Global Toys and Games Market Growing Steadily: Projected to Grow at a CAGR of 5.7% during the forecast period (2021-2027)
Published | 02 September 2021
Commercialization of popular cartoon characters like Doraemon, Ironman, Superman, and Spiderman is the primary factor driving the growth of the global toys and games market. Moreover, the rising disposable income is another major factor, favoring the growth of the market....
A study recently conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the global toys and games market was worth USD 276.1 Billion in 2020. The market is estimated to grow at a CAGR of 5.7 %, earning revenue of around USD 403.1 Billion by the end of 2027. The key strategy implemented by toy manufacturers to entice children is the commercialization of renowned cartoon characters like Peppa Pig, Doraemon, Superman, Spiderman, etc. Moreover, the rising disposable income is another major factor, favoring the growth of the market. Additionally, technological advancements have enabled video games to gain exponential acceptance among children. The introduction of educational gaming has also influenced the growth of the global toys and games market.
Baby toys are getting smarter and greener
Education is one of the key factors driving baby toy trends. Moreover, parental preferences are growing for innovative ways to develop skills like speech recognition in infants through smart toys designed for educational purposes. In addition to biodegradable packaging, parents also prioritize toys made of environmentally friendly materials. Nowadays, children are allowed to familiarize themselves with many textures, designs, and styles of construction using many reusable materials such as kinetic sand, dough, slime, and putty, that are available in a variety of bright colors. Such playthings inspire them in thinking outside the box than traditional LEGO building blocks. Such smarter, greener, and innovative options are driving the growth of the global toys and games market.
The growing popularity ofbox subscription servicesfor kids favoring the market growth
Several subscription services for kids such as STEM club Toy Subscription, Lovevery, R&T Crew, etc., have recently entered the market, which is contributing to the growth of the toy and game industry. During the pandemic, subscription boxes gained immense popularity among kids and parents as they struggled to survive without school and childcare. Subscription boxes are easy to use since parents can curate them based on their children's needs. The growth of the global toys and games market helps in the proliferation of such business models. Educational, interactive, and multi-functional toys are becoming increasingly popular among families in developed nations, who purchase them as a tool for their children's development.
The Increasing penetration of Smartphones & Tablets Impeding Market Growth
The increasing threat of smartphones and tablets is a major restraint facing the global toys and games market. As a result, traditional toy companies are experiencing a challenging situation. With the increase in technological advancement and internet penetration, there is no surprise that kids are drawn to electronics. This has posed a serious challenge to the toy industry's profit margins, particularly in Spain, forcing them to rethink the entire market, as other countries such as the United Kingdom and Germany are doing. In the fast-paced world we live in, the industry finds it extremely difficult to meet everyone's needs and adapt the same old toys to modern demands.
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Impact of COVID-19 in the industry
As a result of the COVID-19 outbreak and the resulting global crisis, the global toy and game market experienced a decline in sales. The implementation of strict regulations during lockdown across many countries due to the sudden outbreak of the COVID-19 pandemic led to disruptions in import and export activities of toys and games. COVID-19's influence, on the other hand, has led tosignificant growth of the toy and game market among high-and middle-income customers. This is mainly due to the launch of several attractive stay-at-home product ranges by the key players. During the pandemic, sales of toys and games were driven primarily by online retailers. Because of the lockdown restrictions implemented by many governments, raw material supplies have been disrupted to a large extent. Moreover, reduced production resulted in low sales volume.
Video gamessegment holds the largest share of the Global Toys and Games Market
Based on product types, the global toys and games market is grouped into games and puzzles, video games, construction toys, dolls & accessories, outdoor & sports toys, and other product types. Among all the segments, the video games segmentdominates the market. Due to technological advancements and internet penetration, consumers are spending more time watching video content, buying virtual reality items, and watching video game tournaments. Factors such as the proliferation of mobile and online gaming and the shift from physical distribution to online software distribution are contributing to the significant growth of this market.
The Asia Pacificregion is likely to dominate the market during the forecast period
Based on regions, the global toys and games marketis grouped into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa. The Asia Pacific dominated the market share with the highest market revenuein 2020. The region is likely to maintain its dominance even during the forecast period. As a major supplier of products and raw materials in the Asia Pacific, India and China stand out among the prominent players. The reasons, which are contributing to the growth of the toys and games market in the Asia Pacific, are the rising numbers of retail outlets, along with the increasing disposable income of consumers. The high demand for toys and games from developing countries like Singapore and India is also propelling the market forward. Additionally, a major rise in the industrial and commercial sector in emerging countries is driving the demand for toys and games.
The key players in the global toys and games market are Leap Frog Enterprises, Vivid Imaginations, Mattel, Ravensburger, Lansay, PlaymatesToys, TOMY, The LEGO Group, Toy Quest, Hasbro, MGA Entertainment, Funtastic, Funko, JAKKS Pacific, and other key manufacturers.
The key players operating in the market are taking all possible measures to gain a competitive edge by launching announcing new toys and games in the market to cater to the welfares of their target consumers. New product launch is the most favored marketing strategy in the toys and games market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global toys and games market.It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global toys and games marketand industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
BlueWeave Consulting provides comprehensive Market Intelligence (MI) Solutions to businesses regarding various products and services online & offline. We offer all-inclusive market research reports by analyzing both qualitative and quantitative data to boost up the performance of your business solution. BWC has built its reputation from the scratches by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.
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