Gift Wrapping Products Market Size, Share & Trends Analysis Report By Product Type (Wrapping Paper, Decorative Boxes), By Raw Material, By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global gift wrapping products market size was valued at USD 15.1 billion in 2018. Product innovation in gift wrapping products is the major factor contributing to the growth of this industry. Furthermore, the rise in purchasing power has increased the demand for elegant and customized gifting options. This is expected to propel the growth of the overall gift products industry, which will positively influence the global market.

Gifting is considered a way of expressing gratitude or appreciation. As a result, gifting customs have evolved over the years. Exchanging gifts is not limited to festival or holiday season like Thanksgiving and Christmas. People give gifts on various occasions like anniversaries, house-warming parties, graduation parties, and farewell parties. Since gift wrapping products are perceived to increase the overall aesthetic value of the product, an increase in gifting occasions is expected to fuel market growth.

Many countries have specific gifting traditions that demand gift wrapping. In China, it is expected that the gift should be wrapped well. The unwrapped gift is considered to be inappropriate or embarrassing in the Chinese tradition. Brazil is another country that emphasizes gift wrapping. Brazilians prefer their gifts wrapped in colorful wrappers - mainly yellow and green, which depict their country’s colors. Similar gifting traditions in various regions are expected to increase product demand in the next few years.

In addition to traditions, gift wrapping products have a psychological effect on the receiver. According to a study published in the Journal of Consumer Psychology, gift wrapping creates an attraction bias towards the gift itself. Via repeated experiments of giving wrapped and unwrapped gifts, it was proved that the subjects were more likely to be fond of the gift if it was wrapped. Such studies and surveys are pushing the manufacturers to improve their product line by incremental innovation techniques and launching new products in the market. This is expected to increase market growth during the projected period.

Raw Material Insights

The paper and paperboard occupied the largest market share in 2018 and is expected to expand at the fastest CAGR of 7.7% during the forecast period. A major factor contributing to the growth of this segment is the increasing availability of biodegradable paper. Biodegradable papers reduce carbon footprints as they are made of recycled waste material. Moreover, such papers can be disposed of easily by shredding or composting. This is expected to increase the demand for paper and paperboards wrapping products.

Plastic ban is another factor propelling the growth of this segment. The majority of countries like the U.S. and U.K. have banned the use of plastic in many industries. China is one of the major countries to ban plastic imports. This initiative has pushed other countries like Japan and Thailand to shift to the plastic alternative. This is expected to fuel the demand for paper and paperboard products, which will, in turn, positively influence market growth.

A few other gift wrapping materials such as textiles/fabric, glass, wood, foam, and leather are increasingly becoming popular among the consumers. Textiles gift wrapping materials are witnessing steady growth as food and beverage gifting is gaining significant traction in the gift industry. In many traditions, wine or champagne gifting is very popular. Leveraging such trends, manufacturers are producing innovative fabric gift bags to increase product demand. Since the fabric is a bio-degradable and reusable material, this segment is expected to witness substantial growth during the forecast period.

Product Type Insights

Wrapping paper occupied more than 50.0% share of the global revenue in 2018. A major factor propelling the growth of wrapping paper is its easy availability and variety of colors. Colorful wrapping papers with attractive designs are preferred by consumers for gift wrapping. In addition, custom printed wrapping papers are gaining traction in the market. Consumers tend to use customized wrapping papers for personalized gifts to add an individual touch to the gift.

An increase in food gifting is another factor contributing to the market share of this segment. Chocolate, baked goods, and sweets are some of the popular food items that can be gifted. Alcoholic beverages like wine and champagne too require paper packaging when gifted. This is expected to propel the demand for wrapping paper in the next few years.

Additionally, many manufactures are producing reusable wrapping papers. Since wrapping paper is easily available at a reasonable price, consumers are spending more on this product. Moreover, due to the significant growth of the packaging industry, paper packaging and wrapping paper are expected to dominate the market for the next few years.

Decorative boxes, followed by pouches and bags, are expected to witness the fastest growth from 2019 to 2025. Higher visibility of corrugated boxes, along with attractive designs, is expected to fuel the demand for gift boxes. Corrugated boxes have greater strength and durability. Since these boxes are lightweight, they are majorly used for shipping products safely across different regions.

Additionally, decorative boxes are increasingly used in luxury gifting items like cosmetics and glass items, which are sensitive to handle. Attractive designs in these boxes are a major factor influencing product demand. These designs also eliminate the need for secondary packaging of the gift with a wrapping paper, which eliminates the need for secondary packaging/wrapping. Hence, the overall market is expected to witness substantial growth owing to increased demand for such boxes.

Regional Insights

In terms of revenue, North America accounted for a share of 35.5% in 2018. The majority of the global sales were driven by the U.S. owing to an increase in gifting occasions in the region. Due to increased spending power, consumers prefer to buy expensive gifts wrapped in an elegant way to improve the attractiveness of the gift. This is expected to propel product demand in this region during the forecast period.

Asia Pacific is expected to witness substantial growth in this market owing to the rise in disposable income as well as improved market penetration of global players via franchising. In 2011, India’s top greeting card-maker, Archies tied-up with Hallmark to open exclusive stores of greeting cards. Similar initiatives are expected to propel the growth of the region, which will positively influence market growth.

Central and South America is a potential market for gift wrapping products. As the packaging industry is increasing penetration in developing countries like Brazil, gift wrapping products are expected to enter the market in this region. Moreover, since the market is highly fragmented, the untapped region of Central and South America is expected to witness substantial growth during the forecast period owing to improved penetration of the global players.

Key Companies & Market Share Insights

The global market is highly fragmented with global players concentrated into major developed countries like U.S. and U.K. Franchising, followed by retailing, are the two major trends observed in the market. Hallmark Cards has launched a strategy ‘Grow with Hallmark’ that allows anyone to open their own greeting card and gift store. Similar initiatives taken by other players like Mondi Group and Card Factory are expected to drive the growth of the market.

Gift Wrapping Products Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global gift wrapping products market report on the basis of raw material, product type, and region:

• Raw Material Outlook (Revenue, USD Million, 2015 - 2025)

  • Paper & Paperboard

  • Plastic

  • Other

• Product Type Outlook (Revenue, USD Million, 2015 - 2025)

  • Wrapping Paper

  • Ribbons

  • Film & Foils

  • Decorative Boxes

  • Pouches

  • Bags

  • Other

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • The U.S.

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

  • Central & South America

  • Middle East & Africa