Gift Packaging Market

Gift Packaging Market Size:

The global gift packaging market size reached US$ 23.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 31.6 Billion by 2032, exhibiting a growth rate (CAGR) of 3.4% during 2024-2032. Rising trend of gifting culture across diverse occasions, the growing popularity of e-commerce platforms, increased disposable incomes in emerging economies, environmental sustainability initiatives, the surge in online retailing activities, advancements in printing technologies, demand for luxury and premium gift items, expansion of the retail sector, and cultural traditions are some of the factors providing a thrust to the market growth.

Gift Packaging Market Analysis:

• Major Market Drivers: Various factors propel the global gift packaging market, such as burgeoning consumer spending on gifts due to increased disposable incomes. The growing trend towards fuller customization of products and the option to personalize their gifts with individualized packaging items is boosting the gift packaging market growth. Contribution of e-commerce space that offers a wide range of gifting packaging products is pushing the market growth. The demand for gift packaging increases around seasonal events and cultural festivals is another growth-inducing factor for the market. There is also a rising trend in the packaging industry for consumers who are concerned for the environment, as packaging materials are looking to be eco-friendly and sustainable, which is creating a positive outlook for the market. Additionally, it boosts product appeal and product functionality through technological innovations in packaging materials, further stimulating the market growth.
• Key Market Trends: The Key trends shaping the global market for gift packaging is the rise in demand for eco-friendly packaging material among consumers. Biodegradable and recyclable materials are being used more in the market due to the surging consumer awareness regarding eco-friendly products. Customization and segmentation of packaging design through advanced digital printing technologies is gaining popularity, which is further supporting the gift packaging demand. The escalating demand for do-it-yourself (DIY) gift packaging kit due to the surging demand for personalized gifts are other key gift packaging market trends. Moreover, the demand for premium and luxury gift packaging surges and the integration of quick response (QR) codes and near field communication (NFC) tags are favoring the market growth.
• Geographical Trends: North America has the largest market share in the global gift packaging market due to higher consumer spending on gifts, and presence of key market players in the region. Market growth is supported by strong retail infrastructure in the region and popularity of e-commerce platforms. Europe is next in line with high demand of environment friendly and premium packaging techniques, which is supporting the gift packaging industry. The Asia-Pacific region is experiencing considerable market expansion due to the increasing disposable incomes, expanding middle-class populations, and Western gifting tradition influences. Factors such as population growth, urbanization, and aging population are particularly driving emerging Asia, with China and India expected to remain major growth drivers of the market.
• Competitive Landscape: The competitive landscape of the market is characterized by the presence of key gift packaging companies, such as DS Smith plc, Ebro Color GmbH, Hallmark Cards Inc., IG Design Group plc, International Packaging Corporation, Karl Knauer KG, Mondi plc, POL-MAK, Smurfit Kappa Group plc, Yama Ribbon & Bows Co. Ltd., etc.
• Challenges and Opportunities: The gift packaging market faces several challenges, including the high cost of sustainable packaging materials, which can limit their adoption. Environmental regulations and the need for compliance with packaging standards pose challenges for manufacturers. The market also faces competition from alternative gift presentation options, such as digital gifts and experiences. However, these challenges present opportunities for market players to innovate and differentiate their products. The growing demand for eco-friendly and sustainable packaging solutions offers significant growth potential. Companies can capitalize on technological advancements to develop smart packaging solutions that enhance the gifting experience, which is accelerating the gift packaging market outlook.
   

Gift Packaging Market Trends:

Rising Trend of Gifting Culture

A prevailing gifting culture across various occasions in a region is one of the major factors which positively influence the growth of the global gift packaging market. Due to the growing gifting culture across various demographics and geographies, the market is observing steady growth. In an attempt to tap the benefit of this trend, manufacturers and retailers are providing different types of packaging depending on the occasion and the person to whom the gift is offered. The changing social norms and the need for establishing emotional connect is further influencing the market players to put more thought for the packaging of gifts which in turn is driving the innovation in terms of packaging design and material.

