Toys Market Size, Share, Growth Analysis, By Product, By Sales Channel, By Age Group, By Region - Industry Forecast 2024-2031

Toys Market size was valued at USD 157.59 billion in 2022 and is poised to grow from USD 164.68 billion in 2023 to USD 234.2 billion by 2031, growing at a CAGR of 4.5% in the forecast period (2024-2031).

The toy market is a vibrant and constantly evolving industry that caters to the entertainment and educational needs of children and collectors alike. Recent years have brought significant transformations driven by changing consumer preferences, technological advancements, and global economic shifts. A notable trend is the rising demand for educational and STEM toys, which are increasingly valued by parents and educators for their ability to foster learning, creativity, and problem-solving skills in children. This includes toys like robotics kits, coding games, and science experiments, reflecting a fusion of fun and education. Moreover, advancements in technology such as AR, VR, and smart devices have introduced a new era of interactive toys that blend physical play with digital experiences, creating immersive environments. There's also a growing emphasis on environmental sustainability, with consumers seeking eco-friendly toys and supporting brands committed to reducing plastic waste. The expansion of e-commerce has further revolutionized the market, making a diverse range of toys accessible globally through online platforms and specialized websites.

Top-down and bottom-up approaches were used to estimate and validate the size of the Toys Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Toys Market Segmental Analysis

The toys market is segmented by product, age group, sales channel and region. By product, the market is segmented into action figures, building sets, dolls, games/puzzles, sports & outdoor toys, preschool toys, plush, and others. By age group, the market is segmented into Up to 0-8, 9-15, and 15+. By sales channel, the market is segmented into hypermarket/supermarket, specialty stores, departmental stores, online channels, and, others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Toys Market

The toys market has experienced substantial growth due to economic expansion in emerging markets and rising disposable incomes across various regions. With families having more financial resources for discretionary spending, there has been a notable surge in demand for diverse toy offerings. This trend is particularly evident in nations witnessing a burgeoning middle class, where parents prioritize investing in their children's educational and recreational needs. As household incomes rise, so does the willingness to purchase toys that contribute to children's development and enjoyment, thereby fuelling the expansion of the toy market.

Restraints in the Toys Market

Safety concerns exert a considerable influence on the toy market, acting as a major impediment. Instances of product recall stemming from safety issues like small parts that pose choking hazards or the presence of toxic materials can severely damage a company's reputation and diminish consumer confidence. In response, governmental and regulatory entities have implemented more stringent safety standards and regulations. These measures aim to enhance consumer protection but often lead to heightened production expenses and restrictions on the materials permissible for toy production. As a result, companies must navigate a complex landscape to ensure compliance while maintaining product innovation and profitability in the competitive toys industry.

Market Trends of the Toys Market

Consumer preferences have notably shifted towards educational and STEM toys, reflecting a growing demand among parents and caregivers for toys that combine entertainment with educational benefits for children. This trend is driven by a strong desire to foster early learning and skill development. Consequently, toy manufacturers are responding by introducing a diverse array of educational products such as robotics kits, science experiments, and coding games. These toys not only engage children in play but also stimulate their curiosity and creativity, preparing them for future challenges in science, technology, engineering, and mathematics fields.