Gift Packaging Market Forecasts to 2032 - Global Analysis By Product Type, Material Type, Packaging Type, Distribution Channel, Application and By Geography

According to Stratistics MRC, the Global Gift Packaging Market is accounted for $29.2 billion in 2025 and is expected to reach $44.8 billion by 2032 growing at a CAGR of 6.3% during the forecast period. Gift packaging is a creative and functional presentation method designed to enhance the visual appeal of a gift while providing protection during handling or transport. It involves the use of decorative materials such as boxes, wrapping paper, ribbons, and tags to make gifts more attractive and memorable. Often customized for occasions like birthdays, weddings, and festivals, gift packaging reflects personal sentiment and cultural significance.

According to the Global Green Packaging Survey 2022, 68% of consumers now prioritize eco-friendly packaging, which has prompted manufacturers to reconsider their material choices.

Market Dynamics:

Driver:

Growth of e-commerce and online gifting

The surge in e-commerce platforms and digital gifting trends has transformed the landscape of gift packaging, boosting demand for visually engaging, protective, and customizable solutions. Online retailers are focusing on enhancing unboxing experiences to strengthen brand value, making packaging a strategic differentiator. Seasonal sales events, influencer-driven marketing, and rapid delivery expectations further escalate the need for durable and aesthetic packaging. As consumers increasingly shop online, brands are investing in innovative formats to meet rising convenience and presentation standards.

Restraint:

Environmental regulations and compliance burden

Stringent global regulations targeting single-use plastics and excessive packaging waste are placing pressure on manufacturers to shift toward eco-friendly alternatives. Compliance with evolving environmental standards demands costly material substitution, process re-engineering, and certification, impacting overall profitability. Smaller players often struggle to meet regulatory benchmarks, limiting their scalability. Moreover, consumers are scrutinizing sustainability claims, compelling brands to adopt genuine green practices. These regulatory dynamics restrict design flexibility and require significant investment in sustainable R&D.

Opportunity:

Expansion into corporate and luxury gifting segments

Corporate gifting and luxury segments present substantial growth potential as organizations increasingly invest in premium packaging to reinforce branding and client relationships. High-end gifting occasions, such as festive bonuses and VIP events, demand bespoke packaging with personalized detailing, upscale finishes, and sustainable appeal. This niche fosters innovation in design, materials, and printing techniques. Furthermore, the shift toward experience-driven gifting is creating demand for elegant packaging that enhances perceived value and emotional engagement, driving margins for premium players.

Threat:

Rising digital alternatives to physical gifting

The growing shift toward digital gifting such as e-vouchers, subscriptions, and virtual experiences poses a substantial threat to the traditional gift packaging industry. As consumers increasingly prioritize convenience, instant delivery, and minimalism, physical gift-giving occasions may decline. This trend is especially prominent among younger demographics and in urban settings where space and sustainability concerns prevail. Additionally, brands offering seamless digital gifting are cutting packaging costs, further pressuring conventional packaging providers to innovate or diversify offerings.

Covid-19 Impact:

The COVID-19 pandemic initially disrupted the gift packaging supply chain, halting production and affecting festive demand due to lockdowns and economic uncertainty. However, as consumer behavior shifted toward online shopping and contactless gifting, the sector quickly rebounded. Increased home celebrations and virtual events spurred demand for creative, do-it-yourself, and subscription-based gift packaging solutions. Brands leveraged this shift to introduce personalized and eco-friendly packaging options. The pandemic also accelerated digital transformation and sustainability practices across the packaging value chain.

The wrapping papers segment is expected to be the largest during the forecast period

The wrapping papers segment is expected to account for the largest market share during the forecast period propelled by, its widespread use across retail, personal, and seasonal gifting. Known for its cost-effectiveness and aesthetic flexibility, wrapping paper remains a popular choice for packaging gifts of varying sizes. Product innovations, including textured and printed varieties, further enhance its appeal. Additionally, consumer preference for colorful, themed, and recyclable papers ensures consistent demand across festive seasons and special occasions worldwide.

