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What are Toys?
A toy is an object or device that is designed for play, amusement, or entertainment. It is typically intended for children, although there are toys designed for adults as well. Toys can come in various forms, including dolls, action figures, puzzles, board games, building blocks, stuffed animals, vehicles, electronic gadgets, and more.
An estimated 2.6 billion toys, including electronic toys and video games, are sold in the United States each year, according to the Toy Industry Association, Inc. Toys can support cognitive growth, development of fine motor and gross motor skills, and improve problem solving and attention.
Global Toy Market Overview
The Toy Market showcased growth at a CAGR of 6.10% during 2018-2022. The market was valued at USD 114.38 Billion in 2023 which is expected to reach USD 152.42 Billion in 2028. Toys based on popular movies, TV shows, and video games are often very successful, as children enjoy playing with characters they know and love. The Toy Market is driven by a combination of factors related to innovation, licensing, consumer spending, gift-giving, and educational value.
The rise in the Toy Market is due to Education and STEM (Science, Technology, Engineering, and Mathematics) toys available in the market. As parents become increasingly interested in providing their children with educational toys that promote learning and skill development, there has been a growing trend towards STEM-based toys. STEM toys are designed to teach children important skills related to science, technology, engineering, and math. These toys often incorporate coding, robotics, and other advanced technologies, which can help children develop critical thinking, problem-solving, and creativity skills.
Parental Understanding for the Role of Toys in Kids Development
Toys are objects that children use for entertainment while simultaneously exploring the wonderful world around them, constantly educating themselves, role-playing, and exploring how to best express their emotions. Since toys can be used as symbols for other things, they have great potential for helping children understand bigger concept. Parents are also understanding the role of toys in selection and responses to toy play which plays important factors in children’s gender socialization. Reinforcing play with same-gender-typed toys guides children’s activities and limits their action repertoires in accordance with gender stereotypes. There are approximately 2 billion children under 14 years of age around the world in 2023.
Toys nurture children’s’ cognitive development during the most important childhood years. Toys stimulate concentration levels and enhance attention span and memory. In turn, cognitive development during the childhood years improves children’s’ ability to approach language and math skills in a fun way. Toys teach children about STEM as children are always absorbing information from their surroundings. Companies like Melissa and Doug have oriented their products in children development.
Increasing Screen Time and Entertainment through Digital Form
A study by Michael Cohen Group, suggests that touch screens have overtaken all other forms of playful delight for kids. The research, which examined the world of Digital Kids, shows that more than 60 percent of parents say their kids aged 12 and under play on touch screens "often." And 38 percent apparently play "very often”. It could be possible that at least 15 percent don't talk to their parents at all. These figures put the gadgets ahead of mainstay toys such as dolls, action figures, puzzles, and board games. That would mean that even construction and blocks like Lego are far behind.
The impact of the increasing prevalence of digital entertainment, video games, and mobile devices has diverted children's attention away from traditional toys. Screen time and virtual experiences compete with physical play, impacting the demand for traditional toys. The most common reason kids like to watch more play videos is because they are entertaining. The entertainment value is not simply in the game itself but in online watching the person who has made the video also has an entertainment factor attached to it which makes kids more diverted to videos than action figures and board games.
Segment-Wise In-sights
In Age segment, 8-15 Years Category accounts for USD 42.01 billion in 2023
Global Toy Market, By Age segment was valued at USD 39.81 Billion in 2022 and is expected to grow at a CAGR of 7.36% during 2024-2028.
The growing popularity of e-commerce platforms has made it easier for consumers to access a wide range of toys from different parts of the world. This has further contributed to the growth of the global toy market, including the market for toys for the age group of 8 to 15 years.
Furthermore, as technology continues to advance, there has been a growing trend toward interactive and tech-enabled toys that offer unique experiences for children. This has led to the introduction of innovative products such as drones, virtual reality headsets, and smart toys, which are expected to drive the growth of the toy market even further.
E-Commerce registered the fastest growth in Toy Market
Global Toy Market, By Distribution Channel segment was valued at USD 24.37 Billion in 2022 and is expected to grow at a CAGR of 8.22% during 2024-2028.
Online shopping offers greater accessibility to a wider range of toys. E-commerce platforms are not limited by physical store space and can stock a larger variety of toys, including niche and hard-to-find products. This makes it easier for parents to find unique and special toys for their children.
Moreover, E-commerce platforms often offer competitive prices and discounts on toys due to their lower overhead costs. They also allow customers to easily compare prices across different websites, ensuring they get the best deal possible.
Regional Insights
According to Azoth Analytics Estimates, Americas accounts for the largest revenue share in 2023. Americas is a consortium of developed and developing countries where internet penetration is rapidly advancing and demand for high-quality goods are also in huge demand which are main drivers for the growth of the Toy Market in the Americas.
Due to rising population in Americas there is growth in demand for the automobiles for daily transportation and transportation of good and services which require more faster and better production technology which is increasing demand for Toys throughout Americas. Moreover, rising internet penetration in the region of Americas and high data generation and cost related to maintaining that data, companies are shifting towards cloud deployed Toys.
Competitive Landscape
Global Toy Market is fragmented with top 10 companies accounting for a significant revenue share in the year 2023. Leading companies and brands in the market are executing different strategies and partnerships to strengthen the foothold and increase the competitiveness and product offerings in the market.
Lego Group, Mattel Inc., Hasbro Inc., Bandai Namco Holding, Spin Master Ltd., Horst Brandstatter Group, MGA Entertainment and amidst others are the leading companies in the Global Toy Market
Leading companies in the Global Toy Market include:
Recent Developments in the Toy Market
Segmentations in the Report
By Product Type
By Age
By Distribution Channel
By Region
Frequently Asked Questions
What is the expected market value of Toy Market in 2028?
Global Toy Market is expected to be valued at USD 152.41 Billion in 2028.
At what growth rate is Toy Market expected to grow in the forecast period?
During 2024-2028, Toy Market is expected to grow at CAGR of 6.10%.
Which Region dominates the Toy Market?
Americas contributes the largest revenue share in the Toy Market in 2022 and is expected to continue in the forecast period as well.
Which are the leading companies in the Toy Market?
Lego Group, Mattel Inc., Hasbro Inc., Bandai Namco Holding, Spin Master Ltd., Horst Brandstatter Group, MGA Entertainment and amidst others are the leading companies in the Global Toy Market.
At what rate will China Toy Market Grow?
During 2024-2028, China’s Toy Market is expected to grow at a CAGR of 7.55%
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