The current global toy market is a vibrant and dynamic industry with several notable characteristics:
Market Size and Growth
- The global toy and game market is projected to reach $130 billion in 2024, with an expected compound annual growth rate of 2.49% from 2024 to 2028. In 2023, the market size was $183 billion and is estimated to grow to $326 billion by 2032, with a CAGR of 6.5% from 2024 – 2032.
- Despite the growth, the market is still affected by global economic conditions, leading to some consumers reducing their toy budgets.
Regional Analysis
- United States: It is the largest toy consumer market globally, accounting for 28.15% of global toy retail sales. In 2024, US toy sales are predicted to be $401.1 billion, potentially expanding to $463 billion by 2028. Sports and outdoor toys are particularly popular, making it a prime segment for sellers targeting the US market.
- Europe: Europe is an important part of the toy market, with the UK being the largest toy-consuming country in Europe, accounting for 4.82% of global toy retail sales. In the UK, video games, infant toys, dolls, and plush toys are among the top-selling categories.
- Japan: With the booming of otaku culture, Japan has a broad audience base for toys and games. In 2021, its toy market size was $67.9 billion, accounting for more than 13% of the Asia-Pacific market share.
- Emerging Economies: Countries like Brazil are also showing significant growth in toy consumption. In 2021, Brazil’s toy market retail totaled $61 billion, with plastic toys, infant toys, dolls, plush toys, and building sets being the leading segments.
Product Type Analysis
- In 2023, the top three toy segments were building sets and models ($27 billion), infant and children’s toys ($27 billion), and dolls and plush toys ($21 billion), and they are expected to remain dominant by 2028.
- There is an increasing demand for educational and skill-building toys, with 65% of parents considering such factors when purchasing toys. Examples include Lego bricks and role-playing toys.
- Tech toys, such as smart toys, robot toys, and VR toys, are gaining more attention due to their combination of technology and innovation.
- Adult-targeted toys, like stress-relief toys, are also on the rise, as more than half of parents consider toys that can promote physical and mental health.
Sales Channel Trends
- While online sales of toys are increasing year by year, offline sales still dominate, accounting for 72.9% in 2023 compared to 27.1% online. However, in some regions like the US, the online purchase proportion is steadily rising and is expected to exceed 50% by 2025.
- Consumers, especially in the US, tend to prefer brand stores or DTC websites, with their expenditure on these channels being 86% higher than other shopping channels.
Market Trends and Challenges
- The retro trend has become popular in the toy industry since 2019, but sellers need to be cautious about copyright issues.
- The toy market is becoming more competitive, with countries like India, Vietnam, and Mexico strengthening their toy industries. Therefore, innovative design and brand building are crucial for sellers’ future development.
- Market demand can be unpredictable due to economic fluctuations, but the expanding toy audience, including young adults, also presents new growth opportunities.
