The Global Toys Market was valued at USD 246.66 Billion in 2022 and is projected to reach USD 420.39 Billion by 2030, registering a CAGR of 6.73% for the forecast period 2023-2030.
Market Definition
An item designed for a child to play with is called a toy. Maybe a set of blocks, a stuffed animal, or a dollhouse was your favorite toy when you were a kid. Certain toys, like a baby's shape sorter or a small wooden train set, are made expressly for play. Because toys enhance children's ability to think and make decisions, they have a significant impact on mental development. They fall into a variety of categories, including collectibles, physical exercise, brain training, and promotional goods. Festivals serve as the primary channel through which associated companies sell children various playthings. As a result, the producers are releasing a variety of dolls to coincide with kid-friendly festivals, which increases their overall income. The market for toys is expanding as a result of children's growing desire for toys with educational and strategy components. To address the issue of an aging population, the Chinese government also eased its long-standing one-child policy last year, permitting all couples to have two children. Therefore, it is anticipated that there will be more children in the future years, which will favorably affect the growth of the toy market. The expansion of the kid's toys market is being driven by rising parental interest in STEM educational toys for kids as well as the growing application of artificial intelligence due to digital advancements in toys. The market is also being driven by toys that foster intellectual growth and abilities, such as difficult puzzles, entertaining board games, and intricate building block sets.
Market Size:
- 2022: USD 246.66 Billion
- 2030: USD 420.39 Billion
- CAGR (2023-2030): 6.73%
Toys Market Dynamics
Drivers Propelling the Demand for Toys include
Toy Companies Growing Social Media Influence to Drive Market Growth : Social media platforms are being used by toy companies to expand their reach, increase brand recognition, and encourage interaction with prospective consumers. A strong brand presence is established, excitement is created, and attention is drawn in with the aid of interactive campaigns, influencer partnerships, and engaging content. Toy companies can obtain valuable insights into consumer preferences, demographics, and online behavior through the use of social media analytics. They can increase the relevance and efficacy of their marketing campaigns by customizing their messaging and product recommendations to target audiences. To promote their products and expand their reach, toy companies are forming partnerships with prominent individuals, including social media personalities, parenting bloggers, and toy experts. These collaborations take advantage of these people's influence to spread the word about products, elicit favorable feedback, and position them as desirable and trendy. Toy companies can communicate directly with customers through social media platforms, addressing issues and responding to reviews. This improves customer satisfaction and loyalty by fostering a sense of community and connection. Real-time feedback on product launches, marketing campaigns, and consumer preferences can be obtained from social media conversations and user responses. Toy companies can promptly modify their strategies and make well-informed decisions to better satisfy the needs of their customers thanks to this feedback, overall, this factor driving the growth of the toy market.
For instance, in February 2022, according to IZEA, the top toy influencers are Kimmy runs a toy e-tail shop that features popular TV and movie character merchandise, Artist and toy designer Whitney gives her 45K Instagram followers a sneak peek into the future of toy design with drawings, photos and videos of toys, Twins Taytum and Oakley might love dance, gymnastics, and acting, but playing with toys also makes for good fun, Justin’s true love lies in toys and action figures, especially Star Wars, DC, and Marvel.
Growing Adoption of Smart Toys to Quicken Market Expansion : Tabletop games with internet connectivity and cutting-edge technology are growing in popularity among consumers who are more and more tech-aware. A smart toy has its intelligence and is powered by onboard electronics and embedded sensors. Because of their personalized instructional approach and ease of use, smart toys are preferred over other learning and education toys, despite their high cost. Throughout the forecast period, there will probably be a strong global demand for STEM (science, technology, engineering, and math) toys due to the growing popularity of smart learning and education toys. STEM toys are made to help kids become more creative and proficient problem solvers. STEM toys are likely to see a rise in popularity as more parents prioritize giving their kids smart toys to prepare them for the future. With technology that can react to their actions, give feedback, and adjust to their play patterns, smart toys give kids a more interactive and involved play experience. Toys become more entertaining and educational as a result, appealing to kids and parents alike. With the ability to adjust to each child's unique learning style and speed, smart toys can offer tailored challenges and feedback. This tailored method makes learning more efficient and guarantees that kids are participating at the right level.
