The gift giving market was, like all others, drastically changed by the lockdowns of the Covid-19 pandemic. Luckily, this is one industry that easily adapted to using the internet as its means of maintaining stability during a tumultuous time.
We all love to give our loved ones something special on birthdays and holidays. It’s almost as good as receiving those gifts when our birthday or Christmas time comes around. But what does the gifting industry look like these days?
For gifting companies to stay afloat, they have to keep up to date with the current consumer trends and market statistics. This helps them to meet the demands of consumers and stay ahead of the game.
So, what trends will they be looking at for this year?
Let’s find out.
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Gift Consumer Trends And Behaviours
Like many other industries, the Covid-19 pandemic pushed shoppers online to buy their gifts when the holiday season came along. This caused a huge spike in online sales, with shoppers having spent almost £148.5 billion online during the holiday shopping season. That’s a 45.2% increase from the same time last year.
With a decrease in lockdown regulations, people are excited to get back to their normal shopping habits. 2021 saw an increase again in physical shops, while still retaining some of the online market growth.
Here are a few interesting trends in consumer behaviour that have been observed over the last year:
Using Social Media For Gift Ideas
In their 2019 survey, National Retail Federation (NRF) found that 46% of generation Z were using social media like Instagram, YouTube, Pinterest, Snapchat and Facebook to find inspiration for their gifts.
Another survey conducted by Deloitte shows that 31% of consumers say that social media can trigger a gift purchase. According to Kantar and Catalyst’s State of Ecommerce, shoppers tend to use social media more for discovery and inspiration than purchases.
Hootsuite and We Are Social nailed it down with their Digital 2021 Snapshot report, which shows that, by April this year, the number of social media users reached 4.33 billion. Most interestingly, 27% of those users are looking for inspiration for things to do or buy, while 26.5% are actively looking for products to purchase.
Many businesses realise the need to promote themselves via social media, taking full advantage of functions like hashtags, reels, stories, YouTube and TikTok videos and ads.
Prioritising Convenience
The Covid-19 pandemic not only increased both eCommerce and omnichannel shopping, but it also prompted consumers to expect more convenient services, such as click and collect free returns and delivery, and a wider range of payment options. The study conducted by Kantar and Catalyst also discovered that 66% of consumers chose retailers based on convenience, while online 47% prioritised pricing or value.
Personalised Gifts
The personalised gift market is booming, with 85% of gift buyers saying that personalisation is one of the biggest factors that determine the perfect gift. The market for personalised gifts was valued at £23.32 billion in 2020. Personalised gifts allow customers to write their own little messages, include the receiver’s name, send a gift video, or choose the wrapping they want the retailer to use. Giving customers this ability to customise the perfect gift for their friends or family creates a loyalty and appreciation that keeps them coming back to your business.
According to CNBC’s report, it seems people are taking more time to seek out meaningful gifts, and the shopping season started earlier this year as people were looking for things to look forward to. On Etsy, an eCommerce site that features handmade goods, crafts, and other unique items, searches for custom or personalised gifts have increased by 156% when compared to the same time last year.
Meaningful Gifts
So many people really struggled during the lockdowns, and witnessing that, most people really want to offer meaningful gifts that go beyond practical, or fun, purposes. They want something to show how much they care, and that they are there for each other, despite the distances between them, as shown by Etsy’s 2020 Christmas trend report.
Online Searches Within The Gift Industry As Of January 2021
Observing the growth of online searches within an industry can give one a good idea of where the market is headed and what consumers desire most. These are some of the growth statistics from January 2021.
- “Personalised valentines gifts” saw the most growth, at 170% more searches than last year.
- Next, was “gifts for fussy moms” at 168%.
- “Daughter gifts from dad” grew by 109%, which we think is sweet.
- “Christmas gifts” and “birthday gifts for mum” both grew by 97%.
- “Birthday gifts for dad” grew by 80% (sorry dad but moms are the best)
- “Personalised letter from Santa” and “personalised Christmas ornament” both grew by 75%.
- “New mum gifts” and “gifts for dad” both grew by 72%.
Gift Industry Statistics and Forecasts
Below, a summary of the market gives you an overview and insight into the current state of gift giving, and where the industry is headed in coming years.
In Technavio’s industry analysis, they estimate that the global gift market was worth roughly £46 billion in 2019, and is expected to grow with a CAGR of 2% to reach around £50.5 billion by 2024.
The personal gifts market alone was estimated at £19 billion during 2020, despite the drastic changes brought by the Covid-19 pandemic. The market for personalised gifts is expected to grow at a rate of 7.7% between now and 2027 to reach an estimated value of almost £32 billion.
Average Global Spending on Gifts
- The UK and the US both spend more than £950 a year on holiday gifts.
- Australia and Canada tend to spend a bit less than £750 on holiday gifts a year.
- France, Singapore, Germany and Spain all spend a bit more than £350 on average.
- Poland and Russia, on average, will spend about £250 a year on gifts.
- In the rest of the countries around the globe, most people won’t spend more than £100 per year on holiday gifts.
So, there you have it – an overview of the market landscape, forecasts and buyer behaviour in 2021 and onwards. This info can be useful for consumers and retailers alike to have a better idea of how to move forward into the future of this industry.