Indonesia Toys Market Research Report and Industry Forecast

Indonesia Toys Market Size and Share:

The Indonesia toys market size reached USD 1.37 Billion in 2024. The market is projected to reach USD 2.98 Billion by 2033, exhibiting a growth rate (CAGR) of 8.11% during 2025-2033. The market growth is attributed to rising birth rates, urbanization, and increasing demand for educational and interactive toys. Parents are becoming more conscious of toys that support skill development, while local and international brands are competing with innovative offerings. E-commerce is also playing a key role in improving product accessibility and convenience.

Market Insights:    

• Based on region, the market is divided into Java, Sumatra, Kalimantan, Sulawesi, and others.
• On the basis of product type, the market is categorized as action figures, building sets, dolls, games and puzzles, sports and outdoor toys, plush, and others.
• Based on age group, the market is segmented into up to 5 years, 5 to 10 years, and above 10 years.
• On the basis of sales channel, the market is categorized as supermarkets and hypermarkets, specialty stores, department stores, online stores, and others.

Market Size and Forecast:

• 2024 Market Size: USD 1.37 Billion    
• 2033 Projected Market Size: USD 2.98 Billion    
• CAGR (2025-2033): 8.11%

Indonesia Toys Market Trends:

Rising Popularity of Licensed Characters

Licensed character toys are becoming increasingly dominant in Indonesia’s toy market, driven by strong influence from popular cartoons, animated films, and video games. Children are drawn to toys featuring characters they recognize and admire from television and digital platforms, making these products top choices during birthdays, holidays, and school breaks. International franchises often lead the trend, but locally popular characters are also gaining traction. Retailers and online platforms frequently promote these toys with themed collections, exclusive releases, and bundle deals to attract buyers. The appeal of branded characters adds emotional value to toys, influencing both children’s preferences and parents’ purchase decisions. This trend is significantly augmenting the Indonesia toys market share. As media consumption continues to rise, the demand for character-driven merchandise is expected to remain strong. For instance, in April 2025, McDonald's Indonesia launched a limited-time A Minecraft Movie Meal, featuring collectible toys inspired by the upcoming film. The meal includes exclusive figures and in-game skins. A themed Happy Meal for kids adds to the experience with ten collectible toys and digital surprises via QR codes. This trend is a significant factor contributing to Indonesia toys market growth, especially in urban and semi-urban consumer segments.

Expansion of E-commerce

E-commerce has become a major driver of toy sales in Indonesia, reshaping how consumers discover and purchase products. According to data published by the International Trade Administration (ITA), Indonesia's e-commerce market is projected to grow from USD 52.93 Billion in 2023 to USD 86.81 Billion by 2028, with a compound annual growth rate (CAGR) of 10.4%. Representing 52% of ASEAN's e-commerce revenue, Indonesia's growth will be driven by expansion into tier two and tier three cities post-restrictions. Online platforms offer greater convenience, a broader selection, and competitive pricing, appealing to busy parents and tech-savvy shoppers. Major e-commerce sites and marketplaces regularly host toy promotions, flash sales, and exclusive launches, drawing high traffic during holidays and special events. Digital access also allows consumers in remote or smaller cities to purchase toys that were previously limited to major urban centers. Being able to compare prices, read customer reviews, and obtain comprehensive product details fosters trust and leads to increased conversion rates. Many brands now maintain official online stores or partner with established platforms to increase reach. This growth in online shopping is expected to continue fueling Indonesia toys market expansion, supported by improved logistics, digital payments, and a growing base of mobile internet users.

Emphasis on Sustainability and Eco-Friendly Production

The growing environmental awareness, especially among urban families and educated middle-income segments is positively impacting the market, according to toys market analysis in Indonesia. Many parents are actively looking for alternatives to conventional plastic toys, driven by concerns about waste, chemical exposure, and environmental damage. Toys made from wood, organic cotton, biodegradable materials, or recycled plastic are gaining traction in both modern retail stores and boutique toy outlets. This demand shift has encouraged domestic manufacturers to explore greener supply chains, reduce packaging volume, and comply with safer material standards. Moreover, local brands have begun using water-based paints, non-toxic adhesives, and renewable resources in their product lines. Also, the focus on sustainability is reflected in marketing strategies, with brands increasingly highlighting environmental benefits directly on product labels. Eco-friendly toys often appeal not only to parents but to educational institutions and preschools, where sustainability has become part of the curriculum. This trend is expected to widen as green consumption becomes more mainstream across household categories.

Increased Focus on Physical Activity and Outdoor Play

Concerns over screen addiction and sedentary routines have led to a revival of interest in toys that promote movement and physical interaction. Parents are placing greater emphasis on products that get children outside or engaged in active play, especially following growing awareness of developmental health issues such as poor posture, obesity, and lack of coordination. Toy categories showing strong growth include scooters, pedal cars, skipping ropes, portable basketball hoops, inflatable pools, and sports-themed role-play kits. Apart from this, in middle-income neighborhoods, it is increasingly common for parents to organize group outdoor play with structured equipment. Toy purchases are no longer confined to indoor games but now include gear designed for gardens, driveways, or community parks. This trend has also been reinforced by pediatricians and schools, which actively recommend movement-based play for physical and mental well-being. Furthermore, as per the Indonesia toys market forecast, seasonal demand tends to spike during school holidays and long weekends, as families often plan outings and outdoor activities during these periods.

