Greeting Card Business Overview

A greeting card publishing business creates and sells greeting cards for various occasions, including birthdays, holidays, weddings, condolences, and more. These businesses work with artists and writers to develop card designs, handle production through printing facilities, and build relationships with retail stores to stock their products.

A business may sell its cards in multiple ways. Some businesses only sell wholesale cards to retailers and gift shops, who then sell them to consumers. Some businesses do a combination of wholesale and direct-to-consumer sales. A business may sell online through its website or rely on sites like Etsy and Amazon to help drive sales. Some handmade cards may also sell well at craft fairs and other events.

According to the Greeting Card Association, the most popular type of greeting card is the birthday card, followed by cards for seasonal holidays like Christmas and Valentine’s Day. This market is largely female-driven, with women accounting for four out of every five card purchases. The average American spends approximately $100 each year on greeting cards. Outside of seasonal cards, weddings, anniversaries, graduation, and get well cards are also big sellers.

Related: Checklist To Start A Business

How Do Greeting Card Publishers Make Money?

Greeting card publishers generate income primarily through wholesale distribution networks. They sell their cards in bulk to retailers at 40-60% of the retail price, allowing stores to mark up the products for their own profit margins. For example, if a card retails for $5, the publisher might sell it to retailers for $2-3.

Industry Statistics

Greeting card publishers operate in NAICS 511191, which includes businesses that publish greeting cards in print or electronic form, along with related items like postcards, calendars, coloring books, and yearbooks. Here are some statistics that show where the industry stands:

Greeting Card Publisher Industry Size & Growth: The greeting card publishing industry generated $5.7 billion in revenue last year. Over the previous five years, the industry experienced an average annual decline of 4.3% and is projected to continue declining over the next five years as digital alternatives and social media platforms continue replacing traditional greeting cards (IBISWorld).

Competition: The industry is dominated by two major players: Hallmark Cards Inc. and American Greetings Corp. Hallmark led the market with $708.9 million in revenue last year, while American Greetings generated $594.3 million. Together, these companies control a substantial portion of the market (IBISWorld).

Costs To Start a Greeting Card Publishing Business

Starting a small greeting card publishing business can cost between $2,000 and $100,000, depending on the scale of operations. A home-based operation focusing on direct-to-consumer sales with outsourced printing can start at the lower end, while a traditional wholesale publishing operation would require more substantial funding.

There are several major expenses involved in starting a greeting card publishing business. Here are some of the more expensive items:

Sample Production Runs: Initial test prints and sample cards from printing partners typically cost $500 to $2,000. This allows for testing different paper stocks, finishes, and printing methods to establish product quality standards.

Initial Inventory: A starter inventory of cards, including various designs and occasions, usually costs between $1,000 and $5,000. This covers minimum order requirements from print partners and provides enough stock to fulfill initial orders.

Packaging Materials: Professional packaging supplies cost $300 to $1,000 to start. This includes protective sleeves, shipping materials, custom boxes or mailers, and bulk envelope orders.

Product Photography Setup: Basic photography equipment for capturing professional product images costs $200 to $800. This includes lighting, backdrops, and props for lifestyle shots of the cards.

These costs are estimates and will vary based on location, scale of operations, and specific business needs.

Resources:
Greeting Card Association