Gifting Market Outlook to 2030

The Global Gifting Market was valued at USD 110 billion, based on a five-year historical analysis. This growth is primarily driven by increasing disposable incomes, the expansion of e-commerce platforms, and a rising trend of personalized and experiential gifting. The market has seen a significant shift towards online shopping, with consumers preferring the convenience, variety, and personalization options offered by digital platforms.

Countries such as the United States, China, and Germany dominate the Global Gifting Market due to their large consumer bases, robust retail infrastructures, and strong cultural traditions around gift-giving. The U.S. market is fueled by a culture of gifting during holidays and special occasions, China’s rapid urbanization and expanding middle class drive demand, and Germany’s reputation for quality and craftsmanship supports its market presence.

In 2023, the European Union introduced updated consumer protection regulations for online gifting transactions. These regulations require e-commerce platforms to provide transparent product information, clear pricing, and straightforward return policies, aiming to enhance consumer trust and confidence in online gifting. This initiative is expected to further support the growth of the gifting market by fostering a safer and more reliable digital shopping environment.

Global Gifting Market Segmentation

By Source: The Global Gifting Market can be segmented into physical gifts and digital gifts. Physical gifts continue to lead the market, accounting for the majority share due to their tangible nature and the emotional value they offer. Popular categories include personalized items, curated gift baskets, and luxury products. Meanwhile, digital gifts - such as e-gift cards, digital subscriptions, and online experiences - are gaining momentum, particularly among younger consumers and for last-minute gifting. Experiential gifting, including event tickets and travel vouchers, is also on the rise, reflecting a shift towards memorable experiences, but physical gifts remain the dominant choice, especially during traditional celebrations.

By Occasion: The market can also be segmented by occasion, including birthdays, holidays, and special events. Birthdays represent the largest segment, as they are universally celebrated and often involve personalized or meaningful gifts. The holiday season, particularly Christmas and other major festivals, drives a significant portion of annual gifting, supported by cultural traditions and extensive marketing. Special events such as weddings, anniversaries, and graduations also contribute substantially to market demand, but birthdays remain the most prominent occasion for gift-giving globally.

Global Gifting Market Competitive Landscape

The Global Gifting Market is characterized by a competitive landscape with several key players, including Hallmark Cards, Inc., 1-800-Flowers.com, Inc., Amazon.com, Inc., Etsy, Inc., and Shutterfly, Inc. These companies leverage their strong brand recognition, extensive product portfolios, and innovative marketing strategies to capture market share. The market is moderately concentrated, with a mix of established brands and emerging players focusing on niche segments.

Global Gifting Market Industry Analysis

Growth Drivers

Increasing Consumer Spending: The global gifting market growth is driven by rising disposable incomes and a growing middle class, which enhance purchasing power. Increasing adoption of technology, such as mobile apps and AR/VR, improves gift discovery and purchasing experiences. Social media influences gift trends, while occasions like holidays and weddings boost demand. Additionally, experiential gifting - offering memorable activities rather than physical items - is gaining popularity, especially among millennials in regions like China and APAC.

Rise of E-commerce Platforms: In 2024, global e-commerce revenue is expected to grow by approximately 15.6%, driven by increasing internet access and mobile payment adoption. Over 60% of consumers prefer online shopping for gifts, supported by improved convenience and digital platforms. Asia leads growth, with markets like the Philippines and India expanding over 20%, while mobile commerce is projected to reach $2.07 trillion globally. This shift enables gifting platforms to capture a significant market share, reflecting broader digital economy expansion and changing consumer behaviors.

Trend of Personalized Gifts: The demand for personalized gifts is rising sharply, driven by Millennials and Gen Z who value thoughtfulness and meaningful connections. Surveys show 70% of recipients appreciate personalized gifts as a reflection of deeper bonds. Despite digital lifestyles, many prefer physical cards and personalized messages, spending significant time customizing gifts. Advances in technology make personalization easier, enhancing customer satisfaction and loyalty.

Market Challenges

Intense Competition: The gifting market is characterized by fierce competition, with a large number of players striving for visibility and customer loyalty. This crowded landscape often results in aggressive pricing strategies and shrinking profit margins. Both new entrants and established brands face pressure to differentiate themselves through unique offerings, branding, and customer experience in order to sustain long-term relevance.

Fluctuating Raw Material Prices: The industry is also impacted by fluctuations in the cost of raw materials, especially for luxury and customized gifting products. Price volatility in essentials like paper, plastics, and decorative elements can raise production costs, affecting affordability and profitability. To remain competitive, companies must strike a balance between quality, cost-efficiency, and value-driven innovation.

Global Gifting Market Future Outlook

The future of the gifting market in None appears promising, driven by evolving consumer preferences and technological advancements. As personalization becomes increasingly important, businesses are expected to invest in innovative gifting solutions that cater to individual tastes. Additionally, the integration of augmented reality and virtual reality in gifting experiences is likely to enhance customer engagement. Companies that adapt to these trends will be well-positioned to capture market share and drive growth in the coming years.

Market Opportunities

Expansion into Emerging Markets: Companies have a significant opportunity to expand into emerging markets within None, where rising incomes and urbanization are driving demand for gifting products. Targeting these regions can lead to increased sales and brand recognition, as consumers seek quality gifts for various occasions.

Innovative Gifting Solutions: The development of innovative gifting solutions, such as subscription services and experiential gifts, presents a lucrative opportunity. As consumers seek unique and memorable gifting experiences, businesses that offer creative solutions can differentiate themselves and attract a loyal customer base, enhancing overall market growth.