Gifts Novelty and Souvenir Market Size, Share & Trends Analysis Report By Type (Souvenirs and Novelty, Seasonal Decorations, Greeting Cards, Giftware, Others), By Material (Wood, Metal, Ceramic, Textile, Plastic, Glass), By Price Range (Low, Mid, High), By Occasion (Birthdays, Holidays, Anniversaries, Travel, Corporate Gifting), By Distribution Channel (Online Retailers, Brick-and-mortar Stores, Specialty Gift Shops, Tourist Attractions) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Gifts Novelty and Souvenir Market Size

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).

A gift is an item given without any expectation of payment; it's a present. A novelty item is an object specifically designed to serve no practical purpose and is sold for its uniqueness, humor, or simply as something new. A souvenir is something kept as a reminder. These products include personalized gifts, handcrafted artifacts, collectibles, decorative items, and regional souvenirs that reflect cultural heritage or tourism experiences. The novelty segment features unique and often humorous or trendy items designed to entertain or surprise recipients. This market thrives on seasonality, impulse purchases, and cultural influences, with demand peaking during holidays, festivals, and travel seasons.

The global gifts, novelty, and souvenir market is influenced by tourism, seasonal celebrations, and the growing trend of personalized and experiential gifting. E-commerce and digital customization technologies have revolutionized the industry, allowing consumers to create bespoke gifts and memorabilia. Sustainability is a key trend, with eco-friendly and handmade products gaining traction. The popularity of these items is surging due to the desire for authentic, shareable, and personalized experiences in an increasingly digital world, where physical tokens of connection and experience gain more value. The rise of travel and cultural appreciation post-pandemic has rejuvenated demand for unique souvenirs. Brands leveraging digital marketing and online marketplaces can expand their global reach, catering to niche preferences and social gifting trends.

Latest Market Trends 

Personalization and customization

Consumers are shifting away from generic goods in search of distinctive products that represent personal preferences and provide enduring memories. This trend includes novelty items catered to particular interests or hobbies, gifts with names or dates etched on them, and personalized souvenirs. Customization is now more economical and accessible because of digital printing, laser engraving, and online design tools, which enable firms to provide unique products on demand. By enhancing the emotional value of presents, novelty items, and mementos, this personalizing emphasis turns them into treasured mementos and propels market expansion through higher customer satisfaction and involvement.

• In September 2024, Johnson’s Baby launched a personalized gift set for newborns with Sonam Kapoor. The brand also introduced an AI-generated lullaby and video, which can be personalized with the baby’s name.

Gifts Novelty and Souvenir Market Growth Factors

Growing consumer interest in ethical and sustainable products

Consumers increasingly prefer products manufactured ethically, responsibly, and from recycled materials. This change indicates a more significant cultural movement toward conscious consumption, in which people try to reduce their environmental impact and promote ethical labor practices. In response, companies and craftspeople are providing environmentally friendly substitutes, like presents from responsibly sourced materials, biodegradable souvenirs, and repurposed novelty items. In addition to appealing to consumers who care about the environment, this emphasis on sustainability builds brand loyalty and improves brand reputation, which propels market expansion.

• In May 2024, Gift Kya De achieved a significant milestone by being selected among the Top 54 D2C start-ups in the prestigious Amazon Propel Start-up Accelerator Season 4. This achievement becomes even more important considering that over 900 entries were received, of which only 54 visionary brands made it to the exclusive list. This recognition solidifies GKD's position as a key player in the eco-friendly and customized gift industry.

Furthermore, digital platforms provide unprecedented access to various products, enabling consumers to discover unique, personalized, niche items worldwide. E-commerce platforms offer convenience, allowing shoppers to browse and purchase gifts from the comfort of their homes, with easy delivery options. Social media integration and targeted advertising enhance product visibility, driving sales and brand awareness.

Restraining Factors

Seasonality and event dependence

Sales often peak during specific holidays like Christmas, Valentine's Day, and major festivals, creating periods of intense demand followed by substantial lulls. This reliance on seasonal spikes makes revenue forecasting and inventory management challenging. Businesses must navigate fluctuating demand, potentially leading to overstock or stockouts. Furthermore, the market's dependence on events like tourism and celebrations means that external factors, such as economic downturns or travel restrictions, can drastically impact sales. This inherent volatility makes it difficult to maintain consistent revenue streams and requires businesses to adapt quickly to changing market conditions.

