Toys and Games in Singapore

Changing demographics pose challenges for traditional toys and games

The birth rate in Singapore declined by 1% in 2018, following a 4% fall in the previous year. This trend has impacted manufacturers in traditional toys and games.

Licensed toys continue to drive growth in the industry

Licensing continues to play a pivotal role in the toys and games industry as international franchises such as Marvel, Toy Story and Barbie enjoy a strong and loyal customer base from years of publicity and popularity. Besides long-time classic animated toys, new launches of animated movies have also spurred toys sales.

Innovation drives success in both video and traditional games

Nintendo’s Switch recorded strong growth in video games in 2018 as the Switch offers an array of games that can only be played on this console alone, and is family-friendly, catering to families that are big and small. Most importantly, the Switch has the dual function of being both home and handheld consoles.

Internet retailing is expected to be the main distribution channel by 2023

Physical retailers are facing challenges from the digital channels, as over half of the sales in the toys and games industry is expected to come from internet retailing by the end of the forecast period. Consumers are increasingly moving their play online, rather than playing with physical toys.

Value growth in toys and games industry is expected to grow

While volume growth in toys and games is expected to be slow due to the declining birth rate, value growth has been driven up by continually growing interest in the Nintendo Switch and innovation in traditional toys and games like Powered Up Lego and blind collectibles in action figures and dolls. While augmented reality (AR)/virtual reality (VR) equipment is not growing as strongly as anticipated, the high prices have successfully contributed to the value growth in the toys and games industry.

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