Toy Market Size 2023-2027

The toy market is estimated to grow by USD 26.16 billion at a CAGR of 4.42% between 2022 and 2027. The market experiences growth due to rising personal disposable income and an expanding middle-class population. Online sales surge alongside the increasing popularity of toy gifting culture. However, challenges arise from the growing preference for digital and e-games, posing competition. Additionally, seasonal demand fluctuations and the short lifespan of merchandise and collectibles present hurdles. Furthermore, the market contends with the proliferation of counterfeit products, impacting consumer trust. Despite obstacles, innovative strategies and a focus on quality and authenticity can mitigate challenges, ensuring sustained growth. Adapting to changing consumer preferences and leveraging online platforms for distribution can enhance market resilience. Amidst evolving dynamics, the toy industry remains vibrant, driven by a blend of traditional toy culture and the digital gaming revolution. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 - 2021.

What will the Size of the Market be During the Forecast Period?

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Market Segmentation

By Product

The market share growth by the outdoor toys and dolls segment will be significant during the forecast period. These held a major share of the market owing to an increasing concern about kids' health and fitness among parents. Such factors drive the demand for outdoor toys, such as play tents and airplanes, which help children engage in outdoor activities. 

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The outdoor toys and dolls segment was valued at USD 32.12 billion in 2017 and continued to grow until 2021. Increasing benefits of outdoor play, such as muscle health, lower body mass index (BMI), and better communication, will boost the growth of the segment during the forecast period. The sellers of the global market present dolls with different characters that correspond to the stories of popular cartoons. Additionally, dolls are available in a variety of sizes, styles, and subcategories, including vintage, modern, and antique dolls. In addition, electronic dolls that make movements are becoming popular among children aged 1-5 years. Thus, the introduction of technologically advanced dolls in the market and increasing demand for character dolls will increase the demand for dolls during the forecast period. Thus, the aforementioned factors will boost the growth of the segment in the global market during the forecast period.

By Region

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North America is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is the largest geographic segment of the global market and will remain unchanged during the forecast period. The US is the largest market in North America, followed by Canada. In recent years, the Canadian market has seen an increase in demand for cheaper, higher-quality toys. Sales and growth in the mid-priced market were modest, resulting in lower sales. In Canada, there is a high demand for licensed toys that imitate popular animated series or movie themes, increasing the popularity of the market in the country.

The demand in the US is changing because there is a growing preference for science, technology, engineering, and math (STEM) toys that help children develop critical thinking and decision-making skills. Most parents feel that traditional curricula cannot provide children with the right content and pedagogy to develop their children's innovation and problem-solving skills. During the forecast period, the demand for traditional ones is expected to grow due to many licensing opportunities. The US consumers are also moving towards science and educational toys because playing with these improves children's knowledge. Accordingly, the growing demand for premium toys, the increasing spending power of consumers, and the presence of several prominent vendors are expected to drive regional market growth during the forecast period.

Market Dynamics

The market is a dynamic industry that plays a crucial role in learning and developing cognitive skills in infants and young children. The modern toy industry focuses on using lightweight materials and innovative designs to enhance playing tactics and support a child's learning. With the rise of gender-neutral parenting, toy designers and sellers are introducing a wide range that caters to both boys and girls. Online sales platforms have also contributed to the growth of the market, offering a variety that supports different aspects of a child's learning trajectory, from simple toys to more complex ones that promote problem-solving skills. The market includes various categories such as Educational, Preschool, Action, Soft toys, Dolls, Vehicles, Scooters, and Skateboards.

Key Market Driver

The increasing personal disposable income and rising middle-class population are notably driving the market growth. In recent years, there have been significant changes in lifestyles in both developed countries and emerging economies like Russia, China, and India. One key driver of this change is rapid urbanization, which has led to increased purchasing power and improved living standards. Rising disposable incomes, particularly in developing countries, have contributed to these changes. This trend has also impacted the modern toy industry, with a focus that promote learning and cognitive skills in infants and young children. Manufacturers are increasingly using lightweight materials to create toys that are both safe and engaging for children.

The combination of rising disposable incomes and rapid urbanization has resulted in a growing demand for toys and games in organized multi-brand retail stores, leading to increased revenue for marketers. The increase in the number of working mothers, who often have higher disposable incomes, has also contributed to this trend by increasing childcare costs and, consequently, the demand for games. This has led to a rise in sales for toy sellers, especially on online sales platforms, with a focus on toys that aid in the learning trajectory of children, including simple toys that are both educational and entertaining. Additionally, the expanding middle-class population in regions like APAC is contributing to this growth. Overall, the growth of the middle-class population and increasing disposable incomes, especially in emerging economies, are expected to drive the global gaming market's growth during the forecast period.

Significant Market Trend

The market sees a significant trend in the growing popularity, with both established and new sellers intensifying competition by offering a diverse range. The rising demand contributes to increased revenues and profits for retailers, expanding their customer base. These serve as differentiators for sellers, making them stand out in the market.

