We believe it’s safe to say that most of us, if not all, love receiving gifts. Shopping for presents for others is just as enjoyable to many. Following that, it is no wonder that the Canadian giftware industry is worth $10 billion.
Fascinated by the industry’s intricacies, we decided to compile essential statistics. These Canadian gift industry statistics will provide you with an overview of Canada’s booming industry, the market size, its growth, its segmentation, and much more. Without further ado, let’s look into the gift industry and find out just how profitable it is. Is it truly a force to reckon with? Let’s find out!
Top 10 Gift Industry Statistics for 2021
- The gift, souvenir, and novelty stores’ yearly revenues are between $30,000–$5,000,000.
- There were 4,450 gift, souvenir, and novelty stores in Canada in 2019.
- In 2019, the number of gift, souvenir, and novelty stores in Ontario was 851.
- On average, Canadians spend $145 on wedding gifts, trends in the gift industry show.
- Generally, men spend more on wedding gifts than women.
- The likelihood of buying a luxury gift for a wedding is 27%.
- The top gift picks for holidays are closed-loop gift cards (45%) and open-loop gift cards (53%).
- 79% of Canadians would like to receive an open-loop gift card.
- 57% of Millennials are likely to receive an open-loop gift card as a present.
- Canada’s gift card market has noted a CAGR of 13.2% during 2015–2019.
Fascinating Gift Industry Stats
In the following section, we feature the most important statistics and facts about Canada’s gift industry. We have focused on statistics such as the market size and general trends. Keep on reading to learn more about the present state of the industry, as well as its prospects.
Number of Gift, Novelty, and Souvenir Stores in Canada As of December 2019, by Region
1. In 2019, the number of gift, souvenir, and novelty stores in Ontario stood at 851.
Gift shop industry statistics show that most stores selling gifts, souvenirs, and novelties are located in Ontario, followed by British Columbia (423 stores) and Quebec (406 stores). Stats then point to Alberta (292 stores), Nova Scotia (128 stores), and Manitoba (87 stores).
2. The gift industry market size in Canada is valued at $10 billion.
For comparison, the US market of gift shops & card stores alone amounts to US$18.5 billion in 2021. With more people finding new reasons to shop for gifts, these numbers come as no surprise.
3. According to gift shop trends, the gift, souvenir, and novelty stores’ yearly revenues range between $30,000–$5,000,000.
(Government of Canada)
On average, total revenue within the industry is $310,700. That said, direct and indirect expenses are just as impressive. Direct expenses (cost of sales) range from $19,600 to $450,800, while indirect (operating) expenses can fall anywhere from $21,800 to $361,200. Overall, the numbers depend on the size of one’s business. They are also driven by levels of revenue or profit margin generated.
4. There were 4,450 gift, souvenir, and novelty stores in Canada in 2019, based on souvenir industry statistics.
(Government of Canada)
Stats also reveal that 99.4% of these establishments had a maximum of 99 employees. Now, establishments here include balloon shops, curio shops, gift wrap supplies, joke shops, duty-free shops, among others.
5. According to personalized gift industry statistics, Canada’s personalized gift market is projected to grow at a CAGR of 6.3% between 2020 and 2027.
For comparison, Japan’s personalized gift market is forecast to grow at a CAGR of 7.1%. The Chinese market isn’t trailing behind with its CAGR of 7.2%. Now, let’s cross the ocean to see what is in store for European countries. Interestingly, Germany is expected to grow at a CAGR of 6.3%—similar to the Canadian growth rate.
Gift Industry Trends Set by Shoppers
Shoppers, their habits, preferences, and tendencies shape the gift industry. Following that, learning about buyers’ attitudes is of utmost importance. Check the section below to learn more about shoppers—including us, of course.
6. On average, men spend more on wedding gifts than women.
The data taken from a 2019 survey of 1,007 Canadians reveals that men spend $168 on wedding gifts, while women spend $123. Interestingly, the poll also disclosed that older Millennials and younger Gen Xers spend more ($171) than other age groups—$148 for Canadians over 45 and $123 for Canadians under 35.
7. On average, Canadians spend $145 on wedding gifts.
Canadians typically spend $95 on certain holidays, such as birthdays, while they cash out significantly more on weddings. The wedding gift industry statistics also note that married couples typically spend more on presents than others—an average of $161 versus $121 per gift.
8. Also, the likelihood of purchasing a luxury gift for a wedding is 27% higher than for other holidays, gift shopping industry trends reveal.
While weddings top the list of events with most luxury gifts, they are also considered one of the most stressful events for gift shopping. To be more precise, Canadians cited it as the second most stressful event, behind anniversaries. That said, the likelihood of buying a luxury gift for a wedding stands at an impressive 27%, while it is 22% for anniversaries. As for birthdays, the stats report that 19% of survey participants are likely to spend more than usual.
Gift industry trends from 2020 unveil that the lockdowns have reduced celebrations in the country, resulting in fewer people having a reason to purchase gifts. Another cause for this decline is the economic slowdown.
As of June 2020, the gift card growth was expected to stay subdued over the next four quarters. Nonetheless, despite a somewhat pessimistic outlook, the country’s gift card industry is still likely to experience growth over the medium term.
Gift Card Industry Statistics
In the coming sections, we will highlight statistics on the multi-billion gift card industry in Canada. Here, you will find everything there is to know about the industry’s segment.
10. The top gift picks for holidays are closed-loop gift cards (45%) and open-loop gift cards (53%).
According to the findings of an online survey that analyzed the responses of 1,563 Canadians regarding the most popular gift choices, gift cards are followed by accessories and clothing (40%), DVDs and books (32%), computer electronics and mobile devices (26%), gaming consoles and games (11%).. Moreover, Canadian gift industry statistics reveal that 1/3 of Canadians have gifted and 45% have gotten an open-loop gift card.
11. Admittedly, 79% of Canadians would like to receive an open-loop gift card.
Canadians prefer getting an open-loop gift card over anything else for the holidays, gift card industry trends reveal. Respondents would rather get an open-loop gift card instead of a closed-loop one because the latter can only be used at one retailer.
12. Millennials are the most likely to receive an open-loop gift card as a present—57%.
Based on gift card industry stats, a good half of Canadians prefer an open-loop gift card. To them, it is safer than giving cash as a present. Furthermore, 46% of Canadians are planning to buy at least one open-loop gift card.
13. 68% of Canadians go for gift cards to let the recipient choose their gift versus 51.8% of Americans.
(Globe Newswire) (CPPO)
Gift cards are getting more popular in the US—gift industry trends from 2020 reveal that the US gift card market is worth around $278.8 billion.
While Canadians are more likely to opt for a gift card to allow the recipient “gift-freedom,” Americans are more likely to purchase multiple gift cards. Namely, 80% of Americans plan to buy at least one gift card, compared to 62% of Canadians.
14. According to gift card sales statistics, Canada’s gift card market has noted a CAGR of 13.2% during 2015–2019.
Canadian gift card industry is projected to grow at a CAGR of 8.2% during 2020–2024. Moreover, the gift card market’s worth is forecast to increase from US$5,745.8 million to US$7,896.2 million by 2024.
15. More than 70% of Canadians are purchasing gift cards in-store, according to gift shopping e-commerce industry trends.
Despite the rising popularity of online shopping among Canadian consumers, recent research shows that most people favour buying gift cards in physical stores—consumers shop at large diversified retail stores or merchants of their choice.
Despite the COVID-19 pandemic that has struck the world, the gift industry is still witnessing growth. Whether it is for Christmas, Hanukkah, or birthdays and bridal showers, consumers in Canada are always finding new reasons to shop for family, friends, co-workers, or themselves.
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What is the gift industry?
The gift industry refers to the sector concerned with all forms of gifts—from gift cards to more traditional presents such as toys, gadgets, food, or appliances.
Retailers get significant benefits from gifts considering consumers are always finding new reasons to shop for others or themselves. Besides traditional holidays such as Easter and Christmas, consumers purchase gifts for birthdays, new jobs, baby showers, engagements, etc.
How big is the gift wrapping products market?
In 2018, the global market of gift wrapping products was valued at approximately US$15.11 billion. According to gift wrap industry statistics, the market value is projected to reach US$24.9 billion by 2025.
What is the gift wrapping products market growth?
Following the market analysis, the gift wrapping products market is predicted to grow at a CAGR of 7.4% from 2019 to 2025. Overall, with the rise of gift-giving, this growth is not surprising at all.
(Grand View Research)
How big is the gifting industry?
The gift industry in the US was valued at around US$170 billion in 2019. As for Canada, the giftware industry is valued at $10 billion.
Data concerning the financial performance of gift, souvenir, and novelty stores in Canada in 2019 revealed that annual revenue ranges between $30,000 and $5,000,000. The gift industry statistics concerning the gift card market show that it was estimated to be worth US$5,745.8 million in the same year.
(Wonder) (PR Newswire)