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. The market has been experiencing consistent growth over the past few years and this trend is expected to continue over the forecast period supported by increasing sales during festive seasons and occasions across the world. There has been a rise in demand for sustainable and eco-friendly packaging in the market. Players are focusing on developing packaging from recyclable or biodegradable materials like paper and paperboards to cater to the growing environmental concerns of consumers. Innovation in packaging designs and addition of value-added features like embossing, ribbon embellishments are also fueling the sales. Increased online shopping has further boosted the demand for elegant and secure packaging solutions for gift items.

Market Driver - The Trend Toward Minimalist and Sophisticated Packaging is Driving Demand, with Manufacturers Focusing on Visually Appealing Yet Straightforward Designs

The packaging industry has seen evolving trends over the past few years which are influencing the designs and styles consumers opt for. There has been a noticeable shift towards less decorative and more minimalistic styles of packaging. Brands have realized that buyers seek elegant and understated designs that let the gift shine through rather than dominate the visual appeal with extraneous elements on the wrapping.

This has led many manufacturers to move from heavily illustrated prints and ribbons to sleek envelopes, boxes and bags made of premium materials like recyclable papers, fabrics and plastics. Simple color blocking, embossing or debossing are utilized rather than complex patterns to give the packaging an aura of sophistication and luxury. Subtle brandings or messages are preferred over loud designs. Neutral hues like taupe, white, black along with pastels are primarily selected to provide a canvas for the gift itself. Environmental consciousness has also increased and eco-friendly paper-based or reusable options are gaining more popularity.

The minimalistic trend perfectly aligns with the growing preference for aesthetically refined yet modest styles. Younger consumers especially appreciate understated elegance and minimal distractions. Brands have taken note and are tailoring their designs to transmit premium quality through smart simplicity. Even occasions which were previously considered appropriate for brightly covered gifts like parties, are now leaning towards discreetly wrapped items. This shift to nuanced sophistication through minimalist packaging presents ample opportunities for manufacturers experimenting with refined design sensibilities.

Market Driver - Increased Online Gift Shopping is Fueling the Need for Attractive Packaging to Enhance Consumer Experiences

The explosion of ecommerce has completely changed the way people shop for gifts these days. Whereas physically going to stores used to be the norm, a significant portion of present purchasing now occurs remotely through websites and apps. This phenomenon has greatly impacted the packaging business as well. When shopping online, customers cannot see or feel the products personally. The packaging then assumes the critical role of making a first impression and conveying the feel and value of the item enclosed. Attractive, protective boxes and covers that align well with festive seasons and occasions have become important in lending the right context and feel through the unboxing experience. Gift givers want the recipient to feel special even through the initial opening of the parcel.

As such, manufacturers are focusing on creating standout yet secure packaging which can be flaunted and displayed. Digitally printed boxes, bags with designer handles, personalized gift cards and ribbons are rising in demand. Materials like kraft paper, hessian, fabrics render an artisanal touch. Clever designs involve pop-up components, multi-layered reveals, customized personalization through matched fonts and colors to mimic the relationship between giver and receiver.

With the buying journey now detached from the physical store experience, protective gift packaging has remarkably heightened significance in branding the product as well as enhancing customer delight through its appearance and functionality online. This is a key factor driving innovation in the industry.

Market Challenge - Wrapping Paper Often Contains Non-Recyclable Elements, Creating Environmental Concerns That Hinder Growth

One of the key challenges faced by the gift packaging market is that wrapping paper often contains non-recyclable elements, which creates significant environmental concerns. Most wrapping papers are coated with plastic layers or contain metallic inks and glitters that cannot be processed by regular recycling facilities. When such gift wrappers are thrown away after use, they end up in landfills and take a very long time to decompose. This negatively impacts the environment and contributes to pollution. Increasing awareness about sustainability and a circular economy among consumers is pushing them to choose more eco-friendly options that have minimal environmental footprint. However, most companies in the gift packaging industry are yet to find cost-effective alternatives to the current non-recyclable materials. Additionally, the capabilities of waste management infrastructure also need to evolve to handle special types of recyclables. Unless these challenges are properly addressed, environmental concerns have the potential to hinder the growth prospects of the gift packaging market.

