Market Overview

The domestic gift market size is estimated at 10,893 billion yen for 2023, showing 3.4% growth on a year-on-year basis, and projected to grow to 11,880 billion yen for 2024, representing 2.7% growth on a year-on-year basis.

Gifts can be defined as anything that is given to someone in recognition of a special occasion or gesture, such as a celebration, an expression of appreciation, a greeting, or an apology. Any item offered to delight the recipient can be regarded as gifts; therefore, the spectrum of gifts and gifting occasions (events, opportunities) has broadened. The increase in channels for purchasing gifts, arising from the diversification of gifts, has obscured the comprehensive view of the domestic gift market.

During the COVID-19 crisis, the gift market experienced a significant contraction as a result of the decreased demand for gifts, which was caused by the absence of opportunities for in-person gatherings. Nonetheless, while people were compelled to abstain from visiting friends and families during the Obon holiday and New Year’s celebrations, they still made efforts to offer gifts to express their sentiments. Even after the conclusion of the pandemic, the practice of casual gifting continued to persist as a method of communication among close relatives and friends.

Noteworthy Topics

“E-Gift Service” (Gift Without Address): Market Expanding in Three Axis—User, Item, and Occasion

In Japan, the term "e-gift” (aka “Social Gift” in Japan, “Gifts Without Address” in the US) refers to a kind of service that enables someone to send a gift only using an email address or social media account, without having to know the recipient's real home address. Over the past few years, such services have quickly become a popular way to give gifts, especially among younger people.
Historically, corporate organizations prized "e-gift" services primarily for promotional purposes because they reduced the time and effort required to store and distribute promotional items. Nevertheless, due to its safety and convenience as a "contactless" service, it quickly became popular with people during the COVID-19 crisis.
In line with this, not only online stores specialized in gifts, but also department stores and gift catalogue companies introduced e-gift services. Brands that typically don't concentrate on gifts have recently been seen making moves to implement an e-gift service.

It's important to highlight that once recipients of e-Gifts become aware of their convenience and utility, they are often encouraged to become users (senders). Its ability to establish a positive cycle—regardless of whether the user is an individual or a business—is noteworthy. Furthermore, as the variety of gift items expands, individuals are starting to utilize the service for formal occasions.  

The e-gift services ecosystem is undergoing significant change. The market is brisk, and it is gaining recognition everywhere. There is no question that the e-gift industry will continue to expand with diversification along three axes: user, item, and occasion. The overall domestic gift market is projected to be driven by this trend.

Future Outlook

The size of the domestic gift market is forecasted to grow 1.5% year over year to 11,351 billion yen in 2025.
The COVID-19 pandemic affected the gift market negatively and positively between 2020 and 2022. Not all gift markets (corporate gifts, casual personal gifts, formal personal gifts) experienced the same market circumstances. Still, the gift market as a whole has stayed strong and even surpassed pre-pandemic numbers in 2023. The expansion is expected to continue for years to come, even if it may slow down.

Research Outline