Gift Packaging Market Size, Share & Industry Analysis, By Material (Plastic, Paper & Paperboard, Metals, Glass, and Others), By Packaging Type (Boxes, Ribbons & Bows, Bags, Wrapping Paper, Pouches & Envelopes, and Others), By End-use Industry (Food & Beverages, Personal Care & Cosmetics, Apparel & Accessories, Consumer Goods, and Others), and Regional Forecast, 2026-2034

The global gift packaging market size was valued at USD 29.13 billion in 2025. The market is projected to grow from USD 30.43 billion in 2026 to USD 44.93 billion by 2034, exhibiting a CAGR of 4.99% during the forecast period.

The global gift packaging market encompasses the sector that designs, produces, and distributes a diverse range of packaging materials and products specifically intended for the presentation and enhancement of gifts. This market is driven by various factors, including cultural festivities, the growing trend of gift-giving, the expansion of e-commerce, the premiumization of products, and a heightened demand for attractive and personalized packaging.

Smurfit Kappa, DS Smith, and Mondi are some of the leading companies in the market. They focus on expanding their advanced product offerings and business to maintain their supremacy.

MARKET DYNAMICS

MARKET DRIVERS:

Rising Culture of Gifting and Celebratory Occasions Drives Market Growth

The global culture of gift-giving has grown significantly, driven by the increasing importance of celebrations, personal achievements, and social expression in both developed and emerging markets. The emergence of lifestyle-focused consumption, combined with the influence of social media trends and the desire to showcase visually appealing "unboxing" experiences online, has heightened expectations for elegant and high-quality gift packaging. Collectively, these changes are solidifying gift packaging as a crucial component of the global gifting experience, fostering steady demand throughout the year across various consumer segments.

MARKET RESTRAINTS:

High Prices of Sustainable and Premium Materials Impede Market Growth

High-quality gift packaging materials such as textured papers, sturdy boxes, biodegradable coatings, and unique prints incur greater production and procurement expenses. These increased costs often hinder adoption among price-sensitive consumers and small retailers, thereby limiting market penetration in developing areas and affecting the demand for premium packaging formats. Increased consumer awareness regarding packaging waste, coupled with the pressure on brands to implement environmentally friendly solutions, is compelling manufacturers to reengineer their products and invest in alternative raw materials, thereby escalating the compliance burden.

MARKET OPPORTUNITIES:

Growing Shift Toward Sustainable and Recyclable Packaging Offers Potential Opportunities

The global market is experiencing a significant transformation as consumers, brands, and regulators increasingly emphasize sustainability. Growing awareness of environmental concerns such as plastic pollution, landfill waste, and carbon emissions has compelled both retailers and manufacturers to abandon traditional materials such as laminated gift wraps, glitter-coated papers, metallic foils, and plastic-based accessories that are challenging or impossible to recycle. Consequently, there is a pronounced shift toward sustainable alternatives, including kraft paper, uncoated and recyclable gift wraps, molded fiber boxes, biodegradable ribbons, plant-based inks, and reusable fabric wraps such as jute, cotton, and furoshiki-style cloth.

MARKET CHALLENGES:

Balancing Aesthetics with Sustainability Requirements Pose Key Challenges

One of the primary challenges in the global gift packaging market growth is striking the right balance between aesthetic appeal and environmental responsibility. Conventional gift packaging often relies on decorative elements such as metallic foils, glitter, laminated coatings, glossy finishes, and plastic ribbons to achieve a luxurious, attention-grabbing appearance. Nevertheless, these materials are generally non-recyclable or challenging to manage within standard waste disposal systems, rendering them unsuitable for the increasing sustainability requirements.

GIFT PACKAGING MARKET TRENDS:

Expansion of Interactive and Smart Packaging Elements Booms as a Market Trend

Interactive and intelligent packaging is rapidly becoming a significant trend in the global gift packaging industry, as brands seek innovative methods to enhance the gifting experience and foster stronger customer engagement. By incorporating technologies such as QR codes, NFC tags, and augmented reality (AR), gift packaging is evolving from a mere decorative feature into an interactive medium for communication and storytelling. QR codes and NFC tags enable recipients to quickly access personalized messages, digital greeting cards, product information, authentication details, or exclusive brand content through their smartphones.

