Market Opportunities for Gift Baskets
Is there a market for gift baskets? As popular as they are, the market for gift baskets is still wide open and the sales opportunities are virtually limitless. But this isn’t a game; it’s a serious business. The subscription market should grow by an astounding $42.3 billion between 2021 and 2027. At a CAGR of almost 65% yearly, it could reach more than $900 billion by 2026. Analyzing the existing market, deciding on a line of products, and looking at your own marketing and funding needs will prepare you. The Canadian gift basket market is expected to grow at a CAGR of 4.65% between 2021 and 2026. Gift baskets make up around 15% of the total gift market. The Christmas season accounts for nearly 35% of the total annual sales in the gift basket industry. Edible arrangements make up 72% of the total gift basket market. The online segment of the gift basket industry has grown by 7.6% over the past five years.
Making Money with Gift Baskets
When I initially wrote this article, annual sales for gift baskets totaled about $800 million in 1996, up from $700 million in 1992 according to Kathy Horak, editor of Gift Basket Review. While there is some initial investment required to put together a quality gift basket, if done correctly, they can be quite profitable. Gift baskets are still popular today because they offer a wide variety of items to choose from and can be customized to the recipient’s interests. Gift baskets can be given for any occasion and are always appreciated by the recipient. Food gift baskets make a popular gift for any holiday or gifting occasion. Startup costs for a gift basket business range from $3,000 to $8,000.