The global toys and games products market was valued at USD 101.2 billion in 2022 and is projected to expand at a CAGR of 6.1% from 2023 to 2030. The growth of the market is attributed to the increasing demand for educational toys, the rise in disposable income, the surge in the number of working mothers, and the growth in the population of children. Furthermore, the increasing popularity of toys and games in the e-commerce sector, especially during the COVID-19 pandemic, has been driving the market.

The increasing demand for STEM (science, technology, engineering, and mathematics) toys, as well as the growing inclination of parents toward educational toys, is expected to boost the demand for the market. Furthermore, the rising trend of customization in toys and games is providing a competitive edge to market players. For instance, in June 2021, Lego announced the launch of its Lego Art Series, which allows customers to customize their own artwork. The series consists of four sets: The Beatles, Andy Warhol’s Marilyn Monroe, The Iron Giant, and Star Wars The Sith.

The increasing availability of interactive toys is an important factor driving the market. These toys are designed to interact with children and are equipped with sensors, artificial intelligence (AI), and voice recognition. Additionally, the emergence of virtual reality (VR) and augmented reality (AR) toys is also expected to fuel the market growth. For instance, Mattel, Inc. launched its AR-based game, Hot Wheels id, in July 2021. The game allows users to track lap times, unlock content, and unlock rewards. It also has an AI-based system that creates customized car designs according to the user’s preference.

The increasing demand for eco-friendly toys is also expected to drive the market. Manufacturers are focusing on developing eco-friendly toys by utilizing renewable materials and green energy sources. For instance, in October 2020, Hasbro, Inc. announced the launch of a new line of eco-friendly toys, which are made from plastic recovered from the ocean. The company also announced the launch of its ‘Play Smart’ program, which aims to reduce its packaging and use sustainable materials in the production of its products.

Moreover, the increasing demand for gaming consoles and gaming PCs is expected to fuel the market growth. With the advancement of technology, gaming consoles have become more advanced and user-friendly, thereby providing an immersive gaming experience. For instance, in April 2021, Microsoft announced the launch of its Xbox Series X, a powerful gaming console that features next-generation performance and a sleek, modern design. The console is equipped with a range of features, including more powerful hardware, immersive gaming, and an improved user interface.

The outdoor toys & products segment led the market and accounted for a share of around 23.5% in 2022. This can be attributed to the fact that outdoor toys and games are gaining significant popularity among children in the age group of 5-14 years. According to an article published by NPD Group in June 2019, outdoor toys and games saw a growth of 6 percent in sales in the US. This is primarily due to the growing trend of outdoor activities among children. Moreover, the availability of a wide range of outdoor toys is another factor driving the demand for outdoor toys across the globe.

The Board games segment is projected to expand at the fastest CAGR of 8.6% over the forecast period. The growing popularity of board games, especially among teenagers and adults, is primarily driving the demand for board games. According to an article published by the NPD Group, in April 2018, board games in the US saw an impressive growth of 15 percent in sales. Further, the emergence of online board game platforms and the availability of a wide range of board games are some of the other factors driving the growth of the market.

The departmental stores segment accounted for the major share of over 38.2% in 2022. Department stores offer a wide variety of toys and games and provide customers with a wide range of options to choose from. Toys and games products are displayed prominently in department stores, which allows customers to see the product and make informed decisions about their purchase. In addition, these stores provide a convenient shopping experience for customers with a wider range of products, easy access, and a variety of payment options.

The online segment is expected to register the highest CAGR of 13.3% over the forecast period. Online retailing has gained tremendous traction in recent years as it offers convenience, choice, and price competitiveness. Moreover, the emergence of e-commerce websites such as Amazon, Flipkart, and ToysRUs has provided a platform for toy and game manufacturers to sell their products directly to consumers. Furthermore, the increasing penetration of smartphones has enabled customers to shop for toys and games products anytime and anywhere.

The traditional toys and games segment accounted for the largest revenue share of 62.1% in the year 2022. The traditional toys and games market is expected to remain the largest segment during the forecast period. The segment consists of physical toys such as board games, dolls, toy vehicles, and other traditional products. The segment is driven by the increasing demand for traditional toys from the young population in developed regions such as North America and Europe. Additionally, the increased spending during special occasions such as Christmas, Halloween, and birthdays is likely to drive the growth of the segment.

