South America Toy Market Outlook, 2029

South America is the lowest contributing region in the global toy market. Awareness of the cognitive and intellectual benefits of outdoor and sports toys, the influence of technology in promoting video games, rising demand for scientific and educational toys, and continuously rising personal disposable income levels are expected to boost the market growth in the coming years. Despite logistical limitations in the region, internet retail is expected to grow over the forecast period. The channel has seen acceleration with the popularization of "Black Friday" sales within the region, the rise in popularity of digital marketing, and consumer migration online looking for better prices and year-round promotional offers. Sales of traditional toys and games in South America rose slightly in value terms in 2018, following a decline earlier in the review period, owing to weakness in key regional economies. The expansion of licensing, improving economic conditions in 2018 and increasing unit prices helped the industry. Traditional toys and games suffered in South America over the review period thanks to the critical economic situation overtaking markets such as Argentina and Brazil, and political uncertainty decreasing consumer confidence. Sales were impacted by reduced purchasing power, middle class retreat, rising inflation, and high unemployment rates, which crippled consumption. Market leaders Mattel, Hasbro, and LEGO saw increased competition and market share declines during the review period. Consumer price sensitivity contributed to strong competition from local players, which had invested in licensing to gain interest among consumers.

According to the research report, "South America Toy Market Outlook, 2029," published by Bonafide Research, the South America Toy market is projected to add more than USD 2.21 Billion from 2024 to 2029. In this report, Bonafide Research attempts to segment the market in South America on the basis of the age group that the toys cater to, the product categories, and the sales channels through which they are distributed in the market. The product categories include action figures, arts and crafts, building sets, dolls, games and puzzles, infant and toddler toys, youth electronics, outdoors and sports toys, plush toys, miniature vehicle replicas, and explorative toys. South America is the lowest contributing region in the global toy market, with a share of a little less than 5% in the world market. The South American toy market is highly unstructured and fragmented. As a result of the uncertain political landscape in the region, the toy market in South America faced severe challenges and struggled to generate value. Negative consumer sentiments and decreasing consumer confidence have plagued the growth of the South American toy market. With a lack of impetus provided to the middle-class strata of the region, the sales could not get the potential boost that they required. Household income in South American households grew at slow pace, causing consumers to be price-sensitive. The big players in the South America region also face intense competition against local and regional players due to price sensitivity and highly elastic demand for toys in the region. The leading companies operating in South America are Mattel, LEGO, and Hasbro, among many others.

The social and human cost of the pandemic has been immense and has added friction to the forecasting rates of the market. Over 16 Million people are estimated to have fallen into poverty. Inequality levels are expected to have increased in most countries, and employment levels have sunk below the pre-crisis levels. Data reflects that in the region, about 18 Million people have been infected and half a Million have lost their lives to the pandemic. The failure to control the second wave of infections and the imposition of new lockdowns has affected consumers' behavior and would drag the growth rates. Also, the weaker rebound in labor markets has made operations and growth in small and medium-sized as well as unorganized markets for toys highly dicey. However, the success of vaccination in containing the pandemic in other countries shed some light on the overall economy, and a well-structured support fiscal policy is expected to bolster the economy and the South American toy market.

Outdoor and sports toys are leading the South American toy industry due to their ability to promote physical activity, social interaction, and a connection with nature, which resonates with the region's vibrant culture and diverse landscapes. In South America, outdoor and sports toys have become a dominant force in the toy industry, driven by a cultural emphasis on physical activity, social engagement, and the great outdoors. The continent is characterized by its rich biodiversity and varied climates, from tropical rainforests to expansive beaches and rugged mountains, all of which provide an ideal backdrop for outdoor play. In many South American countries, children are encouraged to engage in physical activities, and toys that facilitate outdoor fun—like bicycles, skateboards, soccer balls, and kites—are widely embraced. These toys not only promote healthy lifestyles but also serve as tools for children to explore their surroundings and develop motor skills, balance, and coordination. Furthermore, outdoor and sports toys cater to the social fabric of South American communities. Traditional games and sports such as soccer and volleyball are not only popular pastimes but also serve as cultural bonding experiences that strengthen friendships and familial ties. Toys that encourage team play, such as group games or sports equipment, naturally foster interaction and collaboration among peers. This aspect is particularly significant in regions where community gatherings and outdoor festivities are commonplace, reinforcing the idea that play is not just an individual activity but a shared experience that brings people together.

