Global Toys And Games Market (By Product, Distribution Channel, End User, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2026)

Global Toys And Games Market (By Product, Distribution Channel, End User, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2026)

Market Insight:

Toys and games are intended to provide the physical basis for children's play. It promotes values from a certain historical era while controlling children's behaviour, encouraging their creativity, and influencing their experience.

Toys and games span a wide range of activities, from rattles, dolls, and toy automobiles to skipping ropes, board games, and jigsaw puzzles. Positive factors for the toys and games market include favourable demographic trends, an emerging middle class across highly populous geographies, growth in iconic toy and game brands, fusion of core owned/licensed properties with entertainment content and technology, and favourable projections for broad-based entertainment consumption in a re-opening economy post-COVID. The global toys and games market is expected to be worth US$342.04 billion in 2023, witnessing growth at a CAGR of 5.80%, during the forecasted period.

Segment Covered:

• By Product: The report offers the bifurcation of the global toys and games market into six product types: Video Game Consoles, Dolls, Games and Puzzles, Outdoor and Sports Toys, Preschool Toys and Others. Games & puzzles segment is expected to grow at a significant CAGR due to increasing usage of social media, solving puzzles to cope with increasing mental illness, introduction of new and advanced board games and puzzles, and establishment of board game cafes. Moreover, manufacturers are developing specially curated board games for the older population, such as Hive and Big Letter Bananagrams which would also boost the market growth.
• By Distribution Channel: In terms of distribution channel, the report divides the global toys and games market into two segments: Offline and Online. Online distribution channel is anticipate to grow at the highest CAGR during the forecasted period. Online sellers include aggregators and websites operated by manufacturers. In order to better meet customer wants and boost profit margins, manufacturers have recognized the potential of the channel and are operating shopping websites, which is likely to drive the market growth.
• By End User: On the basis of end user, the report splits the global toys and games market into three segments: 0-8 Age, 9-15 Age and 15 Age & Above. The 0–8 age group dominated the market, owing to the rising popularity of educational activities like puzzles, building, and construction sets among this age group. In comparison, the age of 9-15 is the fastest-growing segment in the market. The expansion of this segment is being driven by the increase in outdoor toys and games, and other recreational sports among children in this age group.

Geographic Coverage:

According to this report, the global toys and games market is divided into five regions: Asia Pacific, North America, Europe, Latin America and Middle east and Africa. The countries covered in North America region are the US, Canada, and Mexico, while Europe includes UK, Germany, Russia, France, and Rest of Europe. Moreover, China, India, Japan, South Korea, and Rest of Asia Pacific are included in the Asia Pacific region.

Asia Pacific accounted for the largest share in the global toys and games market. The growing inclination for educational toys beyond essential abilities is the main factor boosting the Asia-Pacific toys and games market's growth. There has been a lot of demand for these toys. For instance, among the preschool toys, Fisher-Code-A-Pillar Price's is a developmental toy that was released in China in 2016 and teaches kids how to programme and solve household computer issues. Additionally, companies have increased their presence in this region's developing nations, including China and Japan, through enhanced e-commerce or the building of new storefronts.

Top Impacting Factors:

Growth Drivers

• Rising Online Sales of Toys and Games
• Shift Towards Indoor Games
• Commercialization of Movies and Cartoon Characters
• Improvements in Content and Functionality of Board Games

Challenges

• Increasing Adoption of Mobile and PC Games
• Counterfeit Toys and Games

Trends

• Growing Usage of Social Media
• Increasing Mental Illness
• Integration of Board Games in Cafes
• Increasing Demand For Toy Subscription Services
• Driver: Rising Online Sales of Toys and Games

With the effect of changing habits and lifestyle, people are reluctant to spend time and effort on non productive activities like cleaning, cooking and shopping, motivating the people’s transition towards e commerce. On e-commerce platforms, customers can choose from a variety of options for a specific toy or game, allowing them to make a more informed and thoughtful decision. Furthermore, the increased usage of smartphones is making the shopping procedure easier for customers by allowing them to access and buy toys, games or puzzles at any time. Thus, rising online sales of toys and games has bolstered the growth of the market in past few years by making buying more pleasant and convenient.

• Challenge: Counterfeit Toys and Games

Due to a lack of trademark protection in the growing economies like Asia Pacific and Latin America, popular toys and games are being counterfeited. Counterfeiting of brands and products is a big cause of worry for industry players. Counterfeit products are frequently created without the appropriate safety norms, putting consumers at danger. Consumers seem to be at risk from toxic coatings and glues used in counterfeit toys and games, as the chemicals seep out over time. This can lead to chemical ingestion or inhalation, which can be harmful to children and adults' health. Therefore the counterfeiting of toys and games and the adverse effects related to them has negatively influenced the demand of toys and games, thus restricting the growth of the market.

• Trend: Increasing Mental Illness

Toys and games are considered as a good mental exercise and beneficial to the brain. Moreover, puzzles can help to develop the cognitive and visual-spatial reasoning. Solving puzzles require high concentration and attention, thus improves short-term memory and problem-solving abilities. Word searches, crossword puzzles, and Sudoku are all considered good for reducing stress and hence boosting mental health. While multitasking stresses the frontal lobe of the brain, single-tasking through enjoyable puzzles relieves that tension. Therefore, increasing mental illness and increasing awareness of using toys and games as a stress reliever is expected to drive the growth of toys and games market in the coming years.

The COVID-19 Analysis:

COVID 19 pandemic has negatively impacted every facet of the global economy. The toys and games market also faced challenges associated with supply chains, store closures, and shifts in consumer demand due to depressed incomes and a shift to digital entertainment. However, a number of categories that fit in well with the needs of at-home children and adult entertainment and education have seen a surge in early 2020, such as tech and preschool toys, board games and construction, amongst others.

While some toys and games categories spiked in Q1 2020, there is a long-term trend towards the repositioning of players as entertainment providers on multiple platforms. COVID-19 pandemic has resulted in a rapid adoption of toys, board and card games and puzzles. People all around the world are adopting toys and games as a result of the growing trend of social alienation and the need to spend quality family time.

Analysis of Key Players:

The global toys and games market is highly fragmented. Market players have implemented sustainable growth techniques in the market. To strengthen their position in the market, some of the leading competitors are pursuing various growth methods such as mergers, acquisitions, collaborations, and agreements. The key players in the global toys and games market are:

• Mattel, Inc.
• Hasbro, Inc.
• The Lego Group
• TOMY Company, Ltd.
• Bandai Namco Holdings Inc.
• Playmates Toys Ltd.
• Spin Master Corp.
• Dream International Ltd.
• JAKKS Pacific, Inc.
• Sanrio Company, Ltd.
• Ravensburg AG
• Funko, Inc.
• MGA Entertainment

To serve the interests of the consumers, the major market players are concentrating on launching new items. The most popular marketing tactic in the toys and games market is new product creation. Additionally, one of these players' primary strategies for achieving consolidation and optimising their offers is to engage in mergers and acquisitions. One of the best tactics in the market is for these players to merge with local competitors in order to dominate local marketplaces. For example, after noticing a huge demand for toys and games in the Indian market in November 2020, Amazon created a special store called Made in India Toys and Games for small companies who offer Indian toys. As a result, the internet retailer helped the local players by providing easier access to and sales of toys that were made and created locally. During the pandemic, Hasbro Inc. launched Bring Home the Fun, a global initiative for parents to explore family-focused resources, including advice for family playtime, activity challenges to keep kids occupied, concepts for using games and toys to stimulate kids' brains, and recommendations on how to cope with increased emotional stress.