As of 2023, the U.S. gifting market is estimated to be worth around $140 billion. It is expected to see strong growth, with a projected CAGR of 3.3% through 2030.
These estimates come from our review of four market research reports, all of which present similar figures. This consistency gives us confidence in our market size and growth projections. Below is a detailed explanation of how we conducted our analysis.
Market Size and Growth Trends
The U.S. gifting market is experiencing stable growth, underpinned by a mix of traditional gift retail and the emergence of experiential gifting. According to industry data the current market size is valued at approximately $140 billion in 2023,
- Growth Trends: Gifting Market in US is expanding at an impressive rate, with an overall growth trend of around 3.3%.
- 2030 Market Forecasts:
By 2030, is expected to surpass $170 billion, indicating continuous upward trends
These figures suggest that while growth rates vary by source, the overall trend indicates a healthy increase in both market size and consumer engagement over the next decade.
Gifting Market by Occasion
Gifting occasions play a critical role in shaping consumer behavior. The U.S. gifting market sees its peak during certain key events:
Christmas
Christmas is, by far, the largest gifting occasion in the U.S. market, accounting for a substantial portion of the annual gift-related spending. The holiday season, which spans from late November to December, dominates the market with significant emphasis on traditional gifts.
- Market Share: Christmas typically accounts for over 30% of the annual gifting revenue, with reports from Mintel suggesting that total holiday spending could exceed $120 billion in 2023 alone.
- Popular Gifts: Traditional items such as toys, electronics, home decor, and apparel are the most purchased items during this season. The demand for holiday-specific products like decorations and festive foods also contributes significantly.
- Growth Trends: Despite the mature nature of this segment, growth is driven by the increasing popularity of online shopping and last-minute purchases, especially via same-day delivery platforms.
Valentine’s Day
Valentine’s Day is the second-largest occasion in the gifting market, focusing heavily on the expression of love and appreciation.
- Market Size: Valentine’s Day generates around $20 billion annually in the U.S., with projections pointing to steady growth, especially in the personalized gifts and experiential gifting categories.
- Popular Gifts: Consumers typically opt for jewelry, flowers, chocolates, and dining experiences. Personalized items, such as engraved jewelry and custom photo gifts, are on the rise, particularly among younger consumers.
- Growth Drivers: As more consumers seek unique ways to celebrate, experiential gifts such as travel packages, event tickets, and spa days are becoming more popular. The influence of social media on younger generations has also increased spending on luxury and bespoke gifts.
Mother’s Day & Father’s Day
Mother’s Day and Father’s Day are significant occasions for gifting, typically focusing on appreciation gifts for parents.
- Market Size: Combined, these two occasions contribute approximately $45 billion annually to the U.S. gifting market. Mother’s Day accounts for the larger share of this segment, with an estimated $31.7 billion in 2023, while Father’s Day follows at $13.3 billion.
- Popular Gifts: For Mother’s Day, the most common gifts include flowers, jewelry, personal care items, and spa packages. Father’s Day sees more traditional gifting, such as tools, electronics, and outdoor gear.
- Experiential Gifting: Increasingly, both occasions have seen a shift towards experience-based gifts, such as weekend getaways, family activities, or premium restaurant vouchers. This trend reflects the growing demand for non-material gifts that create lasting memories.
Weddings & Anniversaries
Weddings and anniversaries are long-standing pillars of the gifting market, often involving higher-ticket items and a focus on personalization.
- Market Size: The wedding gifting market alone is estimated to exceed $19 billion annually in the U.S., with additional spending on anniversaries making up another $8–10 billion.
- Popular Gifts: Traditional items like home appliances, luxury goods, and personalized gifts (monogrammed items, custom keepsakes) dominate this space. Increasingly, couples are favoring cash gifts or gift cards, allowing for more flexibility in how the gift is used.
- Growth in Cash & Gift Cards: Millennials and Gen Z are driving the trend towards cash registries, where couples can earmark funds for honeymoons, down payments on homes, or charity contributions.
Birthdays
Birthdays are a major year-round gifting occasion, driving the popularity of digital gifts and subscription-based services.
- Market Size: While birthday-specific spending data is often bundled with general gifting statistics, birthdays likely represent a significant portion of the overall market, with consistent spending throughout the year.
- Popular Gifts: The most popular birthday gifts include gift cards, electronics, subscription boxes, and personalized items like custom art, jewelry, or experiences (e.g., concerts, sporting events).
- Digital Gifting: With the rise of digital platforms, there has been a notable increase in demand for digital gifts, such as e-gift cards and subscription services (e.g., streaming platforms, monthly curated boxes). Subscription boxes, in particular, offer a unique gifting experience with continuous engagement beyond the initial birthday.
Popular Gift Categories
Several categories dominate the U.S. gifting landscape, reflecting consumer preferences and new trends:
- Electronics: Always a favorite, particularly during holidays and special events.
- Personalized Gifts: Items like custom apparel, engraved jewelry, and tailored home decor are increasingly popular.
- Gift Cards: The most flexible and widely accepted form of gifting, especially for younger generations.
- Subscription-based Gifts: Monthly boxes and streaming services are rising in demand, offering ongoing engagement.
- Experiential Gifting: There is growing interest in gifting experiences like travel, event tickets, and personalized activities.
Distribution Channels
The U.S. gifting market is transforming with the growth of both online and onsite retail options:
- Online: E-commerce platforms lead the way, driven by consumer demands for convenience, rapid delivery, and variety.
- Onsite: Traditional brick-and-mortar stores continue to play a role, particularly for last-minute purchases and special occasions.
Consumer Insights
Who’s Gifting
Different demographic groups show varying preferences when it comes to gifting:
- Age Groups: Millennials and Gen Z are driving digital and experiential gift trends, while older generations tend to stick to traditional gifts.
- Income Brackets: Higher-income brackets are more likely to purchase luxury and personalized items, while lower-income groups favor practical and budget-friendly gifts.
- Regional Preferences: Gifting trends can vary significantly based on location, with coastal regions showing a higher preference for experiential and luxury gifts.
Personalization Trends
The demand for customized and personalized gifts has never been stronger:
- Social Media Influence: Platforms like Instagram and TikTok, along with influencer recommendations, have greatly impacted gifting choices.
- Customization: From engraving names on items to creating personalized experiences, consumers are seeking more unique gifts that reflect the recipient’s personality.
Shopping Behaviors
Consumer shopping patterns are evolving, with significant changes in how people approach gifting:
- Shift to Online Platforms: The convenience of online shopping, particularly during the pandemic, has cemented e-commerce as a dominant force in the gifting market.
- Convenience Focus: Features like same-day delivery and instant digital gift options are now highly sought after.
- Price Sensitivity: Discounts, deals, and seasonal sales continue to be major drivers of gifting purchases.
Sustainability Focus
As eco-consciousness grows, so does the interest in sustainable gifting options:
- Eco-Friendly Gifts: Consumers are increasingly opting for items made from recycled materials or from brands with strong sustainability values.
- Ethical Brands: There is a rising preference for brands that are transparent about their environmental impact and labor practices.
Future Trends Shaping the Gifting Market
The U.S. gifting market will continue to transform as consumer preferences evolve and new technologies emerge:
- Innovations in E-commerce: AI-powered gift recommendations and one-click gifting solutions will streamline the shopping experience.
- Personalization at Scale: Advances in technology will allow more brands to offer custom gifts and experiences at scale.
- Sustainable Gifting: The demand for eco-friendly products will grow, pushing retailers to adopt sustainable practices.
- Experiential Gifting: Travel, events, and other experiences will become even more prominent as consumers prioritize unique memories over material goods.
- Hybrid Gifting Experiences: Combining physical and digital gifts, such as NFTs or virtual event tickets, will rise in popularity.
Data Sources
To gain a thorough understanding of the gifting market in the U.S., we have analyzed several market research reports. Below are our top selections, with links to each report. We encourage you to explore these reports for more in-depth information.
Conclusion
The U.S. gifting market is set for continued growth, driven by evolving consumer preferences and technological innovation. From personalization to sustainability, the future of gifting will focus on delivering both convenience and meaningful experiences to the modern shopper. Retailers who embrace these trends will be well-positioned to capture a larger share of this expanding market.
