Toys and Games Market Size, Trends, Share, Value, Forecast to 2031

Toys and games include, among other things, rattles, dolls, and plastic vehicles, as well as skipping ropes, board games, and jigsaw puzzles. They have inherent value that contributes to the overall development of youth. Toys facilitate the emotional expression and creative development of children. Games are an excellent way to unwind while enhancing cognitive, physical, and social abilities. The prevalence of interactive and multifunctional toys and games has significantly impacted the toys and games industry in recent years.

Market Dynamics

Re-Emergence of Traditional Board Games and Spike in Video Game Sales Drives the Market

The resurgence of classic toys and games is anticipated to stimulate market expansion. Board games and puzzles have been shown to enhance cognitive function. These stimulate regions of the brain responsible for memory formation and the processing of complex thoughts. Card and board games facilitate the development of cognitive abilities such as decision-making, high-level strategic reasoning, and problem-solving. These advantages and others have encouraged consumers to play traditional games. In the United States, sales of these titles increased by 370% compared to the previous year. According to the NPD Group, sales of jigsaw puzzles dominated the board game market in the United States during the week ending March 21, 2020, with an increase of 228% compared to the same week the previous year.

In the past year, an increasing number of retro board games have become popular. Several children and families in the United States played Candy Land, Monopoly, Life, and Sorry in 2020, according to a blog post published by the University of Nebraska Omaha. While the majority of them already owned these games, several others purchased them during the pandemic. Families turned to games such as Scrabble, UNO, Guess Who, Yahtzee, Chess, and Chequers to teach their children valuable life skills, particularly considering the number of students who missed school over the past year. In the coming years, the demand for toys and games is anticipated to be driven by the increasing popularity of traditional leisure activities among younger generations and millennials' preference for old-fashioned games at social gatherings.

Innovation for the Launch of New Toys Creates Tremendous Opportunities

Major universities and scientific research institutes worldwide promote the use of toys and games as mental health-improving instruments. In January 2021, C-Toys Inc, a start-up toy company whose mission is to produce mentally stimulating puzzles, toys, and games, launched a crowdfunding campaign on Indiegogo for its first product, an innovative and dynamic 3D puzzle called C-Maze. C-Maze is the first and only dynamic 3D maze conundrum, perfect for those mentally stimulated by challenging puzzles and games.

Children's imagination, creativity, and attentiveness are enhanced by construction tools. These activities keep them engaged and improve their problem-solving, logical reasoning, hand-eye coordination, and memory. In addition, magnetic construction kits are deemed beneficial for children because they are simpler to connect than conventional products. Rapid R&D in innovation for introducing new products is anticipated to generate global market expansion opportunities.

Regional Analysis

Asia-Pacific is the most significant global toys games market shareholder and is expected to exhibit a CAGR of 4.2% over the forecast period. The region is one of the most lucrative markets for toys and games due to the region's increasing awareness of branded and licensed games and toys. Moreover, the large regional population is the primary factor in the expansion of this market. According to the United Nations' "World Population Prospects 2019" report, the population of Asia, excluding Western Asia, will increase from 4,326 million in 2019 to 4,654 million in 2030. These factors make Asia-Pacific a potentially lucrative market for toy and game manufacturers. In Asia-Pacific, traditional playing cards have evolved, and augmented reality has redesigned how consumers play games and gain knowledge. For instance, Sony's "Project Field" interactive platform promises to revolutionize how children play card games and bring childhood games to life. The gaming platform, which is only slated for release in Japan, employs Bluetooth and NFC technology to transform physical cards into digital ones.

North America is estimated to exhibit a CAGR of 4.5% over the forecast period. Stay-at-home orders drive demand for products that the entire family can enjoy together, ranging from instructional toys that make at-home learning fun to creative crafts and conventional board games to innovative games. Many films scheduled for theatrical distribution were delayed and distributed on Amazon Prime, Netflix, and other OTT platforms. Straight-to-streaming blockbuster releases, on the other hand, proved profitable for toy producers. In addition, toys based on movie characters saw a 19% increase in revenue in 2020 compared to 2019, while non-movie characters saw a single-digit gain. With over 95 million subscribers, the Disney+ network has been producing films such as "Soul" and "Raya and the Last Dragon," and themed toys are reaching the shelves days before their release due to overwhelming popular demand. Such factors drive regional market growth.

Key Highlights

The global toys and games market was valued at USD 310.21 million in 2022 and is projected to reach USD 495.93 million by 2031, registering a CAGR of 4.8% during the projected period (2023–2031).
Based on product, the global toys and games market is categorized into puzzles, preschool toys, outdoor and sports, dolls, video games, and others. The puzzles segment is the highest contributor to the market and is predicted to exhibit a CAGR of 3.4% during the forecast period.
Based on application, the global toys and games market is segmented into up to 8 years, 9 - 15 years, and 15 years and above. The 15 years and above segment dominates the global market and is estimated to exhibit a CAGR of 2.8% during the forecast period.
Based on distribution channels, the global toys and games market is segmented into online and offline. The offline segment owns the highest market share and is estimated to exhibit a CAGR of 4.6% during the forecast period.
Asia-Pacific is the most significant global toys games market shareholder and is expected to exhibit a CAGR of 4.2% over the forecast period.