Moreover, companies acting as specialty product distributors provide exclusive distribution of their specialty lines, resulting in substantial profits. For instance, Mattel, a major toy industry supplier, created the popular animated film Bob the Builder and distributed rights to various toy manufacturers, showcasing the increasing demand and fostering global market growth during the forecast period.

Major Market Challenge

The surge in popularity of digital and e-games poses a significant challenge to market growth, as these modern alternatives increasingly replace traditional like construction toys. The growing appeal of digital and electronic games, fueled by a rise in smartphone usage, inhibits consumer loyalty to traditional toys.

Moreover, motion sensor games on digital platforms further hinder sales. With smartphone penetration reaching nearly 60% globally in 2020, the escalating prominence of digital games poses a substantial threat to the global gaming market's growth throughout the forecast period.

Key Companies and Market Share Market Analysis

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

JAKKS Pacific  - The company offers toys consumer products and Halloween with a high focus on toys consumer products.? 

The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Aoshima Bunka Kyozai Co. Ltd.
• Bandai Namco Holdings Inc.
• BASIC FUN Inc.
• Clementoni Spa
• Dream International Ltd.
• geobra Brandstatter Stiftung and Co. KG
• Hasbro Inc.
• Kids2 Inc.
• LEGO System AS
• Mattel Inc.
• Mindware Inc.
• Moose Enterprise Pty. Ltd.
• Pegasus Toykraft Pvt. Ltd.
• Ravensburger AG
• Spin Master Corp.
• The Walt Disney Co.
• TOMY Co. Ltd.
• Tru Kids Brand
• VTech Holdings Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

You may also interested in below market reports:

• Toys and Games Market: Toys and Games Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Germany, China, UK, India - Size and Forecast 
• Educational Toys Market: Educational Toys Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, Japan, China, Germany, UK - Size and Forecast
• Europe - Toys Market: Europe - Toys Market by Product and Distribution Channel - Forecast and Analysis

Market Analyst Overview

The market offers a wide array of products, from traditional playthings like puzzles and cards to more modern hi-tech electronic toys. These cater to various aspects of child development, including intelligence quotient (IQ), creativity, and social interaction. With the rise in income levels and awareness about child development, there is a growing demand that enhance cognitive capabilities. The market is also influenced by social media, which influences trends and purchasing decisions. E-commerce has revolutionized toy shopping, offering organized distribution channels, doorstep delivery, and exciting offers with secured payment methods. The market is diverse, offering a range of products like action figurines, board games, and rattles that cater to various age groups and interests. Toys such as construction and building toys, kitchen sets, and mechanical cars enhance skills like concentration, logical reasoning, and spatial reasoning. With a focus on shapes and colors, these toys stimulate creativity and cognitive development. Modern trends include sensory toys for children with special needs and those that incorporate advanced technology and machinery. The market is heavily influenced by the e-commerce industry, sales of smartphones, and social media, driving both innovation and sales.

The market encompasses a wide range of products, from conventional to modern and innovative toys designed to enhance various skills and abilities. They play a crucial role in developing children's logical reasoning and spatial reasoning skills, along with promoting their thought process and decision-making ability. The market is influenced by factors such as inflating income levels, which increase the demand for higher-end toys, and rising awareness about the importance of play in child development. The market landscape depends on Mobiles and computers, Building blocks, Electronic devices, Hand-eye coordination, Problem-solving abilities, Brain training, Promotional merchandise, Festival occasions, Rainbow High Fashion Dolls, Scented products, and Eco-friendly materials. Moreover, the influence of social media shapes consumer preferences and purchasing behaviors. Industry analysis includes SWOT analysis and value chain analysis to understand the market's macro and micro details, reflecting on its performance and future growth.

The market offers a diverse range of products, including modern toys that stimulate children's logical reasoning skills. These are popular in homes and play schools, contributing to the market's growth. Factors such as sales of laptops and personal computers (PCs) influence toy preferences, as they cater to sub-segments like educational toys. The market also considers the needs of kids with special needs, offering inclusive toy options. Macro overviews and industry performance assessments provide insights into market trends and growth opportunities. The market is diverse and dynamic, catering to children's learning and development through various channels such as schools, preschools, and daycare centers. It includes nostalgic old-school toys and merchandise collectibles alongside electronic video games and mobile devices that dominate the digital space. Preschool toys and action figures are popular in store-based and non-store-based channels, including online platforms. These toys promote cognitive and motor skills development, integrating letters, numbers, and themes from movies, TV shows, and video games. The market embraces STEM-focused toys that encourage problem-solving and physical activity, including outdoor and sports toys. Specialty stores and department stores offer a range of brain-training and eco-friendly toys made from bamboo, clay, cork, and recycled plastic materials, appealing to environmentally conscious consumers.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027.
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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