In South America, the toy industry has seen a significant shift toward catering to the 9-15 age group, driven largely by the region's increasing access to technology and the pervasive influence of digital media. This demographic, often referred to as "tweens" and "early teens," is characterized by their keen interest in interactive and immersive play experiences that extend beyond traditional toys. Unlike younger children, who may gravitate towards basic toys and figures, this age group is drawn to products that incorporate technology, such as robotics, coding games, and augmented reality features. The rapid penetration of smartphones and tablets in South American households has also played a crucial role in shaping their preferences. Children aged 9 to 15 are among the most active users of digital content, engaging with games, social media, and online communities. This digital engagement not only influences their play preferences but also drives the demand for toys that integrate with digital platforms, such as video games and mobile applications. Consequently, toy manufacturers are innovating to create hybrid products that blend physical play with digital interaction, thus appealing to the tech-savvy nature of this age group. Moreover, cultural factors play a role in the toy industry's focus on this age group. Many South American countries are experiencing a demographic shift with a growing youth population, which presents an opportunity for brands to tap into a lucrative market.



The distribution channel for the South American toy market is multifaceted, comprising several key components that ensure products reach consumers effectively. It begins with manufacturers, who may operate locally or internationally, producing a wide array of toys ranging from traditional playthings to high-tech interactive products. These manufacturers typically supply their goods to wholesalers and distributors, who play a crucial role in managing inventory and logistics. Distributors often serve as the link between manufacturers and retailers, providing the necessary infrastructure to store and transport toys across the region. Retail channels in South America include large chain stores, specialty toy shops, department stores, and online platforms, each catering to different consumer preferences and shopping behaviors. Brick-and-mortar retailers remain popular, particularly in urban areas where families frequently visit shopping malls; however, e-commerce is rapidly growing, driven by increased internet penetration and a shift toward online shopping, especially post-pandemic. Additionally, informal markets and street vendors are significant in many regions, offering a variety of toys at competitive prices, which attracts budget-conscious consumers. This diverse distribution network allows for a wide reach, catering to various demographic segments and ensuring that toys are accessible to consumers across different socio-economic backgrounds in South America.

Brazil's dominance in the South American toy industry can be attributed to several interrelated factors, the most significant being its substantial and youthful demographic. With a population of over 213 million, Brazil has a significant percentage of children and teenagers, making it a prime market for toy manufacturers. The youthful population represents not just a large consumer base but also a vibrant segment that is eager to engage with toys that offer both entertainment and educational value. As parents become more invested in their children's development, they increasingly seek out toys that foster creativity, critical thinking, and technological skills, aligning with a global trend toward STEM-focused play. Another critical factor contributing to Brazil's leadership in the toy market is the growing middle class. Economic improvements over the past couple of decades have enabled a larger segment of the population to afford a wider variety of toys. As disposable income rises, families are more willing to invest in high-quality, innovative toys, especially those that promise educational benefits. This shift in consumer spending behavior has led to an increase in demand for toys that combine entertainment with learning, driving manufacturers to develop products that meet these expectations. Moreover, Brazil's cultural diversity and rich heritage influence the types of toys that resonate with consumers. Brazilian children are exposed to a myriad of cultural narratives, music, and art, which creates a unique market for toys that reflect these themes. Local manufacturers often incorporate Brazilian folklore, popular characters, and regional aesthetics into their products, fostering a strong sense of national identity and pride among consumers.

Major companies present in the market
Hasbro Inc., The LEGO Group, Mattel, Brandstatter Group (Playmobil), VTech, Kids II, Inc., Artsana Group, Nintendo Co. Ltd.

Considered in this report
• Geography: South America
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• South America toy market with its value and forecast along with its segments
• Country-wise toy market analysis
• Various divers and challenges
• Ongoing trends and developments
• Five force models
• Top profiled companies
• Strategic recommendation

Countries covered in the report
• Brazil
•Argentina
•Columbia

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.