• According to YouGov’s Diwali Consumer Report for October 2024, almost 75% of Diwali observers mark it as a gift-giving holiday, highlighting its cultural and economic significance.

Furthermore, during the Diwali season, the logistics sector becomes a backbone for ensuring consumer satisfaction, especially with data indicating that e-commerce sales could reach a record-breaking USD 12 billion in 2024, up from USD 9.7 billion in 2023, according to Shiprocket, one of India’s leading e-commerce enablement platforms.

Market Opportunity

Creating digital gifts

As digital interactions increasingly shape modern lifestyles, consumers are moving toward innovative virtual gifting solutions beyond traditional presents. This includes personalized digital art, NFTs, e-greeting cards, virtual reality (VR) experiences, and metaverse-based gifts. These digital gifts offer instant accessibility, limitless customization, and reduced environmental impact, making them particularly attractive to younger, tech-savvy consumers.

Additionally, the integration of blockchain technology ensures authenticity and uniqueness, while the ability to share digital keepsakes on social media adds further sentimental and social value. Businesses can leverage AI-driven personalization, AR/VR technology, and interactive digital experiences to capture this growing market.

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

Regional Insights

North America: Dominant region with robust market growth

North America dominates the global gifts, novelty, and souvenir market. The region's substantial tourism economy, well-established retail infrastructure, and strong consumer spending power contribute to its dominance. A strong desire for personalized presents and souvenirs and the frequency of essential holidays and cultural events fuel substantial sales. Furthermore, the region's advanced e-commerce sector offers consumers various purchase possibilities, further augmenting conventional retail channels.

In addition to a flourishing artisan market, the region's market leadership is facilitated by the well-established presence of major retail chains and specialist gift shops. Major retailers, including Hallmark and Things Remembered, have expanded their personalized gift offerings with AI-driven customization, enabling customers to create tailored products online. Additionally, Disney Parks introduced NFC-enabled souvenirs in 2024, allowing tourists to unlock exclusive digital content tied to their physical memorabilia, blending traditional and digital gifting experiences.

Asia-Pacific: Rapid expansion fueled by emerging markets

Asia-Pacific holds a significant share of the global gifts, novelty, and souvenir market. Rising disposable incomes, a growing middle class, and increased travel, especially in Southeast Asian, Chinese, and Indian countries, are the main drivers of this expansion. The ever-increasing e-commerce industry and growing exposure to international trends further drive the market. Cultural festivals and festivities significantly increase the demand for presents and souvenirs, which are essential to many Asian communities. Customers from abroad and domestically are drawn to the region's traditional goods and varied artisan crafts. Asia Pacific is the fastest-growing market for gifts, novelty items, and souvenirs due to a wealth of cultural diversity, increased purchasing power, and the quick uptake of internet shopping.

• In recent years, Uttar Pradesh has seen a marked increase in tourist footfall. The number of visitors surged from 23 crore (3.45 million) in 2016-17 to 48 crore (7.19 million) in 2023-24, reflecting a growth of approximately 51%. The government aims to expand this number to over 80 crore(11.98 million) by 2028.

Countries Insights

• India: India’s gift market is experiencing substantial growth, driven by corporate gifting trends, festive demand, and the rise of personalized and customized gifts. The expansion of trade exhibitions and gifting expos reflects the sector’s potential. India’s largest exhibition for gifting and promotional solutions will take place across three major cities from April to September 2025, organized by MEX Exhibitions Pvt. Ltd. This event will provide a platform for manufacturers, retailers, and businesses to showcase products, explore partnerships, and cater to diverse regional markets.
• Canada: Canada's gift and novelty market thrives due to strong retail infrastructure, high consumer spending, and demand for personalized gifts and souvenirs. The increasing number of trade fairs and regional gift exhibitions is a key driver of market expansion. The upcoming Atlantic Gift + Home Market, launching in March 2025 at the Moncton Coliseum, will provide a dedicated platform for Canadian gift retailers and suppliers. By connecting local brands with buyers and facilitating networking opportunities, such events contribute to regional and national market growth.
• Mexico: The Mexican gift market is evolving with an increased focus on digital gifts and gaming-related gift cards, catering to younger consumers and the country’s expanding gaming industry. The rising adoption of digital payments and e-gifting solutions is another driving factor. In December 2024, Blackhawk Network (BHN) launched Roblox Digital Gift Cards in Mexico, further diversifying its global gifting portfolio. The expansion enables Mexican consumers to purchase and redeem digital gift cards in various currencies, increasing convenience and accessibility.
• Brazil: Brazil's gift industry thrives due to strong demand for souvenirs, corporate gifting, and personalized products. The market is driven by cultural diversity, tourism, and emerging e-commerce platforms. The upcoming Global Gifts Expo São Paulo in August 2025 will serve as an essential platform for manufacturers, retailers, and suppliers to explore the latest trends and innovations in the gift industry.
• United Kingdom: The UK’s giftware industry is witnessing steady growth, driven by personalized gifts, the increasing popularity of subscription-based gifts, and strong holiday season sales. The development of bespoke, handmade, and experience-based gifts reflects changing consumer preferences, with shoppers seeking more customized and thoughtful gifting options. According to the UK Giftware Association, the industry is projected to maintain its upward trajectory due to the post-pandemic retail boom and increased spending on unique and sustainable gifts.
• China: China remains one of the world’s leading manufacturers of gifts, novelty items, and souvenirs, driven by advanced manufacturing capabilities, a strong export market, and growing domestic demand. The China International Exhibition Center will host CGHE 2025 in March 2025, a significant industry event featuring a comprehensive gift industry showcase. The event will bring together gift suppliers, boutique store owners, and e-commerce retailers, highlighting new market trends and business opportunities.

