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The toys and games market is estimated to grow by USD 70.12 million at a CAGR of 8.1% between 2022 and 2027. The growth of the market depends on several factors, including the increasing personal disposable income and rising middle-class population, the increasing children's TV and Internet viewership, and the rise in online sales.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growth in the middle-class population and increasing disposable incomes are notably driving the market growth, although factors such as seasonal demand and the short life of merchandise and collectibles may impede the market growth. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The growth in the middle-class population and increasing disposable incomes are notably driving the market growth. In recent years, the lifestyle in both developed countries and emerging economies such as Russia, China, and India has changed dramatically. One of the reasons behind this dramatic increase is rapid urbanization. Another reason behind the dramatic changes in consumer lifestyle is an increase in purchasing power. Consumer purchasing power and living standards have increased because of higher disposable income, especially in developing countries such as India and China. The increasing disposable income in these countries, along with rapid urbanization, is leading to a rise in the demand from organized multi-brand retail stores, which, in turn, is helping the market companies to earn higher revenue. According to the U.S. Census Bureau's statistics, in 2020, among 4 million out of about 11 million single-parent families with children under the age of 18, 80% were headed by single mothers. It was reported that single mothers were the sole earners or the chief source of income in more than 80.5% of the households that had children below the age of 18 years in 2020. This figure was a mere 11% in 1960. This increase in the number of working women, including mothers, has led to an increase in disposable incomes, leading to higher spending on children. Thus, the increase in the number of working mothers is helping the global market grow. In addition, the size of the middle-class population is increasing in regions such as APAC. By 2030, two-thirds of the global middle-class population will be based in APAC, with the middle-class population in China reaching almost 1 billion. Thus, the growth in the middle-class population and increasing disposable incomes will fuel the growth of the global market during the forecast period.
The emergence of three-dimensional (3D) printing is the primary trend driving the market growth. 3D printing is a new trend in the market, which poses a challenge for toy manufacturers and license providers, as consumers can obtain 3D prints of their favorite toy characters any time they want. There is also an inherent risk that this technology will increase the market for counterfeit collectibles and toys and lead to copyright and trademark infringements. 3D printers are likely to become increasingly affordable over the coming years. Thus, licensors are trying to protect their products and figuring out methods to legitimize do-it-yourself merchandise and toys and derive revenue from such activities. Many licensors, such as Sesame Workshop and Hasbro are also offering licenses to 3D printing companies by providing access to specific assets and differentiating them from other licensed merchandise available in the market. Many market players are introducing 3D printing tools for building and modifying toys at home. Such innovations in 3D printing are expected to propel the growth of the market in focus during the forecast period.
The seasonal demand and the short life of merchandise and collectibles may impede market growth. Efficient merchandise management is critical for retailers. They need to plan merchandise procurement based on demand forecasts. This is because the demand for these products does not remain fixed. With the demand in the market being highly prone to changing consumer needs, toy and game manufacturers may regularly need to extend or drop entire product categories or lines. As a result, merchandise purchasing can become very challenging. The merchandise manufacturing industry is highly fragmented, and retailers can have a wide range of companies, which can make merchandise procurement even more difficult. The popularity of most TV and movie-inspired merchandise is short-lived. Merchandise manufacturers and licensors register most of their sales around the release of a movie or TV show due to the novelty of the characters, toys, and properties related to the movie or show. With time, new characters and properties of new TV shows and movies replace the existing ones. This leads to the accumulation of dead stock with retailers. To overcome this situation, retailers usually prefer blockbuster and evergreen merchandise and toys to movie-based merchandise, as TV shows tend to be divided into semi-annual or yearly sets of new episodes. Additionally, merchandise sales are directly proportional to the popularity of movies or TV shows. Unlike movie merchandise, most of the TV merchandise is stocked and sold after the airing of the show. Retailers usually pre-stock most of the movie merchandise to stay ahead of competitors. Thus, retailers may end up with dead stock if the movie fails. Such factors negatively impact the revenue of the market, which, in turn, will impede the growth of the market in focus during the forecast period.
Our analysis of the Life Cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including the US, China, India, Germany, and the UK. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product / service launches, to enhance their presence in the market.
