Global Cross-Border Gifting Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the global Cross-Border Gifting Market is expected to record a CAGR of 24.54% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 92.45 Billion. By 2033, the valuation is anticipated to reach USD 535.01 Billion.

American Holiday Spending

Source: According to National Retail Federation

Cross-border gifting refers to the practice of purchasing and sending gifts across international borders. This involves consumers and businesses selecting, buying, and shipping gifts to recipients in different countries.

According to the data published by the National Retail Federation, since 2009, consumer spending on gifts and holiday expenses in the U.S. has consistently increased due to economic recovery, increased disposable incomes, and cultural significance. In 2023, holiday retail sales are projected to grow by 3% to 4%, reaching a record of $957.3 billion to $966.6 billion, a significant increase from the $929.5 billion record set in 2022.

Cross-Border Gifting Market – Significant Growth Factors

The Cross-Border Gifting Market presents significant growth opportunities due to several factors:

• Growing E-Commerce and Online Shopping: The rise of e-commerce platforms like Amazon, Alibaba, and eBay has significantly impacted the global cross-border gifting market. These platforms offer a wide range of products and a streamlined shopping experience, while secure digital payment solutions like PayPal and Stripe facilitate smooth international transactions, expanding the reach and appeal of cross-border gifting.

• Advancements in Logistics and Delivery: The cross-border gifting market has grown significantly due to improvements in logistics and delivery services. Collaborations with global providers like DHL, FedEx, and UPS have improved the efficiency and reliability of international shipping. Real-time tracking systems boost consumer confidence, making international gifting more dependable and attractive.

• Growing Cultural Exchange and Globalization: The rise in cultural exchange and globalization has boosted the cross-border gifting market, as people’s personal and professional networks expand. This has led to a greater appreciation for international products and customs, and consumers are increasingly seeking unique, culturally relevant gifts, supporting the growth of this market.

• Economic Growth and Rising Disposable Incomes: The cross-border gifting market is driven by economic growth, rising disposable incomes, and the growing middle class in emerging markets like Asia and Latin America. Consumers have more disposable income to spend on premium and luxury gifts, enhancing their purchasing power and willingness to spend on high-quality gifts.

• Technological Innovations: The cross-border gifting market has been significantly impacted by technological innovations like AI, machine learning, and AR. These technologies personalize shopping experiences, recommend gifts, and predict consumer trends, making the gifting process more engaging and driving market growth.

• Personalization and customization: Offering personalized or customized gifts can help companies stand out in the crowded cross-border gifting market and attract customers.

Cross-Border Gifting Market – Mergers and Acquisitions

The Cross-Border Gifting Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the Cross-Border Gifting Market include:

• In January 2024, Blackhawk Network acquired B2B gift card firm Tango Card, which offers a digital-first reward experience through its API and global content. The acquisition provides global, scalable solutions and innovation to the rewards and incentives industry. The acquisition follows another deal in the gift card space, when Restaurant.com operator RDE acquired secondary gift card marketplace CardCash.com.

• In May 2023, From You, Flowers and FTD merged to create a global platform in the floral and gifting industry. The merger will enhance consumer experience with a competitive selection of products and services, while FTD florists will see increased support and service growth. The combined business will house a premier collection of established consumer brands.

• In May 2023, 1-800-FLOWERS.COM acquired SmartGift to expand its gifting capabilities. SmartGift’s intelligent gifting platform will be added to the company’s gifting brands, allowing brands and corporations to send, track, and manage gifts and recognition campaigns. The acquisition follows the launch of Gifts & More and the purchase of lifestyle brand Alice’s Table. The acquisition aims to provide better virtual experiences for customers.

These mergers and acquisitions helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the Cross-Border Gifting Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Cross-Border Gifting Market – Significant Threats

The Cross-Border Gifting Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Higher Shipping Costs: The global cross-border gifting market faces challenges due to high international shipping costs, including transportation fees, customs duties, and taxes, which can increase the overall gift price and make it less appealing to consumers. Variability in shipping costs also creates uncertainty, further deterring cross-border gifting.

• Strong Customs and Regulatory Barriers: Customs regulations and import/export restrictions in different countries can complicate the cross-border gifting market, leading to delays, additional costs, and even gift confiscation. The lack of harmonized regulations makes it challenging for businesses to navigate the legal landscape and ensure smooth gift delivery.

• Higher Logistical Challenges: Logistics advancements have improved international shipping reliability, but challenges like longer delivery times, package risk, and inefficient last-mile services still hinder consumer experience. Remote or underserved areas may have limited access to reliable shipping services, making it difficult to guarantee timely and secure gift delivery.

• Higher Currency Fluctuations: Higher currency fluctuations impact the affordability and pricing consistency of cross-border gifts, leading to unpredictable final costs and financial uncertainty. This can discourage consumers from making international purchases due to fear of unexpected price increases.

• Payment Security and Fraud: Payment security and fraud concerns are major deterrents in the cross-border gifting market, with consumers hesitant to provide payment information for international transactions, especially in regions with higher cybercrime incidences, despite digital payment security improvements.

