TRADITIONAL TOYS AND GAMES MARKET ANALYSIS

Traditional Toys And Games Market Size and Trends

The traditional toys and games market is estimated to be valued at USD 9.31 Bn in 2024 and is expected to reach USD 11.61 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031.

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The traditional toys and games market has been witnessing consistent growth driven by the growing popularity of several board games, construction toys, arts and crafts, and outdoor and sporting toys among both children and adults. However, increased digitalization and preference for electronic devices among kids pose challenges for the market. Nevertheless, key players such as Agro A/S are focusing on integrating traditional toys with latest technologies to provide interactive and engaging gameplay, thereby appealing to changing consumer patterns.

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Insights, By Product Type - Educational value drives demand for educational toys

Educational toys segment is estimated to contribute the highest market share of 30% in 2024 of the traditional toys and games market, owing to the growing focus on early childhood education. Parents and caregivers recognize the developmental benefits that educational play provides for young minds. Toys that stimulate creativity, problem solving, dexterity, and other skills help promote school readiness from a young age.

This segment continues expanding due to broader acceptance that learning should be playful and fun. Educational toys engage children in hands-on exploration of subjects like science, technology, engineering, and mathematics (STEM). Many features buildable components, basic coding functions or interactive lessons on numbers, letters, animals, and more. By sparking curiosity in educational concepts through amusement, these toys keep children engaged with learning outside of school hours.

Insights, By Distribution Channel - The online segment is a key driver of growth in distribution channels

The online segment is estimated to hold 55.20% share within the traditional toys and games market in 2024. The convenience of online shopping continues attracting more parents to buy toys over the internet rather than in person.

Websites and apps allow buyers to conveniently browse extensive product selections from the comfort of their homes at any time. Detailed reviews and ratings from other customers help evaluate options more easily online compared to physical stores with limited shelf space. This makes research and decision making simpler for time-pressed families.

Regional Insights

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Regional Analysis: Traditional Toys and Games Market

Dominating Region: North America

North America is expected to account for the greatest revenue share of 35.3% in 2024. North America’s dominance in the traditional toys and games market can be attributed to the strong presence of major manufacturers such as Hasbro and Mattel. With their innovative products and diverse portfolio, these companies have developed a loyal customer base in the region over the years.

Fastest-Growing Region: Asia Pacific

The Asia Pacific region exhibits the fastest growth riding on the trends of increasing urbanization, exposure to western pop culture, and rising middle class spending power especially in emerging countries such as India and China. The governments' support for local toy industries has also provided a fillip.

Traditional Toys and Games Market Outlook for Key Countries

U.S.: The U.S. market continues to be driven by the demand for classic board games and construction toys among families.

China: The China market is witnessing diversification as local players offer innovative translations of western products as well as develop toys based on domestic television animations.

India: Led by MamaMia and Channapatna Toys, the India market continues to lead in traditional hand-crafted toy production while global brands are tapping opportunities through partnerships.

Japan: Despite advances in digital technology, traditional Japanese toys such as paper crafts and puzzles retain popularity given their emphasis on problem-solving skills.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Traditional Toys and Games Market Players

• Established Players: These companies often focus on brand loyalty and innovation. They invest heavily in research and development to create new products and enhance existing ones. Strategic partnerships and licensing deals with popular franchises also help them capture market attention.
• Mid-Level Companies: These firms typically emphasize niche markets, offering unique, customizable products that cater to specific consumer preferences. They often leverage online platforms for direct-to-consumer sales, enabling them to reach a broader audience without the high costs associated with traditional retail.
• Small-Scale Manufacturers: Small businesses often rely on sustainable practices and artisanal craftsmanship to differentiate themselves. They engage in community-focused marketing and use social media to build brand awareness and connect with customers directly. Collaborations with local artists and influencers further enhance their visibility in a crowded marketplace.

Emerging Startups in the Traditional Toys and Games Market

Innovative Technologies: Several startups are developing advanced technologies like AI, AR, and 3D printing to transform the toy-making process. Anthropic focuses on AI safety to build toys that are beneficial for children's development. They are working on educational AI toys that improve learning outcomes. Anthropic aims to make AI ubiquitous in kids' playtime while ensuring it always has their best interests in mind. Additionally, companies like Replicade are 3D printing customized mini-figures based on photos to create truly unique toys.

Sustainable Solutions: Some startups are innovating with sustainability in mind. For example, Seedling creates toys, books, and games using recycled paper, wood, and natural materials. All their products are non-toxic, Forest Stewardship Council (FSC-certified, and plastic-free.) Their goal is to offer sustainable toy alternatives that are just as engaging and educational. With increased environmental awareness, such startups are driving the shift towards eco-friendly toys made using renewable, biodegradable resources.

