Gift Wrapping Products Market

Market Overview

The global gift wrapping products market size was valued at USD 17.84 billion in 2022. It is estimated to reach USD 31.97 billion by 2031, growing at a CAGR of 6.7% during the forecast period (2023–2031).

Gift wrapping is the act of enclosing a present in a material. The term "gift-wrapping products" refers to various materials and tools used to wrap, adorn, and enhance the aesthetic appeal of presents. These products include gift boxes, bags, ribbons, bows, tissue paper, tags, and other ornaments. Gift wrapping paper is the most widely used type of wrapping material. It is a type of paper used to wrap gifts, typically in a rectangle, to conceal the contents.

Paper can have many colors, patterns, and designs and can be constructed from many materials, including paper, foil, or plastic. Gift bags are a popular type of gift-wrapping merchandise. These are pre-made gift bags that are designed to hold gifts. They can be manufactured from several materials, such as paper, fabric, or plastic. These bags come in various shapes and sizes, often incorporating handles or straps for carrying convenience.

Highlights

• Paper and paperboard dominate the raw material segment
• Wrapping paper dominates the product type segment
• North America is the highest shareholder in the global market

Market Dynamics

Market Drivers

Growing Usage of Sustainable Materials to Manufacture Gift-Wrapping Products

In light of the increasing awareness surrounding the ongoing environmental movement, individuals now opt for more sustainable choices when selecting gifts. To such an extent that, in addition to the gift itself, the packaging materials employed for gift wrapping are ideally chosen to be environmentally friendly. Instead of packaging materials made from non-biodegradable polymers, people use kraft paper, cloth wraps, paper or fabric gift bags, and even newspapers.

China banned the import of over 24 different types of solid waste, including plastic and unsorted paper, in July 2018. Scrap and waste materials from many countries, including the U.S. and Canada, have been shipped to China for recycling for several years. As a result, many nations, including the U.K., are now considering imposing taxes on plastic items to help reduce their usage and promote recycling in light of the Chinese government's decision to close their doors to foreign waste. This will increase the demand for more sustainable materials to manufacture gift wrappers instead of polymer-based materials, thereby driving market expansion.

Shifting Consumer Trends Toward Party and Celebration Activities

Demand for gift-wrapping products is fueled by shifting consumer trends toward party and celebration activities and the surging disposable income of the world's population. The growth of the market is ultimately driven by the evolution of the e-commerce industry and the global spread of the internet; both entice consumers to purchase gift products and stimulate market expansion. In addition, the increasing infrastructure development associated with auditoriums, seminars, and corporate events drives the growth of parties and celebrations, increasing the demand for gift packaging products.

The increasing popularity of holiday celebrations such as Christmas, Halloween, and others generate a seasonal demand for gift-wrapping products. The rising popularity of birthday celebrations and the increasing spending of the world's population stimulates the demand for gift-wrapping products and fuels the market's expansion. According to the Local Government Association, Christmas markets are a significant economic contributor in England, with an increased expenditure of USD 540.8 million in 2017 by the populace, double that of 2015.

Market Restraint

Increasing Consciousness About the Low Recyclability of Wrapping Products

Wrapping paper may have "paper" in its name, but that does not mean it can be recycled. Several types of wrapping paper cannot be recycled due to additives such as glitter, plastic, and metallic components. Wrapping products create millions of tons of waste each year, much of which is in landfills worldwide. According to government figures, British waste management company BusinessWaste revealed that Britons throw out around 227,000 miles of wrapping paper over Christmas, which is enough to stretch 90% of the way to the moon. As consumer consciousness about the detrimental impact of various packaging materials on the environment grows, the use of gift-wrapping products is starting to decline. This trend threatens to limit the growth of the market.

Market Opportunities

Increasing Demand for Customized Gift Packaging

Personalization or customization of gift wrappers allows people to turn ordinary gifts into memorable ones, making any big or small occasion for the receiver even more special. According to the Deloitte Consumer Review, more than 50% of consumers are more interested in purchasing customized gifting options. People love being gifted specialty or customized gift boxes because they are elegant, and the personalized touch shows how much the gift giver cares.

