The Rising Trend Of Gifting A Cake On Indian Occasions

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Gifting A Cake

We all are familiar with the rising tradition of gifting in India. Unlike before, Indians take their little gestures of love everywhere. Be it any festival, special occasion, visiting friends/ family, etc. Among all the options available, gifting a cake is becoming a prominent choice for various occasions, especially at festivals. Whether it’s Rakhi, Bhaidooj, Diwali, Holi, Janamashtmi, or so on, cakes are now synonymous with Indian sweets. Well, most of the credit goes to digitalization. People seek stunning cake designs to flash on social media. Besides, e-commerce platforms make sending or receiving fancy cakes easier within a few hours.

Social Media Revolutionizing Cake Gifting

Social media certainly influences the way people celebrate special occasions and festivals. With stunning visuals on Instagram, Pinterest, or Facebook, people look for appealing cakes for every occasion. Moreover, influencers, food bloggers, and bakers regularly showcase the latest cake designs, inspiring consumers to get custom-designed cakes for festivals and occasions. 

Social Media

To get these unique, picture-perfect desserts, people are happily investing in artistic cakes to make their special moments stand out. Social media’s emphasis on aesthetics and the need to share picture-perfect moments have turned fancy cakes into a must-have for any celebration. This particular factor has hiked the compound annual growth rate of cake sales by a whopping percentage of 17.

Impact of E-Commerce On Rising Cake Trend

On the other hand, e-commerce has also contributed to the rising trend of cake gifting in India. The fundamental function of e-commerce is to deliver goods within a few hours. They are revolutionizing the way people celebrate special occasions. These platforms have provided the public with the convenience of gifting a cake from the comfort of their home and having it delivered anywhere in a matter of hours. With zero pre-planning and physical efforts involved, the e-commerce sites have made ‘cake’ a go-to gift for many, contributing to a CAGR of 12-15%.

Gifting A Cake

One of the major cake markets in India players capitalizing on this trend is Winni, a renowned online bakery and retail chain in India. With its extensive vendor network across the country and worldwide, Winni is catering to the growing demand for high-quality cakes for all festivals like Rakhi, Bhai Dooj, or Diwali. With the convenience of online orders, seamless delivery, and a memorable experience, e-commerce has boosted cake market growth by a significant number.

Moreover, the convenience of these platforms has significantly contributed to the growth of the cake gifting market. As a matter of fact, the compound annual growth rate of cake sales during festivals like Rakhi, Bhaidooj, and Diwali has seen a growth rate of around 20%. From a few thousand to millions, the number of cakes delivered on these occasions reflects the increasing popularity of this trend.

The Growth of Cake Gifting During Indian Festivals

Gifting a cake has gained universal acceptability as a symbol of celebration. Along with birthdays or weddings, the tradition of cake has extended to Indian festivals as well. Festivals like Rakhi, Diwali, and Bhai Dooj are seeing an increasing number of people gifting cakes alongside traditional sweets & gifts. While traditional sweets still hold their place, gifting a cake is quickly catching up as a preferred surprise gesture.

Cake

This growing trend of cake gifting during Indian festivals reflects the evolving tastes of consumers. As mentioned, according to industry reports, the cake market in India has been growing at a CAGR of around 12-15% over the past few years. Furthermore, cake sales get some notable spikes in demand during major festivals like Diwali, Raksha Bandhan, Bhai Dooj, and Christmas. 

With this significant increase in demand, cakes are no longer a luxury dessert, but an admirable commodity that symbolizes celebration and joy. With all the shapes, flavors, designs, and types available, there’s something for everyone. This variety ensures gifting a cake is an ideal surprise for any occasion. For instance,

Rakhi

During Rakhi celebrations, many opt for Rakhi-themed cakes or piñata cakes alongside traditional sweets and dry fruits. This change has led to a notable increase in demand reporting a year-over-year growth of approximately 20-25% in sales of Rakhi-themed cakes alone. To meet the demand, the bakeries tend to increase their production capacity by 30% to keep up with the festive orders.

Rakhi Cake

Janamashtmi

Not only humans, but people have started celebrating God’s birthday with a theme cake. The centuries-old occasion of Janmashtami has seen a modern twist with the increasing popularity of Makhan cakes and Matki cakes. These themed cakes, inspired by Krishna’s love for butter and curd, have become a favorite among devotees. To honor the birth of Lord Krishna, the shift has led to a 15-20% annual growth in sales of Janmashtami-themed cakes. The trend reflects a blend of cultural heritage with contemporary expression that is usually showcased on social media. 

Janmashtami Cake

Bhai Dooj

Traditionally celebrated with sweets and rituals, Bhai Dooj is now witnessing a modern twist with the growing popularity of cakes. This occasion has a special demand for photo cakes. Maybe as they capture and cherish the memories and bonding of siblings. This new trend has led to a 25-30% increase in orders for photo cakes during the Bhai Dooj season over the past few years. The ease of e-commerce and the trend of sharing pictures, both drive demand and supply in the cake market.

Bhai Dooj Cake

Diwali

The Festival of Lights traditionally includes the exchange of sweets & Diwali gifts. However, it is now embraced with a modern touch. Alongside sweets, the gifting of Diwali-themed cakes, diya cakes, and fusion cakes that blend the best of sweets and cakes, such as Ras Malai cake or Gulab Jamun cake is preferred. The remarkable 35-40% increase in demand for these cakes during the Diwali season reflects a shift to visually appealing dessert options. Sharing these cakes on social media further fuel people to opt for these creative desserts.

Diwali Cake

Growth Rate of Cake Sale Over The Years

Talking about numbers, online bakery sales have surged by over 30% during these festive seasons, as more consumers opt for convenient, doorstep delivery of cakes. Particularly, the demand for designer and theme-based cakes increases during the festive season. During these times, websites like Winni have reported a 50% rise in orders for customized cakes. Another contributing factor is same-day or even within-hours delivery, making it easier for people to gift cakes. 

Last year, e-commerce alone witnessed a hike of 30% in cake gifting across the country. In fact, Indians also celebrate festivals with their loved ones overseas by gifting them a cake online. This has led to an impressive CAGR of 30-32% in the sale of cakes during these festivals.

Online cake delivery

As a result, cake gifting has become an integral part of Indian festive celebrations, driving substantial growth in the industry. If things remain on the same path, the Indian cake market is projected to witness a CAGR of 12.5% during the next five years during the non-festive season and a further 30% during the joyous times.

Conclusion

The trend of gifting a cake on Indian festivals is rising for several reasons, the variety and e-commerce convenience being the major factors. As cakes continue to gain acceptance, the average 30% increase in CAGR is set to grow even further. Whether it’s a festival like Rakhi or a personal milestone, cakes have truly become the epitome of celebration in India.