Etsy is a $12.5 billion marketplace shaping global e-commerce culture. In 2024, Etsy earned $2.808 billion in revenue, a modest 2.18% growth over the previous year, a decline from the pandemic growth of 2020–2021. With 95.5 million active buyers and 8.1 million sellers, the competition is heating up, and consumer expectations are evolving.
This report breaks down Etsy's biggest category-specific insights and what they mean for creators in 2025.
Key Takeaways from this Post
Etsy’s GMS declines, but revenue rises. In-store retail is back, and consumer behaviour is normalised, but Etsy’s take rate increases revenue.
Home & Living leads all categories, maintaining its position as the top-performing segment by sales volume in 2024 and projected to continue in 2025
Gifting drives 44% of all purchases, with the gifting segment outperforming sitewide performance by nearly 4 percentage points in 2024
Overall Etsy Sales Performance
Before diving into category-specific data, let's examine Etsy's overall performance:
Etsy’s Gross Merchandise Sales (GMS) peaked in 2021 at $13.5 billion, surging from $10.2 billion in 2020, largely due to pandemic-era shifts toward online shopping and demand for handmade and home-focused products.
That peak was followed by a three-year correction:
- 2022 GMS: $13.3B (−1.5%)
- 2023 GMS: $13.1B (−1.5%)
- 2024 GMS: $12.5B (−4.5%)
- 2025 GMS: Projected approx $ 11.2B
However, the pace of decline is decelerating, suggesting that GMS may stabilize in 2025. Based on current trends, we project Etsy's GMS to level off at approximately $11.2 billion in 2025, assuming no major platform changes or global economic shocks.
Rationale:
- Q1 2025 Performance: Etsy reported a consolidated GMS of $2.8 billion, marking a 6.5% year-over-year decline.
- Consistent Decline: This decline follows a pattern observed in previous quarters, indicating a sustained downward trend.
- Annual Projection: If the current rate of decline continues, it's reasonable to anticipate a total GMS of around $11.2 billion for 2025, down from $12.5 billion in 2024.
Despite declining sales volume, Etsy’s revenue continues to climb:
- 2020 Revenue: $1.726B
- 2023 Revenue: $2.748B
- 2024 Revenue: $2.8B (+2.2% YoY)
- 2025 Revenue: Approximately $2.9B
Looking ahead, Etsy’s revenue is expected to continue rising even if GMS stays flat, supported by:
- Monetization of AI-driven search features and machine learning
- Expanding promoted listing programs
- Increased mobile app usage (now 42% of GMS)
Growth Comes With Red Tape
In 2025, rising e-commerce tariffs, especially between the U.S., EU, and China, are increasing costs for sellers importing raw materials or shipping overseas. From fabric and beads to packaging and finished goods, price hikes on cross-border transactions can erode margins fast.
Sellers need to factor in Etsy tariffs, not just shipping, but import duties and VAT when selling internationally. And tools like Link My Books can help automate the tracking of tariff-adjusted COGS and tax handling per region.
Active Buyer Trends
Etsy’s user base has grown substantially, hitting 96.6 million active buyers in early 2024, up from ~40 million pre-pandemic. However, by Q4 2024, active buyers fell to 89.6 million, a 2.6% year-over-year drop. This decline, alongside GMS contraction, raises concerns about buyer retention and engagement.
If this trend continues, Etsy could see active buyers dip below 88 million in 2025, unless platform improvements and personalisation features help re-engage lapsing users.
Etsy’s strategic shift from scale to monetisation is paying off financially, but long-term growth depends on re-igniting buyer activity and stabilising top-line marketplace volume.
Looking at the 5-year stock chart for Etsy Inc. from Yahoo Finance, Etsy’s stock price has fallen nearly 40% from its pandemic-era peak of $317 (2021) to under $48 in May 2025, despite steady revenue growth.
This reflects investor concerns about declining GMS, a shrinking buyer base, and increased competition in the ecommerce space.
Top Performing Categories on Etsy
Analyzing Etsy's category performance reveals a marketplace deeply influenced by personalization, seasonal demand, and evolving consumer trends. Six primary categories collectively account for approximately 87% of Etsy's Gross Merchandise Sales (GMS). This concentration underscores the significance of these segments in driving Etsy's overall sales.
Category Performance Statistics
1. Home & Living: The Market Leader
Home & Living retained its top position in 2024, bolstered by sustained demand for unique decor and personalization.
Key Statistics:
- Led sales growth across all categories in 2024
- "Eclectic home decor" searches increased by 719% year-over-year
- Top-performing sellers focus heavily on home decor and personalized products
Popular Subcategories:
- Wall art and prints
- Throw pillows
- Candles and candleholders
- Furniture
2025 Projection: Strong growth expected, driven by personalized home decor trends and eco-friendly options
2. Jewelry & Accessories: Seasonal Powerhouse
Personalised jewellery, like custom name necklaces and birthstone rings, continues to dominate due to its gifting appeal.
Key Statistics:
- 16% increase in sales from November to December 2024 (highest seasonal boost)
- Strong performance in personalized jewelry
- Custom name necklaces and birthstone rings among top sellers
Popular Items:
- Handmade jewelry
- Personalized accessories
- Boho-inspired earrings
- Bags and purses
2025 Projection: Continued strong performance with "Galactic metallic" trend driving zodiac jewelry sales
3. Apparel: Fashion Forward Performance
The figures reflect strong demand for trend-driven, expressive, and nostalgic fashion.
