Toys and Games in Asia Pacific

Delivery

This report comes in PPT.

Key findings

Toy players transforming into entertainment businesses can cut both ways

Samg Entertainment, a domestic 3D animation company, recorded very dynamic growth in South Korean traditional toys and games in 2022. It entered the category in 2020 through its Catch Teenieping brand of dolls and accessories and plush toys, quickly gaining share and moving up to second in traditional toys and games and fourth in toys and games in 2022.

“Kidults” an important consumer segment for future value growth

In terms of video games, the regulation in China is getting stricter, which could act as a drag on sales. The country’s anti-addiction measures for minors include limits on the amount of time they can spend playing video games. It will therefore be important for manufacturers to expand their target audience by not only catering to the demands of children, but also so-called kidults, with their greater spending power.

Already major e-commerce share continues growing

With digital sales completely dominating video games software, and the latter category the dominant force in video games overall, retail e-commerce now accounts for almost 90% of value sales in video games. While traditional toys and games stores remains an important channel for traditional toys and games, the e-commerce share is expected to continue growing, with an omnichannel presence increasingly important for store-based players.

Positive growth expected for toys and games in 2022-2027

Although the blind collectables (China) and trading card games (Japan) booms look to be losing momentum moving into the forecast period, positive growth is expected for toys and games in the coming years in Asia Pacific. Construction and mobile games will continue to be key growth drivers in traditional toys and games and video games, respectively, while AR/VR headsets will be most dynamic over 2022-2027.