Gifts Novelty and Souvenir Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Product Type (Gift, Novelty Items, Souvenir), By Material (Wood, Metal, Ceramic, Plastic, Others), By Occasion (Birthdays, Holidays, Anniversaries, Corporate Gifting, Others), By Distribution Channel (Online Retailers, Specialty Gift Shops, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 134.93 Billion
CAGR (2026-2031)	6.02%
Fastest Growing Segment	Anniversaries
Largest Market	North America
Market Size (2031)	USD 191.62 Billion

Market Overview

The Global Gifts Novelty and Souvenir Market will grow from USD 134.93 Billion in 2025 to USD 191.62 Billion by 2031 at a 6.02% CAGR. The Global Gifts, Novelty, and Souvenir Market encompasses a diverse array of products purchased as tokens of remembrance, social expression, or corporate branding, ranging from local handicrafts to promotional merchandise. The primary drivers fueling market growth include the robust resurgence of the global travel industry and the increasing strategic importance of corporate gifting for client retention. These factors stimulate demand for destination-specific memorabilia and branded items that foster personal and business connections. According to the World Travel & Tourism Council, in 2025, international visitor spending is forecast to reach a historic $2.1 trillion, a figure that directly underpins the consumption of commemorative goods.

Despite this positive trajectory, the market faces a significant challenge in the form of persistent economic volatility and inflationary pressures. Rising production costs and fluctuating supply chain logistics reduce profit margins for manufacturers while simultaneously constraining consumer discretionary income, leading to reduced expenditure on non-essential items. This financial strain creates a substantial barrier to sustained market expansion, particularly for small-scale artisans and independent retailers who struggle to absorb escalating operational expenses without compromising price competitiveness.

Key Market Drivers

The Growth of E-Commerce and Cross-Border Online Retail acts as a transformative driver, fundamentally reshaping how consumers access novelty items and souvenirs beyond geographical limitations. Digital platforms now allow local artisans and manufacturers to reach a global audience, bypassing traditional brick-and-mortar constraints while catering to the increasing consumer preference for convenience and mobile shopping. This shift is substantiated by robust market performance; according to Adobe Analytics, January 2025, in the '2024 Holiday Shopping' report, U.S. online spending during the holiday season reached a record $241.4 billion, underscoring the dominance of digital channels in the gifting sector. Furthermore, the broader retail environment remains supportive of this trajectory; according to Mastercard SpendingPulse, January 2025, total U.S. retail sales for the holiday period increased by 3.8% year-over-year, indicating sustained consumer willingness to spend on discretionary goods despite economic pressures.

Additionally, the Proliferation of Cultural Festivals and Seasonal Gifting Trends remains a dominant force, as concentrated spending periods stimulate massive turnover in novelty and souvenir inventories. Retailers are increasingly synchronizing product launches with key calendar events to maximize footfall and engagement, capitalizing on the consumer impulse to purchase festive memorabilia and limited-edition items. This trend is highlighted by physical retail performance during peak periods; according to Sensormatic Solutions, January 2025, in their final holiday traffic audit, U.S. in-store shopper traffic increased by 14.8% during the Christmas week of 2024 compared to the previous year. Such spikes in attendance demonstrate the enduring relevance of seasonal shopping occasions as critical catalysts for the physical gifts and novelty market.

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Key Market Challenges

Persistent economic volatility and inflationary pressures constitute a significant impediment to the sustained expansion of the Global Gifts, Novelty, and Souvenir Market. As raw material prices and logistics costs escalate, manufacturers face increased production expenses which often necessitate higher wholesale rates. This inflationary environment severely impacts the retail sector by eroding consumer purchasing power, forcing buyers to prioritize essential commodities over discretionary purchases such as keepsakes and social expression products. Consequently, retailers witness dampened demand for high-margin memorabilia, leading to stagnant sales volumes and reduced profitability for businesses that rely heavily on disposable income levels.

The adverse effect of these financial constraints is quantitatively evident in recent consumer spending metrics. When disposable income is squeezed by the rising cost of living, individuals become more selective and conservative with their budgets for non-essential goods. According to the 'National Retail Federation', in '2025', consumers planned to spend an average of $890.49 per person on holiday items, a figure that represented a decrease of approximately 1.3% compared to the previous year. This contraction in per capita expenditure underscores how economic instability directly limits the funds available for the gifts and novelty sector, thereby hampering the market's overall growth trajectory despite the recovery in travel.

Key Market Trends

The Adoption of Eco-Friendly and Ethically Sourced Materials is fundamentally reshaping product development within the souvenir sector. Manufacturers are increasingly replacing conventional plastics with biodegradable alternatives like bamboo and recycled textiles to align with the values of environmentally conscious travelers who prioritize low-impact consumption. This shift is driven by a heightened consumer awareness regarding the ecological footprint of tourism, prompting retailers to stock items that certify ethical production standards. According to Booking.com, April 2024, in the 'Sustainable Travel Report 2024', 75% of global travelers stated that they wanted to travel more sustainably over the coming 12 months, a sentiment that directly influences purchasing decisions toward sustainable mementos and locally crafted goods.

