Toys and Games Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Product Type (Plush Toys, Infant /Preschool Toys, Activity Toys, Dolls, Games and Puzzles, Others), By Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Online, Others), By Region & Competition, 2020-2030F

Market Overview

Global Toys and Games Market was valued at USD 335.42 Billion in 2024 and is expected to grow to USD 434.79 Billion by 2030 with a CAGR of 4.42%. The global toys and games market is witnessing steady growth, driven by increasing disposable incomes, expanding middle-class populations, and rising awareness of child development through play. Demand for educational and STEM-based toys has surged, fueled by parents’ preference for cognitive skill development. The integration of technology into traditional toys—such as app-enabled games, augmented reality features, and interactive robots—is reshaping consumer expectations. Moreover, the popularity of collectibles and licensed merchandise from movies and video games has further boosted sales. E-commerce platforms have widened accessibility, especially in emerging markets.

Key Market Drivers

Rising Demand for Educational and Skill-Development Toys

One of the most influential drivers of the global toys and games market is the growing emphasis on educational toys and those that promote cognitive and motor skill development. Parents, educators, and child development experts are increasingly focusing on toys that not only entertain but also teach essential skills such as problem-solving, creativity, numeracy, language, and emotional intelligence. STEM (Science, Technology, Engineering, and Mathematics) toys are gaining significant traction worldwide, as they are seen as tools to introduce children to complex concepts in a fun and interactive way. Brands are innovating in this space by integrating age-appropriate learning modules, making toys more engaging and effective for early education. The rise in dual-income households and working parents has also led to a preference for toys that offer educational value during independent playtime. In both developed and developing countries, early childhood education is being prioritized, and toys that contribute to this goal are in high demand. Governments and educational institutions are also playing a role by recommending or incorporating specific types of learning toys into curricula and preschool settings. Between 2011 and March 19, 2024, the U.S. Consumer Product Safety Commission (CPSC) issued six recalls of toys containing button-cell batteries, reflecting ongoing regulatory scrutiny and compliance efforts under safety standards like ASTM F963 and the CPSIA. This trend is expected to continue fueling market growth as consumers place a stronger emphasis on learning-based entertainment.

Technological Advancements and Digital Integration

The integration of technology into toys and games is dramatically reshaping the market, appealing to digitally native children and tech-savvy parents alike. Traditional toys are being transformed through the inclusion of artificial intelligence (AI), augmented reality (AR), and the Internet of Things (IoT), resulting in interactive and immersive experiences. Smart toys that can respond to voice commands, adapt to a child’s learning pace, or interact with apps are becoming increasingly popular. These technologically advanced toys are particularly appealing because they blend the physical and digital worlds, providing enhanced engagement. For instance, AR-enhanced board games and app-connected building blocks are changing the way children play and learn. Video games, both console- and mobile-based, are also benefitting from cutting-edge developments such as virtual reality (VR), cloud gaming, and high-definition graphics, offering players more immersive and collaborative experiences. Spain’s National Institute for Cybersecurity (INCIBE) reported that only 57% of connected toys met required cybersecurity standards, with 20% posing significant vulnerabilities—underscoring the need for stronger privacy and security design in tech toys. Furthermore, advancements in cybersecurity and privacy controls are reassuring parents about the safety of connected toys, thus boosting their adoption. As consumers across all age groups seek personalized and dynamic play experiences, the convergence of technology and toys will continue to be a powerful driver of growth and product innovation in the market.

Expanding E-commerce and Digital Marketing Channels

The proliferation of e-commerce platforms has significantly broadened access to toys and games, acting as a major catalyst for global market expansion. In 2024, retail eCommerce sales in the United States reached USD 1,192.6 billion, with USD 352.93 billion generated in the fourth quarter alone. Online retail allows manufacturers and sellers to reach a much wider customer base, including those in remote or underserved regions. The convenience of online shopping, coupled with a wider range of product offerings, competitive pricing, and easy return policies, has made it a preferred choice for many consumers. Moreover, the ability to compare reviews and view product demonstrations through videos has further enhanced the online buying experience. E-commerce giants like Amazon, Walmart, and Alibaba, along with specialized toy retailers, have invested heavily in improving logistics and customer service to meet growing demand. Digital marketing through social media platforms, influencer collaborations, and targeted advertising has also played a vital role in shaping purchasing decisions. These channels allow brands to connect directly with both children and parents, promoting products through interactive and relatable content. Seasonal promotions, flash sales, and the rise of “unboxing” videos on YouTube and Instagram have further influenced buying behavior, particularly for collectible and limited-edition toys. Overall, the digital retail ecosystem is not only simplifying distribution but also creating new avenues for brand engagement and customer acquisition.

Popularity of Licensed and Franchise-Based Products

Licensed toys and games based on popular movies, TV shows, video games, and comic books have consistently been major revenue drivers in the global market. Franchises like Disney, Marvel, Pokémon, Star Wars, and LEGO have created expansive ecosystems that include not just entertainment but also merchandise, including toys and games. These products enjoy an inherent marketing advantage, as characters and narratives are already familiar and beloved by children and adults alike. The cross-media presence of these franchises—spanning films, streaming platforms, video games, and social media—creates constant visibility and emotional engagement with audiences. Limited-edition collectibles, character figurines, themed board games, and branded playsets often experience high demand, especially around the release of new content. Additionally, nostalgia plays a strong role, with adult consumers increasingly buying retro or reissued versions of classic toys linked to franchises from their youth. This trend has opened up a growing segment in the market for kidult (kid + adult) products. Licensing partnerships between toy manufacturers and entertainment giants ensure a steady pipeline of new product launches aligned with media releases, boosting sales and market dynamism. As long as global pop culture continues to influence consumer preferences, licensed and franchise-based toys will remain a core growth driver.

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Key Market Challenges

Safety Concerns and Stringent Regulatory Compliance

One of the major challenges facing the global toys and games market is the need to comply with strict safety regulations and standards across different countries and regions. As toys are primarily intended for children, ensuring product safety is paramount, and any failure in this area can result in severe consequences for manufacturers, including legal penalties, product recalls, brand damage, and loss of consumer trust. Governments around the world, particularly in the European Union, the United States, and Japan, have implemented rigorous safety norms concerning the use of hazardous chemicals, choking hazards, sharp edges, and battery safety. For instance, the EU’s Toy Safety Directive and the U.S. Consumer Product Safety Improvement Act (CPSIA) impose strict testing and labeling requirements. Smaller manufacturers, especially those in developing countries, often find it difficult to meet the high cost and complexity of regulatory compliance, which limits their ability to expand globally. Furthermore, evolving regulations—such as those focused on sustainability or data privacy in connected toys—create additional pressure to continuously adapt product design and manufacturing processes. Inadequate compliance or oversight can lead to mass recalls, such as those seen in the past due to lead paint or magnetic components, severely damaging a brand’s reputation and consumer confidence.

Increasing Competition from Digital Entertainment Alternatives

The global toys and games industry is facing intense competition from the expanding universe of digital entertainment options, including streaming platforms, mobile applications, online video content, and social media. As children and even toddlers are increasingly exposed to smartphones and tablets at younger ages, traditional physical toys are losing their grip on children's attention. Instead of building blocks or action figures, many kids now spend their leisure time watching YouTube videos, playing mobile games, or interacting with digital avatars in metaverse-inspired spaces. This shift is causing concern among traditional toy manufacturers, who are finding it increasingly difficult to maintain engagement with digital-native children. While some companies have attempted to bridge this gap by integrating technology into toys or offering hybrid products that link physical items with digital apps, the speed and scale of digital entertainment growth continue to outpace these efforts. Moreover, many digital platforms offer free content, making them more accessible than high-priced toys, particularly in price-sensitive markets. Parents concerned about screen time are caught between the educational value of digital tools and the nostalgia or benefits of hands-on toys, leading to fragmented purchasing behavior. If not addressed strategically, this trend could erode the long-term relevance of traditional toys in younger age groups.

Fluctuating Raw Material Prices and Supply Chain Disruptions

Another significant challenge affecting the global toys and games market is the volatility in raw material prices and the ongoing disruptions across international supply chains. Most toys are made from plastic, rubber, metal, and electronics, all of which are vulnerable to price swings driven by geopolitical tensions, energy costs, and environmental policies. For instance, fluctuations in crude oil prices can impact the cost of plastic resin, a key input for many toys. Additionally, the sourcing of electronic components for tech-integrated toys has become increasingly difficult due to global semiconductor shortages and trade restrictions. The COVID-19 pandemic exposed the fragility of global supply chains, with delays in shipping, container shortages, and port congestion causing significant inventory and production issues. Even post-pandemic, challenges such as the Russia-Ukraine conflict, rising fuel prices, and labor shortages in logistics continue to disrupt the smooth flow of goods. These issues lead to increased production costs, delayed product launches, and difficulty in meeting seasonal demand peaks, such as during the holiday season. Manufacturers are often forced to absorb additional costs or pass them on to consumers, which can make products less competitive. In a market that thrives on timely innovation and cost efficiency, supply chain instability remains a critical concern.