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Segmentation Analysis

By Material

Plastic’s Superior Versatility Drives Its Leadership in Market

By material, the market is divided into plastic, metals, glass, paper & paperboard, and others. 

The plastic segment held a 42.95% market share in 2025. The segment of plastic materials remains the leading force in the global market, attributed to its adaptability, resilience, and economical nature. Plastic can be easily shaped into numerous forms and dimensions, making it ideal for packaging a wide range of products, including toys, electronics, cosmetics, and confectionery. Its lightweight characteristics lower transportation expenses and decrease the likelihood of damage during transit, a factor that is especially crucial for e-commerce and long-distance shipping.

The paper and paperboard material segment is set to rise at a CAGR of 5.05% during the projected period. 

By Packaging Type

Boxes Led Market Due to Their Easy Availability in Different Forms

On the basis of packaging type, the market is segregated into boxes, ribbons & bows, bags, wrapping papers, pouches & envelopes, and others. 

The boxes segment accounted for the largest gift packaging market share in 2025. In 2025, the segment dominated with a 28.35% share, owing to its adaptability, protective features, and high-end attractiveness. Boxes are available in various forms, including rigid, foldable, magnetic-closure, and drawer-style. They are capable of holding a diverse range of products, from luxury goods such as cosmetics, chocolates, and jewelry to everyday items such as toys and electronics. Their sturdy construction ensures the safety of products during transit and storage, making them ideal for e-commerce and long-distance shipping, where preventing damage is crucial.

The ribbons & bows segment is predicted to increase at a CAGR of 5.41% in the coming years. 

By End-use Industry

Demand for Premiumization & Personalization Boosted Food & Beverages Segment Dominance

By end-use industry, the market is divided into food & beverages, personal care & cosmetics, apparel & accessories, consumer goods, and others.

In 2024, the global market was dominated by the food & beverages industry in terms of end-use. Furthermore, the segment held a 31.86% share in 2025. The segment is driven by significant growth in premiumization and personalization, as consumers are increasingly pursuing artisanal foods, luxury chocolates, curated gift baskets, and limited-edition beverage packs. E-commerce and gourmet delivery platforms also enhance the demand for robust and visually appealing gift packaging that ensures product integrity during transportation. Moreover, the short shelf-life and delicacy of numerous food and beverage gifts necessitate high-quality packaging to ensure safety, freshness, and adherence to hygiene standards, thereby reinforcing the segment's packaging intensity.

Moreover, the personal care and cosmetics segment is projected to rise at a CAGR of 5.22% in the coming years. 

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Gift Packaging Market Regional Outlook

By region, the market is segregated into Europe, Latin America, North America, Asia Pacific, and the Middle East & Africa. 

North America

North America held the dominant share in 2024, valued at USD 9.32 billion, and maintained its leading position in 2025, with a value of USD 9.75 billion. In North America, the market is primarily driven by trends of premiumization, personalization, and the growth of e-commerce. Consumers are increasingly seeking high-quality, aesthetically pleasing, and customized packaging for events such as Christmas, Thanksgiving, and corporate gifts. Additionally, the growth of subscription boxes, online retail, and the culture of unboxing influenced by social media personalities further boosts demand.

In 2025, the U.S. market is estimated to reach USD 7.62 billion. The trends in the U.S. gift packaging market are significantly centered around sustainability (eco-friendly materials, reusable options), personalization (digital printing, custom designs, artificial intelligence), and a movement towards minimalist, sophisticated aesthetics. This shift is driven by the growth of e-commerce and premiumization, resulting in a growing demand for reusable boxes and innovative, technology-integrated solutions.

Asia Pacific

The market in Asia Pacific reached a valuation of USD 7.63 billion in 2025 and is projected to record a growth rate of 5.88% over the forecast period. Younger consumers are increasingly seeking packaging that is personalized, fashionable, and visually appealing, while brands are gradually incorporating sustainable alternatives in response to growing awareness of environmental issues, which in turn fuels market growth in the Asia Pacific region.

In the region, China and India reached USD 2.45 billion and USD 2.01 billion, respectively, in 2025.

Europe

The European market reached USD 6.01 billion in 2025 and secured the position as the third-largest region. Europe experiences a robust demand for high-end and designer packaging in the sectors of cosmetics, chocolates, and spirits. This demand is characterized by a focus on aesthetic and visual appeal that aligns with sustainable practices, thereby propelling market growth.

