According to this interesting WiseBread article, 50% of the paper consumed in the U.S. is used on wrapping and decorating consumer items. This figure seems a little high to me (I would think junk mail would be closer to that 50%), but okay, I get the point - we use a lot of fancy paper to wrap gifts, and if it's lucky it makes it into the recycle bin, but hardly ever gets reused.
Anyway, the article has some good tips that stemmed from a challenge she issued to a friend: wrap all presents throughout 2009 without using any new wrapping paper, plastic wrap, or gift bags. While some of the tips are pretty obvious (buying gift bags from the thrift store instead of new), some are fairly ingenious ("wrap" gifts in purses and stockings from the thrift store - if the recipient doesn't like them, they can pass it on to "wrap" another gift or donate it back). I gave reusable shopping totes as gifts this Xmas, and while I didn't use them as wrapping (I was mailing the gifts), those also make chic gift wrap that's a gift in itself.
If you're feeling ambitious, you can try the challenge in 2010!