Animation Toys Market Size, Share & Growth | Forecast [2031]

Report Description

Animation Toys Market Outlook

The global animation toys market size was valued at USD 33,146.9 million in 2022 and is projected to reach USD 56,171.5 million by 2031, expanding at a CAGR of 6.5% during the forecast period 2023-2031. Animation toys are objects that are similar to characters and objects that they represent from animated movies and TV shows.

These toys are either basic figurines with movable legs and arms or complex electronic devices that accurately reproduce entire scenes from well-known animated films. A variety of materials such as metal, fabric, and plastic are used to create animation toys. Action figures that are based on popular film and television characters are among the most popular animated toys across the globe. These toys are highly valued and frequently come with finely detailed figures.

Get Free Sample Report

Macro-Economic Factors

GDP

Gross domestic product (GDP) is a widely used indicator that measures the total value of all goods and services products within a country over a specific period, typically a year or a quarter. Revenue generated from the animation toys market contributes to the GDP of a country leading to development of a country and the industry itself.

The global GDP is USD 101.6 Trillion in 2022. The toys industry was affected during the pandemic, due to social distancing that affected the production process and demand for anime figures. Although compared to the market in 2019, it recovered significantly after 2021. Additionally, the market in North America is expected to expand at a significant rate with annual growth rate of 6.6% during the forecast period.

Demand & Supply

Demand and supply of animation toys registered a decline during 2019 to 2020, due to an excess of inventory that resulted in the collapse of the toys and games industry. Supply of toys was low in 2019 and 2020, owing to the stringent rules implemented by governments in terms of trade barriers and the shutdown of manufacturing units that led to the sudden fall in the supply chain.

This further resulted difficulty in procurement of raw materials affecting manufacturing process of the animation toys. However, animation toys already changed their production lines to accommodate demand, and thus recovered the demand quickly after the lockdown was lifted.

Inflation

Inflation is an economic term that refers to a general increase in the prices of goods and services over time. When inflation occurs, the purchasing power of a currency decreases, which means additional units of currency are required to purchase the same amount of goods and services as before.

Inflation is often measured by the Consumer Price Index (CPI), which tracks the average change in prices of a basket of goods and services commonly purchased by households. Inflation affects the price of animation toys as well as the price of any other goods or services. Increasing prices of raw materials, labor, or transportation costs used in the production and distribution increases the price of the final product.

Import & Export

Import & export refers to the trade of goods and services between countries. An import refers to a product or service that is brought into a country from another country, while an export refers to a product or service that is sold to a foreign country. The import & export of goods and services between countries is an important part of international trade that has significant impact on the economies of both importing and exporting countries.

Government often imposes tariffs, quotas, and other trade barriers on imported goods to protect domestic industries, while also encouraging exports to promote economic growth and global competitiveness.

For instance, trade tensions between the US and China also impacted the import & export of animation toys. In 2019, the US imposed tariffs on several goods from China, which impacted the relationship between the two countries, impacting the import & export of animation toys.

Animation Toys Market Dynamics

Market Driver- Rising Disposable Income

Rising disposable income is one of the factors boosting the market growth. High disposable income spurs consumers to spend additional amount on high-quality toys and other products, including animation toys, for entertainment and leisure. People are willing to spend money for buying innovative and high-quality toys, which reflect their values and interests. This is expected to drive the animation toy market during the forecast period.

In China, the purchasing power of the citizens has increased recently along with the economic growth. This has fueled the demand for high-quality animated toys in the Asia Pacific, with the availability of various different types of products in the region, majorly the popular characters from China-based animated television shows and films. Therefore, the animation toy market in China holds a major global market share.

For instance, based on the National Bureau of Statistics (NBS), per capita disposable income of Chia in 2022 was around USD 5,487, an increase of 5% nominally over the previous year. Animation toys provide a comprehensive and engaging experience that is customized based on the specific interests of consumers, which makes them a desirable option for customers looking for enhanced personalized leisure experience.

High disposable income results in changing consumer behavior, with several customers now looking for distinctive and customized experiences. Hence, various companies are rapidly investing in R&D for creating interactive and innovative toys for customers. For instance, the demand for high-quality toys that shows values and culture is growing in India, due to the increasing income of middle-class people.

This fuels the development of the animation toy industry in India. Various companies including Green Gold Animation are manufacturing toys based on popular characters, such as Mighty Raju and Chhota Bheem, which are popular among children in the country.

Similarly, the demand for high-quality animated toys has increased both in the US and Europe, as a result of rising disposable income. There is an extensive range of animation toys available to consumers at various price points, ranging from collectible figurines to interactive toys that feature virtual reality and other innovative technologies.

Market Driver- Increasing Popularity of Licensed Products

The demand for the expansion of the animation toy market has significantly increased, due to the rising popularity of licensed products across the globe. Licensed products are animated toys that are based on well-known characters from TV shows and movies, and they are manufactured under a license from firms that hold intellectual property rights over those shows and movies.

The rising focus on world-building and storytelling in films, television series, and video games is a factor contributing to the rise in the popularity of licensed products and propelling the market. Fans of these programs tend to collect memorabilia that accurately captures the complexity and depth of the many complicated storylines and characters that have been built into movies or TV shows.

