Toys and Games Market

Toys and Games Market Size:

The global toys and games market size reached US$ 113.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 170.9 Billion by 2032, exhibiting a growth rate (CAGR) of 4.54%during 2024-2032. The emergence of online multiplayer games, social gaming platforms, and interactive digital toys, the advent of classic games and toys, both in their original forms and in modern adaptations, and continuous advancements are some of the major factors propelling the growth of the market.

Toys and Games Market Analysis:

• Major Market Drivers: The rise of technology is leading to the growth of video games, with recurring revenue models and continuous engagement driving significant consumer spending which represent the major drivers of the market. The shift from physical to digital distribution of software and the expansion of mobile and online gaming have contributed to the market growth.
• Key Market Trends: The increasing influence of popular characters from cartoons, television shows, and movies on toy sales represents the key trends of the market. The market is also witnessing growth due to the increasing preference for sustainable and eco-friendly toys, as well as the resurgence of traditional toys and video games.
• Geographical Trends: Asia Pacific accounts for the largest region in the toys and games market growth. The rising disposable income, growing middle-class population, and rapid urbanization are driving the growth of the market across the region. The increasing awareness of educational and developmental benefits and the popularity of licensed products from media franchises are some of the factors influencing the market growth across the Asia Pacific region.
• Competitive Landscape: Some of the major market players in the toys and games industry include Hasbro, Mattel, Ravensburger, Tomy, The Lego Group, Funtastic, JAKKS Pacific, Lansay, LeapFrog Enterprises, MGA Entertainment, Playmates Toys, ToyQuest, Vivid Imaginations, among many others.
• Challenges and Opportunities: The market faces several challenges including increasing digital competition from video games and mobile apps, strict safety regulations, and fluctuating raw material costs. However, the market also faces various opportunities such as the rise of educational and STEM toys, growing demand for sustainable and eco-friendly products, and expanding markets in emerging economies.
   

Toys and Games Market Trends:

Rising Educational and Developmental Focus

The increasing awareness of the developmental benefits of educational and STEM toys is driving the market growth. For instance, in October 2023, Hasbro, Inc. a leading toy and game company announced the STEM-based program with Girl Up on International Day of the Girl to mobilize a movement of girl leadership, innovation, and creativity. Similarly, in November 2023, LeapFrog® Enterprises, Inc., a leader in innovative educational toys for children, announced the launch of new additions to its award-winning infant and preschool lines. These deliciously entertaining food role-play toys include the Build-a-Slice Pizza Cart™, Match & Learn Cookies™, Rainbow Tea for Two™ and Rainbow Learning Lights Mixer. This is expected to boost the toys and games market forecast over the coming years.

Expansion of the E-commerce Sector

The growth of online retail platforms enhances accessibility, convenience, and a wider range of products for consumers. For instance, in August 2022, Amazon announced the launch of the 'Made in India' toy store. As the name implies, customers can purchase all the locally manufactured toys from the e-commerce platform. Indian sellers will also be able to sell locally produced toys. Amazon says the new initiative is in line with the government's calls for a self-reliant India. According to the data from Invest India, the Indian e-commerce industry is projected to reach US$ 300 billion by 2030, experiencing significant growth. The indigenous e-commerce giant Flipkart is poised to raise US$ 1 billion in a new funding round, with its parent company Walmart anticipated to contribute US$ 600 million. This is further fueling the toys and games market statistics significantly.

Significant Technological Advancements

The increasing integration of technology into toys, such as smart toys and augmented reality games, enhances play experiences, attracting tech-savvy children and parents seeking interactive and educational products. For instance, in January 2024, Ravensburger announced a trio of new family-friendly products set to release this year, including GraviTrax Junior, Garden Heist, and Oh My Pigeons! GraviTrax Junior aims to teach STEM concepts in a fun way by allowing children to create gravity-based marble runs using the tracks, tiles, and tools included in the set. The series includes base sets and add-ons, as well as jungle, ice, desert, and ocean-themed sets. Garden Heist is based on the children’s activities Red Light, Green Light and Hide-and-Seek, players become racoons trying to sneak into a garden to snatch food and other goodies. Oh My Pigeons! is a party-style game in which players try to attract pigeons to their park bench with snacks or steal them from their rivals.

Toys and Games Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global and regional levels for 2024-2032. Our report has categorized the market based on product type and distribution channel.

