United States Gift Packaging Market Poised at 3.7% by 2035, Driven by Personalization, Premiumization, and Sustainable Innovation

The global gift packaging market is entering a new era of growth and transformation. Valued at USD 27.5 billion in 2025, the sector is projected to reach USD 41.9 billion by 2035, marking a consistent compound annual growth rate (CAGR) of 4.3%. Growth will be steady in the early years, with revenues climbing to USD 28.7 billion in 2026 and USD 29.9 billion in 2027, supported by the expanding culture of seasonal celebrations and the rise of e-commerce-led gifting.

Strong Momentum and Market Value Expansion

Post-pandemic normalization is providing a tailwind, with a 4.4% growth surge in 2026, signaling renewed consumer activity. From 2028 to 2032, expansion remains steady at 4.1%–4.3% annually, pushing market size to USD 36.8 billion. Innovations in biodegradable wraps and modular gift boxes are driving volume growth, especially in China, where a 5.8% CAGR keeps the region at the forefront.

As the market matures beyond 2033, growth shifts toward higher-margin categories such as premium rigid boxes and personalized formats. Between 2033 and 2035, annual gains accelerate to 5%, closing the decade at USD 41.9 billion. The late-cycle momentum is powered by corporate gifting budgets in North America and Europe and new personalization technologies that redefine consumer expectations.

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Quick Market Stats

• Market Value (2025): USD 27.5 billion
• Forecast Value (2035): USD 41.9 billion
• Forecast CAGR: 4.3%
• Top Product (2025): Gift Boxes (21% market share)
• Key Growth Region: Asia Pacific (China at 5.8% CAGR)
• Leading Player: Hallmark Cards (19% market share)

A Distinct Role in the Broader Packaging Industry

Gift packaging may only account for 3-5% of the USD 1.2 trillion global packaging industry, but its impact is disproportionate. Around 15-20% of the USD 500 billion gifting industry’s value is tied to presentation. Luxury brands alone allocate 10-15% of product costs to packaging, recognizing its power in consumer perception. Even in the eco-friendly packaging segment, valued at USD 300 billion, 5-8% of investments are now directed toward greener gifting solutions.

Segment Insights: Gift Boxes and Paperboard Lead the Way

Gift boxes have emerged as the most significant product type, growing from 16-17% share in 2020 to 21% in 2025, valued at USD 5.78 billion. With demand from e-commerce, cosmetics, and luxury gifting, they are expected to reach 23-24% share by 2035, commanding nearly USD 10 billion of the total market. Collapsible and rigid formats are particularly popular among premium brands.

Meanwhile, secondary packaging dominates the value chain, capturing 47% share in 2025. Decorative sleeves, windowed boxes, and customizable covers are widely used by the fashion, cosmetics, and electronics industries. Established manufacturers such as Mondi and Smurfit Kappa are leading innovation in this segment, incorporating interactive features like QR and AR-enabled packaging.

By material, paper and paperboard remain king, commanding 43% of the market in 2025 (USD 11.8 billion). Their recyclability, versatility, and branding potential ensure dominance, as retail giants in Europe and North America phase out plastic in favor of sustainable alternatives.

Market Dynamics: Shifts in Procurement and Consumer Expectations

Procurement trends are moving toward modular formats, faster short-run production, and material traceability. Converters are adopting digital finishing workflows and advanced automation to meet seasonal demand surges, especially during year-end gifting seasons.

In Turkey and Vietnam, folding carton suppliers have re-engineered operations for short-run flexibility, enabling fragrance and confectionery brands to launch limited-edition packaging quickly. In the UK, fulfillment centers now align packaging runs with marketing calendars to minimize waste and maximize responsiveness.

Personalization is the other key driver. From name-based foiling in India to QR-coded magnetic boxes in the Middle East, brands are investing in packaging that resonates emotionally with consumers while maintaining efficiency in logistics.

Country-Level Insights

• China leads global growth at 5.8% CAGR, shifting from low-cost wraps to premium rigid and collapsible formats. E-commerce and social commerce are fueling this shift.
• India follows closely at 5.4% CAGR, with urban demand for premium rigid boxes and regional uptake of QR-linked inserts blending tradition with modern aesthetics.
• Germany posts 4.9% CAGR, supported by demand in cosmetics, gourmet food, and branded gifting, with FSC-certified paperboard leading adoption.
• France grows at 4.5% CAGR, powered by luxury retail and innovations like AR-linked packaging.
• The United States grows slower at 3.7% CAGR, but annual value additions of USD 140 million reflect a move toward emotionally resonant, sustainable packaging.

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Established Giants and Emerging Innovators

The industry is led by well-known names such as Hallmark Cards, Smurfit Kappa Group, DS Smith, IG Design Group, and Mondi. Hallmark continues to leverage its brand recognition with seasonal collections and recently introduced an AI-driven wrap designer to bring real-time customization to its online customers. Smurfit Kappa and DS Smith are investing heavily in material efficiency, with DS Smith debuting a lightweight paperboard material that cuts weight by 15%.

Meanwhile, newcomers like Packlane and Qwikcilver Solutions are disrupting the industry with digitally customizable packaging tailored for small and mid-size businesses. Smaller firms such as Karl Knauer KG and Interpack focus on luxury formats and distinctive finishing, winning over niche premium markets.

The competitive environment is fierce, but this intensity is fueling continuous innovation, from eco-friendly substrates to AR-linked unboxing experiences.

Recent Industry Highlights

• January 2025: Hallmark Cards launches an AI-powered customization tool for gift wraps.
• March 2025: DS Smith introduces a lighter paperboard material, reducing carbon impact.
• May 2025: Mondi strengthens its European presence by acquiring Olmuksan, a Turkish packaging manufacturer.

Outlook: A Future of Premium and Personalized Packaging

Looking ahead, the gift packaging industry will increasingly favor value over volume. Customization, personalization, and eco-conscious materials are no longer optional but essential. Asia Pacific will remain the engine of volume growth, while North America and Europe drive higher-value, premium categories.

As both established giants and emerging disruptors push the boundaries of material science, design, and digital integration, the USD 41.9 billion gift packaging market of 2035 will not only be larger but far more sophisticated, sustainable, and consumer-centric than ever before.

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries. 

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