Toy Market

Global Toy Market Size (2024 to 2029)

The size of the global toys market is expected to be valued at USD 295.2 billion by 2029 from USD 206.6 billion in 2024, growing at a CAGR of 7.44% during the forecast period.

Toys play a crucial role in the development and well-being of children and offer numerous benefits that contribute to their physical, cognitive, social and emotional growth.

Current Scenario of the Global Toy Market

The demand for toys is driven by children's need for entertainment, education, and skill development, with parents often purchasing toys to meet these needs. Usage of toys varies based on age and interests, ranging from imaginative play to cognitive challenges. Affluent families are willing to spend more on high-quality and technologically advanced toys in developed regions such as North America and Europe. On the other hand, emerging markets such as Asia-Pacific and Latin America are experiencing increasing demand due to a growing middle-class population and urbanization. The advent of e-commerce has made toys more accessible to consumers worldwide and is contributing to the global market expansion. Moreover, advancements in technology have led to the development of interactive and electronic toys, which have been bringing innovation to the global toy market. The demand for environmentally friendly and sustainable toys is on the rise and resulting in the increasing awareness of consumers regarding eco-conscious consumerism. During the forecast period, the global toy market is anticipated to evolve further and offer lucrative opportunities for market participants and innovation across various geographical regions.

MARKET DRIVERS

The growing population of children globally and increasing disposable incomes are key factors propelling the growth of the global toy market.

The rise in the number of children worldwide is fueling the demand for toys. For instance, the global population of children aged 0-14 years is projected to reach 2.2 billion by 2030 from 1.9 billion children in 2020. The pool of potential consumers for toys is also growing significantly owing to the high birth rates in many regions, especially in developing countries and this demographic trend creates a significant market opportunity for toy manufacturers and retailers to cater to the needs and preferences of children and their families. The disposable income is substantially growing worldwide and is enabling parents and caregivers to allocate more resources toward purchasing toys for their children. For instance, the global gross national income (GNI) per capita increased from USD 10,251 in 2010 to USD 11,580 in 2020, which indicates a rise in disposable incomes across many regions. With the growing household income, families have greater purchasing power to spend on discretionary items such as toys, games and other entertainment products.

The rapid adoption of technology in toys and the expansion of e-commerce platforms are fueling the growth rate of the global toy market.

The penetration of technology in the toy market is happening at an aggressive pace. The integration of technology such as sensors, augmented reality (AR), virtual reality (VR) and interactive features has transformed traditional toys into innovative and engaging products. Technology-enhanced toys offer immersive experiences, educational content and interactive gameplay to kids and are appealing to tech-savvy children and parents seeking high-quality entertainment options. The adoption of e-commerce has significantly increased in the recent past and has revolutionized the way consumers shop for toys and offers convenience, accessibility and a wide selection of products. The number of parents purchasing toys online for their children is gradually increasing. For instance, 72% of parents in the United States purchased toys online in 2020, as per a survey of Statista. Online retailers provide a platform for toy manufacturers to reach a global audience, expand their market presence and cater to diverse consumer preferences. For instance, the global toy sales through e-commerce channels increased by 10% in 2020 and be worth USD 27.5 billion, holding 31% of the share in the total global toys sales. In addition to that, e-commerce platforms also offer features such as product recommendations, customer reviews and personalized shopping experiences to enhance the overall toy purchasing process for consumers.

Factors such as the growing demand for educational toys, rising emphasis on child development and learning, innovation in toy design and features and rising awareness of early childhood education are promoting the growth of the global toy market. Increasing demand for sensory toys and the increasing importance of toys in therapeutic settings are further accelerating the growth of the global market.

MARKET RESTRAINTS

Stringent safety regulations and compliance requirements and growing competition from digital entertainment and gaming platforms diverts children's attention away from traditional toys are primarily hampering the growth of the global market. Rising production and raw material costs squeeze profit margins for toy manufacturers, negative impacts of toy recall and safety incidents damage consumer trust and confidence in toy brands, growing concerns about screen time and the shift towards minimalist and experiential lifestyles prioritizes experiences over material possessions are further hindering the toy market growth worldwide.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Toy Market Analysis By Type

The games and puzzles segment dominated the market, accounting for 24.7% of the global market share in 2023. The games and puzzles segment is also predicted to register the fastest CAGR of 6.04% during the forecast period. Games and puzzles have gained popularity among families and recognized as the best alternative to screen time, which is one of the key factors propelling the segmental expansion. The growing awareness of educational games and puzzles that enhance cognitive skills in kids is boosting the growth rate of the games and puzzles segment in the global market. Educational games and puzzles account for 35% of the total games and puzzles market.

