Toy Manufacturers Pursuing Significant New Venture
The global toy market is undergoing a significant transformation, with key drivers of change reshaping consumer behaviour and industry trends.
One of the most notable shifts is the digital revolution. Toys are increasingly incorporating technologies such as augmented reality (AR), virtual reality (VR), and artificial intelligence (AI), transforming play experiences and pushing the demand for smart and app-connected toys. This trend is particularly evident in countries like Germany, where digitalization is driving sales strategies.
Another significant change is the growing demand for educational and STEM toys. These toys are seen as beneficial for children's learning and development, driving innovation in product design. Sustainability is also a rising concern, with consumers increasingly interested in eco-friendly toys.
Market expansion is another key factor, with companies focusing on emerging markets in Eastern Europe, Asia, and Latin and South America, where there is potential for significant revenue growth. The shift towards online shopping is also reshaping consumer behaviour, with online toy sales growing significantly.
The global toys market is projected to reach USD 196.3 billion by 2033, with a CAGR of 6.2%. This growth is driven by demand for innovative toys and expanding market reach. The industry is highly competitive, with companies innovating to stay ahead through technological advancements and product diversification.
However, companies face challenges in balancing physical and digital play experiences, managing rising costs, and competing for screen time with digital platforms. Sustainability has become a business imperative, with consumers demanding greener alternatives. Biodegradable and plastic-free options are gaining traction in Japan, Singapore, and Europe.
The integration of technology and education offers opportunities for growth, especially in emerging markets where there is a growing middle class with increasing disposable income. The adult toy market, comprising adult toy collectors, now accounts for 17.3% of total toy sales, totaling $6.7 billion in 2023.
In Asia, AI-driven toys and collectibles dominate the market, particularly in China and Japan. Mattel and Hasbro are reviving 1980s and 1990s classics to appeal to adult collectors who want nostalgia without compromise. Sustainability has become a critical concern, with brands facing increasing scrutiny over greenwashing.
In the UK, affordability is shaping the sustainability trend, with parents demanding pocket money toys under £10 that are eco-friendly. Toy brands must adapt to shifting preferences, with AI-powered and tech-driven toys poised to dominate sales in the US and China, while eco-friendly and educational toys gaining momentum in Europe and Southeast Asia.
Bandai Namco is focusing on premium anime figurines in response to the growing adult toy market. The kidult market, comprising adult toy collectors, now accounts for 17.3% of total toy sales, totaling $6.7 billion in 2023. The AI toy market is set to grow at 5.8% CAGR through 2032.
Millennials and Gen Z are revisiting toys of their childhood, creating a lucrative market for reissued classics. Homegrown franchises like Honor of Kings in China, Demon Slayer and One Piece in Japan, and local brands in India are gaining traction beyond their respective borders.
Hollywood blockbuster releases and streaming shows are fueling the toy industry, with franchises like Stranger Things, The Mandalorian, and Wednesday becoming merchandising goldmines. Influencers and social media now shape demand, leaving toymakers scrambling to keep up.
Asia is shaping global toy trends, with China leading in production, Japan dominating collectibles, and India rising as a manufacturing force. Sustainability has become a transformation, with toy companies testing recycled plastics, bio-based materials, and circular economy models.
The next toy craze will be made viral overnight, with trends exploding on social media and entertainment platforms. The future of the toy industry lies in its ability to innovate while staying true to the fundamental principles of play, balancing technology and sustainability to create toys that bring joy.
Toy companies are facing challenges in making sustainable toys affordable for budget-conscious consumers. Toymakers like LEGO, Mattel, and Hasbro are investing in research and development to stay ahead. China's manufacturers continue to dominate global production, while Southeast Asia emerges as a critical growth market.
In conclusion, the global toy market is evolving, with consumers seeking connection, creativity, and collectibility. The most successful toy brands will balance innovation with familiarity, weaving technology into storytelling, blending education with entertainment, and making sustainability accessible.
- Despite the global toy market primarily focusing on play, technology has become a notable factor in the industry, with companies innovating to incorporate advanced technologies such as AI, AR, and VR, aiming to offer smart and app-connected toys that appeal to consumers' lifestyle and business preferences.
- As the concern for sustainability grows, technology also offers a solution for eco-friendly toy production. Companies are testing recycled plastics, bio-based materials, and circular economy models to create sustainable toys that cater to consumers' growing demand for greener alternatives, thereby bridging the gap between lifestyle, business, and technology.
