Gifting Industry Can Gain 13% Increase In UAE- Here Is Why & How?
Over the last couple of decades, we have seen exponential growth in the gifting industry, especially in gift boxes, with new types of trending gifts coming out every month. But what does this mean for its future?
Well, the answer to this question is simple, it is very bright and profitable. According to this article published by GlobeNewswire, the gift card market in the United Arab Emirates is said to increase from US$ 1269.4 million in 2019 to US$ 2043.5 million by 2024.
It is forecasted to grow steadily and is expected to record a CAGR of 13.3% during 2020-2024. The reason behind this growth is due to the liking of luxury products by its citizens. It is predicted that the gifting market will rise 17.5% by 2023, the total worth coming up to $14.1 billion. It is backed by its local citizens and their cultural traditions and its diverse and multi-cultural population.
Reasons Behind This Predicted Growth
More than 60 nationalities are living and working in the country, primarily consisting of Indians and Pakistans. They are also widely known for their gifting cultures and large celebrations. Besides, corporate solid gifting culture has constantly emerged in business meetings, conference meetings, and exhibitions conducted in the MENA region.
The gifting culture is considered essential in personal and professional lives as it is directly associated with relationships and close bonding. Eid is widely celebrated, making that month very profitable to many retailers in the Gulf. Festivals such as Christmas, New Year & Diwali are also observed in style, making for a year-round business for gifting platforms.
Many big corporates started considering the recipient rather than their own needs, driving the industry to great heights. Corporates have now begun to look for gifts that represent their core values. Many of them have started taking a sustainable approach in their day-to-day functions, and eco-friendly gifting is one of them.
Since the pandemic has taken over the world, every one of us was forced to shift to the digital world. According to the Global Gift Card Survey Q2 2021, around 65% of consumers purchase things online due to COVID-19. The convenience, wide range of gifts, fast shipping, and contactless payment methods are the reasons for the rise in online gift shopping.
The majority of the consumers are still willing to choose online over offline distribution channels. The dominant retail sectors are eCommerce & departmental stores, restaurants, supermarkets, entertainment, specialty stores, travel & health, and wellness.
The most chosen gifts for the MENA region are jewelry, leatherware, watches, crystal, silverware, and other such luxurious products that showcase respect and value. Leatherware is considered an integral part of this, so there is a dedicated trade show at the Dubai World Trade Center every year.
In this blog, we have discussed the future of the gifting industry in UAE, along with the reasons behind this predicted growth. Soon enough, we will have many more gifting platforms and websites, but that can mean being confused between the wide range of options. Here’s why you should check our gifting platform that contains the most Unique Gift Boxes in UAE. We offer express shipping, high-quality products, and a reason for your loved ones’ happiness.