The global toys market is expected to reach USD 530.04 billion by 2033, at a CAGR of 6.5% from 2024 to 2033. The worldwide increase of the recognition toys is getting is a crucial factor driving the toys market. Nowadays, technological integration into toys is happening, which makes these toys look very attractive. With the help of technologies like augmented reality (AR) and virtual reality (VR), children's playtime can be made very enjoyable, and they can also be made aware of and use technology. This will lead to growth in the market. At the same time, children can also be taught using educational toys. Many things can be taught to children through play.

Market Overview:

Toys have been out for a long time. They progressed from solid wood toys to more exciting and complex toys. Toys keep kids entertained, so the toy and game industry has always been famous. As long as newborns are born into the world, there will be an inherent requirement in the global market. Toys have long been in trend, and children still request their parents to buy them toys. Kids play with toys to discover their identities and strengthen their bodies, learn causality, browse connections and skills that they will need as grownups. Every year, children of various ages buy toys, ranging from newborns to toddlers. Children and young adults are seeing a diversity of their fun activities as technology advances. In order to provide new, useful toys to children, the smart toys market is constantly investing in technology and combining different genres. Toys are of every kind, from wooden toys to plastic toys to soft toys. To keep every kid and child entertained, the toy industry is coming up with new ideas and new products every day. Toy companies, for example, create a secure, easy-to-play, and colorful toys for infants that will not endanger them. Producers consider introducing educational toys that aid in the development of key skills for growing children aged 6 to 10. The smart toys market is expanding due to the growth of movies and television, as the demand for imaginary characters among kids is increasing, and this will have an impression on the psyche of both adults and children in the global market. Toys play a very important role in the development of children. Toys help develop children's cognitive and motor skills. This leads to complete development of children and also increases their thinking ability, along with this, some toys also help in making them physically strong.

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Market Dynamics:

Drivers

• Increase in recognition of the benefits of health.

The growing recognition of the mental skills of certain play activities of children is one of the main drivers of smart toys market growth. Parents are getting creative with unorthodox parental involvement these days. Purchasing toys and games to aid a child's growth and development is prevalent among family members.  Parents want their children to play and learn at the same time and stay active. As a result, they purchase toys that have educational and learning effects on children. As a result, the trend of buying multi-benefit toys for children is a significant contributor to the development of the smart toys market revenue. Moreover, the increase in demand for strategic objectives and educational toys among children boosts the need of the smart toys market.

• Rise in educational games

Another driving factor for the smart toys market is the colorful toy items for pre-school kids. Nowadays, parents of pre-school kids are more driven to learn new things outside the classroom. They believe in learning through educational games. This is driving the market for educational games towards growth.

Restraints:

• Fluctuating exchange rates

The volatility in exchange costs and rising prices today are significant restraints for the toys sector. Even though people's disposable cash has increased beyond a certain point, they are still reluctant to spend a lot of money on toys and games. Changes in exchange rates are also inconvenient for people, causing them to avoid buying and postpone purchasing decisions.

• Rise in fake items.

Nowadays there has been rise in fake items which looks the same as the original item, which is hampering the growth of the smart toys market. Consumers are finding it hard to differentiate between the original and the fake item which is leading to hampering the brand loyalty. 

Opportunities:

• The new generation

These days the Millennial generation is looking forward to reliving the era of the 90s, which will remind them of their childhood. So this newfound fascination of millennials to bring back memories of their childhood puts forward an opportunity for the smart toys market. People these days are looking for nostalgia and old-school toys, which are better versions of the older ones. This covid 19 has helped make opportunities for people to move towards old-school toys and spend their time with family members. Therefore, the smart toys market has an open opportunity to develop business ideas such as the production of merchandise collectibles and old-school and nostalgic games in the future.

Challenges:

• Limited access to the internet

Nowadays, kids prefer online video games on mobile phones, tablets, or computers. Every child is moving towards online video games, so gaming and toys have moved towards the digital platform. And as the video gaming sector grows, the smart toys market faces the loss of some consumers.

• Covid-19

Covid 19 has been a significant challenge for the smart toys market, as the supply chain got disrupted and strict government rules were imposed on the public like social distancing, and there was a constant lockdown across the world. Offline retail stores had to close down their operations, which stood out as a significant challenge for the smart toys market. This coronavirus remains to be highly uncertain.

Segmentation Analysis:

The global toys market has been segmented based on product type, distribution channel, and region.

