Gifts Retailing Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Souvenirs and Novelty Items, Seasonal Decorations, Greeting Cards, Giftware, Others), By Distribution Channel (Online, Offline), By Region & Competition, 2020-2030F

Market Overview

The global Gifts Retailing Market was valued at USD 89.51 Billion in 2024 and is expected to reach USD 113.98 Billion by 2030 with a CAGR of 4.17% during the forecast period. The gifts retailing market is a crucial segment of the global retail industry, demonstrating steady growth due to the continuous demand for gifts during various occasions throughout the year. Major events like birthdays, weddings, anniversaries, and holidays fuel this ongoing demand, propelling the market's expansion.

The U.S. Commerce Department’s Bureau of Economic Analysis (BEA) reported last week that real gross domestic product (GDP) grew at an annual rate of 2.8 percent in the third quarter of 2024. This growth was largely driven by an increase in production and consumer spending, which rose 3.7%, marking the largest increase since early 2023, fueled by rising incomes. Under the Biden-Harris Administration, the economy has expanded by 12.6%, with the lowest average unemployment rate in 50 years and the creation of 16 million jobs. This reflects stronger economic growth than any other presidential term in this century. The U.S. economy grew 2.7 percent in the third quarter of 2024 compared to the same period last year. The rise in September’s current-dollar personal income was mainly due to increased compensation, while the primary driver of the third-quarter GDP increase was higher consumer spending. Additionally, investment in manufacturing continues to thrive. In the first nine months of this year, construction spending reached USD 1,621.4 billion, a 7.3 percent increase from USD 1,511.4 billion during the same period in 2023, according to the latest estimates from the U.S. Census Bureau. Manufacturing construction, particularly for homes and factories, plays a significant role in contributing to GDP growth. The U.S. Bureau of Labor Statistics (BLS) reported today that the average annual expenditures for all consumer units in 2023 were USD 77,280, marking a 5.9-percent increase from 2022. During the same period, the Consumer Price Index for All Urban Consumers (CPI-U) rose by 4.1 percent, while average income before taxes increased by 8.3 percent.

Market Drivers

E-commerce Growth and Online Shopping Platforms

One of the primary drivers of the global gifts retailing market is the rapid expansion of e-commerce. With the increasing penetration of the internet and smartphones, more consumers are turning to online shopping platforms to purchase gifts. The convenience of browsing and purchasing gifts from the comfort of one’s home has driven a surge in online retail. Additionally, online platforms offer a wide variety of gift options, often with personalized or customizable features, which appeals to a broad consumer base. Retailers have invested in user-friendly websites and mobile apps, making it easier for consumers to compare prices, read reviews, and find the perfect gift for any occasion. Social media and influencer marketing have further fueled this trend by showcasing gift options that are visually appealing and trending, encouraging impulse buys. Seasonal shopping events like Black Friday, Cyber Monday, and holiday sales have amplified e-commerce’s role in the gifts retail market. As more people shop online, global e-commerce platforms such as Amazon, eBay, and niche gift retailers are gaining market share, further driving growth in the industry.

Personalization and Customization Trends

The increasing consumer desire for personalized and customized gifts has significantly impacted the growth of the global gifts retailing market. People are increasingly looking for gifts that reflect their relationships and individual tastes, moving away from generic options. Personalized gifts, such as engraved jewelry, custom-made clothing, or bespoke experiences, offer a sense of thoughtfulness and emotional connection, which makes them more desirable. This trend is particularly strong among millennials and Gen Z, who value unique and meaningful gift-giving experiences. Retailers are responding to this demand by offering customization options through online tools that allow consumers to design their gifts, adding names, messages, or even images. This shift toward personalized products has not only expanded the range of available gifts but also allowed businesses to charge premium prices, thereby driving revenue growth. Moreover, the ability to provide bespoke options at scale is supported by advancements in technology, such as 3D printing and automated engraving processes, which have made personalization more accessible and cost-effective.

Increasing Celebratory Occasions and Seasonal Demand

Global cultural and societal changes have led to an increase in the number of celebrations and gifting occasions. Traditionally associated with holidays like Christmas and birthdays, gift-giving has expanded to include a wide range of events, from weddings and anniversaries to "just because" gestures. In many cultures, gifting is seen as a way to strengthen personal relationships and express affection or appreciation. This growing variety of gifting occasions has expanded the demand for diverse gift options, prompting retailers to diversify their offerings. Additionally, with the rise of global events such as Valentine’s Day, Mother’s Day, and Father's Day, gift retailers experience seasonal demand surges. This seasonal aspect boosts sales and drives promotions, further increasing consumer spending on gifts. With the global rise of new festivals and events, such as International Friendship Day or Diwali, the gifting market sees continual growth across various demographics, further accelerating the retail industry’s expansion. 

