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Growth of China Toys Market Flourishing Due to Rising Parental Concerns

September 24, 2018

According to the latest report by IMARC Group, titled “China Toys Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023”, the China toys market reached a value of US$ 12 Billion in 2017. The toys market in China is presently the second largest across the globe and its development has offered huge remunerative opportunities to domestic as well as international manufacturers. Designed exclusively for young children, toys refer to items which help in playing and learning new things. They are primarily made of materials like cardboard, wood, cloth, plastic and clay. Toys help in the overall development of children as they are a great way to de-stress, and improve social, physical and cognitive skills.

On account of rising disposable incomes and changing lifestyles, parents are, nowadays, paying more attention to their children’s early education so as to cultivate creativity amongst them. As these toys combine learning and fun, they are well received by parents and children alike, in turn, augmenting the demand for educational toys. Apart from this, investments from international toy brands, like Mattel, Hasbro and Lego, are contributing to the growth of the China toys market. These investments are a result of rising popularity and mounting domestic demand for toys in the region. Moreover, China has recently witnessed a boom in the e-commerce sector because of the evolution of smartphones and other digital media platforms. Online platforms have enabled International brands in directly selling their products to the Chinese population without being physically present in the country. Looking forward, the market value is projected to exceed US$ 22 Billion by 2023, expanding at a CAGR of 11% during 2018-2023.

Market Summary:

  • Based on type, the market has been segmented as plush toys, electronic/remote control toys, games and puzzles, construction and building toys, dolls, ride-ons, sports & outdoor play toys, infant/pre-school toys, activity toys and others. Currently, plush toys dominate the market, holding the largest share as these toys are one of the first toys which are owned by children.
  • On the basis of distribution channel, specialty toy chain stores represent the largest segment, followed by supermarkets and hypermarkets, departmental stores, online and others. Specialty toy chain stores offer a wide array of products as they have extensive branch networks. Additionally, they sell premium brand products which target the middle as well as high class population.
  • Based on end-user, the market is segregated as unisex, boys and girls. Currently, unisex toys exhibit a clear dominance in the market, accounting for the majority of the market share. These toys include plush toys, pre-school activity toys, games and puzzles, construction and outdoor games, and ride-ons.
  • Province-wise, the market has been segmented into Guangdong, Jiangsu, Shandong, Zhejiang, Henan and others. Amongst these, Guangdong is the leading market with the majority of the share in China. This is due to the fact that Guangdong province has the fastest growing economy.
  • The competitive landscape of the market has also been examined with some of the key players being Mattel, Inc.; Lego; Hasbro, Inc.; Vtech; Hape International (Ningbo) Ltd.; Silver Lit Toys Manufactory Limited; Sieper Gmbh; Micro Mobility Systems Ag; Ravensburger Ag; and Shantou City Big Tree Toys Co., Ltd.

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