Growth Drivers of the Indonesia Toys Market:

The market is growing steadily due to rising household incomes and a growing middle class, especially in urban areas. Moreover, parents are increasingly willing to spend on products that promote learning and development, which has fueled demand for educational and interactive toys. Additionally, the country's young population, combined with a steady birth rate, increases the demand high across all age segments. Besides this, digital adoption also plays a key role, as several families are shopping online, and local e-commerce platforms have made toys more accessible in smaller cities. Also, local toy manufacturers are expanding their product ranges, often blending traditional play with modern features like sound, motion, or app connectivity. Furthermore, festivals and school holidays continue to drive seasonal spikes in demand, encouraging retailers to stock diverse inventories throughout the year.

Opportunities in the Indonesia Toys Market:

According to the Indonesia toys market analysis, the market presents strong opportunities for brands that create toys with educational value or local cultural themes, as Indonesian parents are increasingly drawn to products that blend entertainment with learning. Urbanization and better internet access offer scope for digital and app-based toys that support STEM skills. Moreover, market demand is increasing due to the need for customizable or collectible toys, especially character toys from popular media. Smaller towns present untapped potential, particularly for low- to mid-priced toys that appeal to a broader demographic. The rise of modern retail chains and dedicated toy sections in supermarkets is improving visibility and accessibility. Local sourcing and manufacturing also offer advantages, as they reduce costs and allow for quicker adaptation to consumer preferences. There is significant growth potential in eco-conscious toys, especially those crafted from wood or recycled materials, as environmental awareness among parents continues to rise.

Challenges in the Indonesia Toys Market:

As per the Indonesia toys market research report, the market encounters several challenges, beginning with high price sensitivity, particularly in non-urban regions. A substantial portion of consumers prefer low-cost options, limiting the scalability of premium and imported brands. The presence of unregulated and informal sellers further complicates the market landscape, as the availability of substandard and low-quality products undermines consumer trust. Distribution and logistics also pose difficulties, with underdeveloped infrastructure hindering timely delivery in remote areas. Retail space constraints, especially for dedicated toy outlets, have led many brands to depend on online sales channels, which are still maturing in terms of reliability and reach. Adhering to safety regulations presents another obstacle, particularly for small manufacturers, due to the associated compliance costs and procedural complexities. Brand loyalty remains limited, as purchasing decisions are frequently influenced by price and promotional offers rather than quality or developmental benefits. Additionally, the seasonal nature of demand leads to stock management challenges across the supply chain.

Indonesia Toys Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on product type, age group, and sales channel.

Product Type Insights:

• Action Figures
• Building Sets
• Dolls
• Games and Puzzles
• Sports and Outdoor Toys
• Plush
• Others

The report has provided a detailed breakup and analysis of the market based on the product type. This includes action figures, building sets, dolls, games and puzzles, sports and outdoor toys, plush, and others.

Age Group Insights:

• Up to 5 Years
• 5 to 10 Years
• Above 10 Years

A detailed breakup and analysis of the market based on the age group have also been provided in the report. This includes up to 5 years, 5 to 10 years, and above 10 years.

Sales Channel Insights:

• Supermarkets and Hypermarkets
• Specialty Stores
• Department Stores
• Online Stores
• Others

A detailed breakup and analysis of the market based on the sales channel have also been provided in the report. This includes supermarkets and hypermarkets, specialty stores, department stores, online stores, and others.

Regional Insights:

• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Java, Sumatra, Kalimantan, Sulawesi, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Indonesia Toys Market News:

• In June 2025,POP MART officially opened its first store in Bali at Beachwalk Shopping Center in Kuta, marking the island’s debut location and its first LABUBU-themed outlet. The 190 m² retail space, styled with tropical and Balinese architectural elements, features globally popular IPs such as LABUBU and CRYBABY, alongside exclusive Bali-inspired editions and themed photo zones.
• In March 2025, MGA Entertainment, a major US toymaker, announced its plans to shift 40% of its manufacturing from China to India, Vietnam, and Indonesia in six months.
• In December 2024, PT Kids Play Indonesia, a subsidiary of global toy manufacturer Cititoy, held a groundbreaking ceremony for its new 10-hectare factory in Subang Smartpolitan, marking a major step in its regional expansion. With a planned investment of USD 60 Million, the company aims to complete Phase 1 and begin production by September 2025 to meet rising global demand for toys.
• In December 2024, TOPTOY announced its plans to open its newest store in Indonesia, expanding its reach in Asia. The store will feature exclusive merchandise from popular IPs like Sanrio and Disney. Following a successful pop-up event, this full-scale store aims to delight toy collectors in Jakarta.

Indonesia Toys Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Indonesia toys market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Indonesia toys market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Indonesia toys industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.