Toys Market Size, Share, Competitive Landscape and Trend Analysis Report, by Product Type, Age Group and Sales Channel : Global Opportunity Analysis and Industry Forecast, 2021-2027

Toys Market Research, 2027​​​​​​​​​​​​

The global toys market was valued at $92.2 billion in 2019, and is projected to reach $103.8 billion by 2027, growing at a CAGR of 2.5% from 2021 to 2027.A toy is an object or device designed primarily for play, entertainment, or educational purposes, often intended for use by children but also enjoyed by individuals of all ages. Toys can range from simple items like dolls, action figures, and puzzles to more complex, tech-driven products such as electronic games and interactive devices.

The toy industry is undergoing rapid transformation, influenced by evolving trends and consumer preferences. A key trend is the incorporation of technology, with smart toys and those featuring augmented reality (AR) and virtual reality (VR) creating interactive experiences that captivate both tech-savvy children and their parents. This shift is driven by a growing emphasis on educational value, as STEM (Science, Technology, Engineering, and Mathematics) toys become more popular among parents who want to support their children's learning through play. However, the industry faces challenges such as stringent safety regulations and the risk of product recalls, which can impact brand reputation. In addition, the increasing popularity of digital entertainment options, including video games and online content, competes with traditional toys for children’s attention.

Despite these challenges, there are ample market opportunities. Innovating with digital-physical play experiences and focusing on sustainability can attract modern consumers. Expanding into emerging markets with rising disposable incomes and increasing demand for diverse toy offerings presents further growth potential. Aligning products with educational and environmental trends can enhance market positioning.

Industry Highlights

The artistic value and sentimental appeal of toys play a significant role in their enduring popularity. Limited-edition variants, first appearances of iconic characters, and intricately designed collectibles evoke strong nostalgia, particularly among adults who grew up with these beloved items. Collecting toys, whether they are action figures, comics, or rare memorabilia, is often tied to childhood memories of fun and excitement. The allure of owning a unique or rare piece, such as a first-edition superhero figure or a limited-release version, enhances the emotional connection to these toys. This blend of nostalgia and artistic craftsmanship makes such toys not only playthings but also valuable collectibles that appreciate over time. Whether it's flicking through childhood memories or curating a collection as an adult, these toys hold sentimental and financial value, often serving as cherished heirlooms for future generations.

Key Areas Covered in the Report

The toys market is divided into key areas, each experiencing unique trends. Traditional toys, such as action figures, dolls, and board games, continue to hold strong demand, particularly for younger children, with a growing shift towards gender-neutral products promoting inclusivity. In contrast, digital and smart toys are rapidly gaining popularity due to technological advancements, with interactive toys and those integrating AR/VR offering educational and entertainment value, especially in STEM-related fields. However, concerns over privacy and screen time balance remain. Another significant trend is the rise of sustainable and eco-friendly toys, driven by increasing environmental awareness. Consumers are seeking toys made from recycled or biodegradable materials, prompting manufacturers to adopt greener production processes. Lastly, licensed and franchised toys dominate the market, leveraging the popularity of media franchises like Marvel, Star Wars, and Disney. These toys, often tied to blockbuster films or video games, continue to thrive due to strong fan engagement and nostalgia. Together, these trends are shaping a dynamic and evolving toy industry.

Topics discussed in the report

Segment Overview

The market is divided by product type, age group, sales channel, and region. By product type, the market is divided into action figures, building sets, dolls, games and puzzles, sports and outdoor toys, plush and others. By age group, the market is divided into up to 5 years, 5 to 10 years and above 10 years. According to the sales channel, the market is divided into hypermarket/supermarket, specialty stores, departmental stores, online channels and others. By region, the market is divided into North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, Spain, Netherlands, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, Saudi Arabia, United Arab Emirates, South Africa, and the Rest of LAMEA).

Specialty stores hold a major share in the toys market sales channels owing to their focused product offerings and expertise. These stores provide a tailored shopping experience, often carrying a curated selection of toys, catering to both niche markets and mainstream consumers. The staff in specialty stores tend to have in-depth knowledge about toys, offering personalized assistance and recommendations, which is appealing to parents seeking quality and educational value for their children. In addition, specialty stores often feature exclusive products that are unavailable in larger retail outlets, further driving foot traffic and customer loyalty. With an importance on customer experience, product quality, and uniqueness, specialty stores create an environment that encourages consumers to explore and purchase toys beyond the more generic offerings found in hypermarkets or online platforms. Their ability to build relationships with customers leads to repeat business and a dominant market presence.

Comparative Matrix of Key Segments

Regional Dynamics and Competition

The Asia-Pacific toys market presents significant growth opportunities, driven by rising disposable incomes, expanding middle-class populations, and increasing urbanization. Countries like China, India, Japan, and South Korea are key players in the region, with China dominating due to its large manufacturing base and consumer demand. E-commerce platforms are rapidly transforming the toy retail landscape, offering vast selections and convenience to consumers. Digital toys, smart toys, and educational products, particularly those integrating STEM (Science, Technology, Engineering, and Mathematics) concepts, are gaining popularity as parents prioritize educational value. In addition, trends like sustainability have emerged, with demand growing for eco-friendly and ethically manufactured toys. Licensing deals with popular media franchises, particularly from anime and local entertainment, also drives market growth. As consumers seek diverse, innovative products, the Asia-Pacific region remains a dynamic space for expansion and competition in the global toy industry.

