Competitor Strategies in Toys and Games

December 2023

The global toys and games market is projected to grow 17% over the forecast period driven by middle-class households in Asia Pacific and Latin America. Manufacturers are also driving innovation in personalisation, digitalisation, kidults and sustainability, following changing preferences from Millennials and Gen Z consumers.

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Key Findings

Inflation impacts performance of toys and games in 2023

2023 has been a tougher year for top traditional toys and video games manufacturers as high inflation resulted in consumers reprioritising their spending. Opening of borders also means that consumers are reallocating their spending to travel and experiences.

Emerging and developing markets to drive future growth for top brands

Growth in the next five years will be mainly driven by Asia Pacific and Latin America with their fast-growing middle-income households. Top manufacturers will have to build awareness as many were used to purchasing counterfeits and unbranded products.

Top traditional toys manufacturers to focus on “core” brands

Top manufacturers such as Hasbro and Mattel are reallocating their focus to their “core” brands as they try to build a franchise around them. Top brands are now getting their own movies, TV series and partnerships with brands from other industries such as apparel and food.

Consumers seek out personalised products

Consumers of today are looking for toy products that are personally tailored for them. Through localisation and collaboration, consumers are expecting products that suit their culture and preference.

Huge box office takings help top companies recoup losses from inflation impact

While inflation has created a loss of revenue for top manufacturers, new movie releases such as Barbie and The Super Mario Bros. Movie have helped Mattel and Nintendo, respectively, to recoup some of their losses.

Scope
Key findings
Companies at a glance
Traditional toys manufacturers will experience stronger forecast growth despite competition
Most top manufacturers continue to rely on market momentum for growth
Video games thriving in emerging and developing countries
LEGO continued to thrive despite a fragmented toys market
Hasbro and Mattel shift their focus towards “core” brands
Consumers are looking for personalised products and experiences
Personalisation across toys and games industry
Millennials are expected to increase their online activities
Huge box office successes are helping save the toys and games industry from inflation
Kidults with no children are spending more than ever on toys and games
Targeting high-income kidults is crucial to retain growth
Blind collectibles for dolls continue to gain traction among working adults
Growing consumer awareness of sustainability impacts innovation
Top manufacturers across toys and games develop creative ideas to boost sustainability

Toys and Games

This is the aggregation of traditional toys and games and video games.

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