The days of predictable gift boxes may be numbered. A major shift is underway in India, as young, urban consumers increasingly trade material goods for memorable moments, driving the rapid growth of experiential gifting. But what's behind this trend?
From Possessions to Pottery Class
So, what exactly is an 'experiential gift'? Instead of a physical product, it’s the gift of a doing something. Think less smartphone, more smart-cooking class. It covers a wide range of activities, from a weekend trek in the Himalayas or a scuba diving course in the Andamans to a gourmet dining experience, a pottery workshop, or tickets to a music festival. This category also includes subscriptions to wellness apps, masterclasses with industry experts, and even curated travel packages. The core idea is simple: you're giving someone a memory, a new skill, or a great story to tell, rather than another item to put on a shelf. This move from owning to living is reshaping how a generation thinks about value.
The 'Why' Behind the Buy
Several factors are fuelling this change in consumer behaviour. For one, research consistently shows that experiences often lead to more lasting happiness than material objects. The excitement of a new gadget fades, a phenomenon known as 'hedonic adaptation', but the positive emotions from an experience can actually increase over time as we remember and share them. Secondly, in an age dominated by social media, experiences are highly 'shareable'. An adventurous trip or a beautifully plated meal makes for better Instagram content than a new shirt, allowing individuals to build their personal brand and social identity. This shift was accelerated by the pandemic, which left many with a desire to make up for lost time and create meaningful connections. As a result, spending on experiences like travel and dining is projected to outpace spending on physical goods in India through 2030.
Meet the New Gifter: Gen Z and Millennials
At the heart of this trend are India's millennials and Gen Z. This demographic, particularly in urban centres, is armed with rising disposable income and a different set of priorities than previous generations. For them, authenticity, personal growth, and creating a unique life story are paramount. Around 60-65% of revenues in some experiential travel companies come from the 18 to 35 age group. They are less focused on traditional markers of success and more on collecting a portfolio of life experiences. A staggering 78% of Indian consumers now say they prefer spending on experiences over products. This generation is not just following trends; they are actively shaping the market, seeking out personalised, immersive, and culturally relevant activities.
How the Indian Market is Responding
India's startup ecosystem has been quick to cater to this demand. A host of online platforms now offer everything from curated gift boxes and DIY kits to vouchers for workshops and adventure sports. While some companies focus on specific niches like wedding return gifts or eco-friendly products, others provide a broad marketplace for all kinds of activities. This isn't just a metro phenomenon; the trend is spreading to Tier 2 and Tier 3 cities as digital access and aspirations grow. The 'experience economy' is now a significant opportunity, with brands realising they need to sell not just a product, but a memorable moment that builds a stronger emotional connection with their audience.