Some of the major players analyzed in this report are Atlas Games, Tomy, Hasbro, The Lego Group, Ravensburger, Goliath Games, Vtech Holdings, Mattel, Thames & Kosmos, and Clementoni.

Toys Market News Release

Key Benefits for Stakeholders

• The global toys market was valued at $92.2 billion in 2019, and is projected to reach $103.8 billion by 2027, growing at a CAGR of 2.5% from 2021 to 2027.
• The Asia-Pacific toys industry is significantly impacted by increasing demand for educational and tech-driven toys.
• Specialty stores are a preferred sales channel from a children's perspective due to their curated selection of toys, engaging in-store experiences, and interactive product displays.
• Children aged 5 to 10 years age group are highly engaged in playing and learning activities, driving demand for educational, interactive, and creative toys.
• Sports and outdoor toys hold a major share owing to growing interest in active, physical play that promotes health, fitness, and social engagement among children.
• Licensed toys from popular franchises like Marvel, Star Wars, and Disney command higher price points, contributing to increased consumer spending.
• Parents are willing to spend more on toys that align with educational goals or environmental values, reflecting a shift towards quality over quantity.
• Parents are increasingly investing in toys that provide educational value, particularly STEM-related products that promote learning and cognitive development.
• As technology becomes more integrated into daily life, the demand for interactive and tech-driven toys, such as smart robots and AR/VR games, is rapidly increasing.
• Shifting consumer preferences, especially towards digital and interactive toys, require constant innovation.
• Parents increasingly demand toys that provide educational value, particularly STEM-focused, while sustainability-conscious consumers seek eco-friendly alternatives.
• The market for licensed toys is highly saturated, leading to brand fatigue among consumers.
• Over-reliance on franchise-driven products can stifle innovation and limit product diversity.
• Emergence of gaming items
• Eco-friendly materials for toys
• Classroom allowing to play educational games
• Consumers' preference for fitness-related games
• Recent gift-giving trends
• The Toy Association’s LA Fall Preview dedicated market week kicked off yesterday evening with The Toy Foundation’s Party with a Purpose at TAO Los Angeles, which brought the toy community together for a night of celebration, entertainment, and fundraising for the Foundation’s Children’s Hospital Play Grants program.
• In November 2020, Luki Lab, a division of Strottman International, launched two creative lines of toys named Gojo Adventure and Pinxies in the period of Christmas holiday celebrations.
• In September 2020, Moonbug Entertainment, a British media company, partnered with Jazwares Company of a parent firm, Alleghany Capital Corporation, to create a kids toy line inspired by a musical and 3D animated video series, CoComelon. This is likely to boost the demand for the company’s gaming devices significantly.
• Hasbro has been taking the slow and steady approach throughout 2024, giving Marvel Legends collectors a few little treats each month, rather than hammering fans with wave after wave of figures as in past years.
• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the toys market analysis from 2022 to 2032 to identify the prevailing toys market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the toys market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global toys market trends, key players, market segments, application areas, and market growth strategies.

  Toys Market Report Highlights

Aspects	Details
By Product Type	ACTION FIGURES BUILDING SETS Dolls Games and Puzzles Sports and Outdoor Toys Plush OTHERS
By Age Group	Upto 5 Years 5 to 10 Years Above 10 Years
By Sales Channel	HYPERMARKET/SUPERMARKET SPECIALTY STORES DEPARTMENTAL STORES ONLINE CHANNELS OTHERS
By Region	NORTH AMERICA  (US, CANADA, MEXICO) EUROPE  (UK, GERMANY, FRANCE, ITALY, SPAIN, RUSSIA, REST OF EUROPE) ASIA-PACIFIC  (CHINA, INDIA, JAPAN, ASEAN, AUSTRALIA, REST OF ASIA-PACIFIC) LAMEA  (BRAZIL, SAUDI ARABIA, SOUTH AFRICA, REST OF LAMEA)
Key Market Players	THAMES & KOSMOS, .GOLIATH GAMES, HASBRO, ATLAS GAMES, CLEMENTONI, THE LEGO GROUP, VTECH HOLDINGS, MATTEL, RAVENSBURGER, TOMY

Analyst Review

The global toys market is growing at a sluggish rate with Asia Pacific region spearheading the market growth. The market is driven by innovation in toys, expansion of retail channels and rising disposable income, however the emergence of smart phones is posing major challenge for the engaged stakeholders. Nevertheless the market also provide lucrative opportunities with emergence of educational, interactive and multi-functional toys. 

Growing concerns about negative impact of plastic on environment have resulted in leading players in the industry to take steps into this direction. Players are now making environmentally conscious decision by ensuring incorporation of natural raw materials and are ensuring minimalistic usage of plastic. Such environmental friendly practices are now gaining recognition amongst consumers who are now willing to pay premium prices for such products. This trend is likely to gain more traction in upcoming years which may result in small players to also make environmentally friendly decision regarding their product offerings.

 

Author Name(s) : Himanshu Vig | Roshan Deshmukh

Related Tags

• Entertainment
• Video Game
• Gaming Products
• Digital Media
• Family Entertainment Products
• Audiovisual Equipment