Key Statistics:
- The fashion category contributed 42% of the total GMS in 2022
- "Black satin dress" searches up 193% year-over-year
- "Preppy pajamas" searches surged 1,112% year-over-year
Popular Items:
- Hoodies and casual wear
- Vintage fashion pieces
- Custom clothing
- Athletic wear
2025 Projection: Moderate growth expected with vintage fashion and '90s/Y2K revival trends
4. Craft Supplies & Tools: Creator's Choice
While seasonal dips were observed in December 2024, Craft Supplies remains a stable category thanks to year-round demand from DIYers and makers.
Key Statistics:
- Top seller PlannerKate1 achieved 2.0+ million sales
- Seasonal decline in December compared to November 2024
- Strong DIY culture supporting consistent demand
Popular Subcategories:
- Crafting tools and kits
- Creative stickers
- Digital sewing patterns
- Beads and jewelry-making supplies
2025 Projection: Stable performance with digital patterns gaining traction
5. Paper & Party Supplies: Event Essential
This category consistently spikes around holidays and milestones.
Key Statistics:
- Multiple top sellers, including LittleBirdieCanada and ArrowGiftCoLtd
- Strong seasonal performance around holidays and events
- Consistent demand for personalized stationery
Popular Items:
- Custom invitations
- Party decorations
- Personalized stationery
- Wedding supplies
2025 Projection: Stable growth with increased demand for unique event supplies
6. Toys & Games: Nostalgic Appeal
Despite a seasonal dip in Q4, demand for handcrafted toys and STEM games is steady.
Key Statistics:
- Seasonal decline in December 2024
- Growing interest in vintage and retro toys
- Strong handmade toy segment
Popular Items:
- Stuffed animals
- Outdoor games
- Puzzles
- Educational toys
2025 Projection: Moderate growth driven by vintage toy nostalgia and "8-bit obsession" trend
Estimated GMS Contribution by Category
Note: Percentages are based on available data.
Emerging Trends and Product Opportunities for Etsy Sellers in 2025
Etsy's Spring/Summer 2025 Trend Guide highlights six key aesthetics poised to influence consumer preferences and drive sales across various categories:
- Literary Girl: This trend celebrates a love for reading and vintage charm. Products like custom book embossers, literary-themed candles, and bookish apparel are gaining popularity. Sellers can tap into this by offering items that resonate with book enthusiast.
- Messy Coquette: Embracing a soft, feminine aesthetic with a touch of imperfection, this trend favors items like bow-adorned mugs, floral candles, and ruffled textiles. It's an opportunity for sellers to offer products that exude delicate charm.
- Island Luxe: Inspired by tropical getaways, this trend features breezy clothing, raffia accessories, and coastal-inspired home decor. Sellers can cater to this by providing products that evoke a resort-like feel.
Galactic Metallic: Futuristic and space-themed designs are at the forefront here. Think holographic finishes, chrome accents, and celestial motifs in jewelry and home decor. Sellers can capitalize on this by introducing products with a cosmic flair.
Châteaucore: Drawing inspiration from the French countryside, this trend emphasizes vintage glassware, puffy quilts, and airy cotton dresses. It's about bringing rustic elegance into everyday life. - Maritime Living: Nautical themes are making waves with decor featuring sardine motifs, sea glass accents, and shell accessories. Sellers can explore this by offering products that capture coastal living.
Beyond these trends, personalization remains a significant driver on Etsy. Consumers continue to seek unique, customized items across categories, from jewelry to home decor.
Additionally, there's a growing demand for eco-friendly and sustainable products, presenting opportunities for sellers who prioritize these values. Emerging niches like handmade beauty products, emphasizing natural and artisanal qualities, also offer potential for growth.
How Etsy Sellers Can Leverage These Statistics
In 2025, the categories showing the strongest growth potential are those that combine traditional craftsmanship with modern trends and sustainable practices. Success on Etsy increasingly depends on understanding these category dynamics and positioning your products accordingly.
For Current Sellers
- Focus on top-performing categories if you're not already there
- Emphasize personalization - 33% of sales are customized items
- Align with seasonal trends - plan inventory around peak gifting periods
- Monitor emerging trends - position yourself ahead of competitors
For New Sellers
- Research sub-niches within top categories to reduce competition
- Consider seasonal demand patterns when planning launches
- Leverage gifting occasions by optimizing for holiday keywords
- Focus on unique value propositions in saturated markets
Etsy Accounting Considerations for High-Volume Sellers
As your Etsy shop grows and spans multiple categories, proper financial management becomes crucial. Many successful sellers use specialized Etsy accounting solutions to track sales across different product lines and categories.
For sellers managing complex inventories or multiple revenue streams, Etsy accounting software can automate financial tracking, making it easier to analyze which categories drive the most profit and plan future inventory investments.
Looking Ahead: 2025 Projections
Based on current trends and market analysis, here are the key projections for Etsy categories in 2025:
Strong Growth Expected:
- Home & Living: Driven by Châteaucore and eco-friendly trends
- Jewelry & Accessories: Galactic metallic and personalization trends
Moderate Growth Expected:
- Apparel: Vintage resurgence and Y2K revival
- Toys & Games: Nostalgic appeal and handmade quality
- Digital Products: Increased demand for instant downloads
Stable Performance Expected:
- Craft Supplies: Sustained DIY culture
- Paper & Party Supplies: Consistent event demand
For sellers looking to succeed on Etsy, these statistics highlight the importance of:
- Focusing on proven categories while finding unique angles
- Embracing personalization and customization
- Staying ahead of seasonal trends
- Maintaining the handmade quality that Etsy buyers value
The key to Etsy success still lies in offering truly unique, high-quality products that resonate with your target audience. Use these numbers as a guide, but let your creativity and market understanding drive your specific strategy.
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