Key Market Trends

Rise of “Kidult” Culture and Adult Collectibles

A significant trend gaining momentum in the global toys and games market is the growing influence of the "kidult" segment—adults who purchase toys for nostalgia, stress relief, or collection purposes. This consumer base, typically aged between 20 and 40, is increasingly driving demand for action figures, model kits, puzzles, board games, LEGO sets, and high-end collectibles based on pop culture, anime, comics, and retro gaming. Unlike children, kidults often have higher disposable incomes and are willing to pay premium prices for exclusive or limited-edition merchandise. Companies are responding by launching nostalgia-themed product lines and collaborating with major entertainment franchises like Star Wars, Marvel, Pokémon, and Harry Potter. These toys are not just meant for play but are seen as lifestyle items or home décor elements. Toy conventions, online fan communities, and social media have also helped to normalize and amplify this trend, turning hobbyist culture into a global market force. Even luxury brands and artists are entering the space, creating high-design figurines and designer toys that appeal to adult collectors. As emotional value, nostalgia, and hobbyism continue to drive consumer behavior, the kidult trend is transforming the perception of toys from child-centric items to multi-generational entertainment.

Sustainability and Eco-Friendly Toy Innovations

Sustainability has emerged as a central trend in the global toys and games market as consumers and regulators increasingly demand environmentally responsible products. Parents today are more conscious about the impact of plastic toys on the environment and are seeking eco-friendly alternatives made from biodegradable, recycled, or sustainably sourced materials. In response, leading manufacturers are reimagining their product lines, packaging, and sourcing practices. For example, LEGO has committed to transitioning to bio-based plastics made from sugarcane, while other companies are using FSC-certified wood, organic cotton, and non-toxic paints. Toy packaging is also undergoing a green overhaul, with reduced plastic usage, recyclable boxes, and minimalist designs becoming more common. Startups and boutique brands are capitalizing on this trend by offering artisanal and handmade toys with a clear sustainability message. Moreover, sustainability is becoming a core marketing and branding theme, influencing purchasing decisions and brand loyalty. Environmental certifications, carbon-neutral production processes, and “take-back” or recycling programs are also being introduced to align with consumer values. As environmental awareness continues to grow globally, especially among millennial and Gen Z parents, sustainability is no longer a niche—it is becoming a fundamental expectation in the toys and games sector.

Hybrid Play Experiences Merging Physical and Digital Worlds

The concept of hybrid play—where physical toys are enhanced with digital features—has become a major trend in the modern toys and games landscape. Today’s children, raised in a digital-first environment, demand more interactive and dynamic forms of play. To meet this expectation, toy companies are integrating augmented reality (AR), mobile apps, and artificial intelligence (AI) into traditional toys. For example, puzzles or board games may now come with QR codes that unlock interactive stories or 3D content through smartphones and tablets. Likewise, dolls, robots, or building sets can connect to apps that track progress, offer new challenges, or enable customization. This trend bridges the gap between screen-based entertainment and tangible, hands-on play, helping brands retain relevance in the digital age. Importantly, hybrid toys are being designed not just for fun, but also to promote cognitive, social, and emotional development by adapting to a child’s behavior in real time. Toy developers are increasingly partnering with tech companies, game developers, and educational institutions to create products that blend play with learning. As 5G, wearable tech, and virtual reality continue to evolve, the hybrid play trend will likely redefine how future generations engage with toys.

Gender-Neutral and Inclusive Toy Design

A growing trend in the toys and games market is the movement toward gender-neutral and inclusively designed toys, driven by evolving social norms, parental attitudes, and corporate responsibility. Traditional gender marketing—such as dolls for girls and trucks for boys—is being replaced by a more progressive approach that focuses on creativity, imagination, and personal interests regardless of gender. Leading brands are redesigning packaging, advertisements, and in-store displays to remove gendered cues, while also expanding product lines that reflect diverse ethnicities, abilities, and body types. For instance, companies are launching dolls with varying skin tones, hair textures, limb differences, and even hearing aids or wheelchairs to better represent real-world diversity. Board games and storytelling kits are also being designed to avoid stereotypical narratives and instead promote empowerment, empathy, and equality. This trend aligns with the growing emphasis on emotional intelligence and inclusivity in early education and child development. It also reflects broader cultural shifts as societies become more open and accepting of identity fluidity and neurodiversity. As a result, gender-neutral and inclusive design is not just a social responsibility—it is becoming a business imperative, allowing brands to resonate with modern families and expand their customer base across cultures and demographics.

