U.K. Gifts Retailing Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2031

Gifts Retailing Market Analysis

The U.K. gifts retailing market is a dynamic sector that caters to a wide range of consumer needs, from personal celebrations and seasonal festivities to corporate gifting. This market has seen rapid transformation with the growth of e-commerce, making gift shopping more accessible and convenient. However, retailers face notable challenges, including seasonal demand peaks, intense competition from both small and large players, and rising raw material costs. Consumer preferences have also shifted towards unique, customizable, and premium gift options, with a growing interest in experiential and virtual gifts. In addition, high inflation and economic uncertainty have impacted consumer spending patterns, with many focusing on affordable yet thoughtful gifts. Overall, the market’s adaptability to evolving consumer tastes, digital advancements, and economic shifts will shape its growth trajectory in the coming years.

Gifts Retailing Market Size

Data Bridge Market Research analyses that the U.K. gifts retailing market is expected to reach a value of USD 7.43 billion by 2031 from USD 4.45 billion in 2023, growing at a CAGR of 6.8% during the forecast period 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and PESTLE analysis

U.K. Gifts Retailing Market Trends

“Increased E-Commerce Adoption”

Increased e-commerce adoption is reshaping the U.K. gifts retailing market, with online platforms driving significant growth as consumers turn to digital shopping for convenience, choice, and personalization. The pandemic accelerated this trend, and with evolving consumer expectations, more retailers are investing in enhanced online experiences, streamlined payment options, and faster delivery services. This shift has allowed smaller and niche brands to reach wider audiences, fostering a competitive market where consumers can explore curated and unique gift options beyond traditional high-street offerings. As a result, the U.K. gifts retailing market is seeing greater digital transformation, leading to increased sales and customer engagement online.

Report Scope and Gifts Retailing Market segmentation

Gifts Retailing Market Definition

The U.K. gifts retailing market encompasses the sale of a wide range of products intended for gifting purposes, including personalized items, experience-based gifts, seasonal and holiday-related gifts, luxury goods, and novelty items. It includes brick-and-mortar stores, online platforms, and hybrid channels, targeting occasions such as birthdays, anniversaries, weddings, and corporate events. The market caters to diverse consumer preferences, driven by factors like cultural trends, disposable income, and advancements in e-commerce. It is characterized by strong competition, innovation in product offerings, and a growing emphasis on sustainability and ethical sourcing.

U.K. Retailing Market Dynamics

Drivers

• Increased E-Commerce Adoption

Increased e-commerce adoption is reshaping the U.K. gifts retailing market, with online platforms driving significant growth as consumers turn to digital shopping for convenience, choice, and personalization. The pandemic accelerated this trend, and with evolving consumer expectations, more retailers are investing in enhanced online experiences, streamlined payment options, and faster delivery services. This shift has allowed smaller and niche brands to reach wider audiences, fostering a competitive market where consumers can explore curated and unique gift options beyond traditional high-street offerings. As a result, the U.K. gifts retailing market is seeing greater digital transformation, leading to increased sales and customer engagement online.

For instance,

• In September 2024, WahooGifts launched a new Shopify e-commerce store in the U.K., specializing in personalized gifts for various occasions. The platform offered a wide range of high-quality items, including baby gifts and engraved products, aimed at enhancing the gift-giving experience. By providing a user-friendly interface, WahooGifts enabled customers to browse and select thoughtful gifts easily. This launch benefited the company by positioning it as a go-to destination for personalized gifts, tapping into the growing e-commerce trend in the U.K. gifts retailing market, which increasingly favors online shopping for unique and custom items
• In November 2023, according to the International Trade Administration, U.K. eCommerce revenues were expected to grow at an annual rate of 12.6% through 2025, with consumer eCommerce making up 36.3% of the retail market by early 2021. This surge has driven more gift retailers online to capture demand, leveraging platforms such as Amazon and Sainsbury’s. The growing preference for mobile purchases and social media marketing allowed companies to boost their digital presence, reaching wider audiences and optimizing for secure payments. The trend benefited U.K. gift retailers by expanding market reach, increasing online sales, and providing more personalized shopping options

Increasing Demand for Corporate Gifting

The U.K. gifts retailing market is experiencing rising demand for corporate gifting, driven by companies seeking personalized and high-quality gifts to strengthen client relationships and recognize employee achievements. With remote and hybrid work reshaping workplace dynamics, corporate gifting has become an effective tool for maintaining engagement and loyalty, enhancing brand perception, and fostering goodwill. This demand supports growth in e-commerce, where retailers are offering a wide range of customizable, luxury, and sustainable gift options to meet corporate clients’ specific needs, positioning the U.K. gifts retailing market as a vital player in corporate relationship-building strategies.