The building sets segment had 20.3% of the global market share in 2023 and is expected to grow at a CAGR of 5.94% during the forecast period. The growing popularity of movie and TV franchises, the collectible nature of action figures appealing to adult collectors, and innovation in design and features, such as articulation and accessories, are boosting the growth of the building sets segment in the global market. Factors such as promotional tie-ins and marketing campaigns with entertainment media and increasing nostalgia among adults for retro action figure lines are further supporting the expansion of the building sets segment in the global market.

Global Toy Market Analysis By Age Group

The up to 5 years segment held 41.9% of the global market share in 2023 is expected to grow at a CAGR of 5.66% during the forecast period. The early developmental stages of children necessitate toys that stimulate their senses and facilitate learning. Manufacturers focus on producing toys that aid in cognitive development, fine motor skills and sensory exploration, which is one of the major factors propelling the growth of the up to 5 years segment in the global market.

Global Toy Market Analysis By Sales Channel

The supermarkets and hypermarkets segment led the market and captured 31.8% of the global market in 2023 and is predicted to grow at a steady CAGR during the forecast period. The convenient accessibility to buy toys during routine shopping trips by consumers is primarily contributing to the growth of the supermarkets and hypermarkets segment in the global market. For instance, an estimated 40% of toy sales occur in supermarkets and hypermarkets globally. In-store promotional activities in supermarkets and hypermarkets are further boosting the sales of toys in this sales channel and promoting the expansion of the segment. For instance, it was reported that supermarkets and hypermarkets usually experience 30% increase in toy sales during holiday seasons due to promotional campaigns.

The specialty stores segment was the second biggest segment in the global market in 2023, holding for a share of 26.7% of the worldwide and is expected to register a promising CAGR during the forecast period. Specialty stores offer a curated selection of toys that attract consumers seeking distinctive and high-quality products. The growing demand for educational toys is fueling the growth rate of the specialty stores segment in the global market. For instance, specialty toy stores account for 70% of sales in the educational toys market. 

REGIONAL ANALYSIS

North America captured a share of 36.7% of the global market in 2023 and the domination of the North American region in the global market is likely to continue throughout the forecast period. The growth of the North American market is primarily attributed to the continuous innovation in toy designs, strong consumer purchasing power, technological advancements, popular licensed merchandise and robust distribution channels. The U.S. accounts for the major share of the North American market during the forecast period and had 69.1% of the North American market share in 2023. The launch of interactive STEM-based toys in the U.S. is majorly driving the U.S. toy market growth.

Europe held the second biggest share of the global market in 2023 and is predicted to witness a prominent CAGR during the forecast period. The growing disposable income, increasing demand for educational toys, and stringent safety regulations are propelling the European market growth. Germany is the largest toy market in Europe, followed by the UK and France. The growing emphasis on eco-friendly toys in response to sustainability trends in Germany is propelling the German market growth.

The Asia-Pacific is anticipated to grow at the fastest CAGR during the forecast period owing to rapid urbanization, the growing middle-class population, the influence of popular media franchises, rising consumer spending on leisure activities, the popularity of digital toys, and the growth of online retail are boosting the growth rate of the Asia-Pacific toy market. China occupied the leading share of the Asia-Pacific market in 2023.

KEY PLAYERS IN THE GLOBAL TOY MARKET

Companies that play a noteworthy role in the global toy market include Spin Master Ltd, Playmobil (Brandstätter Group), Funko Inc, Thinkfun Inc. (Ravensburger North America Inc.), Mattel Inc., Kenner Products, Pressman Toy Corporation (Goliath B.V.), Clementoni Spa, Lego A/S (Kirkbi A/S), Vtech, The LEGO Group, Playmates Toys Limited, Hasbro Inc., MGA Entertainment Inc., Basic Fun, Inc., NECA, Simba Dickie Group, Talicor Inc., Jazwares, LLC, WowWee Group Limited, Tru Kids Brands and Tomy Company Ltd.

DETAILED SEGMENTATION OF THE GLOBAL TOY MARKET INCLUDED IN THIS REPORT

This research report on the global toy market has been segmented and sub-segmented based on type, sales channel and region.

By Type

• Action Figures
• Building Sets
• Dolls
• Games and Puzzles
• Sports and Outdoor Toys
• Plush
• Others

By Age Group

• Up to 5 Years
• 5 to 10 Years
• Above 10 Years

By Sales Channel

• Supermarkets and Hypermarkets
• Specialty Stores
• Department Stores
• Online Stores
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa