Toys and Games in South Africa

Digital trends boost video games, but growth slows in traditional toys and games

Growing digital trends in the country have driven steady growth in video games as online and digital games grow due to rapid smartphone penetration and falling data costs. These trends have, however, impacted the slowing growth trend in traditional toys, as children become more active on online and mobile devices.

Global trends reflected in South African market

Global trends and preferences for traditional toys and games continue to be replicated among South African consumers. However, weak economic conditions were exacerbated by a tough political climate in the build-up to the national elections, increased VAT rates and fuel prices, as well as price hikes that resulted in decreased disposable incomes.

Utility above price and optimal returns on floorspace remain crucial to performance

To remain competitive, leading players are increasing their product offerings. Despite the increase in unit prices, parents seem to be more concerned about utility over price, with retailers taking note of this as they aim to optimise product ranges in relation to returns on floorspace.

Supermarkets and hypermarkets increase traditional toys shelf space

Sales of traditional toys and games through supermarkets and hypermarkets continue to grow, as these channels provide greater offerings at competitive prices. This is the opposite of traditional stand-alone toy stores that sell more premium offerings and more diverse product ranges and categories.

In the digital age, more children are expected to be active in mobile and online gaming over the forecast period

South Africa is very much in line with global trends when it comes to toys and games categories. It has been observed that in the digital age, children are increasingly attracted to video games and mobile gaming, compared to traditional toys and games.

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