Backed by these factors, countries including Germany recorded valuations of USD 1.27 billion, the U.K. USD 1.09 billion, and France USD 0.95 billion in 2025.

Latin America

The Latin America market in 2025 reached a valuation of USD 3.27 billion. In Latin America, the market for gift packaging is primarily influenced by cultural celebrations, festivals, and advancements in retail. Events such as Christmas, Valentine’s Day, and various local festivals generate significant seasonal demand.

Middle East & Africa

In the Middle East & Africa, South Africa reached USD 0.71 billion in 2025. The expansion of retail, the rise in tourism, and the increasing adoption of e-commerce are collectively contributing to broader market penetration.

COMPETITIVE LANDSCAPE

Key Industry Players:

A Wide Range of Product Offerings, Coupled with a Strong Distribution Network of Key Companies, Supported Their Leading Positions

Smurfit Kappa, Mondi, and DS Smith stand out as key leaders in the market, supported by their extensive portfolios of gift packaging solutions, robust global distribution networks, and active collaborations with research and academic institutions. These strengths collectively reinforce their dominant market positions. The global gift packaging market remains semi-consolidated, characterized by a strong presence of small and mid-sized players across regions. These companies compete by introducing innovative designs, forming strategic alliances, and expanding their footprint into new geographic markets.  In addition, notable players such as Interpak, IG Design Group PLC, and Million Top Paper Industries Co Ltd are strengthening their foothold through strategic initiatives, including increased investments in R&D and partnerships with pharmaceutical companies to expand their market reach.

LIST OF KEY GIFT PACKAGING COMPANIES PROFILED:

• Smurfit Kappa (Ireland)
• DS Smith (U.K.)
• Mondi (U.K.)
• Interpak (U.S.)
• IG Design Group PLC (U.K.)
• Million Top Paper Industries Co Ltd (Hong Kong)
• Huhtamaki Oyj (Finland)
• Ardagh Group (Luxembourg)
• Hallmark Inc. (U.S.)
• Bell Printers (India)
• ReanPackaging (China)
• HighPoint Packaging (U.S.)
• Yama Ribbons & Bows Co., Ltd. (China)
• Indiana Ribbon (U.S.)
• Luxury Paper Bags (India)

KEY INDUSTRY DEVELOPMENTS:

• September 2024: Dermabay introduced a unique festive gift box collection for corporate and personal gifting. This collection has been meticulously designed with the Indian consumer in mind, merging scientifically based skincare solutions with luxurious, sophisticated packaging.
• August 2024: DCGpac, a B2B eCommerce platform specializing in packaging options, unveiled its premium gift packaging in time for the festive season. These gift packages serve as an excellent option for both individuals and businesses aiming to bring joy to their loved ones, clients, employees, and partners during this celebratory time. The newly introduced range of gift packaging presents a selection of customizable options, enabling both individuals and businesses to personalize the packaging to showcase their unique style, brand identity, and the essence of the season.
• January 2024: Woodmansterne made a notable advancement in the gift packaging sector, launching a product that enables the publisher to offer retailers a planned display of roll wrap, bags, tissue, ribbons, bows, and tags extending up to five meters as part of its W Select programme. Alongside its own 62 SKUs, the publisher has established a partnership with Stewo and its British Distributor, Giftwrap UK, to incorporate a range of products from the Swiss-based brand into its plans, thereby expanding the selection.
• January 2020: IG Design Group completed a merger with CSS Industries Inc., a prominent consumer products company that specializes in craft, gift, and seasonal products. This merger has enabled IG Design to enhance its position as a global leader in consumer gift packaging products by utilizing CSS's high-quality customer base, manufacturing capabilities, and well-established brand portfolio.
• October 2019: Chameleon introduced a custom packaging and gift box line featuring an extensive range of 200 stock styles of gift boxes to support dropship services in Houston. Named PACKED by Chameleon Such as, this offering encompasses a wide variety of boxes and portfolios available in over 200 stock styles.

REPORT COVERAGE

The global gift packaging market analysis provides an in-depth study of the market size & forecast by all the market segments included in the report. It includes details on market dynamics and trends expected to drive the market during the forecast period. It offers information on the technological advancements, new product launches, key industry developments, and details on partnerships, mergers & acquisitions. The market research report also encompasses a detailed competitive landscape, including market share and profiles of key operating players.

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Report Scope & Segmentation