Traditional Toys And Games Industry News

• In November 2021, Mattel Inc., a producer of kids’ toys and games, launched a Celia Cruz Doll, known as the ‘Queen of Salsa’. Celia Cruz was one of the most popular Latin artists of the 20th century.
• In November 2021, Lego A/S, a Denmark-based toy production company, launched the Ultimate Collector Series Star Wars AT-AT, comprising 6,785 pieces. The new collectible is designed for children and millennials who are keen on investing in unique toys and games.
• In 2020, the pop culture consumer products and toys company, Funko, launched ‘Marvel Battleworld: Mystery of the Thanostones, a micro table gaming system. The company collaborated with animation production and comics house Marvel to engage their younger fans and adults with a new range of products and animation collaboration.

Key Takeaways from Analyst

• Traditional toys and games market is facing challenges from digital gaming platforms and apps. Younger consumers are spending more time on mobile devices and less on physical toys. This is a key restraint for the toy industry. However, traditional board games and construction toys continue to have demand driven by their educational benefits for children. There is also a growing interest in classic toys among nostalgic consumers. Companies must leverage these opportunities to push legacy brands.
• North America currently dominates the global market owing to higher disposable incomes and toy spending per child. However, Asia Pacific is expected to be the fastest growing region in the coming years. Rapid urbanization and growth of the middle class in countries like India and China will drive higher toy sales. Toy makers should prioritize these emerging Asian markets.

Market Report Scope

Market Dynamics

Market Driver - Increasing middle class population

As the economies of developing nations continue their steady growth over the past few decades, more families have seen their livelihoods and incomes rise into the middle-class standings. This expanding segment of the population now has greater discretionary spending power and looks to provide enriching activities for their children. Traditional toys that foster creative and social development remain popular options.

Board games, construction toys, arts, and craft sets provide affordable forms of play that parents recognize can help build important life skills. As families have more money to spend on leisure and development, toys seen as educational supplements are gaining in the retail marketplace. According to data published by UNICEF in June 2023, the percentage of children enjoying organized sports and community play has significantly risen in middle-income households in Brazil, China, and South Africa between 2020 and 2022. This indicates parents are willing to spend on gear and facilities for fitness and social skills.

Market Challenge - Growing inclination towards smartphones and computer games

One of the major challenges facing by this market is the growing inclination of kids and families towards smartphones, tablets, and computer games. With advancements in technology, more immersive and interactive digital games are being developed which is attracting the younger audience away from traditional toys. Many kids now prefer to spend their leisure time playing games on mobile and computers instead of using physical toys. This has reduced the demand and sale of conventional toys. As reported in a November 2022 UNICEF study, children in developed nations spent an average of 7-8 hours daily on digital devices even before the COVID-19 pandemic accelerated online education and socialization. This underscores the immense popularity of digital entertainment over physical play, adversely hitting the sales of conventional toys.

Market Opportunity - Emerging markets in developing nations

The traditional toys and games market has a huge opportunity in the emerging markets of developing nations. With rising incomes and growing middle class population, the demand for toys is increasing rapidly in countries like India, China, Indonesia, Brazil, and others. As people in developing countries are becoming more affluent, they are willing to spend more on children's toys and leisure products. For instance, toys based on Superhero franchises from Marvel and DC have found huge fan following in countries like India, the Philippines, and Nigeria among young boys. According to UNICEF, in the Philippines alone, sales of action figures doubled from 2020 to 2022 among kids aged 5-12 years. The trend shows how western pop culture is influencing toy choices. International toy companies should look to tap into these emerging markets and introduce affordable toys catering to local tastes and preferences. Setting up manufacturing units in these regions can also help lower costs. 

Market Segmentation

•  Product Type Insights (Revenue, USD, 2019 - 2031)
• • Educational Toys
  • Card Games
  • Stuffed Toy
  • Interactive Toys
  • Outdoor and Sports Toys
  • Model Vehicle
  • Construction Sets
  • Board Games
  • Others
•  Distribution Channel Insights (Revenue, USD, 2019 - 2031)
  • Online
  • Offline
• Regional Insights (Revenue, USD, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Dream International Limited
  • Hasbro, Inc.
  • Mattel, Inc.
  • Funskool Limited
  • Lego A/S
  • Jakks Pacific Inc
  • Tomy Co. Ltd.
  • LeapFrog Enterprises Inc.
  • Spin Master Corp
  • Bandai Namco Holdings Inc
  • Playmates Toys Limited
  • Kids Ii Inc.
  • Mega Brands Inc.
  • Melissa & Doug Inc.
  • Funko LLC
  • K'NEX Brands, L.P.
  • Ravensburger AG
  • Games Workshop Group PLC