Gifts Novelty and Souvenir Market Segmentation Analysis

The global gifts, novelty, and souvenir market is segmented into type, material, price range, occasion, and distribution channel.

By Type

The souvenirs and novelty segment dominated the market with the largest market revenue. This is primarily due to this category's broad appeal and diverse range of products. Souvenirs, tied to travel and experiences, capture the emotional value of memories, driving impulse purchases. With their unique or humorous nature, novelty items attract consumers seeking distinctive, shareable products. Furthermore, this segment benefits from constant innovation, with new trends and products emerging regularly, ensuring sustained consumer interest and driving consistent sales. The ability to cater to a wide range of tastes and occasions makes this segment the dominant revenue generator.

By Material

By Price Range

By Occasion

By Distribution Channel

Company Market Share

The global gifts, novelty, and souvenir market is moderately fragmented, with key companies and artisans enhancing their product offerings, distribution channels, and sustainability practices to meet evolving consumer demands. In the product sector, businesses are expanding their personalized and customizable gifts, novelty items, and souvenirs to cater to individual preferences and create unique experiences. Additionally, retailers are strengthening their online presence and omnichannel strategies to enhance accessibility and reach a wider audience. These advancements, along with regional artisan collaborations and the adoption of eco-friendly materials, are driving competition across a moderately fragmented global market. Furthermore, companies and artisans prioritize sustainable sourcing and ethical production methods to appeal to environmentally conscious consumers while integrating digital experiences to enhance the value of physical gifts.

Redbubble Ltd: An emerging player in the market

Redbubble Ltd. is an online art community featuring stationery, apparel, wall art, cases, skins, housewares, and bags made by artists worldwide. Gaining traction through its online marketplace that connects independent artists with consumers seeking unique, personalized products. Redbubble’s platform allows artists to upload their designs, which are printed on various items, including clothing, home décor, and stationery. This model enables consumers to access a vast selection of original designs and customize products to their preferences. The company's focus on empowering independent artists and offering various customizable options has resonated with consumers seeking distinctive gifts and souvenirs.

Recent Developments

• July 2024- Mars Wrigley India is unveiling 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.
• 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.

Analyst Opinion

As per our analyst, the global gifts, novelty, and souvenir market is experiencing robust growth driven by evolving consumer preferences for personalized, sustainable, and experiential products. Personalization and customization are key trends, with brands leveraging technology to offer bespoke items. Consumers are also increasingly drawn to local and artisan crafts, emphasizing authenticity and supporting small businesses. Ethical and sustainable products are gaining traction, reflecting a broader shift towards conscious consumption. Online retail and e-commerce are pivotal growth drivers, expanding market reach and facilitating convenient purchasing.

However, the market faces challenges due to seasonality and event dependence, requiring businesses to adapt to fluctuating demand. Opportunities lie in creating digital gifts and leveraging AR/VR for immersive experiences. Souvenirs and novelty items dominate the market, with textiles being the preferred material. Mid-range products and holiday-related gifts generate the most revenue. Brick-and-mortar stores remain the primary distribution channel while online sales expand. North America leads in revenue, while Asia Pacific is the fastest-growing region, driven by rising disposable incomes and tourism. The market is dynamic, with technological advancements and shifting consumer values shaping its future.