• Return and Refund Policies: Cross-border gifting is costly and complex due to high shipping costs, lengthy processing times, and complex customs procedures. A lack of straightforward policies can discourage potential buyers from engaging in such transactions.

Category-Wise Insights:

By Product Type

• Physical Gifts: The global cross-border gifting market predominantly consists of physical gifts like clothing, accessories, electronics, toys, and home decor. The rise of e-commerce platforms has made international purchases easier, but challenges like high shipping costs and customs regulations persist. Despite these, the demand for physical gifts continues to grow due to rising disposable income and online shopping.

• Digital Gifts: Digital gifts, including e-gift cards, online subscriptions, digital media, and virtual experiences, are gaining popularity in the cross-border gifting market due to their convenience and instant delivery. These gifts are not geographically bound and eliminate shipping and customs challenges. The increasing adoption of digital technologies and the rise of digital natives further fuel this segment’s growth.

• Personalized Gifts: Personalized gifts, including engraved Jewelry, monogrammed accessories, photo books, and bespoke artwork, are highly valued in the cross-border gifting market due to their unique and thoughtful nature. Advances in technology like AI and 3D printing have made it easier to create and deliver personalized gifts, despite higher costs and longer lead times.

• Non-Personalized Gifts: Non-personalized gifts are generic items like chocolates, flowers, books, and beauty products suitable for various occasions. They are chosen for their simplicity and versatility, making them suitable for diverse tastes. The ease of purchasing and variety contribute to their steady demand. Although they lack the unique touch of personalized items, they are convenient and reliable cross-border gifting options.

• Others: The “Others” category in the cross-border gifting market includes niche and emerging gift types like experiential gifts, subscription boxes, and handmade or artisanal products. This segment encompasses experiential gifts (such as travel vouchers and event tickets), subscription boxes, and handmade or artisanal products. Subscription boxes, offering curated collections of products delivered regularly, provide a convenient and ongoing gifting experience. Handmade or artisanal products appeal to consumers looking for unique, high-quality items with a personal touch.

By Price Range

• Luxury: The luxury segment of the global gifting market is dominated by affluent consumers seeking high-end, premium products like designer clothing, electronics, fine jewelry, and luxury watches. The growing number of high-net-worth individuals, particularly in Asia-Pacific and the Middle East, drives demand for this segment. Despite higher costs, luxury gifts’ perceived value and status symbol appeal. Challenges include high import duties, stringent customs regulations, and the need for secure shipping methods.

• Mid-Range: Mid-range gifts, including branded apparel, electronics, beauty products, and home decor, are a significant part of the cross-border gifting market. They balance cost and quality, making them accessible to a wide audience. The rise of online retail platforms has increased the visibility and availability of these gifts. However, they must navigate price competition and maintain quality standards to meet consumer expectations.

• Low Range: The low-range segment offers budget-friendly gifts like fashion accessories, electronics, and novelty items. These items are popular for casual occasions and diverse preferences. The rise of discount retailers and e-commerce platforms has made it easier for consumers to find and purchase low-range gifts. However, challenges include ensuring product quality, overcoming negative perceptions, and managing international shipping logistics. This segment is particularly attractive during economic downturns or for value-focused consumers.

By Occasions

• Birthdays: Birthdays are a significant occasion for cross-border gifting, with a significant global market segment. Gifts can range from personalized items to popular products like electronics and fashion accessories. E-commerce platforms have made international gift selection and delivery easier. This segment is driven by the desire to celebrate and connect with friends and family, and companies often offer special discounts and promotions to capitalize on this demand.

• Holidays: Holidays like Christmas, New Year, Valentine’s Day, Diwali, and Chinese New Year are peak periods for cross-border gifting, with consumers seeking to share joy and festivity with international contacts. Gifts range from traditional treats to luxury products and tech gadgets. The global nature and cultural significance of these occasions drive robust market activity, with retailers and e-commerce platforms launching marketing campaigns and curated gift guides.

• Anniversaries: Anniversaries are significant occasions for cross-border gifting, often focusing on personal and meaningful items like Jewelry, personalized mementoes, luxury items, and romantic experiences. The demand for high-quality, unique gifts is driven by sentiment and personalization, with e-commerce platforms offering customization options and international delivery services catering to consumers looking to celebrate anniversaries across distances.

• Corporate Gifts: Corporate gifts are gifts given by businesses to clients, employees, and partners for various occasions, such as holidays, events, promotions, and achievements. They foster business relationships, enhance employee morale, and express appreciation. The rise of remote work and global partnerships has increased the importance of cross-border corporate gifting, driving demand for specialized services and efficient international delivery solutions.

• Others: The other occasions encompass occasions like weddings, graduations, baby showers, retirements, and religious ceremonies, promoting cross-border gifting. It includes gifts specific to life events and cultural traditions, driven by the desire to celebrate and support loved ones. The variety of gifts, from practical items to culturally specific items, underscores the importance of understanding and catering to diverse consumer needs.

By End Users

• Individuals: Individuals make up the largest segment of the global cross-border gifting market, purchasing gifts for personal occasions like birthdays, holidays, and anniversaries. The demand is driven by maintaining relationships despite distances. With e-commerce platforms and online retailers, personalized gifts, digital gifts, and unique items from different cultures are popular. The convenience of online shopping and direct gift delivery have increased participation in the market.

