Toys Market

The global toys market size was valued at USD 163.07 Bn in 2022 and is expected to surpass USD 302.32 Bn by 2031, expanding at a CAGR of 7.1% during, 2023–2031. The toys market growth is attributed to the rising spending of parents on toys considering the well-being of their infants and wide popularity of educational-based toys for children.

Toys are indispensable products for child development and a variety of toys are available in the global market for different age groups. As per the age level and gender of a child, parents choose different toys to fit their kids’ playing style and other purposes such as cognitive learning and physical activities. Some of the most popular toys include dolls, dollhouses, action figures, blocks, puzzles, and remote-controlled cars; which are primarily designed for overall child development both mentally and physically.

In general, toys can be categorized as gaming toys, fun toys, musical toys, educational toys, and others. These toys are usually made in such a manner that playing with these toys would ensure safety for kids, thereby, risk factors such as having sharp corners, tiny parts, and toxic or flammable materials in toys are completely minimized and avoided.

Globally, China is the leading toy exporter and represents around 70-80% of all toys, games, or sports items imported to the US annually. In 2020, the US imported a variety of dolls, toys, and sports requisites that were worth USD 36.37 billion.

The global COVID-19 pandemic had a positive impact on the market due to rising demand for toys and increasing toys sale from online retail platforms. As per global reports, several companies claimed to have a high sale rate of their products during the pandemic, which had resulted to exhibit stellar market growth in the first quarter of the financial year 2020.

A leading US-based toy manufacturing company, Mattel Inc. announced in October 2020 that it had its revenue spike of nearly 10% in the Q3 of 2020 as compared to the previous year. Shutting down of schools and restrictions on outdoor play due to movement restrictions imposed by governments had resulted in a sharp rise in sales of toys for children. However, the current growth rate of the market is likely to decline substantially once the pandemic gets over.

Toys Market Dynamics

Major Drivers

Several companies are partnering with marketing agencies to increase the social media influence of toy companies. This is done for developing kids-related content to build a brand image that is expected to drive the market. Marketing agencies not only manage pay-per-click (PCC) advertising but also assess the business’s current position in the marketplace, look at customer views, and talk about the products to create a customized campaign that generates more sales and leads.

Availability of festive-based toys for different festival occasions presents a key driver of the market. For instance, presenting a gift for kids during Christmas is a popular culture in Europe and North America. Wide availability of inexpensive and affordable toys for different ages of children especially infants is expected to boost the market during the forecast period. Rising popularity of puzzle and construction-based toys and the wide installation of such toys in nurseries and primary schools further fuel the market.

Existing Restraints

Wide children’s access to gaming and learning activities using smartphones and laptops posed a threat to market expansion. This acts as a major restraining factor that can hamper the toys market growth. Mobile games are full of fighting, killing, gunfire, absurd plot, and wild & weird characters, which has a negative impact on students’ moral and psychological health.

• According to National Public Radio, as of October 2019, over half of the children in the US own a smartphone by the age of 11, and 84% of teenagers have their own phones immersing themselves in a rich and complex world of experiences.

Emerging Opportunities

Rapid introduction of several innovative toys and advanced electronic toys for both indoor and outdoor play offers lucrative growth opportunities for the market.

Scope of Toys Market Report

The report on the global toys market growth includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Toys Market Segment Insights

Based on type, the toys market is divided into dolls, games/puzzles, building & construction sets, infant & preschool toys, sports & outdoor toys, action figures, and others. The sports & outdoor segment is expected to expand at a rapid pace during the forecast period, owing to rising child’s engagement in outdoor activity products such as pools, dollhouses, play tents, camping, and others. Increasing concerns about kids’ fitness and health, parents usually encourage their kids and spend their sizeable income on sports.

The games/puzzles segment is anticipated to hold a key share of the market in the coming years, due to the regular developments of video gaming items by companies all over the world. Puzzles help children to become more confident and it gives them a sense of achievement. Solving puzzles helps reinforce existing connections between brain cells and also improves the thought process.