Segmental Insights

Product Type Insights

Games and Puzzles have emerged as the fastest-growing segment in the global toys and games market, driven by rising demand for screen-free, interactive, and intellectually stimulating entertainment. Families, educators, and individuals are increasingly turning to board games, jigsaw puzzles, and strategy-based games to foster cognitive skills, social interaction, and relaxation. The segment gained strong traction during the pandemic and has sustained its growth due to a renewed focus on quality time and mental wellness. Educational puzzles and collaborative games appeal across age groups, while nostalgia-driven reboots and influencer-endorsed titles attract adult consumers. With innovation in themes, design, and gameplay mechanics, Games and Puzzles continue to captivate a wide demographic, solidifying their position as the market’s most dynamic and fastest-expanding category.

Distribution Channel Insights

The online segment has emerged as the fastest-growing channel in the global toys and games market, fueled by the convenience, variety, and competitive pricing offered by e-commerce platforms. Consumers increasingly prefer shopping online for toys due to 24/7 accessibility, home delivery, and easy comparison of products and reviews. The rise of digital-savvy parents, coupled with improved payment security and user-friendly mobile apps, has further accelerated this trend. Online marketplaces also provide access to exclusive products, limited editions, and global brands not easily available in physical stores. Additionally, social media marketing, influencer promotions, and unboxing videos have driven impulse purchases online. As internet penetration deepens across emerging markets, the online channel continues to outperform traditional retail in growth and consumer engagement.

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Regional Insights

North America stands as the dominating region in the global toys and games market, driven by high consumer spending, strong brand presence, and a culture that values both traditional and tech-integrated play. The region benefits from a well-established retail infrastructure, rapid adoption of innovative and licensed toys, and a mature e-commerce ecosystem. Major players like Hasbro and Mattel, headquartered in the U.S., lead product innovation and global franchise development. Additionally, North American consumers show strong interest in collectibles, educational toys, and video gaming, contributing to diverse market growth. Holiday seasons, such as Christmas, play a significant role in sales spikes. With continued investment in digital marketing and product innovation, North America maintains its leadership through both volume and value contribution.

Recent Developments

• In 2024, Hasbro, a prominent global toy and game company, announced a worldwide licensing deal with Playmates Toys—a company known for its expertise in toy design, development, marketing, and distribution—to manufacture and distribute POWER RANGERS merchandise. Playmates is set to launch a kid-focused MIGHTY MORPHIN POWER RANGERS toy line in 2025.
• In 2024, Rollic, a subsidiary of Zynga, teamed up with toy giant Mattel to co-develop a new Barbie mobile game, expected to launch later this year. This partnership reflects Mattel’s continued strategy to expand its licensed digital games portfolio.
• In 2023, Mattel unveiled a new collection of Barbie dolls inspired by the highly anticipated Barbie film. The Barbie the Movie doll line features outfits worn by Barbie, Ken, and other characters in the movie, capturing the iconic “Barbiecore” style and “Ken-ergy” aesthetic that define the film’s fashion.
• In 2023, Tomy entered into a partnership with Identity Games, the award-winning creators of Escape Room The Game. Under this agreement, Tomy secured exclusive rights to distribute upcoming titles from the Rotterdam-based studio, including Medical Mysteries and Battle Royale: Last One Standing, both scheduled for release in early 2024.

Key Market Players

• Spin Master
• The Lego Group
• Sanrio Co., Ltd.
• Playmates Toys Limited
• JAKKS Pacific, Inc.
• Mattel
• Hasbro
• Schylling
• Bandai Namco Holdings Inc.
• Dream International Limited
  

Report Scope:

In this report, the Global Toys and Games Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•   Toys and Games Market, By Product Type:

o   Plush Toys

o   Infant /Preschool Toys

o   Activity Toys

o   Dolls

o   Games and Puzzles

o   Others

• Toys and Games Market, By Distribution Channel:

o   Supermarkets/Hypermarkets

o   Specialty Stores

o   Online

o   Others

• Toys and Games Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  Japan

§  India

§  South Korea

§  Vietnam

o   South America

§  Argentina

§  Colombia

§  Brazil

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Toys and Games Market.

Available Customizations:

Global Toys and Games Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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