Gift packaging market to grow at 2.9% CAGR

As per the report, which analysed gift packaging market for the period of 2018 to 2028, the market is likely to grow at 2.9% CAGR through 2028.

The study has identified the fad for personalised packaging and pervading culture of corporate gifting as the key growth levers of the gift packaging market landscape. The research study projects an optimistic picture of the buoyant prospects of gift packaging market over the forecast period of 2018 to 2028. Personal gifting on occasions, being perceived as a gesture of mutual admiration, is slated to augur well for the growth of gift packaging market.

Popular trend of food gifting has also been identified as a predominant driver fuelling growth of gift packaging market. The report also projects that manufacturers, keeping an eye for a scope to increase their festival-related purchase rationales, are highly likely to gain competitive advantages in the gift packaging market. The report illustrates all the crucial aspects, ranging from altering customer preferences to strategic moves of the prominent brands, for an in-depth understanding of the key revenue levers.

According to the senior report analyst, festive seasons are the major driving forces for increasing demand for gift packaging products across both developed and developing regions. It has been observed that the gift packaging manufacturers witness a significant leap in their revenue margins by offering customised gift wrapping products during the festive seasons.

According to the study, the gift packaging market represents a fragmented landscape with top five players accounting for around 9% market share, as in 2017. The market has been characterised by a high presence of local or small players, offering products at economic prices in a bid to gain high-profit margins. While large players in the market are entering into strategic acquisitions of local players to enhance their regional presence, small players are observed selling their products via multiple stores in a particular region to widen their customer outreach.

The report identified demand forecasting and inventory management to be the key factors holding back growth of the market during the forecast period, on account of the seasonal nature of demand for gift packaging products. However, the study suggests the market players of gift packaging can bank on substantial opportunities by customising their offerings on the basis of seasonal demand.

The study associated the market attractiveness of North America with the age-old culture of personal gifting on a frequent basis. Driven by the rising proclivity of customers to splurge on eye-catching wrapping paper designs, the sales of wrapping paper are likely to attain a valuation worth nearly USD 5,353 mn by the end of 2018.

As per the research, flexible packaging are likely to outsell the rigid variants by the end of 2018, on the back of shift toward lightweight packaging formats equipped with superior barrier properties.

Multiple gift-store retailers across key regions have started to routinely offer complimentary gift wrappers to their customers in the form of a ‘value-added’ service, which has been identified as a pervading trend in the gift packaging market. The manufacturers, as well as key stakeholders in the gift packaging market, have been observed to meticulously follow consumer preferences for incorporating divergent design preferences in their offerings.