U.S., China & U.K.: Dominating the Global Gifts, Novelty & Souvenirs Market by 2025

Explore the dynamic growth of the global gifts, novelty & souvenirs market. Analysis of key markets (US, China, UK), e-commerce trends, consumer demographics, and innovations shaping this evolving industry.

Last Updated: February 21, 2025

Q1 and Q2 2025 Gifts, Novelty, and Souvenirs Market Forecast: Key Regional Insights

The Gifts, Novelty, and Souvenirs market is projected to reach approximately USD 97.79 billion in 2025, with a steady CAGR of 3.28% from 2025 to 2033. In Q1 2025, the market is expected to generate around USD 22.5 billion, driven by the post-holiday surge in gift sales and consumer interest in novelty items. The U.S. will continue to be a dominant market, contributing roughly 35% of the global share in Q1, largely fueled by continued demand for holiday-themed gifts and souvenirs, especially in the tourist and retail sectors. China, with its strong tourism and growing middle class, will capture about 20% of the market share, driven by a significant increase in domestic gift-giving during the Chinese New Year period. The U.K., which traditionally sees a high demand for unique and personalized souvenirs, will account for approximately 12% of the global market share in Q1, boosted by both local consumption and tourist spending.

Moving into Q2 2025, the market is expected to grow to an estimated USD 25 billion, with the U.S. slightly increasing its share to 36%, while China and the U.K. will maintain steady growth at 21% and 13%, respectively. These regions—the U.S., China, and the U.K.—are key to understanding the dynamics of the gifts, novelty, and souvenirs market. To dive deeper into regional trends, competitive dynamics, and future opportunities, we encourage you to read the Wkinformation Research sample and full report for a comprehensive analysis.

The Current State of the Gifts, Novelty & Souvenirs Market

The global gifts, novelty, and souvenirs market is experiencing substantial growth. Projected to reach USD 97.79 billion by 2025, this market is expanding at a compound annual growth rate (CAGR) of 3.28% from 2025 to 2033. This impressive trajectory highlights the sector’s resilience and potential.

Distribution Channels: Offline vs. Online Sales

Offline Sales

Dominating the current market landscape, offline sales account for approximately 75% of total sales. Physical retail stores remain a crucial channel for consumer interactions and immediate purchasing.

Online Sales

The rise of e-commerce is reshaping the market’s dynamics. Online platforms provide convenience and wider product accessibility, driving steady growth in this sector.

Product Diversity

The market offers a diverse range of products catering to varied consumer preferences:

Souvenirs: Often purchased by tourists as keepsakes from travels.
Novelty Items: Unique products that capture attention through creativity or humor.
Greeting Cards: A traditional yet enduring form of personal expression.

This diversity not only satisfies different consumer needs but also supports sustained market expansion across multiple segments. A significant portion of this growth can be attributed to the duty-free travel retail market, which has seen an uptick as more consumers seek unique gifts and souvenirs during their travels.

Key Players in the Gifts, Novelty, and Souvenirs Market

The Gifts, Novelty, and Souvenirs market is shaped by several prominent companies offering a broad array of products catering to consumers’ diverse tastes. Hallmark and American Greetings lead the way in the greeting card and gift segment, providing high-quality, personalized items for special occasions. Spencer Gifts and Party City are key players in the novelty and party supply sector, offering unique products for celebrations and events. Card Factory, a leader in the U.K., continues to dominate the market for personalized gifts and cards, while e-commerce giants like Alibaba Group, Etsy, and Amazon are transforming the landscape by offering a vast selection of unique and customizable items directly to consumers. Swarovski and Pandora stand out in the luxury gifts and jewelry segment, providing high-end, branded products that appeal to discerning buyers.

These companies are not only defining the product range but also influencing trends in consumer behavior, as online platforms and personalized gifts continue to grow in popularity. To gain a deeper understanding of market trends, consumer preferences, and growth opportunities in the gifts, novelty, and souvenirs space, we encourage you to explore the Wkinformation Research sample and full report for a more detailed analysis.

Regional Insights: U.S., China & U.K.

United States: Personalization and Sustainability

The gifts, novelty, and souvenirs market in the United States shows a strong preference for personalization and sustainability. Consumers are increasingly choosing products that reflect their personal tastes and preferences, often opting for customized gifts. This trend is supported by a growing awareness of environmental impacts, leading to a shift towards eco-friendly options. Companies like Hallmark and American Greetings have embraced these changes by offering personalized greeting cards and sustainable product lines. The demand for unique and thoughtful gifting solutions continues to shape the U.S. market.

