represent a company’s values, shaping brand image among employees, clients, and stakeholders. By choosing thoughtful and meaningful gifts, corporations can align their brand narrative with global sustainability goals.
Environmental Stewardship (Planet)
Green gifting is fundamentally about reducing a company’s resource footprint. It aligns procurement with the circular economy by focusing on items that are recyclable, plastic-free, upcycled, or plantable. This commitment is a key factor in boosting ESG ratings and gaining investor confidence.
- Circular Economy: Companies like Bisleri have demonstrated this by investing in sustainable merchandise made from recycled PET bottles, turning waste into valuable, branded goods.
- Resource Optimisation: Biomaterials startups like Phool are becoming corporate favourites by recycling floral temple waste to manufacture organic, charcoal-free incense sticks, directly addressing waste management.
- Packaging and Health: Brands are adopting sustainable packaging solutions, such as FNP using hay instead of excessive plastic, and promoting health-conscious items like dry fruits and 100% natural savouries with long shelf life.
Social Impact (People)
This practice excels in the realm of ‘S’, transforming the supply chain into a force for good. By sourcing gifts from local artisans, women-led Self-Help Groups (SHGs), and fair-trade enterprises, Indian corporates actively support marginalized communities and rural livelihoods.
- Disability Inclusion: PepsiCo India partnered with Mitti Cafe, an NGO providing livelihoods for underprivileged people with disabilities, for handcrafted, eco-friendly hampers, creating a powerful social ripple effect.
- Marginal Farmer Support: Companies like MakeMyTrip are sourcing savouries and sweets directly from farms to ensure an increased share of the value chain goes to marginal farmers.
- Women Empowerment and Fair Trade: Brands like The Body Shop source reusable tote bags and handcrafted pouches from community partners like Teddy Exports, showcasing a clear commitment to fair trade and women empowerment.
Governance and Brand Equity (Purpose)
Authentic green gifting guarantees responsible sourcing and transparency, the building blocks of ‘G’. It allows companies to credibly report quantifiable non-financial impact in their statutorily required Business Responsibility and Sustainability Reporting (BRSR). This consistency between corporate action and public reporting strengthens brand reputation.
Furthermore, it significantly enhances employee engagement. When corporate gifting aligns with the personal values of employees and clients, it fosters loyalty, attracts talent, and appeals to the growing base of eco-conscious investors, cementing a robust brand equity.
For Indian corporates, adopting a green gifting culture is a multi-pronged exercise involving policy, partnership, and education:
- Mandate Clear Procurement Policies: Procurement teams must define explicit, mandatory criteria for gifting products, such as requiring items to be recyclable, plastic-free, upcycled, and plantable.
- Strategic Vendor Selection: Prioritise collaboration with certified green vendors, social enterprises, SHGs, and artisan groups. Companies should specifically seek out local partners to leverage the pro-local business approach, maximising social impact and customisation.
- Internal Advocacy and Workshops: Run mandatory “Green Gifting Guidelines” workshops for HR, Administration, and Procurement teams. Education on the business, environmental, and social advantages of this shift is critical for institutionalising the change.
In essence, moving away from conventional gifting to thoughtful, sustainable options is a high-visibility, low-friction strategy that enables Indian corporates to transform a routine expense into a powerful and demonstrable ESG driver.