The online toys and games segment is anticipated to register the fastest CAGR of 10.1% over the forecast period. The increasing penetration of smartphones and internet in developing regions is likely to drive the growth of the segment. Additionally, the rising popularity of online gaming and the introduction of new gaming platforms such as Google Play and Apple Store are likely to fuel the growth of the online toys and games segment. Furthermore, the increasing presence of online retail stores such as Amazon and Flipkart is likely to drive the growth of the segment over the forecast period.

Europe dominated the market and accounted for the largest revenue share of 32.2% in 2022. The presence of a large number of established players in the region is expected to drive the market. For instance, in February 2021, Mattel Inc., a leading toy and game manufacturer in the region, announced the launch of its Hot Wheels id, a racing system that combines the physical and digital gaming worlds.

Asia Pacific is expected to be the second-largest market in terms of revenue, with a CAGR of 6.3% during the forecast period. Growing popularity of outdoor activities, such as camping & trekking, in countries such as China, Japan, and India is expected to boost the demand for toys and games in the region. For instance, in October 2021, Hasbro, Inc. launched a new line of outdoor toys and games for preschoolers in India.

In this part of the toys and games products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your toys and games products business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenues for a toys and games products business comes from the sale of products, online sales, wholesale, retail, and distribution. Here you will find a list with a description of each of them and other possible sources of profit such as fundraising, the sale of merchandise, and leasing the place for parties and corporate events.

Projecting Expenses

In this section, all the regular expenses related to keeping the toys and games products business running will be described. The list of operating expenses includes product development, inventory costs, wages, marketing and advertising, website costs, utilities, insurance policies, legal fees, and others.

Some of the key companies operating in the toys and games market are increasingly focusing on product innovations and expansion of their distribution channels to gain prominent visibility among consumers. Some of the initiatives are:

– In August 2022, Hasbro Inc. launched the Monopoly Game of Thrones Edition, a special edition of the classic game with a twist.

– In June 2022, Mattel Inc. launched the Hot Wheels City Mega Garage, a playset featuring a 4-level garage with parking, ramps, and a gas station.

– In July 2022, Lego Group launched the LEGO City Police Station, a playset featuring police officers, police vehicles, and a police station.

Some of the prominent players in the toys and games market include:

– Hasbro Inc.
– Mattel Inc.
– Lego Group
– JAKKS Pacific, Inc.
– Spin Master Ltd.
– Ravensburger Group
– Funko, Inc.
– TOMY Company, Ltd.
– K’NEX Brands, LP
– American Girl, LLC

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global toys and games products market based on product, age group, distribution channel, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Outdoor Games
– Puzzles
– Board Games
– Construction Toys
– Action Figures
– Dolls
– Outdoor Play Equipment
– Video Games
– Others

2. Age Group Outlook (Revenue, USD Million, 2017 – 2030)

– 0-5 Years
– 6-12 Years
– 13-18 Years
– Others

3. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Offline
– Online

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the Key Trends Driving the Toys and Games Market?
[A]: The rise of digital gaming, innovations in toys and games products, and the increasing demand for toys from emerging economies are all key trends that are driving the growth of the toys and games market. The increasing awareness of STEM (Science, Technology, Engineering, and Mathematics) toys, the rise of e-commerce, and the increasing popularity of unisex toys are also contributing factors to the growth of the toys and games market.

[Q]: Who are the Major Players in the Toys and Games Market?
[A]: Some of the major players in the toys and games market include Hasbro Inc., Mattel, Inc., Jakks Pacific, Inc., Bandai Namco Holdings, Inc., LEGO A/S, MGA Entertainment, Inc., Spin Master Ltd., TOMY Company, Ltd., Ravensburger, and Goliath B.V.

[Q]: What are the Key Drivers of the Toys and Games Market?
[A]: The key drivers of the toys and games market include the increasing demand for educational, interactive, and technologically advanced toys, the increasing disposable income and spending power of consumers, the increasing demand for toys and games in emerging markets, and the increasing popularity of video gaming.

[Q]: What are the Opportunities for Toys and Games Manufacturers?
[A]: Toys and games manufacturers have the opportunity to capitalize on the increasing demand for educational toys, the increasing demand for interactive toys and games, and the increasing demand for technologically advanced toys and games. They can also capitalize on the increasing demand for unisex toys and the rising popularity of e-commerce platforms.

[Q]: What are the Challenges Faced by the Toys and Games Market?
[A]: Some of the key challenges faced by the toys and games market include the increasing competition from other entertainment options, the changing consumer preferences, the high cost of product development, and the increasing environmental pressures.