Global Gifts Novelty and Souvenir Market Grows at a Staggering CAGR of 3.90%

Introduction

A gift is given voluntarily without expecting payment; it serves as a present. On the other hand, a novelty item is designed primarily for amusement or uniqueness rather than practicality. Meanwhile, a souvenir is a keepsake that serves as a memory of a place or experience. These products include personalized gifts, handcrafted artifacts, collectibles, decorative pieces, and regional souvenirs that showcase cultural heritage or tourism experiences. The novelty segment features trendy, humorous, and eye-catching items meant to surprise or entertain. This market thrives on seasonal demand, impulse purchases, and cultural influences, with sales surging during holidays, festivals, and peak travel periods.

The global gifts, novelty, and souvenir market is driven by tourism, seasonal festivities, and the increasing preference for personalized and experiential gifting. E-commerce and digital customization tools have transformed the industry, allowing consumers to design bespoke gifts and keepsakes. Sustainability is a significant trend, with a growing preference for eco-friendly and handmade products. The popularity of these items continues to rise as people seek meaningful, shareable, and customized experiences in an increasingly digital world. Tangible tokens of connection hold more significant value, especially as travel rebounds post-pandemic, fueling demand for distinctive souvenirs. Brands that utilize digital marketing and online marketplaces can extend their global reach, catering to niche preferences and evolving social gifting trends.

Market Dynamics

Growing consumer interest in ethical and sustainable products drives market growth

Consumers are increasingly drawn to ethically sourced, responsibly made, and recycled products. This shift reflects a broader movement toward conscious consumption, where individuals aim to reduce their environmental impact and support ethical labor practices. In response, businesses and artisans offer sustainable alternatives, including biodegradable souvenirs, upcycled novelty items, and gifts from responsibly sourced materials. This focus on eco-friendly products attracts environmentally conscious buyers, strengthens brand loyalty, and enhances reputation, driving market growth.

• In May 2024, Gift Kya De achieved a significant milestone by being named one of the Top 54 D2C startups in Amazon Propel Start-up Accelerator Season 4. This recognition is essential, considering over 900 entries were submitted, with only 54 brands making the final cut. This achievement solidifies GKD's role as a leader in the eco-friendly and customized gift sector.

Additionally, digital platforms provide unparalleled access to a wide range of unique, personalized, and niche products, enabling consumers to explore and purchase items from anywhere in the world. E-commerce platforms enhance convenience, allowing shoppers to browse, order, and receive gifts effortlessly. Social media integration and targeted digital advertising boost product visibility, driving sales and strengthening brand recognition.

Digital gifting is creating new avenues for growth and opportunity

As digital interactions become increasingly integral to modern lifestyles, consumers embrace innovative virtual gifting solutions beyond traditional presents. These include personalized digital artwork, NFTs, e-greeting cards, metaverse-based gifts, and virtual reality (VR) experiences. Digital gifts offer instant delivery, limitless personalization, and a reduced environmental footprint, making them especially appealing to tech-savvy and younger demographics.

Furthermore, blockchain technology enhances authenticity and exclusivity, while the ability to share digital keepsakes on social media adds sentimental and social value. To tap into this expanding market, businesses can capitalize on AI-driven personalization, AR/VR innovations, and interactive experiences.

• In October 2024, Telegram introduced its "Gifts" feature, allowing users to send animated digital artwork with customized messages. These digital assets can be displayed on user profiles and exchanged for Stars, an in-app currency introduced earlier in the year to support content creators and service providers. This initiative highlights a growing shift toward monetized digital gifting ecosystems, encouraging greater adoption of virtual keepsakes.

Regional Analysis

North America dominates the global gifts, novelty, and souvenir market, driven by a strong tourism industry, well-developed retail infrastructure, and high consumer spending power. The region’s demand for personalized gifts and memorabilia is bolstered by the frequent celebration of major holidays and cultural events, leading to significant sales. Additionally, North America’s advanced e-commerce landscape provides consumers with a vast range of shopping options, further complementing traditional retail channels.