The biodegradable materials segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the biodegradable materials segment is predicted to witness the highest growth rate, influenced by rising consumer awareness of environmental sustainability and increased regulatory pressure on single-use plastics. Manufacturers are rapidly transitioning to materials like kraft paper, plant-based films, and compostable laminates to meet green packaging demands. These materials offer both visual appeal and eco-compliance, making them a preferred choice for conscious consumers and responsible brands. Government incentives and corporate sustainability commitments further amplify this trend.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share, fuelled by rapid urbanization, expanding middle-class populations, and increasing disposable income. Cultural gifting traditions, especially in countries like China, India, and Japan, significantly drive seasonal and ceremonial packaging needs. Moreover, the booming e-commerce and retail sectors in the region are contributing to higher consumption of innovative and affordable gift packaging solutions. Local manufacturers also offer cost advantages, accelerating regional market expansion.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, driven by growing adoption of premium and sustainable packaging solutions across gifting channels. Consumers in the U.S. and Canada are increasingly inclined toward eco-conscious, personalized, and minimalistic gift presentations. The presence of technologically advanced packaging firms, coupled with innovation in recyclable and biodegradable formats, supports rapid market expansion. Additionally, strong demand for seasonal and corporate gifting further contributes to growth momentum in the region.

Key players in the market

Some of the key players in Gift Packaging Market include Smurfit Kappa Group, DS Smith Plc, WestRock Company, Mondi Plc, Ball Corporation, Crown Holdings, Albea Group, Quadpack, Aptar Group, IG Design Group Plc, UFlex Ltd, Huhtamaki India Ltd, Essel Propack Ltd, Mold-Tek Packaging Ltd, Manjushree Technopack Ltd, TCPL Packaging Ltd, Parksons Packaging Ltd, Accurate Printpack Pvt Ltd, and Paramount Trading Corporation.

Key Developments:

In June 2025, Smurfit Kappa Group launched the GiftEco Wrap, a fully recyclable paper-based gift packaging solution with customizable digital printing, designed for premium retail and e-commerce gift applications, enhancing sustainability and brand appeal.

In June 2025, Quadpack attained a top-1% EcoVadis sustainability rating (Platinum), underlining its leadership in responsible packaging sourcing and manufacture. Concurrently, it expanded PET injection-moulding capacity in Germany to produce mono-material lip gloss containers with lower carbon footprint for beauty gifting.

In May 2025, Mondi Plc introduced the LuxePack Foldable Box, a lightweight, biodegradable gift box with modular inserts for luxury gift items, catering to the cosmetics and confectionery sectors with a 30% reduction in material use.

In March 2025, UFlex Ltd received US FDA approval for its super-clean recycled polyethylene (rPE), enabling its use in food-grade and gift packaging; also announced customizable, sustainable FlexiTubes for premium beauty presentation at Cosmopack & Paris Packaging Week exhibits.

Product Types Covered:

• Wrapping Papers
• Ribbons & Bows
• Gift Bags
• Gift Boxes
• Tissue Paper
• Containers & Tins
• Decorative Accessories
• Greeting Cards & Tags
• Other Product Types

Material Types Covered:

• Paper & Paperboard
• Plastic
• Metal
• Glass
• Textile/Fabric
• Wood
• Biodegradable Materials
• Recycled Materials
• Other Material Types

Packaging Types Covered:

• Primary Packaging
• Secondary Packaging
• Tertiary Packaging

Distribution Channels Covered:

• Online Retail
• Supermarkets/Hypermarkets
• Specialty Stores
• Gift Shops
• Stationery Stores
• Departmental Stores
• Other Distribution Channels

Applications Covered:

• Personal Use
• Corporate Gifting
• Retail
• Promotional Use
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
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• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
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