For instance, in September 2022, Target Corporation announced an exclusive multiyear agreement with iconic toy brand FAO Schwarz to ignite even more magic and inspiration across Target's unrivaled toy assortment. Starting mid-October, FAO Schwarz toys will be available exclusively at Target stores, Target.com, and FAO Schwarz stores.
Recent Developments
In June 2023, The much-awaited movie BarbieTM served as the inspiration for a new collection that Mattel, Inc. (NASDAQ: MAT) unveiled today. BarbieTM, a film produced in collaboration with Warner Bros. Pictures, will make its national premiere in theaters on July 21. Now, fans can bring a portion of the film home with them and use toys from popular brands like Barbie, MEGATM, Hot Wheels, Fisher-Price, and UNO to act out even more stories.
In November 2022, In honor of the 75th anniversary of the Marine Toys for Tots Program and the Disney Ultimate Toy Drive, Disney announced that it will be donating a grant to the organization, which will enable it to provide an extra 75,000 toys to underprivileged kids this holiday season. At a Giving Tuesday volunteer event for Toys for Tots at Military Island in Times Square, where over fifty volunteers from the NYPD, USMC, and Disney's VoluntEARS program were present to assist with toy sorting, the donation was revealed on ABC's Good Morning America
Restraint
Growing Online Gaming Popularity Could Present Challenges for Industry Growth : Kids love playing online games because they can be played on smartphones and tablets without requiring a separate play set. This will probably make it more difficult for the companies that make video console kits to expand, which will impede the expansion of the industry. Furthermore, the prevalence of skin rashes linked to the extended use of dolls and construction play kits (which contain toxic chemicals like lead, phthalates, and flame retardants) is impeding consumer preferences. In addition, the industry competition and increased costs associated with product development and promotion are impeding the expansion of the major players' businesses. Concerns over the excessive screen time that comes with playing online games are growing among parents. This could result in gaming time limits, which would then indirectly impact playtime with real toys. Traditional toys promote imagination, creativity, and physical activity, among other special social and developmental advantages. These advantages might not be as great when playing video games online. Conventional toys are frequently more readily available and reasonably priced than gaming consoles and internet gaming subscriptions. This may make purchasing physical toys a more sensible choice for families on a tight budget. Kids now have access to a greater variety of entertainment options, such as social media sites, educational apps, and streaming services. The amount of time and care spent on traditional toys is further decreased by this diversification. Even with the rising popularity of online gaming, physical toys can still have market value as collectibles and appeal to niche markets.
For instance, in July 2022, according to the World Economic Forum, Gaming is booming and is expected to keep growing. This chart tells you all you need to know.
https://www.weforum.org/agenda/2022/07/gaming-pandemic-lockdowns-pwc-growth/
Challenges in the Toys Market
It has adverse consequences on kids' cognitive development.
As more connected devices become available, there are important considerations to take into account, even though Internet of Things (IoT)-)-enabled connected toys can help kids learn and stay healthy. For instance, a lot of games that are connected to smart toys have preset parameters, so flexibility is unnecessary. In addition, they might over-guide kids rather than letting them figure out problems on their own. Children who play with these toys may also develop a screen addiction. Children who use screens excessively suffer from both physical and mental health issues. Brain scans from one study showed that children who read books developed more in the areas related to language and cognition than children who spent a lot of time in front of screens. Reaching for a tablet or smartphone before a book could make things more difficult.
