"The real value of gifting lies in the memories or experiences it unlocks. Brands must innovate by making products more emotionally resonant and offering clear value to cater to evolving consumer priorities."
Marisa Ortega, Analyst - Retail & eCommerce
Gift giving in the US is undergoing an identity shift: consumers are still buying tangible products, but 57% believe in giving moments/experiences, not material items. This signals an industry pivot from selling items to selling stories, shared moments and emotional resonance.
At the same time, economic headwinds have split the market. Affluent households keep spending, while budget-constrained shoppers trade down, leading to “giftflation frustration.” The key industry impact is a widening demand for clear value signposts – from sub $25 confidence lanes to premium ladders that effectively justify price with value adds; thus helping every shopper feel smart, not stretched.
The biggest opportunity is to capture incremental growth by packaging products with experiences and tiered reassurance that lets consumers justify a step up. The biggest threat: distant social interactions and continued decline in US births, which contracts social circles and kids-focused occasions, while intensifying the trend of fewer, but higher stakes, gifting moments.
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