A baby toy is a type of entertainment primarily marketed to children but can also be used to entertain adults in specific settings. Toys can be a fun way to prepare young children for real-world difficulties. Infants and toddlers like a variety of toys depending on their developmental stage. As part of their development, baby toys excite their senses of shape, color, texture, taste, and sound.
The shift in consumer buying habits results from the rise in per capita disposable income. The personal income households have available for both spending and saving after taxes is known as disposable income. As disposable income per person rises, particularly in emerging economies, the market for baby toys is expanding. Two additional elements contributing to the increased per capita disposable income are the rise in dual-income households and the percentage of working women.
The growth of the baby toys industry is fueled by rising annual disposable incomes of households in densely populated countries like China and India, as well as rising middle-class spending on baby products. Due to economic growth and a growing middle class, consumer spending patterns have altered, particularly from conventional baby toys to technologically advanced ones.
Toy producers are in fierce competition with one another for a more extensive customer base. As a result, more mergers and acquisitions are taking place in the baby toy market. Giants in the toy industry like Lego, Hasbro, and Mattel started as family-owned companies before expanding into a giant worldwide conglomerate supporting the market through massive mergers and acquisitions. For instance, WPH Global acquired a controlling position in Tru Kids in March 2021. It will support the international expansion of Toys 'R Us and Babies 'R Us with its global network and digital platform. Also, Kahootz Toys, a kid-friendly arts and crafts manufacturer, recently sold its assets to PlayMonster, a business purchased by Audax Partners in 2018.
North America is the most significant shareholder in the global baby toys market and is expected to grow at a CAGR of 4.10% during the forecast period. The increased desire for toys among youngsters and the young population in North America is driving up the need for baby toys. The development of the North American infant toys market is predicted to be supported further over the forecast period by the focus on new toys that many regional manufacturers are putting forward. In addition, significant manufacturers greatly emphasize social media marketing campaigns to boost baby toy sales among children and the younger population. Local toy manufacturers collaborate with the entertainment industry to produce toys with various characters, such as Star Wars, Batman, Spider-Man, and Harry Potter.
Europe is expected to grow at a CAGR of 3.95% during the forecast period. The European infant toy market is expected to increase due to consumers' growing preference for higher-quality games and toys. Europe's high per capita disposable income and growing consumer preference for baby toys would further support the market's growth over the forecast period. According to Economic Analysis, Germany is expected to increase at the fastest pace throughout the forecast period, at 4.08%.