The gift packaging industry is experiencing sustained momentum driven by evolving consumer preferences and increasing demand for sustainable and personalised packaging solutions. This dynamic sector is influenced by advancements in materials and design innovation, positioning it for significant growth over the forecast period.
Market Size and Overview
The Global Gift Packaging Market is estimated to be valued at USD 26.82 Bn in 2025 and is expected to reach USD 39.27 Bn by 2032, growing at a compound annual growth rate (CAGR) of 5.6% from 2025 to 2032.
This upward trajectory reflects robust market dynamics fueled by rising gifting occasions and the growing influence of e-commerce packaging demands. Gift Packaging Market insights further reveal that consumer inclination towards eco-friendly and aesthetically appealing packaging is a significant factor driving industry size expansion.
Market Segments
The gift packaging market can be categorised into three core segments: material type, product type, and distribution channel.
- Material Type: Paper & cardboard, plastic, and fabric are key sub-segments. Paper & cardboard dominate due to recyclability, with notable growth in eco-friendly kraft paper observed in 2024 through consumer adoption in Europe.
- Product Type: Includes gift boxes, gift bags, and wrapping paper. Gift boxes emerged as the dominant product type with increased use in luxury retail packaging in 2025, while gift bags show the fastest growth supported by retail campaigns and e-commerce packaging trends.
- Distribution Channel: Offline retail, online retail, and wholesale. The online retail segment exhibits rapid growth due to rising digital consumption habits and convenience, significantly contributing to market revenue gains during 2024-2025.
Market Drivers
One key market driver is the increasing demand for sustainable packaging solutions backed by regulatory policies and consumer demand. In 2024, global initiatives to reduce plastic waste, like the EU’s Single-Use Plastics Directive, have accelerated adoption of biodegradable and recyclable gift packaging materials. Approximately 38% of retailers reported integrating sustainable packaging to meet consumer expectations by 2025, underscoring this trend as a fundamental growth catalyst.
Segment Analysis
Focusing on product type, gift boxes dominate in terms of industry size and revenue. Data from 2024 exhibits remarkable growth in premium gift boxes used in luxury brands, supported by innovations in design and materials such as magnetic closures and embossing. Concurrently, gift bags are the fastest-growing sub-segment due to their versatility and increasing use in personalized gifting, particularly in the Asia-Pacific region, highlighted by regional sales growth of over 12% in 2025.
Consumer Behaviour Insights
Recent market research reveals two notable behavioural shifts among end users in 2024–2025: first, a distinct preference for customised gift packaging aligned with brand identity or personal touch, with 45% of consumers willing to pay a premium for personalised prints and finishes. Second, growing sustainability consciousness is reflected in 57% of consumers actively seeking recyclable or reusable gift packaging options. Additionally, pricing sensitivity remains influential, with consumers opting for value-added packaging solutions that combine aesthetics and functionality without significant cost increments.
Key Players
Prominent market players leading the gift packaging industry in recent years include Hallmark Cards, Packlane, Smurfit Kappa Group, Ebro Colour GmbH, and Interpack, among others.
These market companies have focused on capacity expansions and regional market entries during 2024 and 2025 to leverage emerging opportunities. Notably, Smurfit Kappa Group invested in advanced sustainable material technologies in 2025, resulting in a reported 15% increase in market revenue from eco-friendly packaging solutions.
Key Winning Strategies Adopted by Key Players
Distinct from typical industry approaches, Hallmark Cards introduced a modular, customizable packaging platform in 2024 that integrates augmented reality (AR) for enhanced consumer engagement, significantly boosting customer retention rates by 20%. Packlane employed a direct-to-customer (D2C) digital platform in 2025, automating small-batch customized orders, reducing delivery lead times by 30%. Smurfit Kappa Group’s strategic partnerships with recycled material suppliers since 2024 enhanced its sustainability credentials, expanding its presence in environmentally regulated markets and improving profit margins despite rising raw material costs.
FAQs
1. Who are the dominant players in the gift packaging market?
Leading players include Hallmark Cards, Packlane, Smurfit Kappa Group, Ebro Colour GmbH, and Interpack, recognized for innovation, capacity expansions, and sustainable initiatives in 2024-2025.
2. What will be the size of the gift packaging market in the coming years?
The market size is projected to increase from USD 26.82 billion in 2025 to USD 39.27 billion by 2032, growing at a CAGR of 5.6%.
3. Which product type segment holds the largest growth opportunity?
Gift boxes dominate revenue, especially premium categories, while gift bags are the fastest-growing sub-segment propelled by e-commerce demand and personalization trends.
4. How will the gift packaging market trends evolve over the next five years?
Market trends will increasingly emphasize sustainability, digital customization, and integration of smart packaging features, aligned with evolving consumer preferences and regulatory frameworks.
5. What are the primary challenges in the gift packaging market?
Key challenges include fluctuating raw material costs, stringent regulatory compliances on packaging waste, and balancing customization with cost efficiency.
6. What go-to-market strategies are commonly adopted in the gift packaging market?
Strategies include digital platform launches for personalized packaging, alliances for sustainable material sourcing, and innovative marketing campaigns leveraging augmented reality and direct consumer engagement.
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Author Bio:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163 )
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