Toys and Games Market Analysis North America,Europe,APAC,South America,Middle East and Africa - US,China,India,Germany,UK - Size and Forecast 2023-2027

Toys and Games Market Forecast 2023-2027

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 market thrives on diverse factors driving consumer demand, notably the expanding personal disposable income and growing middle-class population worldwide. Additionally, the surge in children's TV and internet viewership amplifies exposure to toy and game products, fueling market growth. With the escalating trend towards online shopping, the market experiences a notable shift towards e-commerce platforms, offering convenience and accessibility to consumers. This dynamic landscape underscores the market's resilience and adaptability to evolving consumer preferences and technological advancements, fostering continued expansion and innovation within the industry. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021. 

 What will the Size of the Toys And Games Market be During the Forecast Period?

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Market Dynamics and Customer Landscape

In the ever-evolving world of entertainment, the market continues to thrive, catering to various demographics and preferences. From Green toys, which prioritize Sustainability, to Building toys, such as Construction sets and Puzzles, that foster STEM concepts and Cognitive benefits among Millennials and Parents, the industry is diverse and inclusive. Mobile-based gaming and Tech-based toys, including Digitalization and Content production, have gained significant traction, especially among younger generations. Moreover, the revival of Old-school games, like Board games and Scrabble, has been a trend at Social gatherings. Brands like Mattel and Barbie, known for their Conventional toys, have also embraced the Service-oriented model and E-stores to reach a broader audience. Kickstarter, a popular platform for crowdfunding innovative projects, has given birth to numerous Tech-based and STEM-related games and toys. Pentagram, a renowned design firm, has contributed to the aesthetics of various toys and games, ensuring an engaging and visually appealing experience for users. 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. 

Key Market Driver

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.

Significant Market Trend

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.

Major Market Challenge

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.

Customer Landscape

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

Who are the Major Market Companies?                                     

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 :

• 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.
• VTech Holdings Ltd.

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. 

Market Segmentation

The market encompasses various categories, including green toys, building toys, mobile-based gaming, and construction sets. These products cater to diverse age groups, from children to millennials and senior adults. Puzzles, old-school games, and dolls like Barbie from companies such as Mattel are popular choices for recreational activities. STEM concepts and tech-based toys are driving growth in the market, with platforms like Kickstarter fostering innovation. Sustainability and digitalization are key trends, with e-stores and online retailing becoming increasingly prevalent. Indoor games, board games, and cognitive benefits of traditional toys continue to appeal to parents. The market includes a mix of service-oriented models and content production, with video games, mobile apps, and video content fueling technological developments. Social gatherings and video game tournaments further enhance the market's appeal. Companies like Pentagram and retailing platforms focus on providing a wide range of products, from Conventional toys & video games to e-commerce offerings.

By Product

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 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.

Which are the Key Regions for the Market?

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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 North American toy industry, led by the US and Canada, represents a major segment in the global market. This market is experiencing substantial growth, driven by increasing demand for electronic games, virtual reality (VR), and mobile gaming. Games and puzzles, including classics like chess, Chutes and Ladders, Exploding Kittens, and playing cards, continue to be popular. Educational and interactive toys that foster emotions, creativity, cognitive skills, physical skills, and social skills are also in high demand. Mid-priced toys featuring popular characters from cartoons, television shows, movies, action figures, and accessories often experience discounted sales but contribute significantly to market growth. Additionally, multi-functional toys catering to various age groups and interests continue to be a significant trend.

Market Analyst Overview

 

In the dynamic and ever-evolving marketplace, toys and games continue to captivate consumers of all ages, like playing with the DIY wind-up flashlight kit. With the integration of technology in modern playthings, the industry has seen a significant surge in innovation. Consumers are drawn to brands that offer Construct toys and games, such as LEGO, which promote creativity and hands-on learning. Mobile applications and digital games, like Minecraft and Roblox, have also gained immense popularity, offering interactive and engaging experiences. Brands like Mattel and Hasbro continue to dominate the market with their classic and iconic toys, while newcomers like Sphero and Anki bring innovative and technologically advanced offerings to the table. The consistent trend towards merging technology and play has transformed the market into a thriving and competitive industry.

Segment Overview

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.

• Product Outlook 
  • Activity and ride-on-toys
  • Infant and preschool-toys
  • Games and puzzles
  • Plush-toys
  • Others

• Distribution Channel Outlook 
  • Offline 
  • Online

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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