Breakup by Product Type:

• Plush Toys
• Infant/Preschool Toys
• Activity Toys 
• Dolls
• Games and Puzzles 
• Ride-Ons
• Others
   

Dolls accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the product type. This includes plush toys, infant/preschool toys, activity toys, dolls, games and puzzles, ride-ons and others. According to the report, Dolls represented the largest segment.

The demand for dolls is driven by the growing focus on educational dolls, designed to aid cognitive development in children. Parents are increasingly choosing educational dolls over traditional ones, influencing manufacturers to prioritize these products. Another key factor is the advent of nostalgia-driven sales, where limited edition releases of vintage or classic dolls attract an older demographic. Along with this, the rise in e-commerce platforms also allows for better global reach and easier access to niche doll collections, contributing to market growth. Technology integration is making its mark as well; dolls with interactive features like voice recognition are increasingly popular. For instance, in April 2023, Mattel, Inc. announced the addition of a barbie doll with Down syndrome, created to allow even more children to see themselves in Barbie, as well as have Barbie reflect the world around them. The Barbie doll with Down syndrome is meant to inspire all children to tell more stories through play.

Breakup by Distribution Channel:

• Specialty Stores
• Supermarkets and Hypermarkets
• Departmental Stores
• Online Stores
• General Stores
   

Specialty stores holds the largest share of the industry

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes specialty stores, supermarkets and hypermarkets, departmental stores, online stores and general stores. According to the report, specialty stores accounted for the largest market share.

The specialty stores distribution channel remains a crucial component in the toys and games industry, influenced by the personalized customer experience these stores offer, such as hands-on trials and expert guidance, which online channels can't fully replicate. Consumers often prefer specialty stores for exclusive or niche products that may not be readily available in mass retail or online. Another influential factor is the rise of 'shop local' movements, encouraging consumers to support community-based retailers. This sentiment tends to benefit specialty stores, which are often viewed as more unique and authentic compared to large retail chains. Besides this, brand collaborations and limited-edition releases also typically make their debut at specialty stores, attracting a dedicated consumer base looking for unique and collectible items.

Breakup by Region:

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America
   

Asia Pacific leads the market, accounting for the largest toys and games market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. According to the report, Asia Pacific exhibits the largest segment.

The Asia Pacific region is experiencing robust growth in the toys and games industry, propelled by the growing middle class with increasing disposable income. As consumers are willing to spend more on recreational items for children, demand for high-quality toys and games rises. E-commerce is another significant driver; online shopping platforms are making it easier for consumers to access a wide variety of products, even in remote areas. Furthermore, the region is home to some of the world's most populous countries, such as China and India, where a youthful demographic is naturally inclined to fuel industry growth. For instance, in April 2023, Funskool India Ltd launched a marvelous mix of entertaining and educational toys. With over 15 new products being introduced from Funskool’s homegrown brands – Giggles, Games, Fundough, Handycrafts, and Play & Learn.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the toys and games industry include Hasbro, Mattel, Ravensburger, Tomy, The Lego Group, Funtastic, JAKKS Pacific, Lansay, LeapFrog Enterprises, MGA Entertainment, Playmates Toys, ToyQuest, Vivid Imaginations etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• The competitive landscape of the toys and games market is highly competitive, dominated by global giants such as Mattel, Hasbro, and LEGO, known for their strong brand recognition and extensive product lines. Online retailers including Amazon and Alibaba also significantly influence market dynamics. For instance, in May 2024, Mattel announced a new partnership with the British publisher behind the “PAW Patrol” and “My Little Pony” video games that will see the pair release three new games based on classic brands – including the rejuvenated Barbie franchise – as part of the company’s plans to reverse a slump over the last two quarters.

Toys and Games Market News:

• In April 2024, Hasbro, a leading toy and game company announced a global licensing agreement with Playmates Toys, a global toy design, development, marketing, and distribution company, to produce and distribute POWER RANGERS products. Playmates is debuting its POWER RANGERS collection with a kid targeted MIGHTY MORPHIN POWER RANGERS toy line in 2025.
• In February 2022, global toy and fame company Ravensburger AG announced an investment and partnership with Gamefound- the crowdfunding platform dedicated to board games.
• In October 2023, Tomy signed a partnership with Identity Games, creator of the award-winning Escape Room The Game. The deal will include exclusive rights to sell the latest releases from the Rotterdam-based designers including Medical Mysteries and Battle Royale: Last One Standing, both due for launch in early 2024.

Toys and Games Market Report Scope:

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 toys and games market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global toys and games market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists 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 toys and games industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.