Traditional Toys and Games Market is Estimated to Witness High Growth Owing to Increased Disposable Incomes & Online Retailing
Traditional toys and games market is estimated to be valued at USD 9.3 Bn in 2024, exhibiting a CAGR of 3.2% over the forecast period (2024-2031). Furthermore, sustainable toys produced using natural, recyclable, and non-toxic materials are gaining popularity.
Market Dynamics:
The growth of the global traditional toys and games market is driven by factors such as increased disposable incomes and higher spend on entertainment and leisure. This has enabled more consumers to spend on hobby and recreational products such as traditional toys and games for children as well as adults. Additionally, the growth of online retailing has positively impacted the market. Major e-commerce platforms offer a wide assortment of traditional toys and games from various brands.
This has made shopping more convenient for time-strapped consumers. Online retailers also leverage targeted digital marketing and promotions to boost sales. The combination of increased spending power and widespread e-commerce penetration is likely to continue propelling the traditional toys and games market during the forecast period. This threatens the demand for physical toys requiring hand-eye coordination and creativity. Manufacturers are also innovating with interactive versions of classic toys leveraging voice and app features to engage kids and families for longer durations.
Market Drivers
Increased Demand for Educational and Developmental Toys
There has been a rise in demand for educational and developmental toys that aid in improving children's cognitive, physical, and social-emotional skills. Toys like building blocks, puzzles, and board games are seen as valuable learning tools that spark creativity and problem-solving abilities in children. Many parents prefer traditional toys that offer learning through play compared to digital devices and apps. This increased focus on educational benefits is driving the sales of traditional toys in the market.
Nostalgia and Gift-Giving Occasions
Major gift-giving occasions like birthdays, holidays, and other celebrations see high demand for traditional toys that were popular in the past. The feelings of nostalgia associated with classic toys, dolls, and board games inspire parents and families to gift them to children. Traditional toys are also considered more appropriate gifts for young kids compared to tech toys. Important events throughout the year provide regular boosts in sales for the traditional toys and games industry.
Market Restraints
Rise of Digital Entertainment Alternatives
With the widespread availability of smartphones, tablets, laptops, and other digital devices, children have several screen-based entertainment options at their fingertips. Tech-savvy kids often prefer playing digital games, watching videos, and using apps over traditional toys. This shifts their preferences away from physical toys, posing a challenge for the traditional toys and games market.
High Price Points of Some Traditional Toys
While many classic toys are affordable, some educational and collectible traditional toys can be quite expensive due to their intricate designs, better quality materials, and specialized features. This price point acts as a restraint for some parents with budget constraints. Affordability becomes an important factor especially during an economic slowdown.
Market Opportunities
Developing Educational Traditional Toys
There is potential to develop new educational traditional toys aligned with school curriculums that teach STEM concepts, coding, financial literacy, and other skills. Toys integrating learning content will attract parents looking to support their child's academics through play. Companies capitalizing on this opportunity can drive future growth in the market.
Leveraging Nostalgia through Retro Lines
Manufacturers can leverage nostalgia by launching limited edition retro lines of beloved classic toys from the past. Marketing them as collectibles allows targeting both child and adult consumers willing to pay a premium. Successful retro toy lines present an opportunity to rekindle interest and boost sales revenues.
Link - https://www.coherentmarketinsights.com/market-insight/traditional-toys-and-games-market-1243
Key Developments:
- In November 2021, Mattel Inc. introduced a Celia Cruz Doll, celebrating the 'Queen of Salsa,' who was one of the most celebrated Latin artists of the 20th century.
- In the same month, Lego A/S, a toy manufacturer from Denmark, released the Ultimate Collector Series Star Wars AT-AT, featuring 6,785 pieces. This collectible is aimed at children and millennials interested in unique toys and games.
- In 2020, Funko, a company specializing in pop culture consumer products and toys, launched "Marvel Battleworld: Mystery of the Thanos Tones," a micro tabletop gaming system. The company partnered with Marvel, an animation and comics studio, to engage both younger fans and adults through this new product line and animation collaboration.
Key Players:
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, and Games Workshop Group PLC
