Toys Market shall reach a value of $292.2 Billion in 2034, growing with a CAGR of 8.2% during the forecast period of 2024 to 2034.
Toys are consumer products designed for play, primarily targeting children but appealing to all age groups. They encompass a diverse range of categories, including action figures, educational toys, puzzles, and electronic gadgets. The toy market is segmented by age, function, and educational value, driving growth through innovation and trends. Critical factors in the market include safety standards, technological advancements, and brand loyalty. Understanding consumer behaviour, seasonal demand, and cultural preferences is essential for market penetration. Toys significantly impact child development, making them key products in the educational and entertainment sectors, thus shaping market dynamics and competitive strategies.
Licensing and Brand Collaborations Boosting the Toys Market
Licensing agreements and brand collaborations are significant key factors to drive the toys market. Popular characters from movies, Tv shows, and video games boost toy sales, as children seek products featuring their favourite characters. Collaborations between toy manufacturers and entertainment companies leads to creation of themed toys that resonate with trends. These licensed toys often have a strong pull due to their association with well-known and beloved characters, which drives up market demand and sales. For instance, in April 2023, Hasbro, Inc. and Mattel, Inc. announced that they had entered into multi-year licensing agreements to create co-branded toys and games featuring some of their most popular brands. Hasbro developed Barbie-branded Monopoly games that launched in fall 2023. Mattel produced Transformers-branded UNO games, which were released later in the year, and Transformers-branded Hot Wheels vehicles, which debuted in early 2024.
E-commerce Growth and Online Retailing are Providing Traction for the Toys Market
E-commerce has been widely adopted as an industry influential change that has impacted toys market. Some of the factors that compel consumers to buy toys online include availability of various products, affordable prices and ease as compared to the physical stores. Ease of comparison and access to customers reviews also has an impact on purchasing decisions. Furthermore, newer forms of business models like direct-to-consumer (DTC) enable the toy manufacturing companies to directly connect with the consumer instead of relying on brick-and-mortar stores. It is well-aligned with the goals of e-commerce in extending market access, achieving high growth rates, and boosting sales.
Rising Digital and Screen-Based Entertainment is Hindering the Toys Market
The increasing presence of digital and screen media as entertainment can be deemed an issue that constantly threatens the toys market. Youth gets more involved in smartphone, tablet, and video games because these devices allow them to engage in different activities conveniently. This shift in preference is of course effectively cutting down on the number of physical toys a child plays with, hence affecting sales on such toys. This competition from the digital entertainment threatens the future survival of toys so more integrated technologies need to be added into production by toy makers. However, balancing traditional play with digital play remains quite challenging and a major area of concern due to shifts in consumers’ preferences.
Regional Analysis
North America, especially U.S., is a significant and established market for toys because of children and young people. High disposable income, people’s inclination towards giving gifts, and the tendency towards licensed and innovative toys are essential factors for market development. The region reveals a high demand for education and the toys with incorporation of technology in learning due to the emphasis on STEM. Moreover, increased sales come from licensing deals of major media related trademarks. Europe is also characterized by a more saturated toys market, however quite grossing countries of the region such as United Kingdom, Germany, and France are the leading consumers. The need to meet strict safety standards The global shift towards adopting environmentally sustainable toys. It has long roots of toy fair and exhibition which in turn helps in bringing new ideas and trade across the border. In general, educational and developmental toys can be considered as favoured items among European consumers. The Asia-Pacific is the most emerging region that continues to experience outstanding economic growth, growing per capita income in countries such as China, India, and Japan. Consumer base, perceived increases in income and awareness, shifting population trends through urbanization also have an impact since more consumers spend more on toys. Latin America appears to be an attracting market with Brazil and Mexico being identified as having promising prospects. There are some limitations like economic factors and lesser disposable income but the market gradually growing with young population and urbanization. Middle East and Africa can be considered as an emerging market with a great opportunity. Increasing income per capita and globalization put pressure on consumers to purchase branded and education toys. However, economic instability and possible lower consumer spending in some locations create issues. Market is not expanding fast but is gradually expanding with the emphasis on cheap and quality toys.
Key Development
- In June 2024, Mattel, Inc. has partnered up with Universal Pictures and Academy Award-winning producer/screenwriter Akiva Goldsman, under his Weed Road banner, to create Monster High, a live-action theatrical film. This film will feature an original story inspired by the popular fashion dolls reimagined as the offspring of legendary monsters.
- In April 2024, Nex and Hasbro are broadening their partnership to introduce a new range of interactive family games exclusively for the acclaimed Nex Playground console. This collaboration seeks to improve the gaming experience by offering creative and captivating content for families.
- In May 2024, The LEGO Group has launched the latest additions to its LEGO Islands collection, a series of kid and family-friendly LEGO-themed experiences designed by the brand, within Fortnite. These new additions offer engaging and creative play opportunities for children and families, seamlessly integrating the beloved LEGO brand with the popular Fortnite platform, enhancing the gaming experience for fans of both.
Segmentation
By Product Type
- Dolls
- Outdoor & Sports
- Indoor Sports
- Action Games
- Action Figurines
- Activity Kits
- Construction & Building Toys
- Ride on Cycles
- Ride on Scooters
- Plush Toys
- Infant and Preschool Toys
- Vehicles and Remote-Controlled Toys
- Musical Toys
- Art and Crafts
- STEM Toys
- Water Toys
- Collectibles Toys
By Age Group
- 0-3 Years
- 3-5 Years
- 5-12 Years
- 12-18 Years
- 18+ Years
By Sales Channels
- Online Manufacturers
- Online Marketplaces
- Brand stores
- Supermarket hypermarket
- Toy stores
- Others
By Region
- North America
- The U.S.
- Canada
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Asia Pacific
- China
- Japan
- India
- South Korea
- Southeast Asia
- Latin America
- Brazil
- Mexico
- Middle East & Africa
- GCC
- South Africa
Key Players
- The LEGO Group
- Mattel, Inc.
- Hasbro, Inc.
- Playmates Toys Limited
- Tomy Company, Ltd
- Kenner Products
- Spin Master Ltd
- Jazwares, LLC
- Vtech
- Funko Inc