In India, Cadbury—a British multinational confectionery company fully owned by Mondelez International— has introduced a service where it arranges gifts for people for various occasions, like birthdays, anniversaries, and graduation. The box in which the chocolates are packed can be customized by adding a photograph of the receiver and a personalized message. According to Daily Mirror, in 2019, 65% of those polled said they get more satisfaction from giving someone a personalized gift than a generic one. Such factors are likely to create opportunities for market growth.

Regional Analysis

North America Dominates the Global Market

Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.

North America is the most significant global gift wrapping products market shareholder and is anticipated to exhibit a CAGR of 7.21% during the forecast period. A relatively high consumer purchasing power characterizes the North American region. This is key in the rising demand for trendy and exclusive gift-wrapping papers and solutions. The rising demand for sustainable gift-wrapping papers for occasions such as Christmas and Thanksgiving also presents the market with growth avenues. In addition, climate changes and increasing environmental concerns, particularly among millennials and Gen Z, have driven the demand for sustainable and environment-friendly wrapping papers in the U.S. and Canada. Compared to the rest of the year, Christmas generates the maximum waste in these countries, a growing concern in the region.

Europe is predicted to exhibit a CAGR of 4.9% over the forecast period. The European market is characterized by a strong intra-continental trade of goods, wide market access to companies, and a population with high income, courtesy of European Union and Eurozone agreements. The region is home to major economies like the U.K., France, Germany, and Italy, with high household expenditure levels and mature infrastructure sectors. Considering the high-income levels of people in Western European countries, the gift-wrapping products market offers lucrative opportunities for players in terms of high-end product offerings, innovative patterns and designs, and sophisticated distribution channels.

In addition, the rise in destination weddings in the region has also fueled the market for gift-wrapping products. European destination weddings are becoming increasingly popular owing to the short flight times and warm climate. Some of the region's best locations for destination weddings are Cyprus, Lisbon, Greece, and Sicily. These locations boast beautiful beaches and warm climatic conditions. Consumers across the world are frequently traveling to these spots for destination weddings. This has driven the overall gifting market.

Asia-Pacific is home to high-growth economies like Bangladesh, Myanmar, and Vietnam. China and India, home to approximately 2.4 billion people, have traditionally dominated various social and economic indicators such as middle-class income growth. However, over the recent past, other countries in the region, particularly Bangladesh and Vietnam, have gradually tallied their growth with China and India, translating into greater-than-ever consumer spending in the region, which bodes well for the overall gifting industry, thus, driving the demand for gift wrapping products.

In terms of economic development, nations in South America have been experiencing notable increases in the proportion of their populations transitioning from poverty to middle-income brackets. According to the World Bank, over the last decade, 50 million people entered the middle-income bracket, with a USD 10–50 per capita per day, most of them being young income earners. This hints at a rise in consumer spending, which bodes well for the gift-wrapping products market in the region. In addition, the rising middle-class population, particularly in Brazil and Mexico, coupled with the growing popularity of local and multinational manufacturers, is expected to drive the gift-wrapping products market. In addition, the increasing popularity of outdoor social gatherings and festivals is likely to drive the demand for gift-wrapping products such as wrapping paper and decorative boxes.

Many countries in the African continent have been undergoing rapid economic expansions and urbanization. The continent offers immense opportunities for demand fulfillment, considering the advent of online retail platforms. This has driven the demand for online sales of gift-wrapping products in African countries. In contrast to African consumer dynamics, the Middle East is characterized by high consumer spending on luxury amenities and a young population burgeoning rapidly. The government's willingness to diversify their economies has led to a huge impetus for luxury gifting, which widens the scope for gift-wrapping products. The influence of Western cultures and trends has gradually penetrated big cities in the region, especially South Africa, Saudi Arabia, and Dubai, transforming the gift-wrapping products market.

