Toys and Games Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Toys and Games Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The toys and games market was valued at USD 261.65 billion, and it is projected to register a CAGR of 9.91% during the forecast period (2021- 2026).

As an impact of COVID-19, the market witnessed a strong growth among the high-income groups as well as middle-income consumers, leading to the launch of numerous stay-at-home product ranges by the leading players. During the pandemic, the sales of toys and games were primarily driven by the online retail of products. However, due to delay in much-anticipated movie releases like “Trolls World Tour” and “Top Gun: Maverick”, the toys, collectibles, and other merchandise based on the character of these movies that already reached the retailer stores observed no or minimal sales. Thus, it negatively impacted the market growth over the medium term.

The toys and games market witnessed significant growth, owing to the presence of high-income group consumers in the country. However, middle-range toys and games accounted for the highest sales in the country. Outdoor and sports toys contributed the major share to the market studied, followed by dolls. Consumer inclination towards movies and cartoons drives the sales of action figures and accessories. The launch of new movies or cartoons further boosts the sales of action figures and accessories, making it the fastest-growing segment.

Therefore, the companies have initiated to add more space to carry more toys, especially in the holiday season, including Christmas, when the sales of toys and games fiercely increase.

Key Market TrendsInfluence of Technology is Promoting Video Games

Globally, the video game industry has developed a recurring revenue model over the past few years due to continuous video game engagement. As technology is expanding, consumer spending on video content, virtual reality products, and video game tournaments has witnessed significant growth. The market is observing exponential growth due to factors, such as the expansion of mobile and online gaming and the shift from physical to digital distribution of software.

Furthermore, the factors governing the success of the market are local leagues and the franchising approach, the arrival of new game formats and competition, the approval of content rights sales, team profitability, and the impact of industry convergence involving traditional media, entertainment, telecom, and sports companies.

Asia-Pacific is the Fastest Growing Market

The major factor driving the prosperity of the Asia-Pacific toys and games market is the rising preference for educational toys beyond the core skills. These toys have been witnessing high demand. For instance, among the pre-school toys, Code-A-Pillar from Fisher-Price, a developmental toy launched in 2016 in China, allows children to do domestic computer programming and problems. Furthermore, an industry report from the China Toy and Juvenile Products Association (CTJPA) shows that China's toy market’s volume witnessed a growth of 7.8%. According to the association's survey of over 13,000 consumers, more of them are planning to reduce their spending on toys and juvenile products in 2020. This may also impact the growth of the toys and games market in the Asia-Pacific region, specifically in China.

Competitive Landscape

The toys and games market is highly competitive, and it is dominated by Mattel Inc., Hasbro Inc., LEGO Group, and Spin Master Ltd, among others. The key players operating in the market are focusing on introducing new products in the market to cater to the interests of the consumers. New product development is the most preferred strategy in the toys and games market.

Moreover, these players are embarking on mergers and acquisitions as one of their key strategies to achieve consolidation and optimize their offerings. Additionally, these players merging with local players to gain dominance in the local markets is among the most effective strategies in the market studied.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Mattel Inc.
Hasbro Inc.
Lego Group
Takara Tomy Co. Ltd
Bandai Namco Holdings Inc.
Simba
Dickie Group
Spin Master Ltd
AOSHIMA BUNKA KYOZAI Co. Ltd
Moose Enterprise Holdings Pty Ltd
Tru Kids Inc.

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.