Gift Wrap Posts Gains; Cards Even

The best-dressed gifts this holiday season will be adorned in elaborate wrapping paper. Retailers report consumers are willing to splurge for elaborately manufactured—and expensive—wrappings, which can add as much as $5 to the cost of a gift. Flocked, metallic, glittery paper in jewel tones accessorized with beads, brooches and fake fur are invigorating the gift wrap market. Data from New York City-based Business Trend Analysts reports solid 5% annual growth of gift wrap and accessories sales. Sales increased 4.9% in 2003 to about $10 billion, marking an acceleration over the previous few years when growth was in the range of 4.8%. Gift bags posted the highest growth, with a 6.9% increase to $1.3 billion, trailed by gift wrap growing 5.6% to $4.2 billion and ribbons growing 5.1% to $1.4 billion. Greeting cards are about even with last year's tally—two billion will be mailed this season. About seven billion cards are sold annually, says the Greeting Card Assn. Hallmark holds about 50% of the market; American greetings, 33%.