Market Opportunity- Growing Demand for Custom-Printed Packaging Boosts Industry Growth

The gift packaging market has a significant growth opportunity in the rising demand for custom-printed and personalized packaging solutions. With changing consumer preferences, people now want packaging that matches their personal tastes and completes the gifting experience. They seek unique designs, themes and images on wrappers, bags and boxes depending on the occasion or recipient. Companies in the industry can tap into this demand by offering customizable digital printing services. They can build platforms and applications that allow customers to easily pick from different design templates, upload their own pictures and get the packaging delivered. This opens up opportunities for vendors to enhance their portfolios, build loyal customer bases and expand market share. As customization grows in popularity, it will drive demand for vibrant prints, specialty papers and innovative finishing options. Dynamic and agile companies adapting to this growing trend can leverage the expansion opportunities to boost their revenues and market positions.

• Customization and Personalization: Allowing customers to personalize gift packaging based on the occasion, recipient, or any other preference has been a hugely successful strategy. Retailers like Harry & David and Ferns N Petals offered customized boxes, ribbons, and messages online that could be added during checkout. This allowed customers to gift a fully personalized package that felt more personal.
• E-commerce Integration: Aligning packaging solutions with the needs of the e-commerce sector, including optimizing packaging for efficient shipping and enhancing the unboxing experience, contributes to customer satisfaction and loyalty.
• Strategic Partnerships and Acquisitions: Collaborating with or acquiring companies that provide complementary products or technologies enables businesses to expand their product portfolios and market reach.
• Geographical Expansion: Entering emerging markets, particularly in regions like Asia-Pacific, allows companies to tap into new customer bases and capitalize on the growing demand for gift packaging solutions.

Personalized customer engagement and introductions of interesting visual designs that incorporate trends have been proven winning strategies in the highly competitive gift packaging sector. Both mass retailers and niche brands have leveraged these tactics successfully to boost sales and branding.

Insights, By Packaging Type, Convenience and Protection drives Primary Packaging

By Type, the Primary Packaging is expected to account for 37.8% in 2024. Primary packaging in the gift packaging market refers to the packaging that is in direct contact with the product and provides the basic level of containment and protection. Primary packaging makes up the highest share of the overall gift packaging market due to its critical function of conveniently housing and securely transporting gift items. Whether it be a delicate piece of jewelry, collectible figurine, or box of chocolates, primary packaging plays a vital role in preventing damage during transit from the giver to the recipient. Things like gift boxes, containers, wrappers, and bags minimize breaking or leakage that could ruin the surprise or ruin the gift item itself.

Furthermore, primary packaging offers convenience to both givers and recipients. For givers, items packaged in things like boxes, bags, or tubs allows the gift to be easily stored, handled, wrapped if needed, addressed, and shipped or delivered. On the recipient end, primary packages contain the item neatly and allow easy opening without struggle. Things like boxes, bags with closure mechanisms, and containers with lids provide a satisfying unboxing experience.

Material choice is also important for primary packages to accomplish protective functions. Rigid boxes made from paperboard, plastic tubes, and tubs made from materials like plastic and metal securely hold items in place preventing damage from crushing or impact. Even delicate primary packages for things like chocolates or candies use materials engineered to provide structure without compromising the gift experience. Overall, the convenience and protection attributes of primary packaging make it integral for safely delivering gifts, which drives its leading market share.

Insights, By Material, Sustainability Drives Growth in Paper & Paperboard Materials

By Material, Paper and Paperboard Materials are expected to register 44.3% in 2024. Within the material segment of the gift packaging market, paper and paperboard currently holds the second largest share behind plastic. This is driven by the increasing focus on sustainability in both the packaging industry and consumer preferences. Both givers and recipients are more conscientious about reducing waste and opting for eco-friendly options whenever possible. Paper and paperboard packaging is widely recognized for its renewable and biodegradable qualities. It can be sourced from responsibly managed forests and more easily recycled or composted at the end of its lifecycle compared to plastics. Innovations in paper engineering also allow it to compete on performance attributes like durability, printability, and structure for safety. Companies utilize coatings, multilayer designs, and reinforced materials to make paper and paperboard packages that can protectively hold even fragile gifts.

