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The global construction toys market size is estimated to grow by USD 2.03 billion, at a CAGR of 3.75% between 2023 and 2028. Market growth hinges on diverse factors, including the heightened parental emphasis on children's holistic development, a decline in child mortality rates expanding the target audience, and the growing trend of gifting toys during festive and special occasions. Parents' evolving priorities toward nurturing well-rounded children drive demand for educational and interactive toys, fostering cognitive and social skills. This shift aligns with broader societal trends favoring quality playtime and experiential learning. The rising disposable incomes in many regions further fuel the toy market, enabling families to invest in diverse playthings that cater to developmental milestones. As such, the convergence of parental aspirations, child health improvements, and celebratory traditions underpin the robust growth trajectory of the toy market.
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Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
All Star Learning Inc., ANINDITA TOY CO. PVT. LTD., Bandai Namco Holdings Inc., BASIC FUN Inc., Elenco Electronics Inc., Evertoys, Gsmserver, Hasbro Inc., Learning Resources Ltd., LEGO System AS, Magformers LLC, Mattel Inc., Ravensburger AG, Simba Dickie Group, Smartivity Labs Pvt. Ltd., Spin Master Corp., Takara Tomy Co. Ltd., VTech Holdings Ltd., and PlayMonster LLC
Qualitative and quantitative analysis of market growth and trends of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified. Furthermore, market growth and forecasting it is also quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The Market is propelled by a growing focus on holistic development, encompassing physical, intellectual, and social skills. Educational toys promoting cognitive development and problem-solving skills are highly sought after, especially among working-class parents. Trends show an increasing demand for sustainable, recyclable materials, driven by regulatory authorities and consumer preferences. Incorporating Internet of Things (IoT) technology and availability on e-commerce platforms bolster market accessibility. Challenges like addressing Bisphenol A concerns in plastic toys and ensuring toys meet educational standards remain pertinent for industry stakeholders. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The increasing popularity of toys as gifts, especially during festive and special occasions is the key factor driving market growth. People offer various types of gifts, particularly toys and it has a wide range of options such as educational toys, STEM toys, smart toys, and many others. The demand drives during some occasions such as birthdays, Christmas, Halloween, and festivals. To cater to the growing demand, market players are offering products that are specific to festivals and occasions in various regions. For instance, companies operating in the Americas and Europe offer a wide range of toys at special prices during festivals such as Christmas.
In addition, the culture of self-gifting (gifting products such as toys to their child) and mutual-gifting practices have contributed to increased retail sales. This is attributed to design improvements, efficient ordering processes, and smooth delivery processes. Such practices will fuel the up-selling and cross-selling of them among retailers, which, in turn, will drive the growth of the market during the forecast period.
The introduction of eco-friendly toys is one of the major market trends. The growing demand has also raised various safety and health issues associated with the raw materials. Therefore, parents and educators are opting for toys made of eco-friendly materials, which are generally called green toys. market players are increasingly focusing on the development of sustainable products.
For example, in August 2021, LEGO launched building blocks made from recycled plastic. As a result, various established players and startups are increasingly introducing and entering the global eco-friendly market. The introduction of green toys in the market will drive market growth during the forecast period.
The increased popularity of digital and e-games is a challenge that affects market growth. Digital and e-games are growing at an accelerating rate across the globe. They are increasingly replacing traditional toys and games such as construction toys. Gaming and animation on desktops, consoles, and mobile phones attract children easily. Low consumer loyalty toward traditional toys and games, coupled with the introduction of different popular physical games on the digital gaming platform, hinder the sales of traditional games.
Furthermore, with the growing use of smartphones, mobile gaming is likely to increase during the forecast period. According to the GSM Association's annual State of Mobile Internet Connectivity Report 2023 (SOMIC), more than half (54%) of the global population, or more than 4.3 billion people, currently owns a smartphone. Consequently, the increasing popularity of digital e-games is expected to pose a serious threat to the growth of the market during the forecast period.