China: Population and E-Commerce Powerhouse

China plays a significant role in the global gifts market, primarily due to its large population and strong e-commerce infrastructure. Platforms like Alibaba Group have transformed how consumers buy gifts, novelty items, and souvenirs by making it easy to browse and purchase a wide variety of products online. The convenience of online shopping, combined with a culturally ingrained gifting tradition, positions China as a major player in this industry. As e-commerce continues to grow, so does China’s impact on global market trends.

United Kingdom: Cultural Influences on Gifting

In the United Kingdom, local culture has a significant influence on the gifts market. British consumers tend to prefer gift items that are both traditional and innovative, often reflecting their cultural heritage. The popularity of novelty items, such as themed memorabilia from iconic events or locations, highlights this cultural appreciation. Retailers in the U.K., including high street stores and smaller boutiques, cater to these preferences through carefully curated selections that appeal to both local customers and tourists. The combination of tradition with modern innovation showcases the unique dynamics within the U.K.’s gifts, novelty, and souvenirs market.

Each region has its own characteristics that contribute to the global market. These differences highlight how consumer behavior and product offerings are influenced by various factors in each area of the Gifts Novelty and Souvenirs Market sector. It’s important to note that these trends are not just limited to consumer preferences but also extend to aspects like mental health awareness as indicated in this report, which discusses the role of gifting in promoting well-being.

Demographic Factors Driving Market Growth

The gifts, novelty, and souvenirs market is heavily influenced by distinct consumer demographics. Individual consumers often seek personalized items that resonate with their personal stories or preferences. This desire for uniqueness in gifts drives the industry toward customization options, enhancing consumer satisfaction and loyalty. For instance, unique holiday gifts can be found at specialty markets like Camp North End’s Mistletoe Market.

Individual Consumers

Individual consumers often seek personalized items that resonate with their personal stories or preferences. This desire for uniqueness in gifts drives the industry toward customization options, enhancing consumer satisfaction and loyalty.

Tourists

Tourists represent another crucial demographic. Souvenirs tied to cultural significance or travel destinations are popular choices among travelers looking to encapsulate their experiences in tangible forms. The demand from tourists ensures a consistent flow of purchases, influencing market dynamics significantly.

Eco-Conscious Shoppers

There is a noticeable shift towards eco-friendly products among consumers who are increasingly mindful of environmental impacts. Brands that offer sustainable gift options cater to this growing preference, positioning themselves as responsible choices in the eyes of environmentally conscious shoppers.

These consumer demographics shape market trends, pushing businesses to innovate in personalization and sustainability. Companies that align with these trends are likely to see enhanced customer engagement and loyalty, which are vital components for growth in this dynamic market landscape.

E-Commerce Influence on the Market

Online Shopping Growth is reshaping the gifts, novelty, and souvenirs market landscape. While offline distribution channels continue to dominate, accounting for approximately 75% of sales, online shopping trends are steadily gaining traction. The convenience and variety offered by e-commerce platforms make them appealing to a broad range of consumers seeking unique and personalized gifts.

1. E-commerce Trends

Consumers increasingly prefer buying gifts online due to the sheer ease of browsing through extensive collections from the comfort of their homes. This shift has led to a noticeable rise in sales growth within this sector, as more businesses are establishing or expanding their digital presence.

2. Future Potential

Online platforms have the potential to reach wider audiences, tapping into international markets with minimal barriers. By leveraging data analytics and targeted marketing strategies, e-commerce companies can enhance their offerings, catering to specific consumer preferences and expanding their market share.

The influence of e-commerce is undeniable, driving both innovation and competition within the industry. Companies that embrace these trends stand to benefit significantly by capitalizing on increased accessibility and evolving consumer behaviors.

Challenges Facing the Gifts Market

The Gifts, Novelty, and Souvenirs Market is facing significant challenges that threaten growth opportunities.

1. Market Saturation

One major issue is market saturation. There are many companies offering similar products, which makes competition intense. To stand out, brands must work hard to offer unique products and come up with innovative marketing strategies. This saturation can make it difficult for new companies to enter the market and limit growth prospects for existing players.

2. Economic Factors

Economic factors also pose a significant concern. Potential economic downturns can greatly impact how much consumers spend on gifts, novelty items, and souvenirs. During times of financial uncertainty, people tend to spend less on non-essential items and prioritize essential purchases instead. This change in spending behavior can result in lower sales within the market, affecting the revenue of businesses operating in this industry.

3. Need for Strategic Approach

To overcome these challenges, a strategic approach that focuses on innovation and adaptability is necessary. Companies need to continuously monitor market trends and understand consumer preferences in order to stay competitive in this ever-changing landscape.