Growing Popularity of E-commerce Platforms

The advent of e-commerce has changed the way consumers buy things including gifts. Online shopping has made it easier for the consumers to search for gifts and get it delivered to their or their near and dear ones’ doorstep. With the rising e-commerce retailing, there is a huge demand for gift packaging that can withstand the transit torture as well as provide an enriching unboxing experience. Thus, the gift packaging market is growing globally with an inclination towards sturdy yet aesthetically pleasurable packaging that appeals the online generation. Furthermore, the e-commerce market is highly competitive and thus, the brands are investing in unique gift packaging to make it visually stand out from the million products on the shelf.

Increased Disposable Incomes in Emerging Economies

Increasing discretionary income of consumers in emerging economies has significantly improved their buying capacity and spending ability on non-essential items including gifts. As the excess income with individuals, they tend to opt for superior quality and customized gift packaging solutions to enhance the gifting experience. This changing trend of consumers in lieu of their preferences are lucrative areas for market players to tap emerging needs of discerning consumers. Additionally, the middle-class demographic in emerging economies represents a large consumer cohort with increasing inclination towards luxury products and experiences, thereby creating demand for premium packaging. Manufacturers and retailers benefit from this demand by offering plethora of packaging solutions priced across different budget ranges and with varied aesthetic appeals, which in turn is propelling the market growth.

Gift Packaging Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on the product type, material, and packaging.

Breakup by Product Type:

• Ribbons
• Wrapping Papers
• Containers
• Boxes
• Others
   

Wrapping papers accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the product type. This includes ribbons, wrapping papers, containers, boxes, and others. According to the report, wrapping papers are represented the largest segment.

 The wrapping papers segment is driven by the increasing demand for aesthetically pleasing and versatile packaging solutions across various industries and consumer segments. The segment is fueled by the rising trend of gift-giving culture across different occasions, including birthdays, weddings, festivals, and corporate events. Consumers seek visually appealing wrapping papers to enhance the presentation of their gifts, contributing to the segment's growth. Additionally, the segment is influenced by the growing popularity of e-commerce platforms, where visually attractive packaging plays a crucial role in creating a memorable unboxing experience for online shoppers. As more consumers opt for online shopping, the demand for wrapping papers designed specifically for e-commerce packaging increases, driving market expansion. Furthermore, the segment benefits from advancements in printing technologies, allowing manufacturers to offer a wide range of customizable designs and patterns to cater to diverse consumer preferences. This customization capability enables businesses to create branded wrapping papers for promotional purposes, further boosting demand.

Breakup by Material:

• Paper and Paperboards
• Plastic
• Glass
• Others
   

Paper and paperboards accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the material. This includes paper and paperboards, plastic, glass, and others. According to the report, paper and paperboards represented the largest segment.

The paper and paperboards segment is driven by the increasing focus on sustainable packaging solutions. With growing environmental concerns, consumers and businesses alike are increasingly opting for eco-friendly packaging materials. Paper and paperboards offer a biodegradable and recyclable alternative to traditional plastics, making them highly desirable in the packaging industry. Additionally, advancements in manufacturing processes have led to the development of paper and paperboard products with enhanced strength, durability, and barrier properties, making them suitable for a wide range of packaging applications. Moreover, the rising demand for convenience and on-the-go packaging solutions is fueling the growth of the paper and paperboards segment. Products such as paper cups, cartons, and boxes cater to the needs of busy consumers looking for convenient packaging options for food and beverages, cosmetics, pharmaceuticals, and other consumer goods.

Breakup by Packaging:

• Primary Packaging
• Secondary Packaging
• Tertiary Packaging
   

Primary packaging accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the packaging. This includes primary packaging, secondary packaging, and tertiary packaging. According to the report, primary packaging represented the largest segment.

