Toys and Games Market Size, Share, Growth, and Industry Analysis, By Type (Games and Puzzles, Infant and Preschool, Activity and Construction Toys, Dolls and Action Figures, Vehicle Toys and Ride-Ons and Soft/Plush Toys), By Application (Specialty Stores, Hypermarkets and Supermarkets, Department Stores and Online Retailers) and Regional Forecast to 2033

TOYS AND GAMES MARKET OVERVIEW

The global Toys and Games Market size was USD 114.52 billion in 2025 and is projected to touch USD 146.15 billion by 2033, exhibiting a CAGR of 2.7% during the forecast period. 

Toys and games are products designed for play and amusement, whether for children or adults. This includes dolls, action figures, puzzles, and items played with outdoors. They assist in practicing creativity, the cognitive skills, and physical exercise. Furthermore, toys and games play an important part in leisure and educational activities. The toys and games market deals with the manufacture, distribution, and sale of those products. The range of product types was quite wide and varied, catering to different age groups and preferences. The market also fuels innovation in designs and materials so that the products can remain competitive and meet safety standards and expectations of consumers.

Currently, the toys and games industry is thriving due to various reasons, such as the rising curiosity of parents regarding green toys, the return of nostalgic toys & video games, awareness of cognitive benefits offered by building toys, and the growing trends in mobile-based gaming. Growth in traditional toys and games is predicted to be propelled by widespread subway activities including construction sets and puzzles among the youth. Given the increasing popularity of old-school games in social situations by Millennials, the market is expected to grow. Companies are in the process of changing their product offering by opening e-stores and selling through e-commerce platforms like Amazon, Walmart Online, and eBay.

GLOBAL CRISIS IMPACTING TOYS AND GAMES MARKET

People Confined Under the Four Walls in the Lockdown Phase Upscaled the Market Scales Profitably

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Lockdowns fueled demand for indoor/educational toys—board games, puzzles, construction sets, and STEM-focused kits, as well as arts and crafts—laying in much greater preference. Parents became value-conscious, avoiding impulse buys and opting for longer-lasting educational products. The home entertainment trend saw mainstream and tech toys, as well as indoor fitness games like Ring Fit Adventure, become the national craze. E-commerce came into its own, as online sales accounted for nearly 60% of the toys and games market in 2024. Amazon and direct-to-consumer channels thrived, especially with brick-and-mortar outlets lying dormant.

LATEST TRENDS

Consumers Aiming for Sustainability is Creating Market Opportunity for Companies Manufacturing Sustainable Toys

Parents are becoming more environmentally conscious, preferring toys that pose no harm and are made under ethical conditions. The growing sustainability wave concomitantly supports this trend, as consumers search to slash their environmental impact and scale down their footprint. The brand 'Green Toys' is well known for producing toys made entirely from 100% recycled materials, such as jugs for milk, thus providing an eco-accommodating to child-friendly check. On the other hand, PlanToys is a sustainable wood business that utilizes non-toxic, water-based dyes in producing toys, thereby stressing sustainability in their entire production.

TOYS AND GAMES MARKET SEGMENTATION

By Type

On the differential basis of type, the market is sectioned into games and puzzles, infant and preschool, activity and construction toys, dolls and action figures, vehicle toys and ride-ons and soft/plush toys.

• Games and Puzzles: It is termed as the fastest growing of all the segments during the pandemic; families and people moved indoors to board games, puzzles, and card games to pass the time but were sustaining interest due to increases in social gaming culture and family bonding activities.
• Infant and Preschool: Demand remained unrelenting as educational and sensory toys continued to sell well after parents had to engage their children in early learning at home when preschool was closed.
• Activity and Construction Toys: LEGO and other similar firms had record sales due to kids being stuck at home with their adult fans and it helped beat boredom and helped cognitive skills development.
• Dolls and Action Figures: Traditional dolls saw a decrease in demand early during the pandemic due to such issues as supply chain disruptions and lower gifting frequency. However, action figures tied to streaming shows (e.g., Star Wars and Marvel) showed a stronger resilience because of the at-home media consumption.
• Vehicle Toys and Ride-Ons: Vehicle toys and ride-ons saw a temporary downward trend with the onset of restrictions on outdoor activities. Battery-powered ride-ons as well as outdoor ride-ons were less popular early in 2020, but this later changed as families began spending more time outside.
• Soft/Plush Toys: Demand for soft toys and plush toys as presents for birthdays and other festive occasions shot high during the lockdowns. Plush toys associated with emotional support (e.g., the Squishmallows craze) proved to be the stuff that went viral and highly demanded.

