Global toy market to see significant boost in 2025

The rise of educational, outdoor and digital toys in emerging countries is paving the way toward a big growth in the market.

Toy sales in China, India and Brazil are reportedly set to see a significant rise in sales, boosting the global toy market revenue to $139 billion by 2025.

This is according to a new report by Coherent Market Insights, a business intelligence firm. The company predicts a CAGR of 4.84 percent in global revenue, from $91.54 billion in 2016.

Primary drivers of this trend include outdoor and sport toys, puzzles, educational toys, construction sets and model vehicles. The report further notes that this is fueled by the increasing purchasing power by consumers in the aforementioned countries where these toys are seeing a notable growth.

Digital gaming is already starting to find a footing in the market, but this comes at a price for other toys. The traditional toys and games market in North America was valued at $28.73 billion back in 2016, but this has been decreasing as the audience for more technology-reliant toys grow.

Furthermore, overall online toy sales have also increased rapidly. Lastly, the report highlights that thin profit margins in the market are preventing major players from making large investments. This in turn allows local companies in emerging economies to grab a slice of the market.

In India, for instance, Mattel relies on imports from Malaysia and Indonesia to cater to the market. The lack of local manufacturing base coupled with brand value has rendered the company’s toys unaffordable to many consumers in the country. This saw the rise of domestic players in these countries.

All things considered, volume importers can expect that the toy market will continue to flourish and become profitable. The rapid growth of technology will also aid the market into the production of new toys that will adapt to the needs of children today.