• Corporations: Corporate gifting is a growing segment of the cross-border gifting market, involving businesses sending gifts to clients, employees, partners, and stakeholders to foster relationships, show appreciation, and enhance brand loyalty. Common occasions include holidays, anniversaries, employee recognition events, and client appreciation. High-quality, customized corporate gifts are sought due to the importance of maintaining global business relationships. This segment is characterized by bulk orders and customization needs, making it a lucrative market for specialized corporate gifting services.

• Retail Customers: The cross-border gifting market involves retail customers like brick-and-mortar stores, online retailers, and specialty gift shops. These retailers source diverse products from different countries to offer unique and culturally diverse options. They seek suppliers with competitive prices, high-quality products, and efficient shipping solutions. The rise of global online marketplaces has enabled small and medium-sized retailers to expand their product offerings and reach a wider audience.

• Wholesalers: Wholesalers are key intermediaries in the cross-border gifting market, buying gifts in bulk and selling them to retailers at a markup. They benefit from economies of scale, offering competitive prices. The demand for cost-effective sourcing solutions and diverse product offerings drives wholesalers to establish partnerships with manufacturers and logistics providers. The global gifting market’s growth has emphasized the importance of reliable wholesalers who can navigate international trade regulations and provide seamless cross-border distribution.

Report Scope

Cross-Border Gifting Market – Regional Analysis

The Cross-Border Gifting Market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: North America, including the US and Canada, is a significant market for cross-border gifting due to high consumer spending, a strong gifting culture, and advanced e-commerce infrastructure. The region’s popularity of holidays like Christmas, Thanksgiving, and Valentine’s Day drives demand for unique products. However, challenges like high shipping costs and customs regulations remain. Retailers and service providers can effectively cater to this market by focusing on seamless logistics, competitive pricing, and extensive product catalogues.

• Europe: Europe is a robust market for cross-border gifting, with countries like the UK, Germany, France, and Italy leading in consumer spending. The region’s cultural diversity and rich traditions contribute to its robustness. European consumers value quality, craftsmanship, and unique products. The European Union’s single market facilitates easier cross-border trade, but Brexit has introduced complexities and new regulatory challenges. Businesses must navigate these landscapes while providing high-quality products and efficient delivery services.

• Asia-Pacific: The Asia Pacific region, including China, Japan, India, South Korea, and Southeast Asia, is experiencing significant growth in cross-border gifting due to the rising middle class, increasing disposable incomes, and e-commerce adoption. Major festivals like Chinese New Year and Japanese New Year boost demand for gifts, while digital gifts are preferred due to high digital penetration. However, challenges like complex customs procedures and logistical inefficiencies need to be addressed. Companies offering culturally relevant products, efficient delivery, and smooth transactions are well-positioned to succeed.

• LAMEA (Latin America, Middle East, and Africa): The LAMEA region is a growing market for cross-border gifting, driven by e-commerce activities, a growing middle class, and cultural festivals. High-income countries like the UAE and Saudi Arabia are attracting luxury gifts during festivals. Africa’s young, tech-savvy population is also boosting digital gifting. Despite challenges like high shipping costs and customs duties, the market presents substantial opportunities. Businesses that can navigate these challenges and offer localized solutions can tap into the LAMEA cross-border gifting market.

Competitive Landscape – Cross-Border Gifting Market

The Cross-Border Gifting Market is highly competitive, with a large number of manufacturers and retailers operating globally. Some of the key players in the market include:

• 1-800-Flowers .com
• Ace of Hearts Gift Baskets
• Bettys & Taylors of Harrogate Ltd.
• Fern N Petals
• Gift Hampers International
• GiftBasketsOverseas
• Giftsenda
• Interflora
• Swarovski
• The British Hamper Company
• The Gourmet Box
• The Saao
• Tiffany & Co.
• Tinggly
• Trade Link Cargo Carriers
• Others

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.

New players entering the Cross-Border Gifting market are adopting innovation and development to differentiate themselves and gain traction. These players often focus on unique strategies, such as personalized and customized gifting solutions, enhanced digital gifting platforms, blockchain and cryptocurrency payments, and sustainable and eco-friendly gifting options.

Subscription-based gifting services are gaining popularity, offering consumers the convenience of regular, curated gift deliveries. These services range from monthly beauty boxes to gourmet food subscriptions and personalized book clubs. New market players are leveraging data analytics to curate personalized subscription boxes that cater to the recipient’s tastes and preferences. This model provides a steady revenue stream and enhances customer loyalty by offering ongoing, thoughtful gifting solutions.

The Cross-Border Gifting Market is segmented as follows:

By Product Type

• Physical Gifts
• Digital Gifts
• Personalized Gifts
• Non-Personalized Gifts
• Others

By Price Range

• Luxury
• Mid-range
• Low Range

By Occasions

• Birthdays
• Holidays
• Anniversaries
• Corporate Gifts
• Others

By End User

• Individuals
• Corporations
• Retail Customers
• Wholesalers

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America