4M Industrial Development Ltd. - The company offers green science products, KidzLabs, creative crafts, and thinking kit products.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including :
Qualitative and quantitative analysis 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; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the activity and ride-on toys segment will be significant during the forecast period. The segment is expected to grow at a significant pace during the forecast period. These primarily include outdoor, sport, and model vehicle toys, such as frisbees, hula hoops, and twisters, which are used for recreation, sports, fitness, and juggling. These are available in the form of pedal toys, motorized toys, and wheeled toys. They are intended for children aged two years and above and are bought for toddlers, specifically when they are learning to walk. These help in improving mobility and providing exercise to infants. The advantages of these are driving the growth of the segment, which, in turn, is propelling the growth of the market in focus.
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The activity and ride-on toys segment showed a gradual increase in market share from USD 39.05 million in 2017 and continued to grow by 2021. Parents are increasing their spending on buying premium activity and, owing to their rising disposable income. Owing to the rising popularity of these, several market players are offering premium activities and for toddlers. For instance, JOHN DEERE provides tractors and jeeps for kids. Some of the other major brands providing activity toys are Disney, Imaginarium, The LEGO Group, and TOMY. Therefore, the presence of prominent companies offering innovative activity toys and the rising disposable income of the parents are the major factors that are driving the growth of the activity and the ride-on toys market, which, in turn, will propel the growth of the global market during the forecast period. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segment along with their reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of the Market by residential consumers, which is driven by an increase in the global demand industry.
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North America is projected to contribute 31% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The demand for traditional toys and games is expected to rise during the forecast period due to numerous licensing opportunities in the US. Consumers are also shifting their focus toward scientific and educational toys, as playing with these toys enhances knowledge among children. Therefore, the increasing demand, the rising spending capacity of consumers, and the presence of several prominent companies are expected to propel the growth of the regional market in focus during the forecast period. However, the market in North America is highly organized as companies are required to comply with stringent regulations, such as those set by the American Society for Testing and Materials (ASTM) regulatory and compliance standards, which deal with various aspects, such as material quality and flammability of the toy. The stringent toy safety regulations and testing requirements impact small-scale toy manufacturers, as most of them find it difficult and costly to adhere to these requirements. This will hinder the growth and expansion of the toys game market in North America during the forecast period.
Our market report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by product, distribution channel, and region.
The market is a vibrant industry driven by a range of factors, including population expansion and personal disposable income levels. This market offers a variety of products, including rattles, dolls, toy vehicles, skipping ropes, board games, and jigsaw puzzles, which contribute to the development of emotions, creativity, cognitive skills, physical skills, and social skills in children.
Interactive and multi-functional toys, often featuring popular characters from cartoons and television shows, are particularly popular. The market has also seen growth in the digital space, with a rise in online stores and the popularity of video games, including titles like FIFA, PUBG, and Counter-Strike. Video game tournaments and the use of AR/VR headsets have further enhanced video game engagement.
The industry is also evolving with the use of environmentally friendly materials such as bamboo and cork in toy production. Educational board games and brain training cubes are gaining popularity, reflecting a shift towards instructional gaming. However, the market faces challenges such as competition, content rights sales, and industry convergence, which impact its competitive intensity and require investment in new game formats and franchising approaches.
Toys And Games Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2022 |
Historical year |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.1% |
Market growth 2023-2027 |
USD 70.12 million |
Market structure |
Fragmented |
YoY growth (%) |
6.9 |
Regional analysis |
North America, Europe, APAC, South America, and the Middle East and Africa |
Performing market contribution |
North America at 31% |
Key consumer countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
Key companies profiled |
4M Industrial Development Ltd., Atlas Games, Clementoni Spa, Elenco Electronics Inc., Franckh Kosmos Verlags GmbH & Co. KG, Goliath Games LLC, Hasbro Inc., JAKKS Pacific Inc., Kids2 Inc., Learning Resources Ltd., LEGO System AS, Mattel Inc., MGA Entertainment Inc., Playmates Holdings Ltd., Ravensburger AG, Simba Dickie Group GmbH, Smartivity Labs Pvt. Ltd., Spin Master Corp., TOMY Co. Ltd., and VTech Holdings Ltd. |
Market Dynamics |
Parent market analysis, Market Forecasting, 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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