Toys Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Outdoors and Sports Games, Dolls, Construction Toys, Games & Puzzles, Vehicles, Soft Toys, Others), By Distribution Channel (Supermarket/Hypermarket, Specialty Store, Online, Others), By Region & Competition, 2020-2030F

Market Overview

Global toys market was valued at USD 111.81 Billion in 2024 and is expected to reach USD 148.13 Billion by 2030 with a CAGR of 4.8% during the forecast period. The global toys market is experiencing robust growth, driven by a combination of rising disposable incomes, increased awareness of child development through play, and a surge in demand for innovative, educational, and tech-integrated toys. With parents becoming more conscious of the cognitive and motor skill development of their children, there has been a notable shift towards STEM-based and interactive toys, fueling market expansion.

Additionally, the growing popularity of licensed merchandise based on popular entertainment franchises, such as Marvel, Disney, and anime series, continues to be a major growth driver, especially among children and collectors alike. Urbanization and dual-income households are also contributing to increased consumer spending on premium toys and international brands. The market is witnessing a strong digital transformation, as e-commerce and digital marketing strategies reshape how toys are sold and promoted. Social media platforms, influencer marketing, and unboxing videos play a significant role in influencing buying decisions, particularly among younger consumers and their parents. Furthermore, sustainability is emerging as a key trend, with both manufacturers and consumers showing a preference for eco-friendly, ethically sourced, and recyclable toys. Brands are increasingly investing in sustainable product lines and transparent supply chains to align with global environmental concerns. The integration of artificial intelligence (AI), augmented reality (AR), and robotics in toys is also revolutionizing the play experience, offering enhanced interactivity and personalized learning. 

Market Drivers

Rising Awareness of Educational and Developmental Benefits of Toys

One of the most significant drivers of the global toys market is the increasing awareness among parents, educators, and caregivers regarding the developmental and educational benefits of toys. Modern consumers, especially millennial and Gen Z parents, are more informed and intentional about the products they buy for their children. They seek toys that go beyond entertainment to promote critical thinking, creativity, motor skills, emotional intelligence, and cognitive development. This trend has led to a growing demand for STEM (Science, Technology, Engineering, and Math) toys, coding kits, brain games, and Montessori-inspired products. Educational toys are seen not just as playthings, but as tools that can enhance learning and prepare children for school readiness and real-world problem-solving. The incorporation of storytelling, role-playing, and open-ended play in many of these toys encourages language development, social interaction, and empathy. Toy manufacturers are responding by collaborating with child psychologists, educators, and researchers to design products that align with various stages of childhood development. Furthermore, early childhood education programs and preschools increasingly integrate toys into their curriculum to create engaging and participatory learning environments. In emerging economies, governments and NGOs are promoting the use of educational toys in rural and underprivileged areas, helping to bridge learning gaps. As more studies underline the long-term benefits of developmental toys, their perceived value continues to grow, thereby driving sustained demand across both developed and developing markets.

Technological Advancements and Digital Integration in Toys

The integration of advanced technologies such as artificial intelligence (AI), augmented reality (AR), Internet of Things (IoT), and robotics into toys has fundamentally transformed the nature of play, driving substantial growth in the global toys market. Smart toys that offer interactive features—such as responding to voice commands, learning from user behavior, or connecting to apps—are gaining widespread popularity. These tech-enabled toys not only engage children in immersive experiences but also provide personalized learning pathways that adapt to individual users' pace and preferences. For example, AI-powered robots can teach coding, languages, or mathematics in a gamified manner, maintaining children’s attention while promoting skill acquisition. AR-enhanced toys, such as puzzles or books that come alive when scanned with a mobile device, merge the physical and digital realms, keeping screen time educational and active. Additionally, connectivity through IoT allows toys to update content or offer multiplayer functionalities, enabling real-time interaction and learning even across distances. The rise of tech-savvy parents who understand the value of digital tools in child development further propels the adoption of such products. Moreover, smart toys are increasingly being designed with parental controls, data privacy features, and safety compliance, which boosts consumer confidence. Toy companies are also leveraging digital platforms for marketing and sales, using social media, influencer collaborations, and online content to engage consumers and build brand loyalty. With children becoming increasingly familiar with digital devices at a young age, technology-infused toys are expected to dominate future demand, making this a critical driver of market expansion.

