Toys form a very essential part of children's growing up and may sound like a farfetched idea, but they are the first representation of the world in a miniature artificial world and its objects, which form the thought process of kids. As childhood changed and evolved over time, so have the toys and their nature and features. However, the role of toys for children remained the same-make childhood more memorable and aid in the growing up process of kids. From Hamley’s first store in Holborn, London in the 1760s to now a widespread global market the global toy market has come a long way by manoeuvring itself through changing social, economic, technological, and environmental landscapes. The toy market globally intersects with various other industries like the media and entertainment industry, education industry, plastic industry, video game industry, etc. Some create opportunities and trends for the toy market to ride on, and some create threats and challenges for the market and force the companies to reinvent themselves. Toy companies globally are facing intense competition from the video game industries, as consumers are shifting and adapting to the use of video games and e-sports very early on. In the last half a decade, the video gaming and e-sports industries have grown exponentially by making games and consoles to support them easily available on the market.
This has created a threat to an entire category in the toy market focused on older children. At the same time, video games and their series have the potential to give rise to new fictional and gaming characters, which can create a cult, and the action figures segment of the toy market adjusts itself to accommodate such trends, creating impetus for its growth. There has also been growing movement among the consumers about environmental and climate change and sustainability. As more and more consumers are getting aware about this shared human goal, changing consumer behaviour trends can be observed in other markets where use of plastic is an essential part of manufacturing and production. About more that 99% of the toys globally are made from plastic, and a negative consumer sentiment in purchasing such toys can severely hamper the growth prospects of the market. More eco-friendly ways of production by using reusable plastic, recycled plastic, wood and other fabrics are expected to be used for production of toys to maintain the sustainable practices of economic growth as well as reducing environmental threats.
The Asia-Pacific region is leading the toy market industry primarily due to rapid urbanization coupled with a burgeoning middle-class population, which has significantly increased disposable income and shifted consumer spending towards leisure and entertainment products for children. As urbanization accelerates across Asia-Pacific, more families are moving to cities where economic opportunities abound. This shift has transformed lifestyles, making them increasingly aligned with modern consumer behaviors. Urban families often have different spending patterns compared to their rural counterparts. They prioritize quality education, entertainment, and recreational activities for their children, which has created a robust market for toys. The growing emphasis on developmental learning has led parents to invest in educational toys, viewing them as vital tools for cognitive and social development. This trend is particularly prominent in emerging economies like China, India, and Southeast Asian nations, where the population of young children is substantial, and parents are eager to provide them with the best resources for growth and learning. The Asia-Pacific region benefits from a vibrant retail landscape that includes both traditional toy stores and a growing number of e-commerce platforms. The proliferation of online shopping has made it easier for parents to access a wide range of toys, including international brands that may not have physical stores in their countries. E-commerce has also allowed for targeted marketing strategies, where brands can reach specific demographics through social media and online advertising. This accessibility is critical in a region where a significant portion of the population is tech-savvy and engages with digital platforms for both information and shopping.
The global toys market is diverse, catering to various age groups and interests through multiple product segments. Action Figures & Accessories remain a popular category, driven by franchise-based characters from movies, TV shows, and comics, appealing to both children and collectors. Arts & Crafts toys encourage creativity and fine motor skills, with DIY kits, painting sets, and craft supplies witnessing steady demand, especially for educational and sensory play. Building Sets continue to thrive, with LEGO and other modular toys dominating the market, fostering problem-solving and STEM-related skills. Dolls remain a staple in the industry, with brands like Barbie and LOL Surprise integrating diverse representation and interactive features. Games & Puzzles have seen a resurgence, especially strategy-based and family-oriented board games, boosted by social gaming trends. Infant, Toddler, and Preschool toys focus on developmental learning, incorporating sensory play and interactive elements. Youth Electronics, including smart toys, robotic kits, and educational tablets, are growing rapidly with advancing technology. Outdoor & Sports Toys, such as bikes, trampolines, and water guns, promote active play and remain seasonal bestsellers. Plush toys continue to expand, driven by collectibles and pop culture trends. Vehicles, from remote-controlled cars to die-cast models, appeal to both kids and hobbyists. Explorative & Other Toys, including science kits and STEM-based experiments, are gaining traction, promoting hands-on learning and discovery.
The global toys market is segmented by age groups, catering to different developmental stages and interests. Toys for 0-8 years focus on early learning, sensory development, and imaginative play. This category includes infant rattles, soft plush toys, building blocks, interactive learning devices, and preschool playsets. STEM-focused toys and educational games are increasingly popular, helping young children develop cognitive and motor skills. Brands are also integrating safety features, ensuring non-toxic materials and rounded edges for this age group. The 9-15 years category includes more advanced toys, catering to evolving interests in creativity, strategy, and technology. Building sets like LEGO Technic, action figures, board games, and outdoor sports toys are highly popular. Youth electronics, including smartwatches, coding kits, and robotics, appeal to this tech-savvy generation. Additionally, role-playing games, trading cards, and puzzles see strong demand, particularly due to the rise of social gaming and collectible trends. For 15 years and above, the market expands into collectibles, high-tech gadgets, and nostalgia-driven toys. Action figures, strategy board games, advanced model kits, and pop culture merchandise attract teenagers and adult collectors. The “kidult” trend, where adults buy toys for personal enjoyment, has fueled demand for premium action figures, retro games, and gaming consoles, making this a rapidly growing segment.
The global toys market is divided into online and offline sales channels, each playing a crucial role in consumer purchasing behavior. Online sales have witnessed rapid growth, driven by the convenience of e-commerce platforms, wider product variety, and competitive pricing. Marketplaces like Amazon, Walmart, and specialty toy websites provide easy access to global brands and exclusive collections. The rise of digital marketing, influencer-driven promotions, and social media advertising has significantly influenced online toy sales. Subscription-based toy services and direct-to-consumer (DTC) brands have also gained traction. Additionally, seasonal discounts, flash sales, and personalized recommendations make online platforms attractive to modern consumers. Augmented reality (AR) and virtual try-on features further enhance the online shopping experience, allowing parents and children to preview products before purchasing. Offline sales, including supermarkets, hypermarkets, specialty stores, and toy retailers, remain significant due to the hands-on shopping experience they offer. Physical stores allow children to interact with toys before purchase, fostering brand trust and engagement. Specialty toy stores, such as LEGO and Build-A-Bear workshops, provide immersive in-store experiences, increasing brand loyalty. Offline retail remains strong during peak seasons like holidays and birthdays when immediate purchases are preferred. While e-commerce continues to expand, physical stores maintain their appeal through personalized customer service, exclusive in-store promotions, and interactive product demonstrations.