As sustainability rises up the priority list, more brands and retailers are turning to paper and paperboard as the sustainable gift packaging alternative. Governments and organizations are also incentivizing its use through green procurement policies and sustainability certifications/labels. Over time, paper and paperboard market share growth is expected to accelerate as environmental stewardship becomes increasingly valued within the industry and by consumers overall. Its natural and responsible attributes position it well for long-term preference and demand growth.

Insights, By Product, Variety of Options Drives Gift Boxes Segment

Within the product segment of the gift packaging market, gift boxes contribute the largest share due to the variety of styles, sizes, and customization options they provide. Whether it be a simple folded box, multi-piece assembly, personalized cube, or specialty shape, boxes offer maximum flexibility and aesthetic appeal compared to containers, bags, or other forms.

Gift boxes allow givers to choose the perfect vessel to display their gift based on factors like item type, theme, budget, and formality level. A wide assortment of box constructions, closures, embellishments and add-ons like ribbons, bows and bags ensure there is an option for every need. Specialty boxes shaped as hearts, stars snowflakes capitalize on seasonal trends.

In addition, gift boxes typically provide the face real estate needed for creative expression through printing or labeling. Messages, illustrations and branding can be prominently featured. Companies producing gift boxes also offer mass customization capabilities for co-branding, private labeling and versions specific to campaigns.

Overall, the diversity gift boxes provide in aesthetic presentation drives their leadership position within the broader gift packaging product segment. With scope for making a strong and tailored visual impression, boxes remain the top choice for creatively gifting. Their customization only increases preference and repeat purchasing over other simpler presentation forms.

The gift packaging market continues to evolve as consumer preferences shift toward environmentally friendly and customizable options. Minimalist designs have gained traction, with businesses increasingly using understated yet impactful packaging to appeal to customers. Environmental concerns are reshaping the industry, as consumers are now seeking recyclable and biodegradable options to minimize their ecological footprint. In regions like Asia Pacific, where gifting is deeply rooted in cultural practices, demand for premium and customized packaging is growing, especially among urban, high-income consumers. Key players in the market are responding by investing in innovative materials and customization options to cater to diverse consumer preferences. As e-commerce expands, the demand for durable and aesthetically pleasing packaging solutions that enhance customer experience continues to rise, further supporting the market's growth trajectory.

The major players operating in the Gift Packaging Market include Hallmark Cards, Packlane, Smurfit Kappa Group, Ebro Colour GmbH, Interpack, Card Factory, DS Smith plc, IG Design Group plc, Karl Knauer KG, Mondi plc, Manjushree Technopack Limited, Qwikcilver Solutions and Diageo.

• In September 2023, Louis Vuitton introduced a craft-inspired gift box collection, honoring its commitment to the Chinese market. This packaging, modeled after traditional designs, aligns with luxury branding in China.
• In August 2023 Hallmark and Venmo launched “Hallmark + Venmo Cards,” simplifying the gifting process by allowing consumers to send money gifts digitally, enhancing convenience and personalization.
• In September 2023, Hotel Éclat Beijing released a limited-edition mooncake gift box with artist Eirds Ragnarsdóttir’s design, celebrating the Mid-Autumn Festival and combining cultural artistry with gifting.
• In May 2022, Smurfit Kappa acquired Atlas Packaging, expanding its corrugated packaging solutions, enhancing product variety for the gift packaging market.

• By Packaging Type
  • Primary
  • Secondary
  • Tertiary
• By Material
  • Plastic
  • Paper & Paperboard
  • Metals
  • Glass
  • Others
• By Product
  • Gift Boxes
  • Containers
  • Ribbon & Bows
  • Gift Sacks
  • Gift Bags
  • Others