Segmental Analysis

The global gift wrapping products market is segmented by raw material and product type.

Based on raw material, the global market is segmented into paper and paperboard, plastic, and others. 

The paper and paperboard segment owns the highest market share and is predicted to exhibit a CAGR of 7.01% over the forecast period. Paper and paperboard wrapping are important components of numerous industries worldwide, covering various wrapping needs. Paperboard packaging is a flexible and cost-effective way to transport, protect, and preserve various products in various sectors. Paperboard packaging is lightweight and can be customized to fit specific customer needs. Additionally, the demand for environment-friendly packaging materials for various end uses has fueled the growth of the gift-wrapping paper and paperboard industry.

Furthermore, rising awareness about plastic packaging drives the demand for paper and paperboard materials in developing countries worldwide. Moreover, Brown Kraft and recycled papers are popular and usually printed in one color or do not include designs. Brown, pink, and green colors dominate the gift-wrapping paper industry.

Consumer preference for alternative gift-wrapping materials like textiles, glass, wood, foam, and leather is rising. The market for textile gift-wrapping supplies is expanding steadily as food and beverage gifting becomes increasingly popular. Giving wine or champagne as a gift is very common in many customs. Utilizing these trends, manufacturers create creative fabric gift bags to boost demand for their goods. This segment is predicted to expand significantly during the forecast period because the fabric is biodegradable and recyclable.

Similarly, the rise in the availability of fabric or gift-wrapping products made from other materials by manufacturers is likely to favor market growth. For instance, planetwrapit offers a wide range of fabric gift wraps that are plastic-free and reusable as they are made from reclaimed sari.

Based on product type, the global market is divided into wrapping paper, ribbons, film and foils, decorative boxes, pouches, bags, and others. 

The wrapping paper segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 6.41% over the forecast period. Gift wrapping papers are primarily decorative or kraft paper used to wrap gifts for various purposes. Moreover, wrapping has become more popular to improve gifts' aesthetic appearance and attractiveness. Furthermore, large e-commerce sites such as Amazon, Flipkart, Snapdeal, and Alibaba offer the option to gift wrap the product during checkout if the customer wants to gift the product. These solutions are available on various online platforms, which drives product demand. Wrapping paper with high-quality printing and design aids is gaining popularity through effective advertising. These trends and applications are boosting product demand.

Ribbon is a narrow band of material, usually made of fabric or plastic, used for decoration and gift wrapping. Natural materials like silk, cotton, jute, and synthetic materials like polyester, nylon, and polypropylene are used to make cloth ribbons. The ribbon is also made from popular fabrics such as satin, organza, sheer, silk, velvet, and grosgrain. There has been an increasing personalization trend in the gift-wrapping products market. Ribbons are the major products that are being personalized for weddings, birthdays, baby showers, and gift purposes.

For instance, Etsy, Inc., an American e-commerce company that delivers handmade or vintage items and craft stores, offers a wide range of ribbons that include wedding personalized printed ribbons, Botanical printed ribbons, linen cotton ribbons, hand-dyed silk velvet ribbons, eco-friendly natural hemp ribbon, silk chiffon ribbon, small leaf ribbon, and handmade ribbon. The facility of personalization, coupled with the availability of a wide range of ribbon options, is likely to contribute to the market growth.

Recent Developments

• May 2023- Giftwrap.ai, an AI-powered gift marketplace, announced the release of the Giftwrap.ai ChatGPT plugin, which provides users with a new method to select, send, and manage gifts. The ChatGPT plugin from Giftwrap.ai provides a streamlined and personalized gift recommendation experience.
• May 2023- Lula's Garden, an eco-friendly succulent plant gifting business, and WildBrain, a world leader in kids and family entertainment, are partnering on a Strawberry Shortcake-inspired limited-time offer gift box collection. In honor of National Strawberry Month, the Lula's Garden collection of Strawberry Shortcake-themed planter gift boxes is now available for pre-order.