Expansion of E-Commerce and Omnichannel Retailing

The rapid growth of e-commerce and the adoption of omnichannel retail strategies have significantly boosted the accessibility and visibility of toys, making it one of the strongest growth drivers for the global market. Online platforms offer parents and gift-givers a convenient and expansive space to browse, compare, and purchase toys from around the world, often accompanied by user reviews, instructional videos, and detailed specifications. This transparency and ease of shopping enhance the customer experience and empower better decision-making. The COVID-19 pandemic further accelerated the shift to online shopping, and the behavior has largely persisted, with digital channels becoming the go-to option for a wide range of consumers, including those in Tier II and Tier III cities. Major retailers and toy brands have responded by developing user-friendly websites, mobile apps, and direct-to-consumer models that facilitate personalized promotions, subscription models (e.g., monthly toy boxes), and faster delivery services. Omnichannel strategies—combining brick-and-mortar presence with digital interfaces—allow consumers to enjoy the benefits of both touch-and-feel experiences in stores and the convenience of online ordering. Retail giants and specialty toy stores have adopted click-and-collect, virtual try-ons, and live demos to bridge online and offline channels, enhancing customer engagement and loyalty. E-commerce has also enabled small and medium-sized toy manufacturers and local artisans to reach global audiences, contributing to the diversity of available products and stimulating innovation. Furthermore, seasonal marketing campaigns, influencer partnerships, and strategic product launches on online marketplaces amplify product reach and sales. As digital infrastructure improves globally and internet penetration deepens, particularly in emerging markets, e-commerce will continue to be a pivotal force in scaling the global toys market.

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Key Market Challenges

Increasing Competition from Digital Entertainment Alternatives

One of the foremost challenges facing the global toys market is the rising competition from digital entertainment platforms such as mobile games, video streaming services, and social media. With the proliferation of smartphones, tablets, and affordable internet access, children are spending more time on screens than ever before, often at the expense of traditional physical play. This behavioral shift poses a direct threat to the toys industry, as digital games and content—such as YouTube Kids, mobile apps, and virtual reality environments—often offer more immediate gratification and interactivity. As screen-based engagement grows, children may lose interest in conventional toys, especially in older age brackets. Moreover, digital platforms continuously evolve, offering newer experiences that can quickly capture a child’s attention, while physical toy innovation tends to follow longer development cycles. Parents, too, sometimes prefer digital solutions that occupy children quietly or can be easily carried during travel. This preference weakens demand for more tactile, space-consuming toys such as dolls, construction sets, or board games. In response, toy manufacturers are under pressure to reinvent traditional formats by integrating tech components or partnering with content creators to remain relevant. However, bridging the gap between physical and digital play—while maintaining affordability, durability, and child safety—is a complex and costly undertaking. Thus, the ongoing shift toward digital entertainment is a structural headwind that continues to challenge the toy industry’s growth trajectory.

Stringent Safety Regulations and Compliance Costs

Another significant challenge in the global toys market is the need to comply with increasingly stringent safety regulations across various regions. Toys, being primarily intended for children, must adhere to rigorous standards to ensure they are non-toxic, free of small choking hazards, structurally stable, and electronically safe if powered. Regulatory frameworks such as the U.S. Consumer Product Safety Improvement Act (CPSIA), European Union’s EN 71 safety standards, and other regional mandates require comprehensive testing and documentation, adding both time and cost to product development. Non-compliance can lead to product recalls, legal penalties, and irreversible brand damage. The complexity increases for companies operating globally, as they must navigate differing standards, labelling requirements, and import/export certifications for each target market. Moreover, as toys increasingly incorporate electronics, software, and internet connectivity, additional layers of cybersecurity and data privacy compliance are being introduced, particularly in developed markets. Ensuring children’s data is protected under laws like COPPA (Children’s Online Privacy Protection Act) or GDPR adds further technical and legal burdens. Small and medium-sized toy manufacturers, in particular, struggle with these barriers, which can limit their ability to scale or innovate. Additionally, changes in regulatory landscapes—driven by environmental, health, or ethical concerns—can suddenly render existing inventories non-compliant, leading to financial losses. Thus, while safety and regulatory oversight are critical to consumer trust, the operational complexities and compliance costs they generate remain a persistent challenge for toy producers worldwide.

Supply Chain Disruptions and Fluctuating Raw Material Costs

The global toys market remains highly vulnerable to supply chain disruptions and volatile input costs, both of which have intensified in recent years due to geopolitical tensions, natural disasters, trade restrictions, and the aftermath of the COVID-19 pandemic. Toy manufacturing is heavily dependent on international supply chains, with a significant portion of production concentrated in countries like China, Vietnam, and India. These supply chains involve multiple stages, from raw material sourcing (plastics, textiles, electronic components) to assembly and packaging. Any disruption—be it factory shutdowns, shipping delays, port congestion, or labor shortages—can cause delays in product availability, particularly during peak seasons like the holidays. Additionally, fluctuating prices of key materials such as petroleum-based plastics, metals, cardboard, and semiconductor chips directly impact production costs. Manufacturers often find it difficult to pass these costs onto price-sensitive consumers, especially in competitive markets, which squeezes margins and affects profitability. Global inflation and currency fluctuations further compound the problem, as companies that rely on cross-border trade must manage uncertain input costs and foreign exchange risks. Furthermore, many toy brands are trying to transition toward sustainable materials such as recycled plastics or biodegradable components, which, although environmentally beneficial, are often more expensive and less widely available, adding strain to production planning. To mitigate these risks, some companies are diversifying their supplier base or localizing production, but such shifts require time, capital, and risk reallocation. Therefore, maintaining efficient, cost-effective, and resilient supply chains in the face of global uncertainties remains one of the most pressing challenges in sustaining consistent growth in the toys market.