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The Market thrives on catering to children's holistic development, focusing on both physical and intellectual growth. Key elements such as PVC-free materials, caps, wheels, pulleys, sticks, and couplings stimulate cognitive development and spatial reasoning, aligning with modern education systems that prioritize holistic development. Toys designed to foster imagination, motor skills, and social competence are particularly sought after, especially by working-class parents looking for educational and sustainable options. The inclusion of Internet of Things (IoT) technology and availability through e-commerce platforms further expands access, with seasonal offers like Christmas and New Year discounts driving consumer interest.
The offline segment will account for a major share of the market's growth during the forecast period.? Offline sales channels including specialty stores, hypermarkets, and department stores, face revenue decline due to the growing preference for online shopping. To counter this trend, companies are expanding their brick-and-mortar presence, such as LEGO's global store expansion, especially in China. Intense market competition prompts retailers to adopt innovative strategies like pricing adjustments. The offline segment was valued at USD 7.10 billion in 2018. Mattel employs extensive advertising, while various retail formats serve different geographic locations. The focus on diverse retail channels aims to enhance customer engagement, fostering market growth despite the challenging environment. Thus, such factors are expected to drive market growth through the offline segment during the forecast period.
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The market is segmented by type into bricks and blocks, tinker toys, and others.
APAC is estimated to contribute 44% during the forecast period.
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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The market in the region is mainly driven by the rising demand for premium and branded products. The key contributing countries in APAC are China, Japan, and India. China is home to most toy manufacturers. People in China increasingly spend on premium and good-quality games due to the increase in disposable income. Furthermore, population growth further fuels the demand in APAC. China and India are also the fastest-growing economies in the world. However, the presence of counterfeit products is expected to hinder market growth to some extent in these countries during the forecast period.
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The market showcases a dynamic landscape influenced by various factors, including educational systems and child psychology. Plastic toys, particularly PVC-based ones, face scrutiny due to concerns over plasticizers like bisphenol A and phthalates, prompting regulatory interventions, notably in Sweden. Sustainable alternatives like wooden toys gain traction, reducing carbon footprints. Segments like Tinker toys and manipulatives diversify options, enhancing creativity and cooperation. With the integration of IoT, construction toys evolve, emphasizing both traditional elements and technological advancements to nurture holistic child development.
In addition, the market offers a diverse range of options, fostering creativity, and imagination in children. These toys, including bricks, blocks, and tinker toys, promote problem-solving abilities and motor skills development. They encourage social interaction and cooperation, enhancing social competence and communication skills. With a growing emphasis on sustainable toys, manufacturers are incorporating eco-friendly materials like polypropylene. Regulatory authorities ensure adherence to safety standards, along with interactive play experiences. They are integral to education systems worldwide, recognized for their ability to engage children in hands-on learning activities, puzzles, and collectibles, fostering cognitive flexibility and holistic development.
Furthermore, the Market is undergoing a transformative phase, driven by a myriad of factors that underscore its significance in fostering cognitive development and spatial reasoning among children. A notable trend is the increasing adoption of PVC-free and recyclable materials, reflecting a shift toward eco-friendly raw materials in response to growing environmental concerns. Moreover, the integration of Internet of Things (IoT) technology in toys, especially in the bricks and blocks segment and Tinker toys segment, enhances interactive play experiences. Components like caps, wheels, pulleys, sticks, and couplings are being engineered to promote mechanical principles and problem-solving skills. E-commerce platforms play a pivotal role, offering convenience and accessibility, with Christmas and New Year discounts attracting more buyers. Working-class parents often seek value in toys that promote productive skills and mental development, with a focus on boys' categories featuring city-building toys and construction vehicle model toys.
Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2023 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.75% |
Market growth 2024-2028 |
USD 2.03 billion |
Market structure |
Fragmented |
YoY growth (%) |
3.26 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 44% |
Key consumer countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
Key companies profiled |
4M Industrial Development Ltd., All Star Learning Inc., ANINDITA TOY CO. PVT. LTD., Bandai Namco Holdings Inc., BASIC FUN Inc., Elenco Electronics Inc., Evertoys, Gsmserver, Hasbro Inc., Learning Resources Ltd., LEGO System AS, Magformers LLC, Mattel Inc., Ravensburger AG, Simba Dickie Group, Smartivity Labs Pvt. Ltd., Spin Master Corp., Takara Tomy Co. Ltd., VTech Holdings Ltd., and PlayMonster LLC |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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