World Market for Toys and Games

June 2023

Toys and games received a Mario Kart-like turbo boost as sales skyrocketed during the pandemic. However, sales crashed by 7% in 2022 when the world entered the “new normal”. Nonetheless, sales are projected to recover from the blip with 3% growth in 2023.

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This report comes in PPT.

Key Findings

Toy prices flying high

With inflation and the desire to drive revenues growth despite the economic instability, prices of toys and games are expected to remain high over the forecast period.

An entertainment era begins

Toy manufacturers’ transformation into entertainment moguls continues as more digital content is produced to help sales.

Why pay when you can rent

The subscription business model is gaining traction in video games. If the economy continues to worsen, consumers may become more receptive towards toy rental.

Toys go green

While consumers are more environmentally conscious, there is difference between parents and non-parents as parents choose safety over sustainability.

Toys becoming smart

As millennials become parents and more older consumers live alone, toy manufacturers are starting to integrate AI into toys.

 

Scope
Examining five trends shaping toys and games
Toys and games has a lot more potential to grow
Digital content will drive sales of toys and games over the forecast period
South Koreans have an insatiable appetite for video games
India’s new legislation will drive strong forecast period growth
Traditional toys and games has room for growth despite the popularity of video games
Video games growth powered by mobile games and online games and subscriptions
Tencent is king especially amongst casual gamers in Asia Pacific
Traditional toys and games to exceed pandemic high in 2026
Collectors building an empire brick-by-brick in construction
Barbie’s silver screen debut in 2023 will rekindle love for dolls
Digital content helps popular franchises gain shares in games and puzzles
Film franchises keep superheroes flying high
Console manufacturers keen to grow their recurring revenues
Stores are still a critical channel for toys and games sales despite the rise of e-commerce
Grocery retailers withstand the onslaught of e-commerce in traditional toys and games
Video game companies dominate
Tencent and NetEase expected to continue to struggle outside of China
Barbie, American Girl and Hot Wheels remain Mattel’s valuable franchises
Mattel’s projected growth areas
Games and puzzles and action figures account for more than half of Hasbro’s sales
Hasbro’s projected growth areas
Playing nice – Mattel and Hasbro enter into licensing agreements
Licensing agreement plays into the strengths of the two companies
Examining five trends shaping toys and games
Escalating price drives forecast growth
An entertainment era begins
Subscription triumphs over ownership
Smart toys for companionship
Toys go green – parents and non-parents have slightly different priorities
Global snapshot of video games
Global snapshot of traditional toys and games
Regional snapshot: Asia Pacific
Regional snapshot: Australasia
Regional snapshot: Eastern Europe
Regional snapshot: Latin America
Regional snapshot: Middle East and Africa
Regional snapshot: North America
Regional snapshot: Western Europe
Definitions

Toys and Games

This is the aggregation of traditional toys and games and video games.

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