The market is predicted to see an incremental growth of $11.17 billion by the forecasted period.
The global personalized gifts market, valued at $20.46 billion in 2016, will register an incremental growth of $11.17 billion by 2021, analysts say. This amounts to $31.63 billion in total, equivalent to a CAGR of 9 percent.
Marketing research firm Technavio has determined three major contributors of this growth, starting with a steadily evolving gifting culture in which consumers engage in gift giving and exchange during other occasions besides holidays such as Christmas and Valentine's Day. Value and appeal are added to presents through custom prints and other configurations.
With the need to celebrate more occasions comes the demand for seasonal decorations, particularly during Christmas, Halloween, Easter and Hannukah. Partyware such as cups, plates and napkins take up a large portion of this segment's total revenue, and so do home and wall decors, the latter having accounted for 31.81 percent in the photo merchandising market in 2016. Non-photo gifts, meanwhile, are expected to reach a CAGR of 8.85 percent.
Innovation remains a key driver in consumer interest and sales. Models are adopting fancier and more modern customization techniques, including hand decorations, carvings, engraving and embroidery, and ordering processes to maintain customer loyalty and demand. Currently novelty items and environment-friendly gifts are still popular.
In terms of distribution channels, brick-and-mortar stores bring in higher sales because they offer more personalization options. For example, Target and Wal-Mart centers come equipped with minilabs that provide on-site and real-time gift customization. However, as regards reinforcing brand image and advertising, suppliers are advised to take advantage of the Internet, specifically social media.
Region-wise, the Americas is forecasted to generate the highest revenue and incremental growth from 2017 to 2021.