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Key Market Challenges

Intense Competition and Price Sensitivity

The global gifts retailing market is highly competitive, with numerous players ranging from large multinational e-commerce platforms to small, niche boutiques. This intense competition can lead to significant price sensitivity among consumers, as shoppers often compare prices across various platforms before making a purchase. The presence of online marketplaces like Amazon and eBay, which offer a vast range of products at highly competitive prices, exacerbates this challenge. Consumers expect competitive pricing, discounts, and deals, especially during peak gifting seasons, such as Christmas or Valentine's Day. Retailers must constantly find ways to differentiate themselves through unique offerings, exceptional customer service, or exclusive products to maintain profitability while keeping prices competitive. Additionally, the proliferation of discount-driven shopping events, such as Black Friday and Cyber Monday, has contributed to consumers’ expectations of low prices, making it harder for smaller retailers to compete. For larger retailers, the challenge is to balance profit margins with consumer demands for low prices and deals, which often erode margins. Smaller retailers, on the other hand, struggle to compete with the pricing power of large e-commerce giants. Therefore, finding a balance between maintaining competitive pricing and sustaining profitability is a major challenge in the gifts retailing market.

Supply Chain Disruptions and Inventory Management

Supply chain disruptions have become a significant challenge for the global gifts retailing market, especially in the wake of the COVID-19 pandemic. Issues such as shipping delays, increased production costs, and shortages of raw materials have impacted the timely availability of gifts. Consumers expect their gifts to arrive on time, especially during peak seasons, such as the holiday shopping period. A delay in product delivery or a stockout can lead to dissatisfied customers and lost sales.

Managing inventory efficiently is crucial, as retailers need to predict demand accurately, especially for seasonal items. Over-ordering can result in excess inventory, leading to markdowns and financial losses, while under-ordering can result in stockouts and missed revenue opportunities. Retailers must invest in advanced forecasting tools and supply chain solutions to mitigate the risk of such disruptions. Furthermore, the global nature of the gift retail market requires careful coordination between suppliers, manufacturers, and logistics companies, which can become increasingly complex as demand fluctuates and supply chain challenges persist. Additionally, geopolitical factors, trade tariffs, and regulatory changes in various countries add layers of complexity to the logistics and supply chain operations.

Key Market Trends

Personalization and Customization

One of the most significant trends in the gifts retailing market is the growing demand for personalized and customized products. Consumers increasingly seek gifts that reflect their unique relationships, interests, and preferences. Personalized gifts create an emotional connection and are perceived as more thoughtful, making them a preferred choice over generic, mass-produced items. This trend spans across various categories, including engraved jewelry, custom-made home decor, monogrammed accessories, and personalized experiences, such as custom vacation packages or exclusive events. Technological advancements have made personalization more accessible, with many retailers offering online tools that allow customers to design or modify gifts with names, messages, or special designs. The rise of 3D printing, engraving machines, and AI-driven design tools enables the mass customization of products, making it easier and more affordable for retailers to offer personalized items. This trend is especially prominent among younger consumers, particularly millennials and Gen Z, who value unique, one-of-a-kind products that reflect their individual tastes and the sentiment behind the gift. Retailers that have embraced this trend are seeing increased customer loyalty and higher sales, as personalized gifts often command higher price points. The ability to customize products also allows retailers to differentiate themselves in a crowded market, offering a competitive edge. For example, personalized gifting brands like Etsy and Redbubble have grown by tapping into this demand, offering handcrafted, unique items that resonate with individual preferences.

Sustainability and Ethical Gifts

Sustainability is another significant trend that has taken center stage in the global gifts retailing market. Consumers are becoming more environmentally conscious and are increasingly prioritizing sustainable, ethically produced gifts. This shift is driven by growing awareness about climate change, environmental degradation, and the importance of supporting ethical manufacturing practices. As a result, consumers are looking for gifts that align with their values, including eco-friendly products, upcycled materials, and gifts from companies with strong corporate social responsibility (CSR) practices. Retailers are responding to this trend by incorporating sustainable materials in their products, such as biodegradable packaging, organic cotton, or recycled metals. Brands are also transparent about their sourcing practices, providing consumers with the assurance that the products they purchase have minimal environmental impact. Additionally, the demand for plant-based or cruelty-free products has surged, particularly in categories like cosmetics, clothing, and home goods. Gift options like reusable water bottles, sustainable fashion, zero-waste kits, and organic skincare products are all examples of how sustainability is reshaping the market. For companies, adopting sustainability is not just a trend but a business strategy. Offering eco-friendly and ethical products can enhance brand loyalty, as consumers are willing to pay a premium for items that align with their environmental and social values. This trend also opens up new market opportunities, particularly among environmentally conscious millennials and Gen Z, who are more likely to support brands that contribute positively to the planet.