For instance, the Marvel Cinematic Universe has grown to be one of the most popular franchises in history, and fans are interested to collect action figures and other memorabilia with images of Captain America, Black Widow, Iron Man, and others. The ability of licensed products to focus on current trends and cultural phenomena is another factor responsible for their growing demand.

For instance, the popularity of superhero movies and TV series recently has increased demand for animation toys and other items featuring well-known characters, including Spiderman, Wonder Woman, and Batman. For example, Funko has manufactured licensed pop culture collectibles, including bobbleheads, plush toys, and vinyl figures. The company has several licenses including popular brands such as DC Comics, Star Wars, and Marvel.

Market Restraint- High Production Cost

The high cost of production is hampering the animation toy market growth during the forecast period. The manufacturing cost present in producing and designing animation toys is high, which has an impact on the overall cost of final products. Labor costs, distribution expenses, raw material costs, and use of technology are some of the factors responsible for increasing the production costs of animation toys.

The demand for technologically advanced and customized animation toys is increasing, which increases the demand and use of 3D printing technology for producing accurate and high-quality figures of popular characters from movies and TV series. However, the total cost of 3D printing technology is high, which increases the pricing of animation toys and hinders market growth.  Skilled labors are required for manufacturing animation toys.

The process of painting, designing, and sculpting a toy require specialized skills, which is time-consuming. All these factors play a role in the high labor costs related to the manufacturing of animation toys. The high cost of raw materials is resulting in increasing the overall cost of production of animation toys. For instance, expensive figurines are frequently made of premium plastic or resin. Additionally, if the toy needs multiple parts or components, the price of assembling these pieces also raises production costs.

Market Opportunity- Technological Advancements

Customers are heavily spending on products with advanced technology including virtual reality (VR) and augmented reality (AR). The technological development is anticipated to drive the market during the forecast period. Technological advancements have made it possible to create intricate and realistic animations as well as new kinds of toys that combine technology to improve the play experience.

Complex features of these toys are created through the use of advanced technology that is difficult or impossible to do using conventional manufacturing techniques. The use of 3D printing has revolutionized the manufacturing process of toys by enabling the production of customized and complex designs. For instance, the Star Wars series is made with 3D printing to produce exquisite memorabilia and figures that are in high demand among fans.

Augmented reality technology has improved the play experience with animated toys by integrating digital components into the real environment. Many AR-enabled toys use tablet or smartphone cameras to display digital graphics in the real world, providing an immersive experience.

With the help of the IoT, animated toys are able to communicate with other gadgets that open up novel opportunities for play and enjoyment. For instance, the BB-8 toy from the Star Wars series is controlled by using a smartphone app, that allows customers to communicate with the toy in novel and entertaining ways.

The design and experience of animation toys are changed, due to the use of virtual reality (VR) technology. VR provides an interactive and engaging play experience by developing completely immersive environments. Nowadays, many animated toys come with additional mobile applications that allow customers to customize the toy and keep track of their progress.

Scope of Animation Toys Market Report

The report on the Global Animation Toys Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Animation Toys Market Segmental Outlook

The Global Animation Toys Market is segmented on the basis of by Type, by Product Price, by Animation Titles, by Character Traits and by Sales Channels.

Type Segment Analysis

Get Free Sample Report

Product Type Segment Analysis

Based on product price, the animation toys market is segmented into low, medium, and high. The low segment is expected to hold a significant market share during the forecast period, due to the easy availability of low-cost toys in many supermarkets, toy stores, and retail outlets. These toys are affordable, which increases the demand for low-cost animation toys.

Animation Titles Segment Analysis

Based on animation titles, the animation toys market is bifurcated into pokemon, hello kitty, gundam, and others. The gundam segment is expected to hold a significant market share during the forecast period, owing to its high quality and ease of availability. A dedicated and strong fanbase for gundam is propelling the segment.

Character Traits Segment Analysis

Based on character traits, the animation toys market is segmented into cute, cool, angry, and others. The cute segment is expected to hold a significant market share during the forecast period, as cute animation toys are majorly preferred for gifting purposes. Growing demand for cute animation characters among people is driving the segment.

Sales channel Segment Analysis

Based on sales channel, the global animation toys market is categorized as online and offline. The online segment is expected to hold a significant market share during the forecast period, owing to the consumer preferences for online shopping on E-commerce platforms and company websites.

Moreover, online channels offer various advantages, such as the availability of a large number of products, an easy return policy, and various deals and discounts, which are projected to boost the online segment in the coming years.

Get Free Sample Report

Regional Outlook

Based on regions, the market is classified as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The market in the Asia Pacific is projected to expand at a significant CAGR during the forecast period. Increasing demand for animation toys in developing countries, including China, India, Japan, and others, is expected to drive the regional market in the coming years. Furthermore, the rising disposable income and presence of major market players are propelling the market growth.

Get Free Sample Report

Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Animation Toys Market
• Historical, Current, and Projected Market Size in terms of Value and Volume
• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
• Industry Drivers, Restraints, and Opportunities Covered in the Study
• Recent Industry Trends and Developments
• Competitive Landscape & Strategies of Key Players
• Neutral Perspective on Global Animation Toys Market