• The product type segment is divided into action figures, building sets, dolls, games and puzzles, sports & outdoor toys, plush, and others. The sports & outdoor toys segment dominated the market with around 23% in 2023. Outdoor and Sports Toys are anticipated to witness significant growth owing to the increase in the importance of staying fit among kids and youngsters. And at the same time, parents of kids are also concerned about their kid's health and fitness. So parents want their kids to play outdoor sports like tennis, badminton, or basketball to maintain their health and support their kids into staying fit. This urge to keep healthy has fueled the demand to play outdoor games and sports.
• The distribution channel segment is divided into offline channels (hypermarket/supermarket, specialty stores, departmental stores), online channels. the offline channels (hypermarket/supermarket, specialty stores, departmental stores) segment dominated the market with the largest market share of 56.3% in 2023. Various kinds of offline stores like specialty retailers, retail chains, and hypermarkets typically keep different soft, sophisticated products in their outlet shops. This is likely to entice consumers to buy products from such outlets, leading to a large cash flow segment.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America region emerged as the largest market for the global toys market with a 38.1% share of the market revenue in 2023.

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• This is due to the majority's rising disposable incomes. Furthermore, schools value toys and games because they aid in developing the brain of children.
• On the other hand, over the forecast period, the Asia-Pacific region is attributed to current policy measures dedicated to developing businesses in emerging economies such as India, Japan and China.

Competitive Analysis:

The key players are now concentrating on implementing strategies such as adopting new technology, product innovations, mergers & acquisitions, joint venture, alliances, and partnerships to improve their market position in the global toys industry.

Target formed a strategic partnership with the luxury toy retailer FAO Schwarz for the holiday season. To bridge items with the customer base, the two companies partnered on a 70-piece toy chest that was encouraged in-store. The line was available at FAO Schwarz's Headquarters in New York city, along with over 300 of Target's unique brands, such as Cat & Jack children's clothing and Pillowfort home catalogs.

The Lego system implemented a sailboat excursion set as a giveaway item for its Lego VIP participants, and recent gifting trends among the world's population will boost product consumption levels, In August 2021.

List of Key Market Players:

• Lego Group
• Mattel, Inc.
• Hasbro Inc.
• Moose Enterprise Holdings Pvt Ltd
• Simba-Dickie Group
• Bandai Namco Holdings Inc.
• Zuru Ltd

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities
• Consulting And Research Firm
• Venture capitalists
• Third-party knowledge providers
• Value-Added Resellers (VARs)

Report Description:

• Global Toys Market, Industry Analysis, Trends, Analysis and Forecast, 2024 to 2033 is a forthcoming/imminent research report which is to be published by The Brainy Insights.
• 2023 is considered the base year of the report. 2020 to 2022 are considered historical years, and 2024 to 2033 are the forecast years. The global toys market is based on revenue (USD Billion). The report incorporates the market study based on income. The study covers the market share revenue/market share/volume for each segment, region, and country catering to the global toys market. The analyzed areas for the market are Europe, Asia Pacific, North America, South America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level.
• The report encompasses the relative data & information, which have been validated by the leading industry professionals and experts across the globe. The research report also delivers an outline of the attractiveness of toys based on product type, distribution channel and regions which are deduced and formulated based on their growth rate (CAGR), market size, and attractiveness by analyzing the present and prospects to fathom market growth and development in future.
• The report illustrates the detailed (both quantitative and qualitative) analysis of historical data, revenues, key developments, along with the crucial strategies adopted by critical organizations catering to the global toys market. This offers vital and in-depth insights to depict the overall market scenario.
• The report offers the detailed study for the company profiles of key organizations operating in the global toys market and a comparative assessment based on their product offering, business overviews, geographic presence, business strategies, segment market share, product development & innovations, recent developments, joint venture, partnerships, mergers & acquisitions, strategic alliances, SWOT analysis, and critical financial information. This helps in evaluating the overall competition present in the market scenario.
• The report provides an elaborative assessment of porter's five forces analysis coupled with SWOT analysis to offer business-related data and pieces of information. Porter's five forces model is analyzed to understand the overall competitive scenario prevailing in the market. Additionally, the SWOT analysis identifies both the positive and negative attributes of the market development, which influences the company's growth and development to sustain and survive in the long run.
• The report also focuses on the market-related driving factors, growth limitations (restraints), potential industry opportunities, significant trends, and development which act as a critical potential for the investors.
• Potential growth prospects, along with the penetration rate analysis of the product (market-related, i.e., global toys market), are covered to comprehend the adoption rate and evaluate the market size.