Gift packaging is used to enhance the visual appeal of gift items and improve the gifting experience. It is available in various designs, colors, materials like paper boxes, cellophane wrappers, ribbons, and gift bags to enclose any gift item. Premium gift packaging adds value to the gift and creates a favorable first impression on the recipient. It plays an important role in conveying the message, occasion, and thought put into selecting the gift.
The Global Gift Packaging Market is estimated to be valued at USD 25.4 Bn in 2024 and is expected to reach USD 38.9 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.
Key Takeaways
Key players operating in the gift packaging market are Hallmark Cards Inc., Card Factory, IG Design Group, Fiorini International, Crown Paper, Karvy Greeting Cards, ProAmpac, and DS Smith. Hallmark Cards Inc. holds a significant market share owing to its strong product portfolio and global presence.
The growing demand for gift items during occasions like birthdays, wedding anniversaries, Christmas, and new year is fueling the growth of the Gift Packaging Market. Premium and personalized packaging is gaining traction as it adds significance to the gift and creates a memorable gifting experience.
Advancements in printing and decoration techniques used in gift packaging are allowing manufacturers to design unique and attractive covers. New technologies like flexography, digital printing, and laser cutting enable mass customization of gift boxes based on consumer preferences.
Market Trends
Sustainable packaging – There is growing consumer demand for eco-friendly gift packaging made from recycled or biodegradable materials like sugarcane bagasse, bamboo, and wheat straw. Manufacturers are focusing on developing sustainable packaging solutions to reduce environmental impact.
Customization and personalization – Gift givers are inclined towards personalized packaging that reflects the personality of the recipient. Options like photo customization, engraving, embossing etc. allow consumers to customize packages as per their needs. This trend is positively impacting the market growth.
Market Opportunities
Development of innovative shapes/designs – Manufacturers can explore new shapes and structures of gift boxes like pop-up designs, magnetic closure, expandable sizes etc. to capture consumer interest. Unique packaging elevates the unboxing experience.
Expansion in developing economies – Emerging countries in Asia Pacific and Latin America are witnessing rising disposable incomes and gift culture. These regions provide scope for international players to augment their footprint through tailored product offerings.
Impact of COVID-19 on Gift Packaging Market Growth
The COVID-19 pandemic has significantly impacted the gift packaging market. During the initial lockdown phases in early 2020, the demand and sales for gift packaging experienced a decline as gatherings, celebrations and social events were cancelled or postponed. This led to reduced out-of-home consumption and purchase of gift items that are usually packaged. However, as restrictions eased in late 2020 and 2021, the market saw a revival mainly attributed to increased online shopping and delivery of gifts amongst families and friends. While commercial activities remained low, personal gifting among close networks became more prominent as physical proximity was limited.
As the pandemic normalised certain behaviours, the market is witnessing a shift towards more premium and thoughtful gift packaging that enhances the overall gifting experience even in the virtual medium. Sustainable and recyclable packaging options are also gaining popularity among conscious consumers. Looking ahead, the gift packaging manufacturers are focusing on innovative designs, personalized touches and competitive pricing to aid the revival of occasions economy. Also, optimized inventory management and omnichannel distribution models will be crucial for retailers in efficiently catering to demand fluctuations.
Gift Packaging Market Geographical Concentration
In terms of value, the gift packaging market remains concentrated in developed regions including North America, Western Europe and Asia Pacific countries like China, Japan and South Korea. This is attributed to higher per capita spending on gifts and celebrations in these markets. The United States represents the largest share owing to a robust occasion-driven consumer culture. Additionally, the widespread adoption of innovative packaging styles and solutions ahead of global peers further augments the regional market size. However, other developing regions in Asia Pacific and Latin America are anticipated to witness rapid gains owing to rising disposable incomes and evolving customer lifestyles.
Fastest Growing Region for Gift Packaging Market
The Asia Pacific region, excluding Japan and China, is forecasted to emerge as the fastest growing region for the global gift packaging market during the forecast period. Countries like India, Indonesia, Vietnam and others are experiencing accelerated economic development with growing affluence levels. Higher birth rates are also encouraging traditions like baby showers, birthdays and weddings that involve gift exchanges. Improving living standards and exposure to global trends are driving experimentation with attractive packaging formats across product segments. Furthermore, the presence of a large young population actively participating in online gifting is acting as a key growth driver. With rising aspirations, the region provides immense untapped opportunities for gift packaging manufacturers.
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