Alongside a thriving artisan market, well-established retail chains and specialty gift stores contribute to the region’s market leadership. Major retailers like Hallmark and Things Remembered have expanded their personalized gift selections using AI-driven customization, allowing customers to create bespoke products online. Furthermore, in 2024, Disney Parks introduced NFC-enabled souvenirs, enabling visitors to unlock exclusive digital content linked to their physical memorabilia, merging traditional gifting with modern digital experiences.

Key Highlights

• The global gifts, novelty, and souvenir market size was valued at USD 13.79 billion in 2024 and is expected to reach from USD 14.28 billion in 2025 to USD 19.40 billion in 2033, growing at a CAGR of 3.90% over the forecast period (2025-2033).
• Based on Type, the global gifts, novelty, and souvenir market is segmented into Souvenirs and Novelty, Seasonal Decorations, Greeting Cards, Giftware, and Others. The Souvenirs and Novelty owns the highest market share.
• Based on Material, the global gifts, novelty, and souvenir market is segmented into Wood, Metal, Ceramic, Textile, Plastic, and Glass. Textile owns the highest market share.
• Based on the Price Range, the global gifts, novelty, and souvenir market is segmented into Low, Mid, and High. The Midsegment is the most significant revenue contributor to the market.
• Based on Occasion, the global gifts, novelty, and souvenir market is segmented into Birthdays, Holidays, Anniversaries, Travel, and Corporate Gifting. The Holidays segment owns the highest market share.
• Based on the Distribution Channel, the global gifts, novelty, and souvenir market is segmented into Online Retailers, Brick-and-mortar Stores, Specialty Gift Shops, and Tourist Attractions. The Brick-and-mortar owns the highest market share.
• Based on region, the global market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. North America is the most significant global gift, novelty, and souvenir market shareholder.

Competitive Players

1. Hallmark Cards, Inc.
2. American Greetings Corporation
3. Disney Consumer Products, Inc.
4. Archies Limited
5. Card Factory
6. The Walt Disney Company
7. Party City Holdco Inc.
8. Spencer Gifts LLC
9. The Yankee Candle Company, Inc.
10. Fossil Group, Inc.
11. Sanrio Co., Ltd.
12. Enesco, LLC
13. Oriental Trading Company, Inc.
14. The Paper Store, Inc.
15. Zazzle Inc.
16. CafePress Inc.
17. Things Remembered, Inc.
18. PersonalizationMall.com, LLC
19. Redbubble Ltd.
20. Moonpig Group PLC

Recent Developments

• In July 2024, Mars Wrigley India unveiled GALAXY Jewels, an elegant masterpiece crafted to elevate gifting to new heights, a treasure as unique and timeless as a Jewel. Perfect for every person and occasion, Galaxy Jewels comes in never-before-seen disruptive packaging that promises to catch the eye and captivate the senses while perfectly embodying the name of the brand Jewels.
• In October 2024, Home Centre launched the ‘Speaking Gifts’ Campaign for Diwali 2024, celebrating thoughtful gifting. The multi-medium campaign is an ode to thoughtful gifting to loved ones, where gifts express the feelings that words often fail to capture.

Segmentation

1. By Type
   1. Souvenirs and Novelty
   2. Seasonal Decorations
   3. Greeting Cards
   4. Giftware
   5. Others
2. By Material
   1. Wood 
   2. Metal 
   3. Ceramic 
   4. Textile 
   5. Plastic 
   6. Glass
3. By Price Range
   1. Low
   2. Mid
   3. High
4. By Occasion
   1. Birthdays 
   2. Holidays 
   3. Anniversaries
   4. Travel 
   5. Corporate Gifting 
5. By Distribution Channel
   1. Online Retailers 
   2. Brick-and-mortar Stores 
   3. Specialty Gift Shops 
   4. Tourist Attractions 
6. By Region
   1. North America
   2. Europe
   3. Asia Pacific
   4. Central & South America
   5. Middle East & Africa