• In October 2024, Di-vine, a luxury wine gifting service founded by American Entrepreneur Pepper Sells, launched in the U.K., targeting the rising demand for corporate gifting. The service offers a wide selection of curated wine gift boxes with customizable packaging and handwritten cards, plus same-day delivery in London and next-day U.K.-wide. Di-vine aimed to fill gaps in the fragmented wine gifting market, addressing corporate and consumer needs for high-quality, personalized gifts. The brand plans expansion into European and US markets by Christmas, enhancing its reach to meet the growing demand for unique corporate gifting options
• In November 2019, Simply Cake Co in King’s Lynn launched a new range of festive treats, catering to the growing demand for corporate gifting. The expanded product line provided businesses with unique and seasonal options for holiday gifting, boosting the company’s appeal to corporate clients seeking distinctive gift solutions

Opportunities

• Virtual Gift Experiences

Virtual gift experiences present a significant growth opportunity in the gifts retailing market. As consumers increasingly seek unique and personalized gifting options, digital experiences—such as online workshops, virtual tours, streaming subscriptions, or personalized video messages—offer a compelling alternative to physical gifts. This trend aligns with shifting consumer preferences toward convenience, accessibility, and experiential value, particularly among younger generations. Retailers who embrace virtual gift experiences can expand their product offerings, reduce reliance on traditional inventory, and appeal to environmentally conscious shoppers looking to reduce material waste. This shift could diversify revenue streams and increase brand loyalty as customers embrace more personalized, memorable gifting options.

For instance,

• In August 2024, Amazon and Barclays launched a co-branded credit card in the U.K., allowing users to earn rewards on everyday purchases, redeemable for Amazon gift cards. The Amazon Barclaycard offered customers 1% back on Amazon purchases, 0.5% on non-Amazon spending for the first year, and exclusive 2% rewards for Amazon Prime members on shopping event days. Additional perks included 0% APR for six months, Barclaycard’s pre-sale event access, and 10% discounts at select venues. This partnership highlighted Amazon’s focus on enhancing customer engagement and loyalty, aligning well with trends in virtual gifting experiences by offering versatile digital rewards for cardholders
• In February 2020, InComm partnered with Eezi and Poundland to launch a new gift card program in the U.K., providing Poundland customers with a variety of gift cards for online shopping, gaming, streaming, dining, and retail. The rollout began with 200 stores in December 2019 and aimed to expand across all Poundland locations by the end of 2020. This initiative supported Poundland’s transformation by enhancing customer convenience and adding value through diverse gifting options, aligning with the growing virtual gift experience market by offering flexible, digital alternatives that attract modern shoppers

Collaborations and Limited Editions

Collaborations and limited editions are increasingly influential in the gifts retailing market, creating a sense of exclusivity and urgency that appeals to consumers seeking unique, memorable gifts. By partnering with popular brands, artists, or celebrities, companies can introduce co-branded or specially crafted items that not only stand out but also carry a perceived premium value. These exclusive releases attract attention across diverse customer segments, encourage repeat purchases, and often foster a stronger emotional connection with the brand. Limited editions and collaborations thus offer retailers an effective strategy to differentiate themselves, enhance brand appeal, and drive engagement in a competitive market.

For instance,

According to the article published by Jo Malone London, the brand launched its Christmas Limited Edition Gifts collection, featuring a selection of exclusive fragrance gifts designed to celebrate the holiday season. This release enhanced Jo Malone London’s brand appeal and customer engagement by leveraging the demand for unique, seasonal offerings. Limited editions like these add exclusivity, encouraging early purchases and boosting brand desirability in the gifts retailing market through special, sought-after collaborations and limited releases

• In December 2023, Dandelion Chandelier published a curated guide featuring British luxury holiday gifts, offering items from leading U.K. brands, from fashion to home décor. This collection, designed for Anglophiles, emphasized the appeal of British craftsmanship and heritage. Companies benefited by engaging international consumers with exclusive and elegant items that enhance brand prestige and attract holiday shoppers seeking unique, culture-rich gifts. Collaborations with artists, such as Bramley’s greenhouse gift set illustrated by Susannah Taylor, highlighted the power of partnerships in creating limited-edition products, driving excitement and exclusivity in the gifts retailing market

Restraints/Challenges

• Intense Competition from Both Large retailers and Small Retailers

Intense competition from both large and small retailers poses a significant challenge for the gifts retailing market. Large retailers benefit from economies of scale, expansive marketing budgets, and extensive product ranges, while small retailers often offer more personalized and unique gift options catering to niche markets. This dynamic creates a highly competitive environment where businesses must constantly innovate in pricing, product selection, and customer experience to stay relevant. As a result, both large and small retailers must find ways to differentiate themselves to attract and retain customers in a crowded and fast-evolving market

In September 2024, according to the article published by the Retail Times, Deliveroo partnered with Not On the High Street to offer on-demand delivery of over 1,000 personalized gifts from small U.K. brands. This partnership allows customers in London to order gifts such as jewelry, clothing, and home decor, with delivery in as little as 25 minutes. The collaboration supports small businesses, helping them expand their reach while providing customers with unique, tailored gift options. This move comes amid intense competition in the gifts retail market, where both large and small retailers must constantly innovate to differentiate themselves and stay competitive, presenting a challenge for new entrants seeking to capture market share in a crowded space.

