The gift industry is a booming market, with Americans alone spending an estimated $600 billion annually on presents for friends, family, and colleagues. But what do these numbers tell us about current gift-giving trends?
Through statistical analysis of survey data and sales figures, we can gain insight into the most popular gift categories, preferred gifting occasions, and preferred methods of purchasing gifts.
This statistical analysis will delve into the previous year’s data to uncover key trends in the gift-giving industry, the current state of the gift-giving industry, and predictions for future trends, providing valuable information for consumers and businesses.
Current Statistics on Gift-Giving Behavior and Trends
Ever since the COVID-19 Pandemic hit, there has been a shift in gift-giving behavior and trends. Many people opt for more practical gifts, such as groceries or health-related items. There has also been a significant increase in online gift shopping and delivery services.
Additionally, social distancing measures have led to a rise in virtual gift-giving, such as sending e-cards or gifting experiences that can be enjoyed from the comfort and safety of one’s home.
However, despite the pandemic, gift-giving remains essential for people to show their love and appreciation for others. Here are a few statistics on current gift-giving behavior and trends:
The Use of Social Media for Ideas or Inspiration
According to a 2019 survey from NRF, 46% of Gen Z use social media for ideas or inspiration for gift-giving. This trend is likely due to the popularity and accessibility of platforms like Pinterest and Instagram, where users can easily browse and save gift ideas from friends and favorite brands.
Many retailers have also taken advantage of social media by promoting gift guides and special deals on their accounts.
The Rise of Personalized Gifts
Another notable trend in gift-giving is the rise of personalized gifts. In the same 2019 survey, 47% of Gen Z said they purchased a personalized or customized gift in the past year. This could be attributed to the widespread availability of personalization options from both online and brick-and-mortar retailers, as well as the increasing desire for gifts with sentimental value.
Demanding Significant Gift
Christmas trend reports from Etsy portrayed that shoppers were increasingly looking for thoughtful gifts, and This could be due to the increasing influence of social media, where extravagant gifts are often flaunted and lauded by peers.
It is also due to the lockdown and people wanting to show love through material possessions as they couldn’t be physically together. It may also reflect a shift in consumer spending habits, with people investing in fewer, higher-quality items rather than a larger quantity of cheaper products.
11 Gift Industry Statistics You Should Be Aware Of
The gift industry is a thriving market, with consumers spending billions of dollars each year on presents for friends and loved ones. Here are 15 statistics that showcase the current state of the gift industry:
#1: The gifts retailing market is expected to increase by USD 14.60 billion from 2020 to 2025 (Technavio)
Experts from technavio predict that the global gifts retailing market will see significant growth over the next five years, reaching a total value of USD 14.60 billion by 2025. This growth can be attributed to factors such as increasing disposable incomes and the popularity of online shopping.
However, it is essential to note that the COVID-19 pandemic has significantly impacted the gift industry, with some retailers experiencing decreased sales due to supply chain and delivery challenges. It remains to be seen how these factors will continue to affect the market in the long term.
#2: The global gift card market was valued at USD 358.2 billion in 2019 (Statista)
Gift cards have become famous for consumers looking for convenient and easy gift-giving options. This market is expected to grow, with a projected value of USD 510 billion by 2025.
There are various reasons for the growth of the global gift card market, including an increase in online shopping and mobile payment options. Additionally, the ability to customize and personalize gift cards has made them even more attractive to both gift-givers and recipients.
#3: 62% of consumers prefer personalized and customized gifts (Vistaprint)
According to new research by Vistaprint, 62% of consumers prefer receiving personalized and customized gifts. This trend is due to the increasing popularity of personalization in all aspects of consumerism, from clothing to home decor.
#4: 75% of Americans prefer to receive experiential gifts rather than material ones (Mintel)
Americans increasingly value experiences over material possessions, which is reflected in gift-giving preferences. Instead of giving physical items that may not hold much meaning or value to the recipient, gifting an experience allows for the creation of lasting memories and connections.
#5: The most popular items on the wishlist were gift cards (56%), clothing and accessories (32%), and books and other media (32%) (National Retail Federation)
NRF ‘s data suggests that consumers are open to receiving various items as gifts, with the top three being gift cards, clothing and accessories, and books and media. This could indicate a desire for practical or experiential gifts rather than physical products.
#6: 52% of consumers say they are more likely to purchase from a socially responsible company (Nielsen)
This statistic shows the growing importance and demand for companies to not only provide products or services but also operate in a way that positively impacts society and the environment.
