Paper Card Gift Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Card Type (Closed-loop Card, Open-loop Card), By End User (Retail Establishment, Corporate Institutions, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 20.34 Billion
CAGR (2026-2031)	16.11%
Fastest Growing Segment	Corporate Institutions
Largest Market	North America
Market Size (2031)	USD 49.84 Billion

Market Overview

The Global Paper Card Gift Market will grow from USD 20.34 Billion in 2025 to USD 49.84 Billion by 2031 at a 16.11% CAGR. The Global Paper Card Gift Market consists of physical greeting cards and paper-based sentiment exchanges produced from recyclable substrates, designed to convey personal messages for celebratory or social occasions. The primary driver supporting the market's growth is the enduring consumer preference for tangible emotional expression, as physical cards offer a perceived permanence and sentimental weight that digital alternatives cannot replicate. This demand is further strengthened by the psychological value of handwritten personalization, which fosters deeper interpersonal connections and sustains sales volumes despite technological advancements. According to the 'Greeting Card Association', in '2024', the UK greeting card market was valued at over £1.5 billion, reflecting the continued consumer resilience and commitment to this physical category.

A significant challenge impeding the market's broader expansion is the escalating cost of domestic and international postal services. Rising stamp tariffs and delivery inefficiencies significantly increase the total cost of ownership for the consumer, discouraging the mailing of physical cards and prompting a shift toward hand-delivered options or lower-cost electronic substitutes, particularly for non-seasonal or impulse purchasing occasions.

Key Market Drivers

The implementation of stricter regulations on single-use plastics and the rising demand for eco-friendly material alternatives are fundamentally reshaping the Global Paper Card Gift Market. As corporate environmental, social, and governance (ESG) mandates intensify, retailers and issuers are aggressively replacing traditional PVC substrates with biodegradable paper-based solutions to reduce carbon footprints and landfill waste. This material shift is particularly prevalent in the non-reloadable voucher segment, where the durability of plastic is unnecessary for single-use applications. Validating this industry-wide transition, according to Blackhawk Network, April 2024, in the 'Earth Day is April 22: The Transition to the Paper Gift Card' article, the company successfully converted more than 60% of its distributed gift cards to paper materials by the end of 2023. This rapid adoption underscores the market's pivot toward sustainable substrates as a primary operational standard.

Consumer preference for tangible and premium tactile gifting experiences remains a critical determinant of market resilience, driving sales in physical retail environments despite the availability of digital alternatives. The sensory engagement offered by high-quality paper surfaces—enhanced through texture, weight, and handwritten personalization—creates an emotional resonance that purely electronic substitutes often fail to convey. This enduring value of physical sentiment exchange is propelling growth in brick-and-mortar channels where customers can directly interact with the product. According to the Greeting Card Association, September 2024, in the '2024 Conference and AGM' report, the retail value of cards sold in high street bricks-and-mortar stores rose by 3% in 2024, significantly outperforming online card sales which saw a decline. Furthermore, reflecting the broader financial health of this physical category, according to Card Factory plc, in 2024, the group reported a total revenue increase of 10.3% to £510.9 million for the financial year. These metrics illustrate that the tangible nature of paper cards continues to command substantial consumer investment.

Download Free Sample Report

Key Market Challenges

The escalating cost of domestic and international postal services stands as a significant barrier to the growth of the Global Paper Card Gift Market. As postal authorities implement regular tariff increases to offset operational deficits, the total cost of ownership for a physical greeting card rises drastically for the consumer. This price inflation alters the value proposition of the product, particularly for low-cost or impulse categories, causing the combined expense of the card and postage to exceed the psychological threshold many buyers are willing to pay for a single sentiment. Consequently, consumers are increasingly deterred from purchasing cards for distant recipients, leading to a contraction in sales volume for mail-dependent occasions.

This upward pressure on pricing directly erodes market participation by accelerating the migration toward electronic alternatives or restricting purchases to hand-delivered contexts. According to the 'Greeting Card Association', in '2024', the price of a First-Class Mail Forever stamp in the United States increased to 73 cents, a rate hike that the organization identified as a critical factor in diminishing mail volumes. Such recurring cost increases disrupt the consumer habit of sending physical mail, effectively severing the logistical link required for the market's broader expansion.

Key Market Trends

The market is increasingly adopting "hybrid" fulfillment services where consumers design personalized cards online, which are then physically printed and mailed directly to the recipient, bypassing the traditional retail process. This model combines digital convenience with the emotional weight of a tangible gift, appealing to time-constrained buyers who value the permanence of paper. Validating the commercial success of this digitally-integrated framework, according to Moonpig Group plc, June 2025, in the 'Results Announcement for the year ended 30 April 2025', the Moonpig brand achieved an 8.6% year-on-year revenue increase, driven by higher order frequency and customer retention. This growth trajectory confirms the expanding consumer preference for platforms that seamlessly merge online customization with direct physical delivery.

Simultaneously, product lines are shifting toward "micro-events" and everyday milestones—such as "pet adoption" or "self-care"—moving beyond major holidays to cater to frequent, low-stakes gifting occasions. This diversification fosters year-round engagement, reducing manufacturer dependence on seasonal peaks like Valentine's Day or Christmas. Substantiating this prevalence of non-seasonal purchasing, according to the U.S. Chamber of Commerce, March 2025, in the 'Authentic Messaging and Independent Makers Drive Greeting Cards' Next-Gen Relevance' article, while 1.5 billion cards are purchased for Christmas annually in the U.S., total sales reach 6.5 billion units, indicating that the vast majority of exchanges now occur for everyday or minor life events. This significant volume underscores the critical role of frequent, specific sentiment exchange in sustaining overall market demand.

Segmental Insights

Corporate Institutions represent the fastest growing segment within the Global Paper Card Gift Market due to the heightened adoption of employee reward and recognition programs. Organizations are increasingly prioritizing paper-based cards to incentivize workforces and strengthen client relationships while strictly adhering to corporate sustainability mandates. This strategic shift from synthetic materials to biodegradable paper alternatives allows firms to comply with environmental governance standards and reduce plastic waste. Consequently, the integration of eco-friendly gifting solutions into professional engagement policies drives the accelerated demand from the corporate sector.

Regional Insights

North America maintains a dominant position in the Global Paper Card Gift Market, primarily driven by a deep-rooted cultural tradition of exchanging physical cards for holidays, milestones, and social expressions. This region benefits from high disposable income levels, enabling consumers to purchase premium, personalized, and eco-friendly paper gifting options. Furthermore, the presence of established industry leaders, such as Hallmark Cards and American Greetings, reinforces market growth through extensive retail distribution networks and continuous product development. This mature infrastructure, combined with a strong corporate gifting sector, ensures widespread accessibility and sustains North America’s leadership in the global landscape.

Recent Developments

• In April 2025, Monadnock Paper Mills partnered with Blackhawk Network to introduce "Renovo," a new fiber-based substrate specifically engineered for the global gift card market. This sustainable material was manufactured from 100% post-consumer recycled fiber and featured a unique coating to ensure water resistance and high-quality printability. The collaboration focused on replacing polyvinyl chloride (PVC) plastics with a durable paper alternative that possessed a 30-point thickness, making it compatible with existing card manufacturing equipment. This product launch aligned with broader industry efforts to transition toward eco-friendly gifting solutions, offering retailers a robust option that met rigorous performance standards.
• In February 2025, Thames Technology unveiled the "Pulper Zero NFC," a fully recyclable and biodegradable prepaid paperboard card solution. Developed in collaboration with Holmen Board & Paper and CCL Oomph, this product was designed to offer a sustainable alternative to traditional plastic cards while maintaining essential functionality. The cards, which do not contain any metal in the printed inlay, were initially made available for closed-loop applications such as gift cards and compensation cards. This launch aimed to support organizations in reducing plastic waste and meeting environmental goals without compromising on durability or performance, marking a significant innovation in the transition away from PVC.
• In September 2024, Fedrigoni launched "Symbol Gift Card Board," a cellulose-based alternative to plastic designed specifically for the gift and loyalty card sector. The new product was composed of FSC-certified virgin fibers and was fully recyclable within standard paper streams, addressing the growing demand for environmentally responsible materials. Key technical features included a high grammage and stiffness to ensure durability throughout the supply chain, as well as a smooth surface optimized for detailed printing and personalization. This release provided brands with a viable solution to reduce their reliance on fossil-fuel-based plastics while maintaining the aesthetic quality essential for card applications.
• In July 2024, Holmen Iggesund announced the results of a collaborative development project with HP Indigo, Green Gift Cards, and Transcend Packaging focused on digital printing for paperboard gift cards. The initiative successfully modified the HP Indigo 30000 press to process substrates with a thickness of up to 660 microns, significantly increasing the potential stiffness of paper-based cards. This technical breakthrough utilized Holmen Iggesund’s Invercote board to create a robust, renewable alternative to plastic. The project enabled high-quality, variable data printing on thicker materials, facilitating the production of durable gift cards that support sustainability objectives without sacrificing the tactile experience.

Key Market Players

• Hallmark Cards Inc.
• American Greetings Corporation
• Card Factory plc
• Moonpig Group plc
• Blackhawk Network Holdings, Inc.
• GiftCards.com LLC
• NGC US LLC
• InComm Payments
• Blackhawk Network Holdings Inc.
• The Kroger Co.

By Card Type	By End User	By Region
Closed-loop Card Open-loop Card	Retail Establishment Corporate Institutions Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Paper Card Gift Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Paper Card Gift Market, By Card Type:

• Closed-loop Card
• Open-loop Card

• Paper Card Gift Market, By End User:

• Retail Establishment
• Corporate Institutions
• Others

• Paper Card Gift 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