Five Years of Gifts

The market for gifts and home decorative accents reached $65.2 billion in 2007, according to the Gifts & Decorative Accents Report 2008, a new study by Stevens, PA-based Unity Marketing. The market grew a whopping 72 percent from $37.9 billion in 2002, the last time this study was conducted. Giftware grew fastest, at a compound annual growth rate of 14.7 percent, while decorative accents rose at a compound rate of 9.4 percent.

Unfortunately, just because people are buying gifts doesn't mean they're buying them from gift stores. In 2007, gift specialty stores accounted for only 7 percent of giftware product sales. The number of specialty gift shops declined 21 percent, from 75,102 stores in 2002 to 59,032 today.

Of home furnishing or decorative accent buyers, the largest number, 62 percent, bought candles and accessories. Another 55 percent purchased kitchen gadgets and cooks' tools, while 52 percent chose seasonal decorations. Some 91 percent bought giftware; 46 percent purchased occasion-specific gifts, 44 percent purchased character or licensed merchandise, and 42 percent selected pet gifts. Most (69 percent) giftware buyers made their last purchase to give away. On the other hand, some 75 percent of home decor buyers said their last purchase was for themselves.

Though more women than men shop in these categories, men spent more, averaging $1,524 compared to women's $1,406. Younger consumers, aged 24–34, also spend more, $1,581 compared to $1,445 for those aged 55–65.

But income beats age and sex as a predictor of budget. Those earning $100,000 annually spent an average of $2,555: $1,426 on decor accents and $1,129 on giftware. Those earning $75,000–$99,999 spent $1,503 and those earning $50,000–$74,999 spent $1,353. Those who made less than $50,000 spent $840 on average.