The primary packaging segment is driven by several key factors that significantly influence its dynamics and growth trajectory, such as the increasing emphasis on product safety and hygiene drives demand for robust primary packaging solutions across various industries. With stringent regulations and consumer preferences prioritizing safety, manufacturers seek packaging options that ensure the integrity and freshness of products from production to consumption. Additionally, the rising trend of convenience-oriented packaging fuels demand for primary packaging solutions that enhance user experience and convenience. This includes features such as resealable closures, portion control, and easy-to-use dispensing mechanisms, catering to busy lifestyles and on-the-go consumption habits. Moreover, the growing focus on sustainability and eco-consciousness drives innovation in primary packaging materials and designs. Manufacturers are increasingly adopting recyclable, biodegradable, and compostable materials to minimize environmental impact and meet consumer expectations for sustainable packaging solutions.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest gift packaging market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

The North American market is driven by the increasing preference for premium and personalized gift packaging solutions among consumers. As disposable incomes rise and consumer spending on luxury goods grows, there is a heightened demand for upscale packaging options that reflect the sophistication and discerning taste of the region's affluent demographic. Moreover, the influence of social media and celebrity culture amplifies the importance of presentation aesthetics, driving the need for visually striking and Instagram-worthy packaging designs that enhance the gifting experience. Additionally, the growing popularity of online retailing platforms and subscription box services in North America fosters a culture of convenience and curated experiences, prompting manufacturers to innovate and offer specialized packaging solutions tailored to the evolving preferences of digitally savvy consumers. Furthermore, the region's commitment to environmental sustainability and corporate social responsibility initiatives shapes consumer behavior, leading to a surge in demand for eco-friendly packaging materials and practices.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the gift packaging include DS Smith plc, Ebro Color GmbH, Hallmark Cards Inc., IG Design Group plc, International Packaging Corporation, Karl Knauer KG, Mondi plc, POL-MAK, Smurfit Kappa Group plc, Yama Ribbon & Bows Co. Ltd., etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• In response to the evolving dynamics of the gift packaging market, key players are adopting multifaceted strategies to maintain their competitive edge and capitalize on emerging opportunities. One prominent trend among market leaders is the emphasis on product innovation and differentiation, with companies investing heavily in research and development (R&D) to introduce novel packaging designs, materials, and functionalities that resonate with changing consumer preferences. Additionally, there is a concerted effort towards sustainability, with major players integrating eco-friendly practices and materials into their production processes to align with growing consumer concerns about environmental conservation. Moreover, strategic partnerships and collaborations are on the rise, as companies seek to leverage synergies and expand their market presence through mutually beneficial alliances with suppliers, distributors, and retailers. Furthermore, digital transformation is reshaping the industry landscape, with key players leveraging technology to streamline operations, enhance customer engagement, and drive sales through e-commerce platforms and digital marketing channels. In parallel, there is a growing focus on customer-centricity, with companies prioritizing personalized experiences and tailored solutions to cater to the diverse needs and preferences of their target audience. 

Gift Packaging Market News:

• In 2023: DS Smith made significant strides in both operational and sustainability fronts. In February, the company initiated a €90 million project to construct a biomass-from-waste boiler in France, supported by a €15 million subsidy from the French government. This project aims to reduce CO2 emissions on-site by 99,000 tons annually, aligning with DS Smith's sustainability goals. Additionally, DS Smith's board accepted a takeover offer valued at £5.8 billion from International Paper, a major U.S. paper and pulp company, marking a substantial move in the packaging industry.
• In 2023: Smurfit Kappa launched a comprehensive sustainability program aimed at reducing its carbon footprint by 30% by 2030. This initiative includes investments in renewable energy sources and the development of innovative packaging solutions that minimize environmental impact. Additionally, Smurfit Kappa expanded its operations in North America by acquiring a state-of-the-art packaging facility in Texas, enhancing its ability to serve the U.S. market with high-quality, sustainable packaging solutions.

Gift Packaging Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the gift packaging market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global gift packaging market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the gift packaging industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.