Date : July 31, 2024
Share on :

The Evolution of the North America Toy Market: From Tradition to Technology.

The Evolution of the North America Toy Market: From Tradition to Technology.
The North American toy market is one of the largest and most dynamic in the world, driven by a combination of evolving consumer preferences, technological advancements, and strong retail distribution networks. The United States and Canada serve as major contributors to the market, with the U.S. holding the largest share due to its strong purchasing power, high disposable income, and a deeply ingrained culture of gifting toys for various occasions such as birthdays, holidays, and special events. The market is characterized by a diverse range of products, including traditional toys, educational toys, action figures, dolls, puzzles, outdoor and sports toys, and emerging technology-driven toys such as augmented reality (AR) and artificial intelligence (AI)-enabled interactive toys. With a strong emphasis on innovation, North America is home to some of the world’s leading toy manufacturers, including Mattel, Hasbro, LEGO, Spin Master, and Funko, which continuously introduce new products to keep up with evolving trends and consumer expectations. One of the defining characteristics of the North American toy market is the increasing demand for educational and STEM (Science, Technology, Engineering, and Mathematics) toys. Parents are placing greater emphasis on toys that encourage learning and skill development, driving the popularity of interactive and coding-related toys.

According to the research report, "North America Toy Market Outlook, 2029," published by Bonafide Research, the North America Toy market was valued at more than USD 37.37 Billion in 2023. Brands such as LEGO, Osmo, and LittleBits have capitalized on this trend by offering products that merge entertainment with education, providing children with a fun and engaging way to develop critical thinking and problem-solving skills. Additionally, sustainability has become a key focus for manufacturers, with an increasing number of companies investing in eco-friendly and biodegradable materials to cater to environmentally conscious consumers. This shift is further fueled by the growing awareness of plastic waste and the need for sustainable production practices. The North American toy market has also seen a significant shift towards licensing and brand collaborations. Popular franchises from entertainment giants such as Disney, Marvel, Star Wars, Pok?mon, and DC Comics play a crucial role in driving toy sales. Action figures, collectibles, and merchandise tied to blockbuster movies, animated series, and video games continue to generate high demand among children and collectors alike. The rise of digital and social media platforms has also influenced purchasing decisions, as YouTube toy unboxing videos, influencer reviews, and TikTok trends have played a pivotal role in shaping consumer preferences. Brands are leveraging these platforms to market their products effectively and engage directly with their target audience.

The North American toy market is diverse, catering to various age groups and interests. Action figures & accessories remain popular, fueled by movie franchises, superhero brands, and gaming tie-ins. Arts & crafts toys have gained traction as parents seek creative and skill-building activities for children. Building sets, led by brands like LEGO, continue to dominate, as they encourage STEM learning and problem-solving. Dolls, including collectible and interactive ones, remain a staple, with innovation in customization and smart features. Games and puzzles have seen a resurgence, especially due to the popularity of family game nights and educational play. The infant/toddler/preschool category thrives with sensory play items and early-learning toys. Youth electronics, including kid-friendly tablets and smartwatches, are growing, merging technology with play. Outdoor & sports toys, like bikes and trampolines, are in high demand, promoting active lifestyles. Plush toys remain evergreen, boosted by licensing trends. Vehicles, from die-cast models to RC cars, continue to be favorites among kids. Explorative and other toys, including science kits and DIY sets, cater to curiosity-driven play.

The North American toy market is segmented by age, with each group demanding unique products. The 0-8 years category dominates sales, as this age group engages with a wide variety of toys, from soft plush and sensory toys to educational and interactive products. This segment benefits from growing parental interest in early childhood development. The 9-15 years category experiences significant demand for gaming accessories, collectible action figures, and tech-driven toys like robotics and augmented reality-based products. This segment also drives board game sales and creative DIY kits, aligning with the growing trend of skill-based play. The 15 years and above segment is fueled by the collector’s market and nostalgia-driven purchases. High-end building sets, detailed action figures, and intricate model kits are popular among adult toy enthusiasts. This category also includes electronic gadgets, premium puzzles, and lifestyle-based gaming accessories, blending entertainment with hobbyist appeal. As toy companies recognize the expansion of play beyond childhood, they continue to innovate, targeting both young and older audiences.

Toy sales in North America are divided between online and offline channels, each offering unique advantages. Online sales have surged, with major e-commerce platforms like Amazon, Walmart, and specialty toy retailers expanding their digital presence. Consumers are increasingly drawn to the convenience of online shopping, competitive pricing, exclusive deals, and customer reviews that influence purchasing decisions. Subscription-based toy delivery services have also gained traction, appealing to parents looking for curated, age-appropriate selections. Digital marketing and influencer collaborations play a key role in driving online toy sales. Offline channels, including specialty toy stores, supermarkets, and department stores, remain essential for hands-on shopping experiences. Big-box retailers like Target and Walmart continue to dominate, offering in-store exclusives and interactive displays. Specialty stores provide a curated selection and personalized recommendations, enhancing customer engagement. Traditional brick-and-mortar stores also benefit from impulse purchases and seasonal trends, particularly during peak shopping periods like the holiday season. While e-commerce continues to rise, the offline retail experience remains crucial for customers who prefer to see and test products before buying.
Bonafide Logo

The Evolution of the North America Toy Market: From Tradition to Technology.

  • Share on :

Contact usWe are friendly and approachable, give us a call.