World Market for Toys and Games

June 2021

Video games sales are projected grow a staggering 38% growth over the forecast period. Is there a place for traditional toys and games as we emerge from pandemic into a new normal world?

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Key Findings

Kidults driving growth of toys and games

As birth rates decrease and household sizes decline leading to fewer children for toys and games, Millennials and older population are buying toys for themselves.

Digitalisation of play

The popularity of video games is projected to be the key growth driver for the industry. Digital content (games, films, etc) can complement traditional toys and games in offering a fully-immersive experience for the toy buyers.

Toys to entertainment

The shift towards digitalsation also means that competitors for toy buyers are not limited to other toy companies. Any company can enter the market with digital entertainment and, if popular, licence out its characters to toy manufacturers.

Experiences over toys

As the younger generation of consumers becomes overwhelmed by too many toys, they may choose to watch a movie, go on a holiday or use the money for toys on other activities. The definition of entertainment has evolved.

Demand for authenticity

Global toy companies such as Hasbro and Mattel, with its tried-and-tested characters such as Transformers and Barbie, may struggle to appeal to the younger population who shun toys designed for the mass market.

Introduction

Scope
Trends shaping toys and games industry

Global Outlook

There is always time for fun regardless of the economic situation
Games consoles causing spikes as demand surged in 2017 and 2020
Consumers from developed markets are big spenders on video games
Video games’ explosive growth driven by increased digitalisation
Chinese consumers underspending as play has a negative connotation
Plateauing of game consoles as the world increasingly goes mobile
E-commerce boost due to the pandemic will continue towards 2025

Leading Companies and Brands

Gaming companies gained while traditional toy companies struggled
Mobile gaming drives video games companies’ revenues into the future
China is big enough for Tencent to become the global market leader
Nintendo Switch and its games appeal to casual gamers
Barbie and Hot Wheels proved to be timeless classics for Mattel
Hot Wheels and Matchbox racing to the top of the podium for Mattel
Monopoly and My Little Pony powering Hasbro
Hasbro and Mattel avoiding each other except in dolls and accessories

Key Trends Shaping the Industry

Trends shaping toys and games industry
Kidults and digitalisation of play will be the key growth drivers
Millennials’ income can be higher than experienced (older) workers
Younger generation is more digitally entrenched
Digitalisation of play: video games set to dominate toys and games
Digital content to complement traditional toys and games
Transformation to an entertainment company
Experiences and authenticity are valued by younger consumers
Authenticity: rise of the local hero

Market Snapshots

Global snapshot: traditional toys and games
Global snapshot: video 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

Appendix

Data parameters and report definitions (1)
Data parameters and report definitions (2)
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