Innovations Shaping Consumer Engagement

In the gifts, novelty, and souvenirs market, augmented reality (AR) is changing the way consumers interact with products. This technology offers an immersive gifting experience by allowing customers to see products in real-time through their devices. For example, AR applications enable users to view how a specific souvenir or novelty item would appear in their home before making a purchase.

Companies Using AR for Marketing

Several companies have successfully integrated AR into their marketing strategies:

IKEA Place: This app uses AR to help customers visualize how furniture and home decor items fit into their spaces. While not directly in the gifts market, this approach inspires similar applications for giftware retailers looking to enhance customer engagement.
Snapchat’s Lens Studio: This platform allows brands to create AR experiences that can be shared through social media. This not only increases brand visibility but also encourages consumers to interact with products in a new way.

The Rise of Virtual Try-Ons

Virtual try-ons for jewelry and accessories have also become increasingly popular, offering personalized shopping experiences. These innovations are reshaping consumer expectations and driving companies within the gifts sector to adopt new technologies that cater to evolving consumer behaviors.

By embracing these technological advancements, businesses can build stronger connections with their audiences and stand out in a competitive market.

Future Outlook for The Gifts Market

The Gifts, Novelty, and Souvenirs Market is expected to grow significantly in the future, especially in the U.S., China, and the U.K. To fully tap into this potential, it is crucial for businesses to adapt to changing consumer preferences.

1. U.S. Market

Expected advancements in personalization and sustainability will likely drive market expansion. Businesses focusing on eco-friendly practices may capture increased consumer loyalty.

2. China’s Role

With its large population and strong e-commerce capabilities, China is expected to lead innovations in digital gifting solutions. The use of technology-driven experiences could further boost market growth.

3. U.K. Insights

Cultural influences and a tendency towards unique, locally produced items make the U.K. an important player in the gifts market. Companies that prioritize regional authenticity are likely to attract more consumer interest.

Each region has its own opportunities shaped by local demands and technological advancements, which will contribute to the dynamic evolution of the market.

FAQs (Frequently Asked Questions)

What is driving the growth of the global gifts, novelty, and souvenirs market?

The market is expanding due to increased e-commerce activity and a rising trend towards personalized gift offerings. The U.S., China, and the U.K. are significant contributors to this growth, with personalization and sustainability being key consumer preferences.

How is e-commerce impacting the gifts market?

E-commerce platforms are increasingly important as they allow businesses to reach wider audiences. Despite offline channels accounting for 75% of sales, online shopping trends are gaining traction, offering potential for broader market share expansion.

Which demographics are most influential in this market?

Individual consumers seeking personalized and eco-friendly gifts drive significant demand. Tourists also play a crucial role in souvenir sales, influenced by travel patterns and cultural factors.

What challenges does the market face?

Market saturation and economic uncertainties pose growth challenges. Companies must adapt their strategies to remain competitive amidst these hurdles.

What innovations are shaping consumer engagement in this sector?

Technological advancements like augmented reality (AR) enrich customer interactions with gift products, creating engaging and immersive experiences that enhance consumer satisfaction.

How do major companies like Amazon or Alibaba contribute to this market?

These companies leverage vast distribution networks and digital platforms to capture substantial market shares, focusing on sustainability and personalized offerings to meet evolving consumer demands.

Global Gifts Novelty and Souvenirs Market Report (Can Read by Free sample) – Table of Contents

Chapter 1: Gifts Novelty and Souvenirs Market Analysis Overview

Competitive Forces Analysis (Porter’s Five Forces)
Strategic Growth Assessment (Ansoff Matrix)
Industry Value Chain Insights
Regional Trends and Key Market Drivers
Gifts Novelty and SouvenirsMarket Segmentation Overview

Chapter 2: Competitive Landscape

Global Gifts Novelty and Souvenirsplayers and Regional Insights
- Key Players and Market Share Analysis
Sales Trends of Leading Companies
- Year-on-Year Performance Insights
Competitive Strategies and Market Positioning
- Key Differentiators and Strategic Moves

Chapter 3: Gifts Novelty and Souvenirs Market Segmentation Analysis

Key Data and Visual Insights
- Trends, Growth Rates, and Drivers
Segment Dynamics and Insights
- Detailed Market Analysis by Segment

Chapter 4: Regional Market Performance

Consumer Trends by Region
- Historical Data and Growth Forecasts
Regional Growth Factors
- Economic, Demographic, and Technological Impacts
Challenges and Opportunities in Key Regions
Regional Trends and Market Shifts
Key Cities and High-Demand Areas