• Rising Raw Material Costs

Rising raw material costs present a significant restraint for the gifts retailing market, especially for businesses offering customized products that require specialized materials. As the prices of essential materials like metals, glass, and high-quality fabrics increase, production costs rise, directly impacting profit margins. This situation can lead to higher retail prices, potentially deterring price-sensitive customers and reducing overall demand. For retailers focused on personalization, managing costs without compromising quality becomes increasingly challenging, forcing them to balance affordability with the rising expenses associated with raw materials.

For instance,

• In October 2024, according to an article published by ADS Laser, U.K. steel prices experienced stability in H1 2024. Still, they showed a slight decline in June, prompting buyer caution amid low demand and economic uncertainties. Price rises of 6% for stainless steel sheets and 5% for aluminum indicated potential for further increases in Q3 as global demand grew. Geopolitical tensions, including conflicts in U.K.raine and the Middle East, alongside U.K. domestic challenges, continued to drive volatility. The Labor government’s USD 2.5 billion investment pledge aimed to stabilize and boost the U.K. steel sector, though businesses remained uncertain about the plan’s implementation timeline

Gifts Retailing Market Scope

The U.K. gifts retailing market is segmented into ten notable segments on the basis of product, occasion specific gifts, price range, recipient specific gifts, gift cards and vouchers, specialty gift, ethical and sustainable gifts, personalization trends, technology integration, and distribution channel. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product

• Gift Vouchers
• Personalized Gifts
• Food and Beverage Hampers
• Toys and Games
• Flowers and Chocolates
• Cosmetics and Fragrance
• Electronics and Gadgets
• Apparel and Accessories
• Home Décor and Furnishings
• Jewelry
• Books and Stationery
• Wellness and Spa Products
• Souvenirs and Novelty Items
• Seasonal Decorations
• Desk Accessories
• Giftware
• Greeting Cards
• Others

Occasion Specific Gifts

• Birthday Gifts
• Holiday Gifts
• Anniversary Gifts
• Festival Gifts
• Christmas
  • Diwali
  • Eid
  • Others
• Valentine Day Gifts
• Graduation Gifts
• Mother’s Day – Father’s Day Gifts
• Others

Price Range

• Mass
• Premium

Recipient Specific Gifts

• Gifts For Him/ Her
• Corporate Gifts
• Gifts For Children
• Others

Gift Cards and Vouchers

• Digital Gift Cards
• Experience-Based Vouchers

Specialty Gift

• Subscription Boxes
• Gourmet And Food Gifts

Ethical and Sustainable Gifts

• Fair Trade Products
• Eco-Friendly And Sustainable Gifts

Personalization Trends

• Customized Packaging
• Engraving And Embroidery

Technology Integration

• E-Gifting Platforms
• Augmented And Virtual Reality

Distribution Channel

• Online
  • Company Owned Websites
  • Third Party Websites
• Offline
  • Supermarkets/Hypermarkets
    • Convenience Stores
    • Specialty Gift Shops
    • Stationary Shops
    • Photo Studios
    • Others

Gifts Retailing Market Share

U.K. gifts retailing market competitive landscape provides details of the competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to Global Child Safety Seats market.

The U.K. gifts retailing market Leaders Operating in the Market are

• Amazon (U.S.)
• Card Factory plc (U.K.)
• Alibaba Group Holding Limited (China)
• Walmart (U.S.)
• Beyond, Inc. (U.S.)
• AGC, LLC. (U.S.)
• Williams-Sonoma, Inc. (U.S.)
• Macy's (U.S.)
• Disney (U.S.)
• Enesco, LLC. (U.S.)
• MARKS & SPENCER (U.K.)
• Hallmark Licensing, LLC (U.S.)
• Etsy, Inc. (U.S.)
• Cimpress (Ireland)
• Getting Personal (U.K.)
• Zazzle Inc (U.S.)
• Pinnacle Promotions (U.S.)
• Redbubble (Australia)
• AG Custom Gifts (U.S.)
• funkypigeon.com Limited (U.K.)
• Fat Brain Toy Co. (U.S.)
• Cafepress Inc. (U.S.)

Latest Developments in Retailing Market  

• In October 2023, Pinnacle Promotions announced a strategic partnership with Gas South on October 18, 2023, launching the Gas South Gear Store. This innovative store offered branded apparel and promotional items, integrating a Flame Credits system for employee recognition and engagement
• In September 2024, Williams Sonoma announced the expansion of the TUCCI by GreenPan cookware collection, designed in collaboration with Stanley Tucci. The new items featured innovative designs and eco-friendly nonstick options, enhancing the exclusive offerings available in stores and online
• In September 2024, Williams Sonoma announced the expansion of the TUCCI by GreenPan cookware collection, designed in collaboration with Stanley Tucci. The new items featured innovative designs and eco-friendly nonstick options, enhancing the exclusive offerings available in stores and online
• In December 2023, Williams Sonoma announced an exclusive collaboration with Shondaland for a Bridgerton-inspired collection. The range featured over 20 products, including baking mixes, artisanal treats, and tableware, designed to celebrate the show's Regency-era elegance

SKU-73097