Concurrently, the Shift Toward Experiential and Memory-Based Gifting Solutions is altering the traditional definition of novelty items. Consumers are moving away from mass-produced trinkets in favor of products that serve as tangible anchors for cherished memories, such as DIY artisan kits and region-specific culinary sets. This trend reflects a broader psychological pivot where the value of a souvenir is measured by its ability to evoke the authenticity of a destination rather than its material worth. This preference is substantiated by spending behaviors; according to American Express Travel, March 2024, in the '2024 Global Travel Trends Report', 77% of respondents indicated they care more about the right travel experience than about the cost of the trip, underscoring the demand for high-quality, memory-centric merchandise over generic keepsakes.

Segmental Insights

Market research identifies Anniversaries as the fastest-growing segment within the Global Gifts Novelty and Souvenir Market. This upward trend is largely driven by increasing consumer demand for personalized items that commemorate specific personal milestones. Furthermore, the corporate sector actively contributes to this growth by investing in premium gifts to recognize employee tenure and celebrate organizational longevity. In response, manufacturers are enhancing their product lines with distinct, customizable options, ensuring that the segment maintains steady expansion and revenue generation independent of seasonal holiday fluctuations.

Regional Insights

North America maintains a dominant position in the global gifts, novelty, and souvenir market primarily due to high disposable income levels and a robust tourism sector. The region benefits from extensive retail infrastructure that facilitates the wide distribution of merchandise across the United States and Canada. Additionally, a strong cultural tradition of seasonal and corporate gifting supports consistent demand for novelty items. This sustained consumer engagement, coupled with frequent travel activities, solidifies North America as the leading contributor to total market revenue without relying on temporary economic trends.

Recent Developments

• In November 2024, Avolta secured a significant commercial contract to operate retail concessions at John F. Kennedy International Airport’s upcoming Terminal 6. The eighteen-year agreement granted the travel retail giant the rights to manage a diverse portfolio of duty-free, travel convenience, and specialty souvenir stores within the new facility. The planned retail program was designed to offer an immersive, location-specific shopping experience by featuring products from local entrepreneurs alongside globally recognized luxury brands. This strategic win reinforced the company’s dominance in the North American travel retail and souvenir market while aligning with its long-term regional growth objectives.
• In October 2024, Hallmark unveiled a major expansion of its holiday product line during its annual Keepsake Ornament Debut event. The company released more than 150 new designs from its 2024 collection, which featured ornaments incorporating innovative sound and motion technology as well as inaugural entries for new collector series. These products were meticulously designed to capture specific memories, hobbies, and pop culture moments, catering to both dedicated collectors and casual holiday shoppers. The launch highlighted the company's continued investment in craftsmanship and novelty design to drive consumer engagement during the critical fourth-quarter retail season.
• In September 2024, Moonpig forged a strategic partnership with The Entertainer to significantly expand its gifting capabilities. This collaboration enabled the online greeting card retailer to launch a curated selection of over 200 toys and games directly on its digital platform, featuring popular licensed brands and plush items. The initiative utilized a specialized retail solution to seamlessly integrate the new product categories, allowing customers to pair personalized cards with high-quality gifts in a single transaction. This development aimed to solidify the company's position as a comprehensive destination for celebrating special occasions by diversifying its product offerings beyond paper goods.
• In January 2024, Funko, Inc. entered into an exclusive worldwide license and distribution agreement with Goliath, a privately held global game company. Under this multi-year partnership, Goliath became the sole distributor for the pop culture brand's extensive catalog of games and puzzles across international markets. Additionally, the agreement stipulated that the partner would acquire the assets of the company's board game development studio and collaborate on the creation of future titles. This strategic move was designed to leverage a broader distribution network to expand the global reach of the brand's novelty game portfolio while allowing the organization to focus on its core collectible products.

Key Market Players

• Mud Pie LLC
• American Greetings Corporation
• Enesco LLC
• Disney DTC LLC
• Mattel, Inc.
• The Bradford Exchange Ltd
• Warner Bros. Discovery, Inc.
• NBCUniversal Media LLC
• Hallmark Cards Inc.

By Product Type	By Material	By Occasion	By Distribution Channel	By Region
Gift Novelty Items Souvenir	Wood Metal Ceramic Plastic Others	Birthdays Holidays Anniversaries Corporate Gifting Others	Online Retailers Specialty Gift Shops Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Gifts Novelty and Souvenir Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Gifts Novelty and Souvenir Market, By Product Type:

• Gift
• Novelty Items
• Souvenir

• Gifts Novelty and Souvenir Market, By Material:

• Wood
• Metal
• Ceramic
• Plastic
• Others

• Gifts Novelty and Souvenir Market, By Occasion:

• Birthdays
• Holidays
• Anniversaries
• Corporate Gifting
• Others

• Gifts Novelty and Souvenir Market, By Distribution Channel:

• Online Retailers
• Specialty Gift Shops
• Others

• Gifts Novelty and Souvenir Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE