01

From gift sets to mainstream markets

Nowadays, in the context of gift-giving, packaging is no longer an optional accessory. From exquisite gift boxes for sending blessings on anniversaries to custom packaging printed with brand logos for business gifts, gift packaging is evolving from a protective tool to an artwork that conveys emotions and enhances value.

Looking back at the development trajectory of the gift packaging industry, it is essentially a "micro-history of consumption upgrade". From its development process, it can mainly be divided into the following four stages:

Source: Public data collation, Yiwu Index

www.ywindex.com

Benefiting from the diversified demands of gift consumption scenarios, the gift packaging industry is developing in a diversified direction. At present, the product categories in the gift packaging industry are mainly classified in the following ways:

By product material: paper packaging, wooden packaging, plastic packaging, metal packaging, etc.

By application scenarios: wedding gift packaging, business gift packaging, festival gift packaging, etc.

By product structure: gift boxes, gift bags, wrapping paper, ribbons and accessories, etc.

The increasingly detailed category division not only precisely meets the personalized demands of diversified gift consumption scenarios such as weddings, business, and festivals, but also promotes the concentration of the industry in advantageous regions.

From the perspective of the distribution pattern of industrial belts in the gift packaging industry, it presents a layout feature of "dense in the east and sparse in the west, dominated by coastal areas, and specialized division of labor", among which specialized clusters such as Yiwu in Zhejiang Province, Quanzhou in Fujian Province, and Shenzhen/Dongguan in Guangdong Province are representative. Relying on the differences in regional advantages, each industrial belt has formed a differentiated competition in raw material supply, production design and sales export, etc., and together contributes more than 70% of the national gift packaging production capacity.

The distribution of the main industrial belts in the domestic gift packaging industry

Source of information: Collation of public information

www.ywindex.com

02

The hundred-billion-yuan track under the "ritual economy"

At present, the "ritual economy" is becoming increasingly popular. Benefiting from this, the gift packaging industry is no longer a small-scale supporting industry. In fact, it has long entered a market worth hundreds of billions through niche innovation.

According to the monitoring of Yiwu Index, the market size of China's gift packaging industry is expected to be approximately 32 billion yuan in 2025, with an average annual compound growth rate of about 7% over the next five years.

The market size of China's gift packaging industry from 2024 to 2030 (in billions of yuan)

Data source: Yiwu Index

www.ywindex.com

So, what makes the gift packaging industry capable of breaking through?

From the demand side, there are mainly the following three driving factors:

With the rise of the Z-generation as the main consumer force, consumption upgrade and paying for emotions have become the core engines driving the steady development of the industry. On the one hand, China has long been known as a land of courtesy, and the culture of gift-giving has remained stable for a long time. In addition to the cyclical and significant growth in packaging demand driven by traditional and modern festival gift-giving customs such as the Spring Festival, Valentine's Day, Christmas, and commemorative days, the rise of new consumption concepts such as the influencer economy and the appearance level economy has simultaneously promoted the growth of industry demand. Data shows that the scale of China's gift economy market has soared to 1.38 trillion yuan over the past five years, with an increase of nearly 50%. As an indispensable carrier for expressing emotions in gift-giving scenarios, the sales of gift packaging products have also risen accordingly. On the other hand, taking into account the growth of residents' income, consumers are more inclined to purchase mid-to-high-end and exquisite gift packaging to express their emotions. According to the research data from iiMedia Research, nearly 70% of the surveyed consumers tend to choose "exquisite packaging" when it comes to the packaging preferences of festival gift boxes, and are willing to pay a premium for packaging that is more design-oriented and of higher quality.

Spring Festival and Christmas gift box image source: Yiwu Index

In the current era when social media increasingly dominates consumer decisions, the sharing and viral culture on platforms such as wechat, Xiaohongshu, and Douyin is accelerating the enhancement of the communication value and status of gift packaging. High appearance standards and personalized creative packaging often become important decision-making factors for users when purchasing products. Take live-streaming e-commerce as an example. Its scenario-based marketing feature enhances the visual value and experience of gift packaging. By leveraging the "instant conversion" attribute of live-streaming e-commerce, enterprises have transformed gift packaging into an important means of attracting orders. Data from a certain e-commerce platform shows that the order conversion rate of products marked as "high-end customized gift boxes" is significantly higher than that of products without such marking. Meanwhile, the live-streaming unboxing display segment has also increased the viewing time of consumers. The platform encourages enterprises to launch festive-themed packaging, customized gift boxes and other forms to drive the growth of product sales. Therefore, to a certain extent, online channels have reshaped the logic of the gift packaging industry and become a new core driving force for industry growth.

Unlike the gift-giving scenarios of individual consumers, business gift-giving has evolved from a simple form of social interaction to an important strategic means for corporate brand promotion and customer relationship maintenance. Therefore, the demand for gift packaging on the corporate side is more stable, and the price acceptance is higher. Nowadays, the strategic value of business gifts is increasingly prominent. Enterprises are no longer content with universal packaging but are pursuing the effect of "packaging as a brand business card". This customized demand not only boosts the sales of mid-to-high-end packaging but also gives rise to an integrated service model of "packaging + brand planning", further expanding the profit space of the industry.

Source of packaging images for various gift products: Yiwu Index

03

Overseas market: North America and Asia-Pacific are dominant, and demands vary among regions

Looking at the global gift packaging industry, while the market size shows a stable growth trend, the industry also presents a diversified development pattern.

According to the data monitoring of Yiwu Index, the global market size of the gift packaging industry was approximately 27.5 billion US dollars in 2024 and is expected to exceed 35 billion US dollars by 2030, with an average annual compound growth rate of about 4.9% over the next five years.

Global gift packaging industry market size (in billions of US dollars) from 2024 to 2030

Data source: iResearch, Yiwu Index

www.ywindex.com

Influenced by factors such as festival culture, income levels, e-commerce penetration, and environmental awareness, there are significant differences in the market performance and consumer preferences of gift packaging in various overseas regions:

North America is currently one of the most active regions in the global gift packaging market demand. The market size in 2024 is approximately 10.976 billion US dollars, accounting for about 40% of the global market share. The compound annual growth rate over the next five years is expected to be around 3.7%. Consumers in North America have a strong habit of giving gifts and high packaging standards. They are more willing to pay a premium for gift boxes with strong design sense and exquisite craftsmanship. Meanwhile, the penetration rate of e-commerce is high, and the promotions during festivals such as Black Friday, Christmas, and Valentine's Day are mature. The demand for gift packaging in the market is relatively stable.

The gift packaging market size in the Asia-Pacific region is expected to be approximately 10.068 billion US dollars in 2024, with a compound annual growth rate of about 4.6% over the next five years. The Asia-Pacific region has a large population base, a dense array of festivals and events, and the rapid development of social e-commerce. Consumers, while pursuing a sense of ceremony, pay close attention to the cost-effectiveness of products and are more inclined to choose gift boxes and gift bags that are moderately priced, visually striking, and suitable for bulk gifting.

The gift packaging market size in Europe is expected to reach approximately 6.485 billion US dollars in 2024, accounting for about 24% of the market share. The compound annual growth rate over the next five years is projected to be around 2.6%. Influenced by environmental regulations and consumer awareness, European consumers prefer simple and sustainable gift packaging, such as using recycled paper, degradable materials and reusable gift bags. In terms of style, they emphasize understated elegance, practicality and design unity.

Gift packaging made of degradable materials. Image source: Internet

Overall, the global gift packaging market presents a diversified development pattern, creating broad overseas opportunities for Chinese gift packaging enterprises with supply chain advantages and rapid response capabilities.

04

The gift packaging industry has entered a new era

Under the multiple influences of the iteration of consumption concepts, policy and technological innovation, the gift packaging industry is entering a new stage of development and presenting a series of distinct trends.

The demand for personalized customization has exploded. Customized services with small batch sizes and high appearance standards are gradually becoming the mainstream of industry development. Nowadays, the Z-generation consumer force is on the rise. Driven by the dual forces of the appearance-level economy and the trend of collaborations, the demand for personalized customized gift packaging is becoming increasingly strong. Besides integrating traditional festival cultural elements into gift packaging design, new national trends and urban cultural and creative elements are also frequently going viral. Meanwhile, the expansion of business gift-giving scenarios has further driven the rapid growth of enterprises' demand for customized gift packaging. By integrating elements such as corporate logos and brand colors into packaging, enterprises can strengthen their brand image in scenarios like business gift-giving and employee benefits.

Image source: Yiwu Index. Chongqing City Cultural and Creative souvenir box

Green environmental protection is gradually becoming mainstream. Under the impetus of policies, global environmental protection pressure has forced the industry to undergo a green transformation. Green environmental protection is no longer an added bonus for the industry but an inevitable requirement for the development of gift packaging enterprises. In terms of policy, the national dual carbon goals have driven the gift packaging industry towards a green transformation, and international standards such as the EU's "New Packaging Regulation" have also accelerated the popularization process of eco-friendly packaging. Enterprises actively adopt environmentally friendly materials such as degradable plastics and recycled paper, and reduce material usage by optimizing structural design, achieving carbon reduction goals from the source. Meanwhile, consumers' preference for sustainable gift packaging products is increasing day by day. Research shows that over 60% of consumers will consider the environmental friendliness of packaging when making purchasing decisions. This green transformation not only reduces the environmental burden but also gives rise to new business models.

