The global market value of the gifts retailing market
was valued at USD 13.4 billion in 2022, and a CAGR of 3.1% is expected during
the forecast period. The growing popularity of exchanging gifts and the
expansion of distribution channels are estimated to fuel market growth.
Increasing demand for seasonal decoration coupled with increased social media
marketing is anticipated to propel market growth during the forecast period.
Growing research and development activities with an evolution in gifts, along
with an increased number of events such as birthdays, weddings, and
anniversaries, are driving growth in the region. Growing awareness about
gifting culture is propelling the growth of the market. Social media is
influencing the market significantly by inspiring people to purchase the
The pandemic had a negative impact on the market. Due
to the pandemic, the market had to face a slowdown because of the cancellation
of events like marriages and anniversary celebrations. Gathering was strictly
prohibited, and this had badly hampered the growth of the market. Disruptions
in the supply chain, stringent lockdown, and physical distancing, along with
the temporary closure of gift shops, are driving the growth in the market.
Growing awareness about gifting cultures is driving growth in the market
significantly. The rise in demand for seasonal decorations is driving the
growth of the market.
Holidays, birthdays, anniversaries, and other special
occasions drive increased demand for gifts, leading to spikes in sales during
certain times of the year. Consumers increasingly seek unique and personalized
gifts, driving growth in customization services and niche gift retailers. The
increasing number of online shopping platforms has greatly expanded the reach
of gift retailers, allowing them to tap into global markets and reach a broader
The increasing effect of social media platforms plays a crucial
role in driving trends and influencing purchasing decisions as consumers
discover gift ideas and share recommendations with their networks. The
increasing emphasis on sending and receiving gifts by all classes of people in
the world is influencing the market significantly. The increasing contribution
by corporate sectors in order to purchase gifts for society is driving growth
in the market.
Rising disposable income and increasing urbanization in emerging
countries are driving the market towards success. Changing consumer
preferences, such as the growing interest of people in eco-friendly
productions, are driving the growth of the market significantly. Increasing
demand for unique and personalized gifts is propelling growth in the market.
Middle East and
Market Type Segmentation
On the basis of type, the gifts retail market is
segmented into souvenirs, novelty, giftware, gift items, and seasonal
decorations. Souvenirs and novelty are expected to dominate the market during
the forecast period. Souvenirs in various regions of the world serve as
reminders of the travel experience and are sought after by tourists looking to
take a piece of the destination home with them. Souvenirs and novelty items
come in a wide range of options, from keychains and fridge magnets to
traditional handicrafts and apparel. Souvenirs and novelties are usually
related to the Middle East and Latin America, which have a strong gift exchange
culture, and souvenirs are the popular choice as a gift due to their
sentimental value and the ability to evoke memories of shared experiences.
Increasing demand for gifts during various festivals and occasions is driving
the growth of the market significantly.
Market Application Segmentation
On the basis of application, the gifts retailing market
is segmented into online and offline. The offline segment is the leading one
and is expected to dominate during the forecast period. Increasing growth in
e-commerce platforms is driving the demand for gift exchange, and this factor
is increasing the revenue in the market. Various e-commerce platforms like
Amazon, Flipkart, Alibaba, and Macey’s are contributing to the growth of the
market during the forecast period. Several key players play a significant role
in the gift retailing market. Offline stores offer a personalized shopping
experience where customers interact with products, ask questions, and receive
recommendations from sales associates. Offline stores provide immediate access
to products, allowing customers to purchase gifts on the spot without having to
wait for shipping or delivery.
On the basis of the regions, the gifts retailing market
is segmented into 5 parts: Asia Pacific, North America, Latin America, Europe,
and the Middle East and Africa. Due to the rising disposable income of the
people, the growing number of high-class people, and the presence of key
players in the United States of America, this is driving the growth of the
market. The influence of social media and increasing investment in research and
development are driving the growth of the market. European countries are blessed
with rich people, who usually celebrate all the festivals and occasions with
Increasing demand for precious gifts in countries like the United
Kingdom, Germany, France, Italy, Spain, France, Greece, and Turkey is driving
the market towards growth. Increasing industrialization and rising disposable
income, along with rapid urbanization, are the key factors behind the growth of
the market in the Asia-Pacific region. Emerging markets like India and China
have a large population from all communities. They do celebrate all the
festivals with full enthusiasm and exchange gifts on a large scale. This factor
is crucial to the growth of the market in India, China, Japan, and South Korea.
The gifts retailing market in the Middle East and Latin America varies based on cultural
preferences, economic factors, and regional trends. In the Middle East, luxury
items and traditional handicrafts are often popular choices, while in Latin
America, there is a diverse range of preferences, including handicrafts,
textiles, and locally made goods. The market in both regions is influenced by
tourism, festivals, and special occasions like weddings and religious
celebrations. E-commerce is playing an increasing role in both regions' gift
retail sectors, providing access to a wider range of products and customers.