The global gift paper market size is slated to gain striking growth from 2023 to 2033. According to the research report published by Future Market Insights, the global market is projected to surpass a valuation of USD4,489.6 million in 2023.
It is predicted to hit a valuation of USD6,645.6 million by 2033. The market is foreseen to thrive at a CAGR of 4.0% from 2023 to 2033. The gift paper industry is estimated to hold 2-3% of the global paper and paperboard market in 2023.
Gift paper is generally made from kraft paper material which has high tear resistance with good strength, and is sustainable. These papers are made from a process that includes the conversion of chemicals from wood into wood pulp. As it does not add weight to the product, using kraft paper keeps shipping costs low and makes gift wrapping easy.
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Increasing Demand for Customized Gift-Wrapping Paper to Fuel Sales
Customization of gift wrappers according to the need and preferences of customers is spurring demand in the market. With growing environmental issues, consumers are moving toward eco-conscious and environment-friendly products. Also, the rising trend of customized print on gift paper and better designs may create opportunities for growth in the market.
Most companies have diversified their offerings and encouraged customers to customize and personalize their prints. Further, the development of e-commerce companies is also expected to drive sales in the market over the forecast period.
| Attributes | Details |
|---|---|
| Gift Paper Market Share (2022) | USD 4,316.7 million |
| Gift Paper Market Share (2023) | USD 4,489.6 million |
| Gift Paper Market Share (2033) | USD 6,645.6 million |
| Gift Paper Market Share (2023 to 2033) | 4.0% |
The global gift paper industry size developed at a CAGR of 3.1% from 2018 to 2022. In 2018, the global market size stood at USD 3,821.7 million. In the following years, the market witnessed remarkable growth, accounting for USD 4,316.7 million in 2022.
Kraft paper is used for various industrial and commercial uses due to its strength and high tear resistance. Among the prominent businesses where kraft paper is utilized broadly are for packaging, wrapping individual products, bundling, and eco-friendly business cards and gift wrapping.
Moreover, manufacturers are focusing on eco-friendly gift packaging, since kraft paper is environment-friendly and is made from recycled waste pulp and may be recycled and reused.
Manufacturers Prefer Kraft Material for Gift Paper
Kraft paper as a packaging material is best for gifting products due to its high strength compression performance, course texture, flexibility, and durability. Further, kraft paper is also environment-friendly, cost-effective, and recyclable.
In an independent survey, 73% of manufacturers reported that companies prefer sustainable packaging as it reduces transporting and packaging costs and is best for the environment. Further, kraft paper is made from wood pulp which reduces the consumption of resources. FMI analysis states that during the forecast period, sales in the segment are forecasted to expand at a CAGR of 3.6%. In 2022, the kraft paper segment captured a 68.6% share of the global market.
Gift Paper is being used as a Primary Packaging Solution
Primary packaging is the packaging that is in direct contact with the product or is the first layer of packaging. It keeps the product inside safe and usable and its main goal is to appear appealing to customers and to protect the product.
Primary packaging not only keeps the product safe but plays an important role in marketing as it often displays the company’s logo or important information thus impacting the sales of a product. This is expected to surge the demand for primary packaging at a 3.7% CAGR over the forecast period. In 2022, the primary segment accounted for 63.6% of the share in the global market.
Increasing Preference for Reusable Gift Wrapping Paper May Boost Sales in the United States.
Sales in the United States market are forecasted to gain traction at a CAGR of 1.5% during the forecast period. In 2022, the United States market for gift paper acquired a 13.6% global market share. American Forest & Paper Association commissioned the 2021 access to recycling study.
The study shows that 94% of Americans have easy access to community-based paper recycling programs. This is expected to propel the usage of recycled paper for gift packaging.
High Demand for Brown Gift Wrapping Paper in India to Fuel Growth
Total sales of gift paper in India are set to reach a valuation of USD 442.9 million by 2033. In 2022, India captured a 6.1% global market share. According to Indian Paper Manufacture Association, rising trends of celebration of various festivals and occasions and the increasing influence of gifting culture are spurring demand in the market.
| Country | Forecasted CAGR (2023 to 2033) |
|---|---|
| The United States | 13.6% |
| The United Kingdom | 3.0% |
| China | 4.8% |
| Japan | 8.8% |
| India | 6.1% |
Due to the existence of many local and regional competitors, the overall gift paper industry is competitive. Key participants use a variety of strategies including mergers and acquisitions, developments, joint efforts, and associations. Moreover, leading players are also utilizing advertisement strategies on social media channels to improve sales.
Recent Developments Observed by FMI:
Key Players Profiled in the Global Market:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value |
| Key Regions Covered | North America; Latin America; Europe; South Asia; East Asia; Oceania; The Middle East & Africa (MEA) |
| Key Countries Covered | The United States, Canada, Germany, The United Kingdom, Nordic, Russia, BENELUX, Poland, France, Spain, Italy, Czech Republic, Hungary, Rest of EMEAI, Brazil, Peru, Argentina, Mexico, South Africa, Northern Africa, GCC Countries, China, Japan, South Korea, India, ASIAN, Thailand, Malaysia, Indonesia, Australia, New Zealand, Others |
| Key Segments Covered | Material, Packaging, Sales Channel, Region |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Trend Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The gift paper market is anticipated to develop at a CAGR of 4.0% through 2033.
The gift paper market is estimated to reach from USD 4,489.6 million in 2023 to USD 6,645.6 million by 2033.
Rising eco-friendly packaging demand is the key trend shaping the gift paper market.
North America stands out as the region of high lucrativeness for gift papers, given its advanced packaging industry.
Manufacturers opt for kraft material for gift paper, with segment sales set to surge at a 3.6% CAGR through 2033.
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Gift Paper Market
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