GOOD has a great article on "How To Give Gifts With Less Waste." This is a topic that's near and dear to my heart, and to my extended family, so I read it with interest. It's a great primer, but I think many people want to push that envelope a little bit farther.
The most eco-friendly gift is no gift at all. Think about it; does anyone really NEED that gift? We like them, sure, but half the time it's going to go to waste somehow anyway. The book doesn't get read; the slippers don't fit.
For a long time, every year at Christmas, my extended family gave a few more gifts than the year before. We're talking three siblings (my father among them), their spouses, and two kids (myself and my cousin). We finally agreed as a group that the war of escalation had to come to a halt on the year when all of our pets gave gifts to all the other pets. I mean, honestly! That was definitely a wake-up call. I myself remember staying up late one night to address gift tags. "To Buffy from Ernie," "To Oscar From Ernie," and so on. It was pretty ridiculous.
We then entered a phase of pretending that we wouldn't exchange gifts. But then inevitably someone broke down at the last minute, bought a gift, and started the whole cascade. Thanks, Aunt L! Now I gotta go shopping!
About three years ago we finally settled on a compromise. The ceiling price for a gift is $20. Everyone gets either Christmas tree decorations, or food stuff. I don't do a tree, so I opt for the food. Last year I came home from the family get-together with a box of scone mix, a pound of Starbucks coffee, and a wee bottle of 100% genuine Vermont maple syrup. The next day's breakfast was OUTSTANDING. I was incredibly happy with this.
As for the secondary holidays and such, we have pretty much managed to cut gifts out of the mix entirely. Birthdays, graduations, "hostess gifts" for the random family dinner, for the most part these have been replaced either by cards or by a phone call and an explanation that "cards are kinda dumb anyway."
It has taken a long time to get to this point, and that's with the complete buy-in of everyone involved. I imagine it would be a lot more daunting for a family where not everyone's on board!
For those family members who insist on exchanging gifts, I definitely recommend food. You don't have to make it yourself, either. The gift of a pound of good coffee, a really fancy chocolate bar, a special small-batch artisan sauce - these things are always appreciated. They can be packaged with minimal waste, and they will actually go to use. (Unlike that porcelain elephant you got for Christmas last year.)
Another great option is Etsy, for all your handcrafted needs. I have my eye on the Handmade Soaps category, and I'm planning to buy some fantastic handmade soaps for everyone for Christmas. Those Etsy sellers have got it going ON!
Creative Commons-licensed image courtesy of Flickr user Michele Ferretti