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

Gifts Retailing Market Analysis

The U.S. gift retailing market is a dynamic and diverse sector that caters to consumers seeking unique, personalized, and celebratory products for various occasions. This market includes both traditional brick-and-mortar stores and a rapidly growing online retail segment. Products range from greeting cards and seasonal decorations to luxury gifts and custom-made items, with consumers often purchasing these goods for birthdays, holidays, weddings, and other special events. The market is influenced by seasonal demand, consumer trends, and economic factors, including disposable income and consumer confidence. In recent years, e-commerce has become a significant driver of growth, providing convenient shopping experiences and access to a broader range of gift items. The market is highly competitive, with a mix of large retailers, small boutiques, and online platforms vying for consumer attention through innovative offerings and personalized services.

Gifts Retailing Market Size

Data Bridge Market Research analyses that the U.S. gifts retailing market is expected to reach a value of USD 35.17 billion by 2031 from USD 23.28 billion in 2023, growing at a CAGR of 5.5% 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.S. Gifts Retailing Market Trends

“Growth in Eco-Friendly and Sustainable Gift Products”

The growth in eco-friendly and sustainable gift products presents significant opportunities for the U.S. gifts retailing market. As consumers become more environmentally conscious, there is an increasing demand for gifts made from sustainable materials, recycled products, and those with a minimal environmental footprint. Retailers who embrace this trend can attract eco-conscious consumers by offering gifts that align with their values, such as reusable items, biodegradable products, and sustainably sourced goods. This shift towards sustainability not only helps meet consumer demand but also enhances brand reputation, creating long-term growth potential within the retail market.

Report Scope and Gifts Retailing Market segmentation

Gifts Retailing Market Definition

The U.S. Gift Retailing Market refers to the sector of retail businesses in the United States that specialize in selling gift items, which are typically purchased for special occasions, celebrations, or as tokens of appreciation. This market encompasses a wide range of products, including greeting cards, seasonal decorations, personalized gifts, home decor, novelty items, and luxury goods. The market includes both physical retail stores (such as gift shops, department stores, and specialty stores) and e-commerce platforms where consumers can purchase these products. The U.S. Gift Retailing Market is driven by consumer demand during holidays, birthdays, and other occasions, and is influenced by factors such as consumer spending behaviour, trends in gifting culture, and economic conditions.

U.S. Gifts Retailing Market Dynamics

Drivers

• Demand For Technology and Smart Home Gifts

The demand for technology and smart home gifts has significantly boosted the gifts retailing market, as consumers increasingly seek innovative, connected, and functional products for personal use or gifting. Items like smart speakers, home automation devices, and wearable tech are highly sought after, offering convenience and enhancing everyday living. Retailers have responded by expanding their product offerings integrating the latest technological trends to attract tech-savvy shoppers, especially during peak gifting seasons. This shift reflects a growing preference for gadgets that provide both entertainment and practical benefits, solidifying their place in the evolving gift market.

For instance,

• In February 2024, Amazon.in, Inc. launched a gifting guide featuring the top tech gadgets for men and women. The guide highlighted popular items like smart home devices, wireless earphones, smartwatches, foldable phones, and 4K TVs, offering solutions for tech-savvy individuals. By showcasing a variety of electronic gifts, Amazon Business aimed to attract both corporate clients and personal shoppers. This move capitalized on the growing demand for technology and smart home gifts.
• In In October 2022, Roku, Inc. and Walmart launched a new suite of Roku smart home products, including security cameras, video doorbells, and smart lighting. The products, available exclusively in nearly 3,500 Walmart stores, offered affordable and simple smart home solutions. This move expanded Roku's product line and integrated it with their popular TV platform, providing customers with enhanced convenience and security features. By partnering with Walmart, Roku tapped into the growing demand for smart home technology, aligning with the increasing popularity of tech gadgets and smart home gifts in the retail market.

Increasing Demand for Corporate Gifting

The gift 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 gift retailing market as a vital player in corporate relationship-building strategies.

In October 2024, Promo Direct launched a new range of customizable corporate gifts, aiming to meet rising demand for year-end and holiday corporate gifting. This selection allowed businesses to personalize gifts with logos and messages, enhancing brand loyalty and goodwill. The offering included sustainable items, tech accessories, and gourmet food baskets, providing flexible options for both small and large orders, ultimately strengthening Promo Direct’s position in the corporate gifting market

In September 2024, Wincube launched ToastyCard in the U.S., offering a digital gift card platform designed for corporate gifting. ToastyCard allowed companies to manage gift card distribution easily, with features like tracking, resending, and partial refunds. The platform's Toasty Choice Card enabled recipients to choose from 30,000+ products, boosting employee recognition. This innovation positioned Wincube to meet the growing demand for flexible and impactful corporate gifting solutions globally

Opportunities

• Virtual Gift Experiences

Virtual gift experiences present a significant growth opportunity in the gift 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 May 2023, according to an article published by Business Wire, EML Payments and Visa launched an eco-friendly digital gift card for U.S. and Canadian shopping centers. The partnership enabled secure, mobile-authenticated gift card purchases, enhancing convenience and user experience. This digital-first solution allowed EML to expand its offerings for multi-retailer customers, aligning with the virtual gift experience trend and reducing plastic usage, which strengthens customer loyalty and meets environmental goals in the gifting retail market

• Growth in Eco-Friendly and Sustainable Gift Products

The growth in eco-friendly and sustainable gift products presents significant opportunities for the U.S. gifts retailing market. As consumers become more environmentally conscious, there is an increasing demand for gifts made from sustainable materials, recycled products, and those with a minimal environmental footprint. Retailers who embrace this trend can attract eco-conscious consumers by offering gifts that align with their values, such as reusable items, biodegradable products, and sustainably sourced goods. This shift towards sustainability not only helps meet consumer demand but also enhances brand reputation, creating long-term growth potential within the retail market.

