Middle East and Africa Toy Market Outlook, 2029

The Middle East and Africa are two of the fastest growing toy markets in the world, very closely following Asia and the Pacific markets. The regions of the Middle East and Africa are rich with human and natural resources. The region enjoys a reasonable standard of living on average. However, countries that is part of the Middle East and Africa regions account for substantially varying amounts of resources, economic size, geographic size, demographics, and standard of living. Also, intra-regional activity is weak, principally restricted to labor flows with limited trade in goods and services. Traditional toys and games are an emerging market in the Middle East and Africa, driven mainly by a recovering economy, increasing disposable incomes, and high birth rates. The region holds very good prospects for traditional toys and games due to increased spending on baby and child-oriented products and a shift towards premiumisation. Traditional toys and games in the Middle East and Africa are expected to witness consistent growth over the forecast period, mainly driven by an improving economic and political environment along with increasing per capita income. With an average of 3.9 children born per female expected by the forecast period and rising disposable incomes, demand for traditional toys and games is expected to be driven by baby and child-oriented products. Further, the greater penetration of the internet in the region is also expected to boost the e-commerce network in the region, which in turn is expected to develop new online sales and distribution channels for the toy market in the region. Growth in demand for licensed toys comes as digital media access in the region grows, along with the influence of major global brands. With rapid urbanization coupled with growth in the number of higher-income households, children are now being exposed to global and trending brands such as Ben 10, Barbie, and Toy Story, thereby driving the demand. According to the research report "Middle East & Africa Toy Market Overview, 2029," published by Bonafide Research, the Middle East & Africa Toy market is projected to reach a market size of more than USD 15.92 Billion by 2029. The age groups are 0-8 years old, 9-15 years old, and over 15 years old. The product lines for the toy market include: action figures; arts and crafts; building sets; dolls; games and puzzles; infant/toddler/preschool toys; youth electronics; outdoor and sports toys; plush toys; miniature vehicle replicas; and explorative toys. The population sizes of the Middle East, Africa, and Europe are very similar to each other. However, the Middle East and Africa's toy markets are an emerging market fuelled by a growing population, an average standard of living and higher disposable income with households. According to the World Bank data, the proportion of the population using the internet in 2015 was 47.92%, whereas in 6 years, the proportion of the population using the internet in 2021 has grown to 65%. Because of this heavy penetration of the internet in the region, it is expected that the Middle East and African countries can show strong growth rates in demand for licensed and branded products as the kids in the region will be more aware of the ongoing trends on the internet. As the toy companies are already shifting to online modes of marketing their products as well as selling their products, the toy companies are eyeing great opportunities in the region as far as the toy industry is concerned.

In most countries in the region, construction remains the most profitable category. This trend was driven mainly by brand loyalty and a wide product assortment that appeals to both boys and girls of all ages. The category’s major players, such as LEGO Group, are extensively conducting promotional activities throughout the year to further increase brand visibility. In addition to that, non-store retailing was mainly driven by internet retailing, which is expected to grow gradually over the forecast period due to increasing internet penetration in the region, albeit still in its nascent stage. Driven by features such as convenience and anytime shopping, traditional retailers are adapting to this trend through services such as home delivery and click and collect models. In 2019, The LEGO Group launched a new headquarters for the Middle East and Africa region in Dubai—stepping up its efforts to bring products to kids across 68 markets. The firm earmarked the region for clear growth. By 2028, it is estimated that there will be around 125 Million children aged 0 to 14 years in the Middle East and North Africa region. The opening of the new regional headquarters will cover 68 new markets for the firm, including a sales office in Johannesburg that manages all Sub-Saharan countries and the Republic of South Africa. The growing popularity of games and puzzles in the Middle East and Africa toy industry is primarily driven by a rising demand for educational and interactive play experiences that foster cognitive development and social skills among children. In recent years, the Middle East and Africa have witnessed a significant shift in consumer preferences toward toys that offer more than just entertainment; parents are increasingly seeking products that promote educational value and enhance developmental skills. This trend is largely attributed to a growing awareness of the importance of early childhood education and the role of interactive play in fostering critical thinking, problem-solving, and social skills among children. As families become more invested in their children's learning experiences, games and puzzles have emerged as preferred choices due to their multifaceted benefits. The region’s diverse cultural landscape also contributes to the popularity of games and puzzles. Traditional games often reflect local customs and stories, providing not only entertainment but also a sense of cultural identity. As globalization influences the toy market, a variety of international games and puzzles are now accessible, catering to a broad audience. This mix allows families to engage with both local and global themes, enriching their play experiences while encouraging social interactions among children and adults alike. The demographic shift in the Middle East and Africa, coupled with an increasing focus on education, has positioned the 9-15 age group as a pivotal segment within the toy industry. As children transition into their pre-teen and early teenage years, they are more capable of engaging with complex products that challenge their intellect and creativity. This age group is not only seeking entertainment but also avenues for skill development, making toys and games that foster these abilities particularly appealing. Parents are increasingly aware of the importance of educational toys that can complement formal schooling, leading to a surge in demand for products that stimulate cognitive development, problem-solving skills, and teamwork. Moreover, the influence of social media and digital platforms cannot be underestimated. Children in this age group are heavily influenced by trends, often discovering new toys and games through online channels, which facilitates a shift in what toys are popular. The transition into adolescence brings about a desire for independence and self-expression. Many toys in this category allow for customization and creativity, such as art kits, robotics, and DIY projects, which align with the developmental needs of this age group. Furthermore, as children in this demographic start to seek out social interactions, toys that encourage group play or collaboration—such as strategy games or team-building activities—have gained popularity, enhancing their appeal.

