Q1 2021 forecast update broadly aligns with the forecast review conducted in November of 2020, as pace of recovery also follows macro-economic trends in some of the key developing regions. While China is expected to see healthy rebound in 2021, markets like Brazil remain on a shaky ground. As industry players eyeing post-pandemic world of play and entertainment, strategies for growth include acquisitions, focus on key iconic brands, and audience outreach across ages and multiple platforms.
On the whole, growth trajectory for toys and games in 2021 and through the next five years reported with the latest Q1 forecast update aligns with expectations for growth reported by Euromonitor in the Q4 forecast scenario. While China demonstrated a significant drop in sales in 2020, the country’s recovery of economic activity and consumer confidence in the second half of 2020 positions its well for a strong rebound. At the same time, slow recovery in markets such as Brazil leaves toys and games industry recovery on shaky ground in the mid term.
As 2021 begins, traditional toys and games industry players focus on their key product portfolios through acquisitions and divestments, with leaders such as Mattel highlighting key brands such as Barbie as well as building innovation and brand outreach through a variety of platforms to appeal to audiences across ages.
Although return to in-person entertainment is in sight in 2021, early 2021 is still likely to focus on at-home activities and at-home family entertainment, thus still emphasising the need for consumer interaction that shaped strategies in 2020. At the same time, 2020 enhanced shifts towards consumer engagement on multiple platforms that were already forming pre-pandemic, and key industry players are launching a variety of initiatives that marry their well-known strong brands with entertainment for the new audiences, including TV and streaming services.
Video games continue to push forward, also supported by ongoing innovation in new consoles and games. However, as the pandemic brought to the fore broader capabilities of video game platforms, they also revitalised the conversation of video games’ role in helping to address mental health, with new games launching with specific therapeutic properties in sight.
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