Nielsen also found that 66% of millennials are willing to pay more for sustainable offerings. As a socially responsible company, consider implementing environmentally friendly practices and supporting charitable causes, as it benefits the community and can attract and retain customers.
#7: The global gift-wrapping market forecast for 2025 is $24.9 billion (Statista)
Statista predicts that the global gift-wrapping market will continue to grow, reaching a valuation of $24.9 billion in 2025. The market moved from 15.5 billion in 2017, showing a steady increase in demand for gift-wrapping products and services.
This growth can be attributed to the rising trend of gifting, especially during holidays and special occasions. Additionally, the increasing popularity of online shopping has boosted the market, as more and more consumers opt for fancy packaging options to enhance their gifts.
#8: Compared to 2020, US retail sales in November and December increased by 14.1% (National Retail Federation)
This growth is attributed to consumer spending during the holiday season and the shift towards online shopping due to the ongoing pandemic. However, it is essential to note that inflation and supply chain disruptions may have also affected this increase. It will be interesting to see if this trend continues in future holiday seasons.
#9: 58% of people say they’re more likely to tell others about a personalized gift they received.
(Vistaprint)
The survey conducted by Vistaprint and OnePoll shows that most Americans highly value personalized gifts. Respondents would rather receive this type of gift over something more generic worth $100, and they are more likely to remember and tell others about it.
#10: Women are more likely to give DIY gifts for Valentine’s Day (Statista)
2021 reveals that women are more likely to give DIY gifts for Valentine’s Day, possibly because they have a knack for finding unique and personalized presents. Data on DIY gifts shows that 20.7% of women will give DIY gifts, as opposed to just 12.4% of men.
One possible explanation for this trend could be that women are more likely to prioritize thoughtful, personal gifts on Valentine’s Day. DIY presents often involve time and effort from the giver, making them a more meaningful option for some individuals.
#11: 73% of consumers say they have received a wrong gift in the past (Business Wire)
According to the research conducted by Business Wire, 40% of consumers have received bad gifts, and almost three-quarters of them were annoyed with having to return or exchange them. As a retailer, offering gift cards can also improve customer satisfaction by making the return process easier for both parties.
The Impact of E-commerce on Gift-Giving Behavior
One of the significant effects that e-commerce has had on gift-giving behavior is in terms of convenience. With the ability to shop online, individuals no longer have to physically go to stores to purchase gifts for their loved ones.
Furthermore, e-commerce has also expanded the possibilities for gift options. With a simple internet search, individuals can now easily find unique and personalized gifts that may not have been available in brick-and-mortar stores.
On the other hand, some argue that the increased convenience and options provided by e-commerce can take away from the thoughtfulness and personal touch of gift-giving. In a digital age where it is so easy to click and purchase a gift, the act of finding and choosing a meaningful present for someone may be lost.
Overall, it can be seen that e-commerce has dramatically impacted gift-giving behavior in terms of convenience and options. Still, it is vital to consider the potential downsides as well. It is up to the individual gift-giver to ensure that thought and meaning are still placed into their choices.
FAQs
What Is the Size of the Gift Industry?
According to Technavio, the gift industry is expected to grow by $14.6 billion until 2025.
How Much Revenue Does a Gift Shop Generate?
A gift shop can generate varying revenue levels depending on location, size, etc. However, using the industry standard calculation, a gift shop with a 3,000-square-foot space could generate $900,000 to $1.2 million in sales annually.
Why Is Gifting So Important?
Gifting is crucial because it allows us to express our love and appreciation for others, strengthen relationships, and make people feel special.
How Much Is the UK Gift Card Industry Worth?
The UK gift industry is worth an estimated £6.9 billion after being valued at £6 billion in 2019 and is projected to reach £8.71 billion by 2025.
How Many Gift Shops Are in The US?
There are approximately 51,065 gift shops in the US. These numbers can vary as new shops open and others close.
Conclusion and Future Prediction for Gift-Giving Trends
As technology continues to evolve rapidly, it may change how we give gifts. Online shopping and virtual gifting options make sending a present from far away more effortless. However, there is something special about receiving a physical item that cannot be replicated through technology.
In the future, we may see a mix of traditional gift-giving and virtual options. Personalization will continue to be necessary as people strive to find unique and meaningful gifts for their loved ones. The act of giving will always hold significance, no matter what form it takes.
Overall, the act of gift-giving is a reflection of our relationships and how we choose to express love and gratitude. As long as this remains a priority in our lives, the tradition of giving presents will endure.