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Manmayi Raval

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The distribution channel in the Middle East and Africa toy market is characterized by a multi-faceted approach that encompasses various stakeholders, including manufacturers, wholesalers, retailers, and e-commerce platforms. At the initial stage, manufacturers produce a wide range of toys, which are then distributed to wholesalers who serve as intermediaries, ensuring that products reach various retail outlets. In this region, traditional brick-and-mortar retailers, such as toy stores, department stores, and specialty shops, play a crucial role, particularly in urban areas where consumers prefer physical shopping experiences. Moreover, the rise of modern retail formats, including hypermarkets and supermarkets, has expanded the availability of toys, allowing for greater exposure to a wider audience. In recent years, e-commerce has emerged as a significant channel, driven by increasing internet penetration and changing consumer habits. Online platforms, including local and international websites, enable consumers to browse and purchase toys from the comfort of their homes, often at competitive prices. This shift has been accelerated by the COVID-19 pandemic, which encouraged more families to explore online shopping options. Additionally, social media and digital marketing strategies have enhanced brand visibility and engagement, further facilitating sales. South Africa's position as a leader in the Middle East and Africa toy industry can be attributed to a unique combination of factors that contribute to its robust market dynamics. The country's diverse population encompasses a wide range of cultural backgrounds, interests, and educational priorities, creating a rich landscape for toy manufacturers and retailers to cater to various consumer preferences. This diversity not only fuels demand for a broad spectrum of toys—from traditional games to modern educational kits—but also encourages companies to innovate and adapt their products to meet the specific needs of different demographic groups. One of the critical drivers of South Africa's toy market is its well-established retail infrastructure. The country boasts a mix of large retail chains, specialty toy stores, and e-commerce platforms, providing consumers with easy access to a vast array of products. The growth of online shopping, accelerated by the COVID-19 pandemic, has also played a significant role in expanding market reach. This shift has enabled brands to connect with consumers more effectively and to showcase a variety of educational and interactive toys that appeal to both children and their parents. South Africa's toy market benefits from an active participation in global trends. The country serves as a hub for international toy brands looking to penetrate the African market, leading to a diverse assortment of products that cater to various age groups and interests. Local manufacturers also play a vital role in the industry, creating unique toys that incorporate cultural elements and address specific local needs, further enriching the market landscape. However, the COVID-19 as well as volatility in oil prices has led to some damage in the Middle East and African economies. The revised GDP projections for the coming years, 2021, and 2020 suggest that the Middle East and African regions may not recover from the pandemic triggered economic slowdown. However, the structure of the toy market is expected to develop steadily as the economy moves out of the slump and will be poised to show growth in the future. Major companies present in the market Bandai Namco Entertainment Inc., Hasbro Inc., The LEGO Group, Mattel, Brandstatter Group (Playmobil), Ravensburger, VTech, Kids II, Inc., Goliath Games, Artsana Group, Nintendo Co. Ltd.

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Considered in this report • Geography: Middle East & Africa • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Middle East & Africa 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 • 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.