Global Toys And Games Market Report 2022-2026: Market Players have Implemented Sustainable Growth Techniques in the Market

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Aug 02, 2022, 12:30 ET

DUBLIN, Aug. 2, 2022 /PRNewswire/ -- The "Global Toys And Games Market: Analysis By Product, By Distribution Channel, By End User, By Region, Size and Trends with Impact of COVID-19 and Forecast up to 2026" report has been added to ResearchAndMarkets.com's offering.

The toys and games market is determined to grow at a CAGR of 5.80% over the forecasted period of 2022-2026.

The global toys and games market was valued at US$305.57 billion in 2021, and is expected to be worth US$405.08 billion in 2026.

Toys and games are considered as the physical foundation for children's play. It imparts the values of a particular historical period while directing children's conduct, stimulating their creativity, and shaping their experience.

From rattles, dolls, and toy cars to skipping ropes, board games, and jigsaw puzzles, toys and games cover a wide range of activities. Favorable 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 favorable projections for broad-based entertainment consumption in a re-opening economy post-COVID are expected to be positive factors for the toys and games market.

Market Segmentation Analysis:

By Product:

The report identifies six segments on the basis of product: Video Game Consoles, Dolls, Games and Puzzles, Outdoor and Sports Toys, Preschool Toys and Others.

Among the product, games & puzzles toys and games segment is expected to grow at a significant rate of 6.7% 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:

The report identifies two segments on the basis of distribution channel: Offline and Online. Among the distribution channel, it is anticipated that the online distribution channel would experience the highest CAGR of 7.29% 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:

The report provides the bifurcation of toys and games market into three segments on the basis of end user: 0-8 Age, 9-15 Age and 15 Age & Above.

The 0-8 age group dominated the market in 2021, with a share of 47.3%, 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.

By Region:

In the report, the global toys and games market is divided into five regions: Asia Pacific, North America, Europe, Latin America and Middle east and Africa. Asia Pacific accounted for the largest share of around 37% in the global toys and games market in 2021.

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. For instance, in 2020 Lego opened 134 retail locations, 91 of which were in China.

Market Dynamics:

Growth Drivers:

The market has been growing over the past few years, due to factors such as rapid urbanization, rising online sales of toys and games, increasing demand of games and puzzles for kids, shift towards indoor games, commercialization of movies and cartoon characters, and improvements in content and functionality of board games.

In recent years, the increased acceptance of educational board games by parents to foster the creative development of their children's brainpower has favorably influenced the market for toys and games. Several educational institutions have begun to use educational toys and games to improve their teaching approaches and provide learners with a more involved learning experience.

Cartoon characters are used extensively in product marketing, particularly in advertisements. Superheroes and Barbie dolls have become indispensable parts of childhood. The stronger the connection of the kids with character, the greater the demand for the character. This attracts youngsters to their favorite superheroes at stores and markets.

Challenges:

However, some challenges are impeding the growth of the market such as increasing adoption of mobile and PC games and 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.

Trends:

The market is projected to grow at a fast pace during the forecast period, due to various latest trends such as growing usage of social media, increasing mental illness, introduction of new and innovative puzzles, integration of board games in cafes, increasing demand for toy subscription services and tech toys.

In the last ten years, 'Toy Subscription' searches on Google have climbed by 136%. The fundamental tenet is that parents should rent toys rather than purchase them. Parents that care about the environment and wish to reduce the garbage that broken toys produce will find this method. Several companies have started toy rental services.

Green Piata Toys, a Boston-based company, debuted in 2015. They presently have more than 350 unique toys in their library.

Impact Analysis of COVID-19 and Way Forward:

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.

Competitive Landscape:

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.

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.

Market Dynamics

Growth Drivers