Gifts Novelty and Souvenir Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031F

Anniversaries is the fastest growing sector, North America is the largest market

The Global Gifts, Novelty, and Souvenir Market is projected to expand significantly from USD 134.93 Billion in 2025 to USD 191.62 Billion by 2031, achieving a Compound Annual Growth Rate (CAGR) of 6.02%. This diverse market encompasses a wide range of products, from local handicrafts to promotional merchandise, all purchased as tokens of remembrance, social expression, or corporate branding. Key drivers for this growth include the robust revival of the global travel industry and the increasing strategic importance of corporate gifting for client retention, both of which stimulate demand for destination-specific memorabilia and branded items that strengthen personal and business connections. The World Travel & Tourism Council forecasts international visitor spending to reach an unprecedented $2.1 trillion in 2025, providing a strong foundation for the consumption of commemorative goods.

Despite this positive outlook, the market faces a considerable hurdle in the form of persistent economic volatility and widespread inflationary pressures. Rising production costs and unpredictable supply chain logistics are diminishing profit margins for manufacturers, while simultaneously eroding consumers' discretionary income, leading to reduced spending on non-essential items. This financial strain particularly challenges small-scale artisans and independent retailers, who struggle to absorb escalating operational expenses without jeopardizing their price competitiveness and overall market position.

Market Drivers

The expansion of e-commerce and cross-border online retail serves as a transformative force, fundamentally altering how consumers access novelty items and souvenirs by removing geographical barriers. Digital platforms now enable local artisans and manufacturers to reach a global audience, circumventing the limitations of traditional brick-and-mortar stores and catering to the growing consumer preference for convenience and mobile shopping.

This shift is supported by substantial market data, with Adobe Analytics reporting record U.S. online spending of $241.4 billion during the 2024 holiday season, as noted in January 2025, underscoring the dominance of digital channels in the gifting sector. Additionally, Mastercard SpendingPulse's January 2025 report indicated a 3.8% year-over-year increase in total U.S. retail sales for the holiday period, signifying sustained consumer willingness to spend on discretionary goods despite economic pressures.

Furthermore, the prevalence of cultural festivals and seasonal gifting trends remains a powerful catalyst, generating significant turnover in novelty and souvenir inventories during concentrated spending periods. Retailers are increasingly aligning product launches with key calendar events to maximize footfall and consumer engagement, effectively capitalizing on the impulse to purchase festive memorabilia and limited-edition items. The enduring relevance of seasonal shopping occasions as critical drivers for the physical gifts and novelty market is evident in physical retail performance, with Sensormatic Solutions reporting a 14.8% increase in U.S. in-store shopper traffic during the 2024 Christmas week compared to the previous year, as highlighted in January 2025.

Market Challenges

Persistent economic volatility and widespread inflationary pressures pose a significant obstacle to the sustained growth of the Global Gifts, Novelty, and Souvenir Market. As the costs of raw materials and logistics continue to climb, manufacturers face escalating production expenses, which often translate into higher wholesale prices. This inflationary environment severely impacts the retail sector by diminishing consumer purchasing power, compelling buyers to prioritize essential goods over discretionary items such as keepsakes and products for social expression. Consequently, retailers experience a decline in demand for high-margin memorabilia, resulting in stagnant sales volumes and reduced profitability for businesses heavily reliant on consumers' disposable income.

The adverse effects of these financial constraints are clearly reflected in recent consumer spending data. When rising living costs squeeze disposable income, individuals become more discerning and conservative with their budgets for non-essential purchases. According to the National Retail Federation in 2025, consumers projected an average expenditure of $890.49 per person on holiday items, representing a decrease of approximately 1.3% compared to the previous year. This contraction in per capita spending directly curtails the funds available for the gifts and novelty sector, thereby impeding the market's overall growth trajectory despite the concurrent recovery in the travel industry.

Market Trends

The adoption of eco-friendly and ethically sourced materials is fundamentally transforming product development within the souvenir sector. Manufacturers are increasingly substituting conventional plastics with biodegradable alternatives, such as bamboo and recycled textiles, to align with the values of environmentally conscious travelers who prioritize low-impact consumption. This shift is fueled by a heightened consumer awareness regarding the ecological footprint of tourism, which in turn prompts retailers to stock items certified for ethical production standards. A Booking.com report from April 2024, the 'Sustainable Travel Report 2024', revealed that 75% of global travelers expressed a desire to travel more sustainably over the subsequent 12 months, a sentiment that directly influences purchasing decisions towards sustainable mementos and locally crafted goods.

Concurrently, there is a notable shift towards experiential and memory-based gifting solutions, redefining the traditional understanding of novelty items. Consumers are increasingly moving away from mass-produced trinkets in favor of products that serve as tangible anchors for cherished memories, such as DIY artisan kits and region-specific culinary sets. This trend reflects a broader psychological pivot where the true value of a souvenir is measured by its capacity to evoke the authenticity of a destination rather than its material worth. This preference is substantiated by spending behaviors; the American Express Travel '2024 Global Travel Trends Report', published in March 2024, indicated that 77% of respondents valued the right travel experience more than the cost of the trip, thereby underscoring the strong demand for high-quality, memory-centric merchandise over generic keepsakes.

Key Market Players

• Mud Pie LLC
• American Greetings Corporation
• Enesco LLC
• Disney DTC LLC
• Mattel, Inc.
• The Bradford Exchange Ltd
• Warner Bros. Discovery, Inc.
• NBCUniversal Media LLC
• Hallmark Cards Inc.

Report Scope

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

Gifts Novelty and Souvenir Market, by Product Type:

• Gift
• Novelty Items
• Souvenir

Gifts Novelty and Souvenir Market, by Material:

• Wood
• Metal
• Ceramic
• Plastic
• Others

Gifts Novelty and Souvenir Market, by Occasion:

• Birthdays
• Holidays
• Anniversaries
• Corporate Gifting
• Others

Gifts Novelty and Souvenir Market, by Distribution Channel:

• Online Retailers
• Specialty Gift Shops
• Others

Gifts Novelty and Souvenir Market, by Region:

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Gifts Novelty and Souvenir Market.

Available Customizations:

With the given market data, the publisher 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).

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