Key Market Trends

Growing Popularity of Sustainable and Eco-Friendly Toys

A prominent trend influencing the global toys market is the rising demand for sustainable and eco-friendly toys, driven by increasing environmental awareness among consumers and regulatory pressures toward greener practices. Modern parents, especially Millennials and Gen Z, are more inclined to purchase toys that align with their environmental values, choosing products made from responsibly sourced, non-toxic, biodegradable, or recycled materials. This shift has led to the emergence of a new category of "green toys," which not only reduce plastic consumption but also emphasize ethical production practices, fair labor conditions, and minimal carbon footprints. Traditional plastic toys, long criticized for their environmental impact, are being replaced or reimagined with materials like bamboo, organic cotton, wood, and plant-based plastics. Companies such as Green Toys, PlanToys, and LEGO have already introduced product lines that embrace sustainability without compromising on durability or aesthetics. Additionally, minimalist and modular toy designs are gaining traction, as they support extended use and reduce material waste. Toy packaging is also undergoing transformation, with brands minimizing plastic usage and opting for recyclable or reusable alternatives. Eco-certifications and transparent supply chain disclosures are becoming influential marketing tools, helping brands differentiate themselves in a crowded marketplace. Furthermore, educational toys that promote environmental consciousness—such as DIY recycling kits or climate-focused board games—are fostering green thinking in children. As consumers increasingly prioritize planetary health, the sustainability trend is expected to become a long-term pillar of innovation and brand loyalty in the toys industry.

Rise of Collectibles and Kidult (Adult Toy) Market

Another transformative trend reshaping the toys market is the exponential rise of collectibles and the emergence of the "kidult" (kid + adult) segment—adults who buy toys for personal use, nostalgia, or as collectibles. This growing demographic includes Millennials and Gen Z consumers who seek emotional connection to childhood memories or simply enjoy hobbyist collecting. Action figures, pop culture-themed toys, retro games, comic book merchandise, and building sets like LEGO Architecture or Star Wars kits are increasingly marketed toward adult consumers. This has significantly expanded the consumer base beyond children, leading to year-round demand for premium, limited-edition, and high-design toy lines. The growth of this segment is also supported by pop culture phenomena, including superhero movies, anime series, esports, and sci-fi franchises that maintain strong cross-generational fan bases. Toy companies are actively capitalizing on this by partnering with entertainment studios and content creators to release nostalgia-driven product lines that resonate with adult fans. In addition, the kidult trend has spurred growth in toy-based social communities, online forums, and conventions where enthusiasts showcase, trade, or review collectibles. The aesthetic appeal of displayable toys, combined with the rise of toy photography and influencer-led unboxing videos, further fuels demand. Importantly, these consumers are often willing to spend more on quality, exclusivity, and customization, which has led to higher-margin opportunities for manufacturers. As the concept of play continues to evolve across age groups, the kidult and collectible toy trend represents a valuable and growing niche in the global market.

Licensing and Cross-Industry Collaborations Driving Brand Value

Brand licensing and cross-industry collaborations have become central to product innovation and market expansion in the global toys industry. Partnerships between toy manufacturers and entertainment, fashion, gaming, or sports franchises are resulting in co-branded products that offer built-in appeal and recognition among target audiences. Popular licenses from media franchises such as Disney, Marvel, Pokémon, Harry Potter, Barbie, and Star Wars have created entire ecosystems of merchandise, often turning toys into lifestyle statements. Licensing not only helps toy companies tap into fan-driven demand but also shortens the go-to-market cycle by leveraging pre-existing brand equity. For instance, toy launches that coincide with movie releases, TV show premieres, or gaming events often experience demand spikes due to heightened media exposure. Moreover, the integration of NFTs (non-fungible tokens) and blockchain-based collectibles with physical toys is also gaining traction, allowing brands to offer hybrid digital-physical ownership experiences. Another emerging trend is the collaboration of toy brands with artists, designers, or luxury labels to create limited-edition lines that appeal to both children and adults. These strategic tie-ups are often promoted through social media campaigns, influencer marketing, and experiential events to build anticipation and virality. Collaborations also help toy companies remain culturally relevant by aligning with current trends in entertainment, fashion, or technology. The success of these partnerships hinges on storytelling, visual design, and timing, making them a dynamic and competitive segment of the industry. As content and commerce continue to converge, licensing and collaboration-based toys will remain a vital growth lever in the evolving toys market landscape.