Opportunities
As Growing knowledge of technology and the Internet
Opportunities for connected toy vendors arise as a result of people's growing awareness of the internet and technology as well as their growing disposable income in both developed and developing economies. End users become more confident about toys based on smartphones and tablets when they can comprehend and interpret the newest technology. Parents in developed countries are more likely to spend money on tech-enabled smart toys due to rising disposable income and growing child preferences. This creates more opportunities for connected toy providers. As kids spend more time in front of screens, connected toys are making traditional objects more interactive by adding features found in digital displays. Machine learning is used by toys like Povi to track and gather information about the content modules kids consume, their level of engagement overall, and their listening skills. Toys with built-in sensors, processors, and internet connectivity are referred to as smart toys. These toys can give kids a more engaging and customized play experience. Smart toys can adjust to a child's preferred method of learning, offer progress reports, and establish connections with online games and activities. STEM toys are educational toys designed to teach kids math, science, technology, and engineering. As more parents and educators realize how important STEM education is for kids' future success, these toys are growing in popularity. Smart toys can enhance the fun and engagement of STEM education.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 246.66 Billion |
| Market Forecast in 2030 | USD 420.39 Billion |
| Compound Annual Growth Rate (CAGR) | 6.73 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Age Group, By Product, By Distribution Channel & By Region |
| By Age Group |
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| By Product |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Toys Market
The Toys market is segmented by age group, product, distribution channel, and region.
By Age Group
The Up To 0-8 Year segment held the largest market share in 2022 : By Application is sub-segmented into up to 0-8 years, and up to 9-15 years, Others. the up to 0–8-year segment accounted for the highest market share in the global Toys market for 2022. Since this age group is growing and developing rapidly, toys are essential for promoting learning and development in them. With toys, they can explore, be creative, and develop new skills while meeting their changing needs. Young children's parents understand the value of play in their child's development and are prepared to spend money on toys that encourage it. They are aware that playing with toys can encourage social interaction, creativity, and problem-solving abilities. For young children, the toy market offers a wide variety of options, ranging from basic building blocks and puzzles to more sophisticated electronic toys and educational games. There is something for every child's interest and developmental stage thanks to this variety.
On the other hand, the up to 9-15 years segment has a significant market share over the forecast period, this is a result of the fact that kids in this age range are growing more self-reliant and are becoming more engaged in extracurricular activities like sports, hobbies, and hanging out with friends. They might therefore play with toys for shorter periods than younger kids.
Nonetheless, older kids continue to have a sizable demand for toys. This is because toys can still be an excellent means of social interaction, education, and entertainment. Furthermore, a lot of older kids still enjoy gathering toys like dolls, trading cards, and action figures.
By Product
The Dolls Toys segment was the leading segment in 2022 : By product, which is divided into dolls, outdoor and sports toys, building and construction sets, infant and preschool toys, games & puzzles, and others. The dolls segment accounted for the largest share 28% in the global Toys market for 2022. For centuries, children have played with dolls, a universal object that cuts across social and cultural divides. Children can participate in role-playing, imaginative play, and social-emotional development as a result of their representation of a range of roles, characters, and personalities. Dolls are available in an extensive variety of shapes, sizes, and styles to suit a wide range of tastes and passions. The adaptability of dolls, which range from traditional porcelain dolls to soft-bodied rag dolls and action figures, guarantees their enduring appeal to kids of all ages and genders. For kids, dolls are confidants and companions who offer solace, safety, and emotional support. They can support a child's social and emotional growth by encouraging empathy, compassion, and nurturing tendencies.
On the other hand, the electronic toy segment is anticipated to expand over the forecast period, when it comes to play, electronic toys are more interactive and engaging than traditional toys. With the help of features like augmented reality, voice recognition, and touch sensors, kids can engage with the toys in a more engaging and immersive way. Children can learn a great deal from electronic toys that include instructional components. They can use interactive games, activities, and challenges to teach language skills, problem-solving techniques, STEM concepts, and cognitive development. From young children to teenagers, a broad spectrum of interests and age groups are catered to by electronic toys. They cover a wide range of categories, with something to suit every child's interest, such as virtual reality headsets, educational tablets, interactive dolls, and game consoles.
By Distribution Channel
The offline segment was the leading segment in 2022:
By distribution channel, which is divided into offline, and online. The offline segment accounted for the largest share 63% in the global Toys market in 2022. Outlet stores of offline retailers, like hypermarkets, brand stores, and specialty shops, typically stock a variety of soft, appealing products. This will probably draw customers who will buy goods from these stores, increasing segmental revenues. Offline segmental revenues are also expected to be driven by the expanding infrastructure associated with specialty toy stores and brand stores. This is a result of their ability to offer clients advice on products, first-hand product experience, and help to make purchases. This is a result of their larger product display area and ability to stock a greater range of brands and categories. Instead of waiting for toys to be shipped, customers can buy them right away and take them home.
