Festive Season Boosts Green Gifting and Sustainable Startups According to the Hansa Research Festive Insight 2025 report, sustainability is now a major purchase driver, with 78 per cent of consumers choosing eco-friendly options.
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Consumer demand for sustainable retail products is booming this festive season, with eco-friendly gifts, plantable décor, and ethically made lifestyle items emerging as a key driver of sales. What was once a niche segment is now influencing corporate gifting and retail strategies, forcing brands to adapt their products to meet the expectations of environmentally conscious shoppers.
According to the Hansa Research Festive Insight 2025 report, sustainability is now a major purchase driver, with 78 per cent of consumers choosing eco-friendly options and 66 per cent preferring brands aligned with festive traditions.
Over the past few years, sustainable gifting has evolved from a trend into a core value driving purchasing decisions, especially among corporates and young consumers. Brands focused on sustainable retail products are witnessing this shift firsthand, while industry experts say this marks the beginning of a long-term movement.
Rising demand for sustainable gifting
"The festive season, especially around Diwali, has seen a significant rise in demand for eco-friendly gifts," said Tanvi Agarwal, Co-founder of Bombay Greens, adding, "Many of our customers began approaching us because they wanted to gift something sustainable and unique. That's how our corporate gifting segment began organically."
The Mumbai-based brand, which began with gardening kits, has expanded into plantable stationery and décor. "Our 'plant candle' looks like a regular candle but contains seeds. Once used, you can plant it instead of discarding it. That concept really took off. We also make crackers with this concept," Agarwal added.
Similarly, Ecoright, known for its sustainable lifestyle products, has seen a transformation in buying behaviour. "Over the past 2–3 years, consumer demand for sustainable festive products has rapidly shifted from aspirational to essential. Shoppers now specifically look for ethically-made gifts that stand out and spark conversations," said Nikita Barmecha, Co-founder of Ecoright.
Industry experts believe this shift is only set to accelerate.
"All trends look small and niche when they start," said Harish Bijoor, Brand and Business Strategy Expert, adding, "This trend of sustainability and eco-friendly gifting is the beginning of a movement. Gifting is a great occasion to show eco-sensitivity and responsibility."
From niche to necessity
Once viewed as a seasonal trend, sustainable gifting is now emerging as a year-round market opportunity. For startups, it represents both a challenge and a differentiator.
Barmecha explained, "We see this trend not as a seasonal spike but as a permanent shift in consumer behaviour. The festive period simply acts as an accelerator for values that are already ingrained, especially with Millennials and Gen Z, who make environmental consciousness non-negotiable."
Reports show that brands across various sectors, including skincare, personal care, packaged food, and lifestyle, are adopting sustainable practices. This includes shifts towards vegan products, plastic recycling, and ethical sourcing, reflecting a broader industry trend towards sustainability.
Ecoright's strategy to capture this demand involved product diversification. "We've expanded into lifestyle categories like backpacks, charms, and socks. This allowed us to connect with a wider demographic and extend our promise of style and sustainability across multiple festive segments," said Barmecha.
Bombay Greens followed a similar path, introducing new eco-conscious designs each season.
Balancing sustainability and pricing
The biggest challenge most sustainable startups face lies in the balance between profitable pricing and affordability.
Harish Bijoor cautioned businesses, "The debate between sustainability and pricing is a forever one. For example, brands must ensure that eco-friendly packaging isn't too far away from the cost of old packaging. A premium of up to 20% is acceptable, but anything beyond that isn't sustainable for the marketer."
Bombay Green's co-founder Tanvi Agarwal agrees that pricing can be a limiting factor but says consumers are increasingly willing to pay a premium for value-driven products.
"Sustainable products tend to be slightly more expensive due to material and production costs. But we've found that consumers, especially in the gifting segment, are willing to pay for something unique, eco-friendly, and personalised," she said.
Ecoright takes a value-first approach to pricing. "If consumers see a clear value proposition, whether through verified impact or superior quality, they're okay paying a nominal premium," Barmecha explained.
The road ahead
The broader market trends suggest that sustainability is fast becoming a business imperative. Bijoor points out that brands using responsible packaging "tend to look responsible, and that positioning is priceless."
Meanwhile, Ecoright sees the sustainable festive market "growing significantly faster than general retail over the next few years," driven by conscious consumerism, the Vocal for Local movement, and a pivot toward reusable, multi-use products.
For startups, the message is clear: sustainability can no longer be treated as a marketing add-on. It must be designed into the product, supply chain, and brand identity itself.
As Agarwal put it, "Consumers are evolving fast, and small brands like ours are constantly trying to keep up, offering what they want while staying true to our sustainable approach. We're all learning and adapting together."
