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Rapidly Growing Corporate Gifting Market Estimated to Reach $312 Billion by 2025 According to a New Study from Coresight Research and GiftNowRemote and hybrid work, increase in year-round gifting, and support for diversity, equity, and inclusion (DEI) accelerate market growth STAMFORD, Conn., June 9, 2022 /PRNewswire/ -- A new Coresight Research survey of 300 corporate gift buyers in the U.S. found the shift to remote and hybrid work, year-round recognition of employees, customers, and partners, and support for diversity, equity, and inclusion (DEI) initiatives have increased corporate gifting frequency. As a result, Coresight Research expects the corporate gifting market to grow 6.6% year-over-year in 2022, versus 5.2% during the same period a year ago. Coresight estimates the market will increase from $258 billion in 2022 to $312 billion in 2025, a 6.5% CAGR over three years. The study – Unboxed: The $258 Billion US Corporate Gifting Opportunity – was commissioned by GiftNow, a Synchrony (NYSE: SYF) solution. Corporate gifting plays a pivotal role in improving professional relationships and can be an indispensable tool for staying connected with employees, customers and partners. The study reveals external factors impacting the corporate gifting market in terms of gifting frequency and spending, include changed work models, shifts in gifting behavior, and emerging gifting occasions such as the use of corporate gifting to support DEI programs. Key Research Findings Sixty-one percent of corporate gift buyers in Coresight's survey cited changing their working model since the COVID-19 outbreak. Of these, 91% expect corporate gifting frequency to either increase (61%) or remain unchanged (30%). Furthermore, 89% of all corporate gift-givers expect gifting frequency to increase (50%) or remain the same (39%) after the pandemic. The Coresight study also revealed a shift in corporate gifting behavior that indicates it is not confined to the holiday season. The top three gifting occasions cited by respondents indicate that corporate gifting is a year-round opportunity to build and strengthen relationships, which is critically important in the new work environment.
Also, organizations are giving fewer but higher-value gifts, with more respondents citing spending $100 or more on one-to-many corporate gifts than in 2021.
Corporate gift-givers plan to spend more in the upper end of the order value spectrum, $4,000 or more for the average order amount for one-to-many gifting.
Higher value spending is another market growth driver and indicates a more mature understanding of how to use corporate gifting to engage recipients with quality gifts versus quantity. Corporate Gifting for DEI "The corporate gifting market is continuing to see strong growth in terms of volume and value across organizations," said Pari Raccah, Senior Vice President and General Manager, GiftNow. "It's exciting to see how the 2022 survey results reflect the more intentional approaches organizations are taking with their corporate gifting efforts to help build and strengthen relationships with employees, customers and partners." Corporate Gifting Challenges
Fifty-two percent of respondents outsourced some or all of their corporate gifting needs. Outsourcing to a gifting provider represents an opportunity for organizations to centralize and streamline corporate gifting and address the challenges cited above. Outsourced gifting also allows organizations to ease friction points such as inventory management and shipping, lower costs, and deliver more engaging gifting experiences, reducing the number of issues cited as "very challenging." "The corporate gifting market is growing at an accelerating rate. One of the most interesting findings in this study is the use of corporate gifts as a medium to support diversity, equity and inclusion (DEI) initiatives," said Deborah Weinswig, CEO and Founder, Coresight Research. "It is highly encouraging to see around three-fourths of corporate gift givers already supporting or planning to support DEI through corporate gifting." The Most Popular Gifts Discover More with the Full Report To download the full Coresight Research study, click here. Methodology GiftNow is a holistic Gift Experience Management (GXM) solution that takes the friction out of gifting. With GiftNow's purpose-built GXM platform, gifters can send personalized digital gifts and gift cards in seconds and recipients can exchange or modify their items before they ship, benefiting gift givers, recipients, corporate gifting programs and retailers. For more information, please visit www.giftnow.com. About Synchrony Synchrony is changing what's possible through our digital capabilities, deep industry expertise, actionable data insights, frictionless customer experience, and customized financing solutions. For more information, visit www.synchrony.com and Twitter: @Synchrony About Coresight Research Media Contacts Coresight Press Contact: Meir Kahtan Erin Hanson, for GiftNow View original content to download multimedia:https://www.prnewswire.com/news-releases/rapidly-growing-corporate-gifting-market-estimated-to-reach-312-billion-by-2025-according-to-a-new-study-from-coresight-research-and-giftnow-301564280.html SOURCE Synchrony |