Segmental Insights

Product Type Insights

Outdoor and sports games form a critical segment in the global toys market, promoting physical activity and social interaction among children. This category includes bicycles, skateboards, basketball sets, swings, trampolines, flying discs, and backyard games like water slides and ball pits. These toys are particularly favored by parents who aim to reduce screen time and encourage fitness and active lifestyles. The demand for such products often surges during summer months and school holidays. Their appeal is broadened through adjustable sizing, which accommodates multiple age groups. Moreover, with increasing awareness about childhood obesity and sedentary lifestyles, outdoor and sports toys are gaining renewed relevance. Brands are innovating by introducing safer materials, collapsible designs, and integrated tracking features like fitness monitors. Despite space limitations in urban environments, this segment continues to thrive through compact, multi-functional products designed for indoor-outdoor use.

Distribution Channel Insights

Supermarkets and hypermarkets was traditional retail formats where toys are sold as part of a broader product range. These outlets benefit from high footfall, strategic placement in family-focused areas, and the ability to offer competitive pricing through bulk procurement. Their value lies in convenience—consumers can shop for toys while buying household essentials. These retail environments also frequently host seasonal promotions, in-store demos, and bundled deals, particularly during holidays. Despite growing online preferences, physical stores continue to attract impulse buyers and customers who value the tactile experience of inspecting a toy before purchase. However, shelf space constraints and limited depth in inventory compared to specialty stores can be limitations.

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Regional Insights

North America remains the leading region in the global toys market, driven by high consumer spending, well-established toy brands, and a strong culture of licensed merchandise. The United States, in particular, is home to some of the largest global toy manufacturers and retailers, including Hasbro and Mattel, which continue to innovate across both traditional and tech-based toy categories. Seasonal buying behavior, especially during the holiday season—contributes significantly to annual revenues, while birthdays, back-to-school campaigns, and collectible launches add to consistent demand throughout the year. The region also benefits from a mature e-commerce ecosystem, advanced logistics, and a high penetration of digital marketing strategies, which influence children’s and parents' buying preferences. Licensing agreements with movie studios, sports franchises, and streaming platforms are highly popular, making character-based toys and collectibles dominant in North America. Additionally, the market's focus on safety standards, educational value, and sustainability continues to shape product development and consumer expectations.

Recent Developments

• In 2025, Moose Toys announced the expansion of its direct‑to‑retail operations in Spain and Portugal, supplementing its existing footprint in the UK, France, and Germany. This move reinforces Moose’s European growth strategy and positions the company as a dominant player across Western Europe.
• At its “Innovation Unlocked” event, Spin Master unveiled a lineup of new toys for 2025, including shape-shifting figures, kinetic sand sets that change color, and crash-and-repair RC Monster Jam toys. These product innovations highlight the company’s push to blend technology with creativity in play.
• At the 2025 New York Toy Fair, Goliath expanded its popular Jelly Blox brand with themed playsets (farm, playground, castle) and introduced The Sims® board game, as well as new hybrids under its Lucky Duck Games label. The move underscores Goliath’s shift toward storytelling-focused and tabletop-digital crossover products.
• At the Toy Biz International B2B Expo (July 4–7, 2025), India’s Commerce Minister announced a new government promotional scheme to further boost toy production and exports. With toy exports already up to 153 countries, the plan aims to elevate Indian manufacturing—from contract work toward IP‑based brand building.

Key Market Players

• The LEGO Group
•  Hasbro, Inc.
• Mattel, Inc.
• Tomy Company, Ltd.
• Spin Master Corp.
•  VTech Holdings Limited
• Ravensburger AG Group
• geobra Brandstätter Stiftung & Co. KG
• Thames & Kosmos, LLC.
• Rastar Group

Report Scope:

In this report, the global toys market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·          Toys Market, By Product Type:

o   Outdoors and Sports games

o   Dolls

o   Games & Puzzles

o   Construction Toys

o   Vehicles

o   Soft Toys

o   Others

·         Toys Market, By Distribution Channel:

o   Supermarket/Hypermarket

o   Specialty Store

o   Online

o   Others

·         Toys Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  Germany

§  Spain

§  Italy

§  United Kingdom

o   Asia-Pacific

§  China

§  Japan

§  India

§  Vietnam

§  South Korea

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

§  Kuwait

§  Egypt

o   South America

§  Brazil

§  Argentina

§  Colombia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the global toys market.

Available Customizations:

Global Toys 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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