Gifts Novelty and Souvenir Market Set for Strong Growth Across Online and Specialty Retail

The global gifts, novelty, and souvenir market was valued at USD 14.33 billion in 2025 and is projected to grow from USD 14.89 billion in 2026 to USD 20.22 billion by 2034, registering a 3.9% CAGR during 2026–2034. North America dominated the market with a 35.4% share in 2025, while Asia Pacific is expected to record the fastest growth during the forecast period.

Market Size (2025): USD 14.33 Billion

Market Size (2026): USD 14.89 Billion

CAGR (Forecast Period): 3.9%

Forecast Year: 2034

Projected Market Size (2034): USD 20.22 Billion

Dominant Region: North America – 35.4%

Fastest Growing Region: Asia Pacific

Market Overview

The gifts, novelty, and souvenir market includes personalized gifts, collectibles, decorative products, greeting cards, seasonal merchandise, handcrafted items, and travel-related keepsakes. Tourism, cultural celebrations, personal milestones, and interest in distinctive products continue to support the market, while e-commerce gives consumers wider access to niche and customized merchandise.

Digital personalization is becoming increasingly important across the category. Etsy reported in 2026 that it was expanding personalized discovery and occasion-based shopping, while its AI-powered Gifting Assistant was introduced to help shoppers find gift ideas through natural-language conversations.

Growth Drivers

Consumer preference for personalized and distinctive products is supporting spending on customized gifts, collectibles, and keepsakes. Digital printing, online design tools, and made-to-order production allow retailers and independent creators to offer products tailored to individual names, occasions, interests, and memories.

Tourism and experiential travel also strengthen the souvenir category by creating opportunities for destination-specific merchandise and memorabilia. Physical keepsakes allow travelers to retain a tangible connection to places and experiences, supporting sales through tourist attractions, specialty stores, and online channels.

Market Challenges

Strong seasonality creates inventory and revenue-management difficulties for businesses because purchasing activity can concentrate around holidays, festivals, birthdays, and other occasions. Retailers must balance stock availability during peak periods against the risk of excess inventory after seasonal demand subsides.

Product differentiation is another challenge because consumers can access a large volume of similar gifts and novelty products across marketplaces. Retailers and independent brands need distinctive designs, reliable quality, strong presentation, and effective digital discovery strategies to maintain visibility.

Market Opportunities

AI-assisted gifting and personalized digital discovery create revenue opportunities for online marketplaces, retailers, and independent creators. Recommendation engines, conversational shopping assistants, customized product suggestions, and occasion-based merchandising can increase product discovery and support higher-value purchases. Etsy's 2026 rollout of its Gifting Assistant demonstrates this opportunity.

Limited-edition collectibles and experience-linked merchandise provide another revenue avenue for entertainment companies, tourism operators, specialty retailers, and licensed-product manufacturers. Exclusive releases can encourage collector engagement and create additional sales around events, destinations, anniversaries, and entertainment franchises.

Segment Analysis

By type, the Souvenirs and Novelty segment accounted for the largest market share in 2025, supported by the broad appeal of travel keepsakes, distinctive novelty products, collectibles, and merchandise linked to personal experiences.

By material, the Textile segment held the largest share, supported by the versatility of textile-based gifts such as plush products, embroidered merchandise, apparel, blankets, and other customizable items.

By price range, the Mid segment dominated the market, owing to its balance between affordability and perceived value. Mid-priced products appeal to consumers seeking meaningful gifts without moving into premium price points.

By occasion, Holidays accounted for the largest share, supported by established gift-giving traditions around Christmas, Valentine's Day, festivals, and other major celebrations. By distribution channel, Brick-and-mortar Stores held the largest share, benefiting from consumers' preference to physically evaluate products and make immediate purchases, particularly at tourist attractions and specialty gift stores.

Regional Analysis

North America accounted for the largest regional share of 35.4% in 2025, supported by its established retail infrastructure, tourism activity, strong consumer spending, and extensive availability of personalized merchandise. Major retailers and specialty stores continue to combine physical shopping with online customization and e-commerce channels.

Asia Pacific is expected to showcase the fastest-growing regional market during 2026–2034, supported by expanding e-commerce, rising purchasing power, tourism, and strong cultural and festive gifting traditions. China, Japan, South Korea, and India provide important opportunities through their large consumer bases and diverse craft and souvenir ecosystems.

Europe remains an established market for giftware, souvenirs, collectibles, and specialty products, supported by tourism and cultural events. Latin America and the Middle East and Africa also offer opportunities as tourism, digital commerce, and localized gifting products expand.

Competitive Landscape

The gifts, novelty, and souvenir market is moderately fragmented, with established gift-card and greeting-card companies, entertainment and licensed-merchandise providers, specialty retailers, online marketplaces, artisan businesses, and personalized-product platforms competing across product categories and distribution channels. Competition centers on product originality, customization, brand recognition, pricing, retail reach, digital discovery, and customer experience.

Key companies include:

Hallmark Cards, Inc.

American Greetings Corporation

Disney Consumer Products, Inc.

Archies Limited

Card Factory

The Walt Disney Company

Spencer Gifts LLC

Sanrio Co., Ltd.

Enesco, LLC

Zazzle Inc.

Moonpig Group PLC

Recent Developments

In June 2026, Hallmark announced its 2026 online fan-exclusive Keepsake Ornaments, with limited-edition designs scheduled for release through Hallmark.com. The initiative expands the company's collectible merchandise offering through an online-exclusive model.

In July 2026, Hallmark launched its annual Keepsake Ornament Premiere with more than 250 new ornaments, combining collectible merchandise with entertainment characters, storytelling, and seasonal gifting.

In 2026, Etsy expanded AI-supported shopping and personalization capabilities, including a Gifting Assistant designed to help buyers discover gift ideas through conversational interactions. The company also continued developing personalized recommendations and occasion-based shopping experiences.

In July 2026, Disney announced exclusive merchandise and collectible experiences for D23, including limited-edition pins, personalized products, event-exclusive apparel, collectibles, and other fan merchandise. Selected products were subsequently made available through DisneyStore.com.

Click to Read the Complete Insights & Report: https://straitsresearch.com/report/gifts-novelty-and-souvenir-market

Future Outlook

The gifts, novelty, and souvenir market is expected to advance as consumers seek more personalized, meaningful, collectible, and experience-linked products. Digital customization, AI-assisted product discovery, online marketplaces, and omnichannel retail are likely to remain important areas of development.

Limited-edition merchandise, destination-based souvenirs, sustainable products, and personalized gifting can provide additional growth avenues for retailers, entertainment brands, tourism operators, and independent creators. Businesses that combine distinctive products with convenient digital discovery and strong customer experiences are likely to strengthen their market position.

About Straits Research

Straits Research is a global market intelligence and consulting company that provides research reports, strategic insights, competitive analysis, and advisory services across multiple industries. Its research supports businesses, investors, and decision-makers in identifying market opportunities, evaluating industry dynamics, and developing informed growth strategies.