Before the pandemic, Asia Pacific was fastest growing traditional toys market with significant room for growth due to the low spending per household on traditional toys compared to the rest of the world. While the pandemic has proved a setback due to the closures of physical toy stores and affected consumers’ income, the market is expected to rebound from 2022 onwards through education and local licensing. Sales to adult consumers (or “kidults”) will also be crucial to drive value sales growth.
The pandemic has proved a setback for Asia Pacific’s traditional toys market as it fails to follow its original growth trajectory. It was previously expected to be the fastest growing market during the 2015-2020 period. The gloomy economic conditions mean that consumers are saving for essential purchases only.
Asia Pacific’s spending per household on traditional toys is one third the level the rest of the world spends. Developing countries in Southeast Asia and developed countries such as China will be a focus for manufacturers to acquire new consumers.
Mobile games in Asia Pacific grew 25% in 2020 as many were offered free to play, which fits consumers’ mindset of saving during the pandemic. Consumers eventually become hooked and start spending on in-game items. This template will continue over the forecast period with the increasing penetration of smartphones.
Despite the closure of offline toy stores in 2020 and 2021, the channel will remain crucial for consumers as children still prefer to see and try products before buying them. Meanwhile, e-commerce will be the go-to channel for consumers to get the best deal after viewing products in stores or for consumer with time constraints.
“Kidults” or adult consumers are looking at activities for tech detox, especially as the pandemic forces them to work from home and interact through a screen all day. This group of consumers has the budget and is willing to spend on premium items.
Local licensing has become more crucial for international manufacturers to maintain growth or gain more share in Asia Pacific. Local manufacturers in Japan and China have shown that toys with local taste will attract a wider audience.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page