New Year gift packaging made of eco-friendly honeycomb cardboard. Image source: Xiaohongshu

Empowered by intelligent technology. Digital and intelligent technologies have permeated production and consumption, not only enhancing the production efficiency of enterprises but also creating new consumption experiences. Technologies such as AI design and AR interaction are reshaping the value of gift packaging, and a sense of technology may become one of the core competitive advantages of high-end gifts. In the design stage, AI-assisted design significantly reduces the design and development cycle of gift packaging products. In the production process, digital printing technology supports small-batch customized production, helping enterprises quickly respond to the personalized consumer demands of the market. AR technology enables the patterns on gift boxes to "leap out of the paper", and this interactive experience enhances the added value of the products. For instance, some limited edition packaging products launched by certain liquor brands incorporate AR technology. Consumers can scan the packaging with their mobile phones to view the brand's historical stories and brewing process. This innovative packaging approach not only enhances the cultural value of the products but also increases their collectible value.

The source of the packaging image for high-end alcoholic beverages: The Internet

05

The gift packaging industry in Yiwu has entered a fast lane of innovation

The gift packaging industry in Yiwu Market started in 2005 and is one of the characteristic industries that developed in the early days of Yiwu Market. After more than two decades of development, the gift packaging industry, relying on the mature commercial ecosystem of Yiwu Market, has gradually built a complete industrial chain covering design, production and sales.

At present, the gift packaging market in Yiwu has developed into an important exhibition and sales window in China. According to the monitoring of Yiwu Index, since 2020, the packaging industry prosperity index has generally shown a continuous upward trend. It rose from 1,027.7 points in 2020 to 1,578.9 points in 2024, an increase of 53.63%.

The average value of the packaging prosperity index from 2020 to 2024

Data source: Yiwu Index

www.ywindex.com

Vice President Wang of Yiwu Gift Packaging Industry Chamber of Commerce said, "After so many years of development, the gift packaging industry in Yiwu has formed a very complete industrial chain cluster." Nowadays, everyone is promoting design innovation and product upgrading, integrating global resources, and constantly enhancing the added value and competitiveness of products.

The gift packaging industry in Yiwu Market is mainly distributed on the first floor of Area F and the first floor of Area G in the second zone of the International Trade City. Currently, there are over 400 business stalls and more than 500 business entities in the market. In terms of product categories, the venue covers mainstream categories such as festival and party packaging, printed packaging, plastic packaging, non-woven fabric packaging and jewelry packaging. Meanwhile, more functional and scenario-based subcategories such as wine packaging, flower packaging, express delivery insulation packaging, and food packaging are rapidly emerging.

In terms of product sales, foreign trade holds a dominant position, with the ratio of domestic to foreign trade sales being approximately 3:7. The foreign trade market has a wide coverage, mainly selling to regions and countries such as Europe, America, South America, Southeast Asia and the Middle East. The domestic sales are centered in Zhejiang, radiating to the Yangtze River Delta and many other places across the country.

Image source: Yiwu Index. A gift packaging store in Zone 2 of Yiwu International Trade City

At present, the gift packaging industry in Yiwu has achieved breakthrough changes in dimensions such as subcategories, customization capabilities and production design, and is showing an overall trend of upgrading towards diversification, personalization and intelligence.

Break through the boundaries of traditional product categories and promote development through cross-industry collaboration

The gift packaging industry in Yiwu market is breaking through the traditional category boundaries dominated by paper boxes and ribbons. As gift-giving scenarios become increasingly diverse, the Yiwu market has closely followed the trend and launched new sub-categories such as flowers, red wine and local specialty packaging. The market response has been enthusiastic and it has become an important engine driving the growth of the industry. Take flower packaging as an example. Its form has upgraded from simple bouquet packaging to a comprehensive packaging product integrating preservation technology, decorative aesthetics and gift accessories. It has further evolved into a multi-functional gift box specially designed for the combination of "flowers + gifts", significantly increasing the added value of the product. Meanwhile, the enterprise has carried out in-depth cooperation with different fields such as floral design, wine marketing, and local specialties, jointly developing packaging solutions that meet market demands, and forming a new pattern of cross-industry coordinated development.

The combination packaging of "flowers + gifts" source: Yiwu Index

2. AI technology empowers industry innovation and enhances the efficiency of design and production

AI technology is deeply integrating into every aspect of the gift packaging industry in Yiwu, promoting the industry's transformation towards digitalization and intelligence. A relevant business operator in Yiwu Market said, "Previously, for a new model, from design, sampling to optimization, the entire process would take at least three to five days." Now, with AI-assisted design, multiple design drafts can be generated in just a few minutes, significantly reducing our development time in the early stage. Merchants utilize AI technology to quickly meet customers' personalized and customized demands, significantly lowering the threshold for innovation.

3. By leveraging comprehensive advantages, remarkable achievements have been made in exploring overseas markets

In recent years, the gift packaging industry in Yiwu has been accelerating its overseas expansion. Thanks to the short circulation cycle of the product itself and stable market demand, it promotes the diversified development of market exports. During this process, business operators actively leverage their own resource and channel advantages and proactively expand overseas markets. For instance, some business operators in the market have fully relied on the overseas Chinese business network, focusing on developing market channels in regions with a high concentration of Chinese people in Europe such as Spain, Italy, and Hungary, and gradually established a cross-border supply chain system.