The online segment is anticipated to register rapid growth in the forecast period, The online segment includes aggregators and manufacturer-hosted e-commerce websites. Manufacturers are hosting shopping websites to better meet customer demands and boost profit margins because they see the potential of this channel. In response to the growing demand for online shopping, corporations like Hasbro and Mattel expanded their direct-to-consumer operations. In a similar vein, two significant players—FAO Schwarz and London's Hamleys—are also looking for digital opportunities. By opening an eBay store, Hamley's of London expanded its online presence and made its entire selection of games and toys available to eBay's 28 million UK users.
Regional Analysis
Asia Pacific occupied the largest market share in 2022 : Asia Pacific has the largest revenue market share 40% in 2022, due to a population of over 4.6 billion, the Asia Pacific region is home to the world's largest population. There is a sizable and expanding market for toys because of this population. The Asia Pacific region's disposable incomes are increasing quickly, providing consumers with more purchasing power to buy toys for their kids. Asia Pacific urbanization is creating a middle class that is expanding and has a high demand for consumer goods, including toys. Because play and education are highly valued in many Asian cultures, there is a need for toys that encourage learning and growth. Due to the region's cheaper labor costs and accessibility to expanding markets, many of the biggest toy companies in the world have set up production facilities there. There are more avenues for toy sales thanks to the Asia Pacific region's fast-growing retail industry. This includes the expansion of e-commerce and online shopping. In the Asia Pacific area, collectible toys like trading cards, dolls, and action figures are very well-liked.
On the other hand, North America accounted for a significant share over the forecast period, Because North American households have comparatively high disposable incomes, they can afford to buy their kids more toys. Some of the biggest and most prosperous toy companies in the world, including Hasbro, Mattel, and Pacific, are based in North America. These businesses have a long history of creativity and are always creating engaging new toys for kids. North America has a very high adoption rate for toys. Leading the way in technological innovation, North American toy manufacturers create fresh, imaginative toys that kids love. North American toy companies market their products to kids and parents through a range of platforms, including social media, television commercials, and in-store displays. They are successful at doing this. Toy demand in North America is being driven by the convenience of online retailing for parents.
List of the prominent players in the Toys Market:
- Dream International Ltd.
- VTech Holdings Ltd.
- The LEGO Group
- Sanrio Company, Ltd.
- Playmates Toys Ltd.
- JAKKS Pacific, Inc.
- Mattel, Inc.
- Hasbro
- Konami Holdings Corp.
- Bandai Namco Holdings Inc.
Segmentation Analysis of the Toys Market
By Age Group
- Up To 0-8 Year
- Up To 9-15 Years
- Others
- Dolls
- Outdoor and Sports Toys
- Building and Construction Set
- Infant and Preschool Toys
- Games and Puzzles
- Electronic Toys
- Online
- Offline
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Toys Market:
The COVID-19 pandemic had an overall impact on every segment of the world market. In terms of effects, the pandemic's disruption and slowdown of the economy also affected the global market. First, the entire toy manufacturing industry was shut down by lockdown restrictions, which resulted in a scarcity of supply for the market. Furthermore, during the pandemic, people's willingness to pay for toys and games for their children decreased as their incomes decreased. As a result, during the early stages of the pandemic, the toy market experienced a decrease in revenue, supply, and demand. It did, however, bounce back in the next phase. Because their parents or guardians spend more time outside when physically shopping for these kinds of things than when they stay inside, children are more likely to contract the coronavirus. As a result, during the pandemic, parents are hesitant to purchase goods from physical stores. The product revenues from the physical stores have suffered as a result. Moreover, the pandemic's general disruption of the supply chain is probably going to make it difficult for retailers to replenish their stores with the newest merchandise.
