Global Toy Market Outlook, 2029

Toys play a major role in developing children’s minds by improving their thought process and decision-making ability. They consist of different categories such as brain training, physical activity, promotional merchandise, and collectibles. Festival occasions are the major means of selling different kinds of play items to the kids for the associated companies. Therefore, the manufacturers are introducing different types of dolls that suit children's festivals, which, in turn, boost their overall revenues. For instance, in July 2020, MGA Entertainment Inc., a children’s entertainment company, launched new Rainbow High Fashion Dolls, a doll brand during the autumn season in the U.S. The toy market globally is characterised as highly fragmented and is driven by a large proportion of small and medium size enterprises. The entry barriers in toy industry are low and easily available raw materials motivate entrepreneurs to venture into the industry. These small and medium size firms form a very essential part of the supply chain in the industry. However, the emergence of these small and medium size firms especially in Asia has also resulted in high volumes of fake and unlicensed products in the toy market which might be harmful for children during usage. The industry regulators are implementing strong protocols to control the distribution of fake and sub-par quality toys in the market with the help of supplier profiling and other measure, but the effectiveness of it difficult to measure. According to the report titled, “Global Toy Market Outlook, 2029”, published by Bonafide research, the market was valued at USD 129.44 Billion in 2023 and it is anticipated to grow with a CAGR of more than 6.55% from 2024 to 2029, achieving USD 189.81 Billion by 2029. The toy market globally has spread out pretty vastly with very differing patterns and consumer behaviours across regions. There are few underlying phenomena that are observed globally but the regional traditional and cultural significance of toys remain unchanged. The rise in demand for strategy-based and educational based toys among the children propels the growth of the toys market. In addition, the Chinese government has relaxed its decades-old one-child policy, allowing all couples to have two kids to address the challenge of an aging population. Thus, the number of kids is expected to increase in the upcoming years thus positively impacting toys market growth. Introducing physical activity and educational toys at an early stage of a child's development enhances their senses, imagination, and social skills. This, in confluence with the rising concerns among parents about the social and emotional development of their child, represents one of the key factors impelling the market growth. Moreover, playschools are offering science, technology, engineering, and mathematics (STEM) toys, such as boxes, blocks, musical instruments, and jigsaw puzzles, in their education to install creativity and problem-solving skills in kids. Education is one of the key factors driving baby toy trends. Moreover, parental preferences are growing for innovative ways to develop skills like speech recognition in infants through smart toys designed for educational purposes. In addition to biodegradable packaging, parents also prioritize toys made of environmentally friendly materials. Nowadays, children are allowed to familiarize themselves with many textures, designs, and styles of construction using many reusable materials such as kinetic sand, dough, slime, and putty that are available in a variety of bright colours. Such playthings inspire them in thinking outside the box than traditional LEGO building blocks. Such smarter, greener, and innovative options are driving the growth of the global toys and games market.

The toy market has a broad portfolio of product lines but has been diligently covered under the categories of action figures, arts & crafts toys, building sets, dolls, games and puzzles, infant/toddler/ preschool toys, youth electronics, outdoor & sports toys, plush toys, vehicle replicas and explorative toys. Different type of toys has shown different type of demand in different countries according to the traditional relevance. Globally however, outdoor & sports toys have the highest market share globally majorly driven by United States which also happens to be the biggest toy market in the world as of 2023. The product lines are also expected to be changing to adapt and suit to the changing preferences of consumers. Also, a boost in the demand for traditional toys is also under the monitor in some of the MEA and Asia Pacific markets. The key strategy implemented by toy manufacturers to entice children is the commercialization of renowned cartoon characters like Peppa Pig, Doraemon, Superman, Spiderman, etc. Moreover, the rising disposable income is another major factor, favouring the growth of the market. Additionally, technological advancements have enabled video games to gain exponential acceptance among children. In global context, when the toy market is segmented on the basis, the categories that we aimed at were 0-8 year’s category, 9-15 years category, and above 15 years category, it has been observed that the age category for 9-15 years category accounts for almost 50% market share. Not just globally, but also regionally the 9-15 years category haven’t changed much from the approximate 50% mark over the years. This is because the 9-15 years category includes a vast portfolio of product line through which it can also spread out to the older consumers of 0-8 year’s category and younger consumers of above 15 years category. Also, the 9-15 years category well positioned to market branded and licensed toys which are seeing increased demand globally. The 0-8 year’s category toys mostly included infant/toddler toys such as object replicas, vehicles and dolls. The above 15 years category’s market share can be seen gradually shrinking due to intense competition faced from video gaming industry. It has been observed that the 0-8 years category shows signs of maturity in the more developed markets such as US, UK, Germany and France whereas the emerging markets in the global toy market landscape are seeing an expanding share of the category. The sales channels in the market have been broadly bifurcated into online sales channels and offline sales channels. The Covid-19 pandemic has acted as a catalyst to push the online sales channels in the market. For regions like in North America, Europe and Latin America where the majority proportion of annual sales of toys are generated during the festive seasons in winter, there has been a boost in the online sales of toys in this region Apart from this, the thriving e-commerce industry on account of the increasing reliance on smart-phones and the growing internet penetration is driving the sales of innovative electronic and digital toys over conventional battery-operated toys. Furthermore, the increasing popularity of tech-savvy electronic toys among children as well as adults that depict action figures like Batman, Superman, Ironman, and Captain America is contributing to the market growth. Besides this, governments of numerous countries are encouraging companies to design and introduce toys based on culture, ethos, and local folklore and heroes, which is anticipated to drive the market.

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Some of the global leaders in the toy industry have transitioned and diversified across different industries like Bandai Namco, Dream International, Vtech etc. whereas some of the major market leaders are pure play toy companies such as LEGO Group, Mattel Inc., and Hasbro. LEGO Group and Knex Industriesare market leader with unparallel expertise in building and construction blocks and are some of the oldest companies in the toy business. Hasbro is one of early players who jumped on the licensing and branding trend. Hasbro is one of the holders of some of the major licenses and brands including NERF, Transformers, Marvel, Star Wars and many others. Mattel is a crucial player in the dolls business who branded and marketed Barbie Dolls. It also owns brands like Hot Wheels, fisher price, and holds licenses for Jurassic World, DC Comics, WWE and many others. Bandai Namco is another highly diversified company in entertainment and media space which also hold licenses for popular branded toys of popular anime characters such as dragon ball z, Naruto, Pac man.Jakks pacific has newly acquired license for apex legends and holds some of the major licenses for Disney including many others. Other companies like Vtech, Playmobil, Ravenburger, Dream International,Clementoni, Goliath Games, Kids 2 Inc., and KNEX Industries compete heavily in generic toy categories such as plush, puzzles, artificial replicas and other sets. 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. Major companies present in the market Bandai Namco Entertainment Inc., Dream International Limited , Hasbro Inc., Jakks Pacific, Inc., The LEGO Group, Mattel, Brandstatter Group (Playmobil), Ravensburger, VTech, Kids II, Inc., K'Nex Industries, , Inc, Clementoni, Goliath Games, Artsana Group, Nintendo Co. Ltd.

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Considered in this report • Geography: Global • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Global toy market with its value and forecast along with its segments • Region & Country-wise toy market analysis • Various divers and challenges • Ongoing trends and developments • Five force models • Top profiled companies • Strategic recommendation Regions & Countries covered in the report • North America (USA, Canada, Mexico) • Europe (UK, France, Italy, Germany, Spain, Russia) • Asia-Pacific (Japan, Australia, China, India) • Latin America (Brazil, Argentina, Columbia) • Middle-East & Africa (UAE, Saudi Arabia, Qatar, South Africa) By Product • Action Figures & ACC •Arts & Crafts •Building Sets •Dolls •Games/Puzzles •Infant/Toddler/Preschool •Youth Electronics •Outdoor & Sports Toys •Plush •Vehicles •Explorative & Other Toys By Age Group •0-8 years •9-15 years •15 years and above By Distribution Channel •Online •Offline The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering, the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started, verifying the details obtained from secondary sources. Intended audience This report can be useful to Industry consultants, manufacturers, suppliers, associations & organizations related to pet care products industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.