For instance,

In November 2021, according to an article published by Kudoboard, Inc., a collection of 20 eco-friendly gift ideas was launched, featuring sustainable products such as reusable makeup remover pads, wool dryer balls, and plantable pencils. This reflects the growing demand for eco-conscious products, providing an opportunity for retailers in the U.S. gifts retailing market to cater to consumers seeking environmentally friendly options. By offering sustainable gifts, retailers can tap into the expanding market for eco-friendly products, meeting consumer preferences while promoting environmental responsibility

In June 2023, according to an article published by Giftsenda LLC, businesses embraced eco-friendly corporate gifting practices as part of their sustainability strategies. Eco-friendly gifts, such as reusable products, organic items, and sustainable fashion, became popular for enhancing brand image, strengthening customer relationships, and attracting top talent. Companies also focused on eco-friendly packaging and integrating these practices into their CSR initiatives. This trend contributed to the growth of the eco-friendly gifting sector, benefiting the gifts retailing market by aligning with increasing consumer demand for sustainable and environmentally conscious products

Restraints/Challenges

• Rising Raw Material Costs

Rising raw material costs present a significant restraint for the gift 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

• In August 2024, according to USGlass Magazine & USGNN News, glass and metal product prices in the U.S. rose sharply in July, with glass manufacturing prices up 1.1% and other architectural glass and metal products seeing increases. The Producer Price Index (PPI) for flat glass, metal doors, and frames showed continued hikes, affecting manufacturing costs. For the gift retail market, these rising raw material costs increased expenses for glass and metal-based gift packaging, potentially limiting affordable pricing options for consumers and putting pressure on small producers

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.

For instance,

• In March 2024, according to the article published by Yahoo Finance, Costco Wholesale Corporation reported strong earnings, with a revenue of USD 58.44 billion and earnings per share surpassing estimates. The company plans to open 15 new locations globally and continue its investment in technological innovations. Similarly, Amazon introduced an AI tool on its mobile app that helps shoppers quickly find product details, improving the shopping experience. These advancements allow both Costco and Amazon to enhance customer satisfaction and stay ahead of competition in the retail market. New entrants face the challenge of differentiating themselves, competing against established giants such as Amazon and Costco, which are increasingly using technology and data analytics to offer personalized experiences in the highly competitive gift retailing market

Gifts Retailing Market Scope

The U.S. 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

The U.S. 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 gifts retailing market.

The U.S. Gifts Retailing Market Leaders Operating in the Market are

• Amazon (U.S.)
• Walmart (U.S.)
• AGC, LLC. (U.S.)
• Disney (U.S.)
• Spencer Gifts, LLC (U.S.)
• Shutterfly, Inc. (U.S.)
• Alibaba Group Holding Limited (China)
• Hallmark Licensing, LLC (U.S.)
• Beyond, Inc. (U.S.)
• Williams-Sonoma, Inc. (U.S.)
• Etsy, Inc. (U.S.)
• Macy's. (U.S.)
• 1-800-Flowers.com, Inc (U.S.)
• Enesco, LLC. (U.S.)
• cardfactory (U.K.)
• Redbubble. (Australia)
• Cimpress (Ireland)
• MARKS & SPENCER (U.K.)
• Zazzle Inc (U.S.)
• Fat Brain Toy Co. (U.S.)
• Pinnacle Promotions (U.S.)
• Signature Gifts (U.S.)
• Cafepress Inc. (U.S.)
• AG Custom Gifts (U.S.)
• funkypigeon.com Limited, (U.K.)

Latest Developments in US Gifts Retailing Market

• In November 2024, Amazon.com, Inc. launched its new Virtual Holiday Shop, an immersive 3D shopping experience powered by Amazon Beyond. The virtual store showcased over 300 popular gifts, including items from brands like Beats, Kate Spade, and Coach. It offered interactive content, festive animations, and easy shopping features, enhancing the holiday shopping experience. Customers could also explore a Virtual Toy Shop with exclusive products and enjoy AI-powered shopping tools like Rufus and AI Shopping Guides for personalized assistance. This innovation aimed to drive sales by offering a unique and engaging shopping experience, boosting customer satisfaction and convenience
• In August 2024, Just Eat partnered with Cardfactory to trial on-demand delivery of celebration products, including cards, candles, and balloons, across 19 UK stores. This exclusive collaboration aimed to meet growing consumer demand for convenient, rapid-access gifting options
• In January 2023, Ad Populum, LLC, a holding company majority owned by Joel Weinshanker, has announced the acquisition of Enesco, LLC, a leading name in gift and home décor. This move expands Ad Populum’s portfolio, which includes NECA, Wizkids, Kidrobot, Rubies Costumes, and more. The acquisition grants access to over 8,000 top gift and collectibles retailers and a renowned roster of award-winning artists, positioning the company for growth in the rapidly expanding USD 20 billion collectible toy market
• In October 2024, Hallmark Licensing, LLC announce the launch of Gift Card Greetings, a new product line now available to customers. This innovative offering combines a physical greeting card with a digital gift card, providing a convenient and personalized gifting solution for any occasion

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