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Competitor Strategies in Toys and Games

March 2023

Toys and games remains resilient, despite rising inflation driven by the war in Ukraine. Demand for digital entertainment and the growing use of social media are encouraging traditional toy makers to bring their toys to screen, while climate change is forcing industry players to embrace sustainability. An increase in single- and two-person households is boosting demand for toys among adults, while inclusivity and the removal of gender biases are becoming a pressing priority for companies.

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This report comes in PPT.

Key Findings

Demand for toys and games remains strong in the wake of the pandemic, with Tencent leading the pack

Despite rising global inflation caused by the war in Ukraine, demand for toys and games remains stable. The pandemic caused a shift in how people use their leisure time, with families now seeking more entertainment options at home. Tencent leads the market in terms of sales value, as mobile gaming booms, trailed by Nintendo and Sony.

Growing demand for digital entertainment, social media and e-commerce is seeing toy manufacturers pivot their strategies

Gaming continues to experience growing demand, following the launch of the next-gen consoles, while rising smartphone penetration has lowered barriers to entry. As children spend more time on social media, toy companies are rushing to ensure their characters are brought to screen. Growing demand for e-commerce services is encouraging omnichannel retail strategies.

Sustainability is gaining traction within corporate strategies

The growing risk posed by climate change has led to a rapid acceleration in the implementation of sustainability-related initiatives by toys manufacturers globally. This has seen LEGO testing the production of LEGO bricks made from sugarcane, Mattel launching new toys made from recycled or plant-based material, and Hasbro committing to eliminate all plastic in packaging for new products by the end of 2022.

Toy companies are embracing inclusivity, with a focus on race, positivity and removing gender biases

Inclusivity is gaining traction, with manufacturers introducing toys that embrace multiple skin tones, while seeking to remove gender biases. To this end, Hasbro has dropped the “Mr” from “Mr Potato Head”, Mattel has launched new Barbie figures with different ethnicities and a wider range of body types, while LEGO plans to launch a reimagined range of LEGO Friends characters in 2023.


Key findings
Companies at a glance
Growth remains primarily driven by market momentum across most companies
Emerging and developing countries continue to become a key focus, as incomes rise
LEGO remains committed to its core offering, as Tencent and Nintendo gain in the industry
Traditional toy companies’ sales become more concentrated among top three brands
Electronic Arts set to climb brand rankings, while Hasbro and NetEase Inc will lose out
Evolving purchasing behaviour encourages retailers to strengthen omnichannel strategies
Demand for digital entertainment is highest among Generation Y and Z
Reducing plastic usage, frequent recycling and sustainable packaging are top of mind
Traditional toy companies prove that going green is key to their corporate strategy plans
McDonald’s plans to reduce the plastic in its Happy Meal toys worldwide by 2025
Kidults have the time and financial means to indulge in toys and games
Iron Man on the big screen rekindling kidults’ childhood memories
LEGO appeals to stressed-out adults and rebrands its adult-focused toy range to LEGO Icons
Demand is growing for toys that do not stereotype and promote an inclusive society
LEGO tackles gender biases and launches a diverse range of LEGO Friends

Toys and Games

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

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