On the basis of age group, the market is segregated into 0-3 years, 3-5 years, 5-12 years, 12-18 years, and 18+ years. The 5-12 years is projected to register a considerable CAGR during the forecast period, owing to the availability of a wide range of toys for the age group ranging from fun toys to educational toys. Puzzle toys and building toys are very popular for the age group and parents spend a chunk of their disposable income on these toys.

The 18+ years segment is to account for a major market share in the coming years, due to the increasing outdoor gaming, touring, and other fun activities as compared to other age groups. Children above 18 years of age prefer to play video gaming which is increasing the demand in the market.

• According to the Interactive Software Federation of Europe (ISFE), as of 2019 more than 51% of the European population aged 6-64 play video games, the average age of video game players is 31 years old, and 45% are females who play video games.

Based on distribution channel, the global toys market is segmented into online channels, specialty stores, hypermarket/supermarket, departmental stores, and others. The online segment is anticipated to hold a key share of the market in the coming years, owing to the massive growth of new online retailers, especially for kids, and the availability of products at affordable prices. Moreover, heavy discount prices for toys and door-step delivery services of e-commerce platforms are key factors driving the segment.

The hypermarket/supermarket segment is projected to register a healthy growth rate during the targeted period, owing to easy accessibility to stores and the offering of discounted-price products in the stores.

In terms of region, the global toys market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of North America was worth more than USD 45.3 billion in 2021 and is expected to constitute a key share of the market during the projected period, owing to the rising use of electronic gaming equipment and toys among the youth population, especially in the US.

As per data shown by the US apex body, the Toy Association in 2020, the sale of electronic gaming items among the youth in the US surpassed USD 475 million, a surge of over 1.9% as compared to the previous financial year. Furthermore, the presence of key global players in the region is likely to boost the regional market.

The market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period, owing to the presence of a large kids population and high spending by parents on buying toys in the region. According to the China Toy and & Juvenile Products Association (CTJPA) report 2022, total retail sales in China’s toy market topped RMB 85.46 billion, up to 9.6% year-on-year. Additionally, the increasing popularity of art & craft base products among kids in China is expected to drive the market in the region.

Segments

The global toys market has been segmented on the basis of

Type

• Dolls
• Games/Puzzles
• Building & Construction Sets
• Infant & Preschool Toys
• Sports & Outdoor Toys
• Action Figures
• Others

Age Group

• 0-3 Years
• 3-5 Years
• 5-12 Years
• 12-18 Years
• 18+ Years 

Distribution Channel

• Online Channels
• Specialty Stores
• Hypermarket/Supermarket
• Departmental Stores
• Others

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• The LEGO Group
• Bandai Namco Entertainment Inc.
• Hasbro
• Playmobil
• Nintendo
• Mattel
• Atlas Games
• Ravensburger
• Spin Master
• MGA Entertainment, Inc.
• PAI
• TOMY Company, Ltd.
• VTech Holdings Limited
• Thames & Kosmos, LLC.
• Basic Fun! Inc.
• Artsana S.p.A.

Competitive Landscape

Key players competing in the toys market are The LEGO Group; Bandai Namco Entertainment Inc.; Hasbro; Playmobil; Nintendo; Mattel; Atlas Games; Ravensburger; Spin Master; MGA Entertainment, Inc.; PAI; TOMY Company, Ltd.; VTech Holdings Limited; Thames & Kosmos, LLC.; Basic Fun! Inc.; and Artsana S.p.A.

Some of these players have adopted a series of strategies such as innovative marketing style, new product launching, production capacity expansion, and entering into merger and acquisition deals to enhance their market share and expand their product portfolio.
For instance,

• Hasbro Inc. acquired a US-based media production company, Entertainment One in 2019 under a deal of USD 3.8 billion. With the acquisition, the toy manufacturing company had expanded its existing media platforms, and currently, it has more than 30 TV and film projects in the works.

• In August 2021, a leading Danish toy manufacturing company, Lego System A/S launched an innovative set of gifting items called 40487 Sailboat Adventure, which were exclusively available for its LEGO VIP members. The company had total revenue of over USD 7.2 billion in 2020.