Corporate gifting is one of the critical strategies of a company, as giving gifts to employees, customers, and clients creates an immediate emotional connection between the company and gift recipient, thus improving the business’s overall success.
According to some corporate gifting statistics, not only are corporate gifts a fun way to celebrate or give thanks to the people who help your business thrive, but they are also great for your business strategy.
This is why we’ve gathered some important figures related to corporate gifting, so read on if you want to learn more!
Key Corporate Gifting Stats and Facts
- The UK corporate gifting market is worth around $105 million in 2022.
- The US corporate gifting market is calculated to grow at a CAGR of 8.1% from 2021 to 2024.
- Gifts of up to $25 for each person per tax year can be deducted from the tax in the US.
- Employees can receive gifts of $500 per year without paying the tax in Canada.
- 35% of corporate gifts were food and beverages in the UK in 2021.
- 66% of people are able to recall a brand name a year after receiving a promotional gift.
- 27% of employees prefer their employers to show appreciation by giving them cash.
- 43% of 2021 survey respondents from the US stated that improved relationships are the main advantage of corporate gifting.
- When buying a gift, 88% of corporate gift buyers look for good-quality products.
- Companies that use non-monetary motivations have recorded an increase of productivity of +14%.
Corporate Gifting Industry Stats and Market Trends
The global corporate gifting industry has experienced a significant shift in the past few years. So, let’s start with listing the crucial figures concerning the market and financial data and see what the future for corporate gifting holds.
1. The UK corporate gifting market is worth around $105 million
Due to the pandemic and lockdown restrictions, people struggle to keep in touch, so businesses have to find innovative ways to connect with employees and customers. This led numerous companies to express appreciation while also motivating people by sending gifts.
This is why the corporate gifting market has seen unprecedented growth, and it shows no signs of slowing down any time soon.
2. The corporate gifting market in the US is projected to grow at a CAGR of 8.1% from 2021 to 2024
The U.S. corporate gifting market is expected to reach $306 billion by 2024. Moreover, the US market offers an estimated $64 billion in incremental opportunity in the 2021-2024 period.
In 2021, external corporate gifting was assessed to comprise approximately 60% of the overall corporate gifting market, counting just over $140 billion.
3. Around 80% of corporate gift buyers stated gifts have improved relationships with clients and employees.
According to a study conducted among 300 corporate gift buyers, 80% of respondents claimed that gifts have improved relationships with coworkers and clients.
Moreover, 48% of the companies said gifting had delivered a substantial benefit, as it made recipients feel valued, improved customer loyalty, and improved employee retention.
4. From the end of 2021, 22% of the median corporate gift budget rise is attributed to gifts for employees.
Gifts for employees began to account for 22% of the rise in the median corporate gift budget.
Since the pandemic started, businesses around the globe started spending more on gifts, which led to the median corporate gift budget rise.
5. According to research from 2021, 35% of respondents stated gifting more than standard since working remotely.
The research also showed that almost 50% of businesses claimed they intended to increase the frequency of their gift-giving post-pandemic.
What’s more, 66% of those who increased the frequency of gift-giving said they had done so to keep their teams motivated, while around 60% wanted to maintain connections with their clients.
6. Gifts of up to $25 for each person per tax year can be deducted from the tax.
According to the IRS, if an employer sends a gift more expensive than $25 in the US, this amount will still be tax-deductible. This law applies to both gifts directly given to an employee or indirectly given to an employee’s family or a client.
However, when it comes to gift cards, their whole cost is tax-deductible since they are classed as an income.
7. In Canada, employees can receive gifts of $500 per year without paying the tax.
This shows that the rules around gift-giving are more straightforward in Canada than in the US. An employer can give an unlimited number of awards and non-cash gifts with the condition that all combined don’t exceed the $500 value.
Corporate Gift Shopping Trends
Corporate gifting is all about motivating employees, or strengthening relationships with current or prospective clients, meaning choosing the right ones could be challenging.
In the following section, we are listing the most popular corporate gifts and answering the questions such as: How much do companies spend on corporate gifts on average?
8. The majority of companies spend between $75-$100 per gift
These numbers imply that companies have been more willing to increase their budgets since the pandemic started. A quarter of the surveyed companies will spend in the listed range for individual gifts, while 20% will spend on group gifts.
Moreover, as of October 2021, according to one gift service, the average gift checks are $125 per unit year-over-year, marking an increase of 66%.
9. Amazon, Apple, and Walmart are the top major players in the Corporate Gifting Market.
According to the 2021 Corporate Gifting Industry Market report, Amazon, Apple, and Walmart are the top three companies that dominate the Corporate Gifting Market.
They are followed by Google Play, Starbucks, Sephora, and many others.
10. In 2021, 35% of corporate gifts were food and beverages in the UK.
The most popular types of corporate gifts were followed by 29% of gift cards and 21% of monetary rewards like commissions and bonuses.
