The local market is poised to hit $8.8 billion this 2017, thanks to a growing domestic consumer market with high income levels.
Plush toys are popular among children and adults of all ages in China. Source: Pixabay
The world's largest toy manufacturer, accounting for 70 percent of the global supply, China reached an export and import value of $33.7 billion and $1 billion, respectively, last 2016, according to the China Toy & Juvenile Products Association. Following this, the country is projected to secure a 9.2 percent growth by 2017, which amounts to $8.8 billion.
Favorable domestic demographics are seen as one of the key drivers of this growth. Aside from high income levels and spending power, the adoption of the two-child policy will bring in more children, which will further spark demand for toys. With this, the Hong Kong Trade and Development Council estimates that about 2.4 million more babies will be born annually, which could be converted to $11.5 billion in toy sales in coming years.
Toy spending in China on average is about $30 per child below 16, and leaves room for greater spending when compared with the US' average of $200, according to Baobei360.
As regards competition, foreign brands are said to dominate the high end of the market while domestic brands are more popular at the middle and towards the low end, which have the highest population.
In terms of category, the most-sought after are those that are electronic and interactive such as smart toys and VR/AR models. Educational products are popular among parents as well. Plush toys featuring beloved characters are in demand, and gives opportunity for licensing.