Diverging Demographics Determining the Future of Traditional Toys

Demographic shifts are causing emerging and developed toy markets to move in opposite directions

Emerging markets will be the main source of global child population growth over 2016-2021 and have a relatively young audience to sell to, with young children’s toys the main source of growth. At the same time, developed markets are seeing stagnating birth rates, leading toy makers to emphasise toys for adults.

Emerging Asia and MEA are seeing growth in toys for young children, but will need to prepare for eventual shift to pre-teen and teenage toys

The Middle East and Africa and Emerging Asia are seeing high birth rates and rising incomes that make them a prime area for toys for young children. Russia and Mexico are, however, more focused on toys for pre-teens and older, and demonstrate that high birth rate markets need to prepare for demographic shifts. Toy makers need to work to establish brands that span ages and resonate with local parents and consumers to realise the full potential of emerging toy markets.

US adult consumers make games and puzzles the fastest growing category in 2016

Games and puzzles was the fastest growing area of traditional toys in 2016, due to adult interest in the US. Toy makers within the US can look to capitalise on this adult board game trend, like Asmodee has, and even find ways to expand it into other areas of toys if they can be used for decoration or as a social activity.

Developed Asia Pacific markets demonstrate the potential of the adult toy segment

The impact of adults in traditional toys is most clearly seen with developed Asia Pacific, where adults have a large and growing toy presence. Established local IPs, like Pokémon and Yo-Kai Watch, and more toys made specifically for adults have helped the market and could have applications in other developed countries.

Corporate strategies will need to evolve to prepare for the long-term future

Further demographic segmentation across markets will be seen, and companies will need to position themselves now to create a foothold to capitalise on future growth. This means taking multiple approaches, like partnering or acquiring local licences, or creating new products and licences with multigenerational appeal.