In comparison, from the middle of 2020 to the middle of 2021, the most purchased gifting items in the US were gift cards, 51% of which were physical, while 48% were digital. Moreover, gift card sales are predicted to rise even more since nearly seven in ten US shoppers have switched to online shopping.
11. Speaking of gift cards, the global gift card market is estimated to grow a CAGR of 16.2% from 2020 to 2027.
(Allied Market Research)
In 2019, the global gift market had a value of $619.25 billion, while the request for gift cards kept growing in 2020 and 2021.
Not only are gift cards used as corporate gifts for employees, but many companies send them as a developmental strategy for promoting businesses, attracting new customers, increasing brand awareness, and improving business sales.
12. After receiving a promotional gift, 66% of people are able to recall a brand name after a year.
What’s more, 24% of gift-giving opened up new opportunities or leads for the gifting company.
Promoting a business is one of the ways that gift-giving can aid business growth, followed by increasing productivity, boosting customer relationships, and enhancing brand reputation.
This has shown as a fantastic marketing tactic since corporate gifting maintains a business in the minds of its clients and improves a brand recall rate. Business-to-business gifts typically consist of promotional merchandise related to a brand.
Interesting Facts About Corporate Gifting
In the following section, we are looking at some of the most exciting facts about corporate gifting. Read on if you want to find out whether giving gifts to motivate employees or promoting brands is a recent thing or about the most popular searches for corporate gifts during the pandemic.
13. According to research, corporate and promotional gifts date back 200 years.
(Smart Source Networking)
This shows that gifting as a way of marketing and motivational means is not a somewhat recent trend.
However, some other sources claim promotional and corporative gifts date back to ancient Egypt, where, through these gifts, people strived to earn the gratitude and attention of the most influential personalities.
14. As per one of the most popular gift services globally, gift popularity varied by region in 2021.
Not only did the median corporate gift budget see a significant rise since the pandemic outburst, but the tastes and preferences have changed in some regions. For example, the search criteria in the US showed words like “security,” “outdoor experience,” habit-forming,” and “mental health,” while “family” and “home decor” are the top keywords in Asia.
The European countries, on the other hand, searched for “remote working” and “health.”
15. 27% of employees prefer their employers to show appreciation by giving them cash.
Although a considerable number of workers suggested they only long for a thank-you from their boss, 16% would like Fridays off, and 14% prefer employee training and advancement opportunities.
Moreover, 12% would be satisfied with some movie or event tickets, 8% could do with flexible parental leave or telecommuting days, while 6% would appreciate massages.
16. 57% of employees state that receiving gifts by mail makes them feel more appreciated.
Naturally, this refers to direct mail gifts, which develop a feeling of being respected by employers and encourage a sense of belonging and relationship to the team. This leads to the way people perform their roles and the quality of service they deliver.
17. 80% of customers state that they would probably do business with a company if offered personalized experiences.
However, although sending the right gift and choosing the right time can motivate consumers, research also shows that 63% of people are annoyed with the brands that overdo sending generic advertising messages. 90% of consumers think personalization is appealing.
18. According to a survey from 2021 in the US, 43% of respondents stated that improved relationships are the main advantage of corporate gifting.
The results clearly show that people value emotional benefits over monetary benefits. Moreover, the sentimental benefits surpass the other two advantages, including lead generation and improved sales.
19. 88% of corporate gift buyers look for good quality products when buying a gift.
These corporate gifting statistics show that personal and corporate gifting preferences are not that different. In both cases, the best gifts are chosen carefully with a recipient in mind. With 82%, the second place on buyers’ lists is timely delivery, while 81% want a wide variety of gifts to choose from.
However, the difference between choosing corporate and personal gifts is that in the latter case, buyers choose one-to-many, as opposed to a one-to-one gift.
20. Companies that use non-monetary motivations have recorded an increase of productivity of +14%.
These incentives for employees and customers have also recorded a 9.6% increase in annual turnover, showing once again that gifting your clients, employees, and customers is a crucial strategy to boost growth and performance.
How to choose the best corporate gift?
According to corporate gift-giving etiquette, when giving someone a corporate gift, you need to keep it tasteful, show respect and gratitude by sending equal gifts to every employee, avoid flooding the office with promotional material, and not bribe.
When should you give corporate gifts?
The most typical and adequate time to give corporate gifts is around the holiday season; however, other national holidays are fantastic times to give as well.
The third occasion perfect for gifting is a business reaching a significant achievement, but if you are planning on gifting in any other circumstance, you should include a note explaining a reason for doing that.
Can a company gift money to an employee?
Yes, however, gift cards redeemable for cash and cash as a gift are taxable to the employee. Moreover, accomplishment awards or non-monetary perks like holiday trips are taxable compensation.
Corporate gifts can take many forms, but what matters most is what they represent. Hopefully, these corporate gifting statistics have shown you the importance and benefits of expressing gratitude and appreciation towards employees and clients by giving them well thought-off gifts, thus encouraging personal and professional development.
Happy employees and customers promote a business best, as they are an excellent way to connect your brand to others and increase brand recognition.