Experiential Gifts

Another major trend reshaping the global gifts retailing market is the increasing popularity of experiential gifts. While traditional gifts like gadgets, clothing, and toys remain popular, many consumers are now opting for experiences rather than physical products. Experiential gifts, such as concert tickets, spa days, cooking classes, adventure trips, and even subscription services like wine or book clubs, offer a unique way to create lasting memories and provide a personalized experience that goes beyond material items. This shift is largely influenced by the changing preferences of younger consumers, who value experiences over possessions and view them as more meaningful and fulfilling. With the rise of social media, where sharing experiences has become a significant part of people’s lives, gifting experiences allows individuals to create moments that can be shared and remembered. As a result, there is an increasing demand for brands that offer experiential gift options, especially those that can be customized to suit the recipient’s interests. Retailers have responded by expanding their offerings to include more experiences. Companies like Virgin Experience Days and Groupon offer a wide array of experiences that can be purchased as gifts, from skydiving and hot air balloon rides to cooking lessons and wine tastings. These experiences are often paired with physical items, such as a beautifully designed voucher or a gift box containing a related gift, enhancing the overall gifting experience. Experiential gifts also resonate with the growing trend of minimalism, where people are moving away from material possessions in favor of creating memories. As this trend continues to grow, it represents a lucrative opportunity for retailers to tap into a market that prioritizes the intangible over the physical. The flexibility and personalization that come with experiential gifts ensure that they remain a popular choice for consumers seeking something unique and memorable.

Segmental Insights

Product Type Insights

Giftware is the dominating segment in the global gifts retailing market, driven by its wide appeal, versatility, and capacity to adapt to changing consumer preferences. This category includes a broad range of products such as home decor items, kitchenware, glassware, personal accessories, and keepsakes, making it a go-to choice for consumers seeking thoughtful and functional gifts. The demand for giftware is consistently strong because it caters to various gifting occasions, including birthdays, weddings, anniversaries, and holidays, as well as special milestones like housewarmings or graduations. A key driver of the growth in the giftware segment is the increasing consumer desire for personalized and meaningful gifts. Many giftware items can be customized, such as engraved jewelry, personalized home decor, or custom kitchenware, making them highly desirable for those looking to give a more personal touch to their gifts. This customization trend has been accelerated by technological advancements in printing, engraving, and embroidery, which allow for mass personalization at affordable prices. Additionally, giftware products often combine both aesthetic appeal and practicality, which makes them long-lasting and memorable gifts. Consumers are increasingly favoring gifts that are both decorative and functional, ensuring that the item will remain in use and cherished for years. Furthermore, as disposable incomes rise globally, particularly in emerging markets, the demand for high-quality giftware continues to expand. Retailers have also tapped into the rising trend of eco-conscious and sustainable gifting, offering eco-friendly giftware options, which has helped maintain the segment’s dominance. The diverse range of giftware products and its ability to meet a variety of consumer needs ensure that it remains the leading segment in the global gifts retailing market.

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Regional Insights

North America was the dominant region in the global gifts retailing market, driven by factors such as high disposable incomes, a strong consumer culture of gifting, and a robust retail infrastructure. The United States, in particular, stands out as the largest market due to its diverse population and year-round gifting culture, which includes holidays like Christmas, Valentine’s Day, Thanksgiving, and Mother’s Day. Consumers in North America are willing to spend on both high-quality gifts and unique, personalized items, fueling the demand for a variety of gift categories, including giftware, seasonal decorations, greeting cards, and novelty items. The rise of e-commerce has further bolstered North America's position, with online retail platforms offering convenience, variety, and competitive pricing. Consumers increasingly prefer shopping for gifts online due to the ease of browsing, home delivery, and the ability to customize or personalize products. The growth of digital marketing and social media platforms also influences gift-buying decisions, creating more targeted promotional opportunities for retailers. In addition, North American consumers are increasingly drawn to sustainable and ethically produced gifts, contributing to the expansion of eco-friendly and personalized gift offerings. As a result, North America continues to lead the global gifts retailing market, maintaining a dominant share thanks to its consumer-driven demand, technological integration, and diverse range of gifting preferences.

Recent Developments

• In 2023, Card Factory revealed plans to expand into seven international markets. The company has partnered with Liwa Trading Enterprises, based in the Middle East, which will serve as its exclusive franchise partner in the region.
• In 2023, Hallmark announced the renewal of its ongoing licensing agreement with the Peanuts brand. The five-year extension allows Hallmark to continue creating popular Peanuts products across various categories, including greeting cards, gifts, and Hallmark Keepsake Ornaments.

Key Market Players

• Sportswift Limited (Card Factory)
• Aldi Stores Ltd.
• Alibaba Group Holding Ltd.
• Amazon.com Inc.
• American Greetings Corporation
• Spencer Gifts LLC
• Hallmark Cards Inc
• The Walt Disney Co
• Shutterfly, LLC
• Macys Inc

Report Scope:

In this report, the global Gifts Retailing Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•  Gifts Retailing Market, By Product Type:

o   Souvenirs and Novelty Items

o   Seasonal Decorations

o   Greeting Cards

o   Giftware

o   Others         

•        Gifts Retailing Market, By Distribution Channel:

o   Online

o   Offline

•        Gifts Retailing Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  Germany

§  Spain

§  Italy

§  United Kingdom

o   Asia-Pacific

§  China

§  Japan

§  India

§  Vietnam

§  South Korea

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

§  Kuwait

§  Egypt

o   South America

§  Brazil

§  Argentina

§  Colombia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the global Gifts Retailing Market.

Available Customizations:

Global Gifts Retailing Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).