By Application

On the differential basis of application bifurcation, the market is fragmented into specialty stores, hypermarkets and supermarkets, department stores and online retailers.

• Specialty Stores: Specialty stores suffered heavily due to forced closures and meager footfalls. Many specialty retailers incurred losses, or turned clinical if not complete online, to stay afloat.
• Hypermarkets and Supermarkets: First of all, hypermarkets and supermarkets application operated during the lockdowns as essential services, but toy aisles lost priority in product stocking.
• Department Stores: Consumers mostly prefer shopping for toys and games in a physical store so that they can see, touch the product and try to interact with it before finally deciding to make their purchases, which makes for a much more tangible, immersive experience than online shopping.
• Online Retailers: Aggregator and manufacturer-hosted e-commerce occupy under the online segment. The manufacturers realize the potential of the channel and are hosting shopping websites to better serve customer demands and further enhance profit margins.

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions. 

DRIVINGFACTORS

Growth in the Market Sales was Witnessed with the Focus on Production of Smart Toys

Smart toys unify technology components, such as internet connectivity, sensors, and interactive properties, which enhance their impression and educational value for a child. For example, there are interactive plush toys like Hasbro's 'FurReal Friends,' which uses sensors to respond to touch and voice, thereby emulating a lifelike pet experience. Such toys often come equipped with educational apps and games that aim to combine fun with education, as seen in the case of the 'Osmo' system. The program pairs physical gaming components with an iPad app for learning subjects from math to coding in an engaging and enjoyable manner. Also, smart toys allow for personal great deal of customization in their play experience by children, as in the case of sets called 'LEGO Hidden Side,' which combines conventional brick building with augmented-reality app features, enabling children to go on ghost-hunting missions in their very own creations.

Market Expansion with the Intervention of Educational Toys to Surpass the Market Growth

Educational toys are gaining much importance in the modern world and are an important aspect driving the toys and games over the globe. Parents are now on the lookout for toys that not only provide entertainment but also improve the cognitive and motor skills of their children. Conceptual educational toys that bring learning in mathematics, language, and problem-solving skills have gained great traction. Furthermore, the increasing demand for licensed merchandise is another reason for the growth in this market. It is the toys that are built on the successful franchises, movies, and television shows that have a loyal consumer base boosting the sales.

RESTRAINING FACTOR

Consumers Shifting Focus Towards Digital Entertainment to Restrain the Market Growth

Consumer demand shifts towards digital entertainment such as video games and mobile applications, and as the market has adapted to these changes, so, too, have children's interests. With children spending so much time on screens, traditional playthings might begin to lose appeal: Consider the fact that the mobile gaming market is booming, offering so many games on smartphones and tablets that they could potentially encroach on the sales of physical toys. However, one critical limitation within the Toys and Games market growth is dealing with the penetration of digital entertainment.

OPPORTUNITY

Market Structure was Reformed Affluently with Innovation in Toys for Specially Abled Children

Consumers actively seek products that are a little more diverse concerning life experience and capability. Toy manufacturers, in turn, are stepping up to create products that address a wide spectrum of backgrounds, genders, and physical or cognitive capacities. By way of example, dolls and action figures are now offered in a variety of ethnicities and abilities, enabling children to relate to characters reflecting their own background. Similarly, board and card games are now altering their rules and designs so that play can be accessed by people with disabilities, ensuring an inclusive and pleasurable social experience for everyone.

CHALLENGE

Mandatory Licensing and Higher Cost of the Product is Proven to Lag the Market Growth

The major hindrance to growth of toys and games are high costs of manufacturing in high-quality toys. The use of high-quality materials and their intricate designs typically leads to an increase in costs of production, thereby affecting the prices and accessibility of the market. Popular toys depend on extensive licensing, which comes with highly expensive fees. Therefore, costs could incur less profits and limit the variations of licensed items available in the market place. Thus, companies tend to show less investment in new products and innovative designs.

TOYS AND GAMES MARKET REGIONAL INSIGHTS

• Asia Pacific

Asia Pacific is the largest region representing over half of the Toys and Games market share worth a huge amount of the global market. This is mainly due to the huge population in the region, rapid urbanization, and increasing disposable incomes. China, India, and Japan dominate the market, both in demand for traditional and modern toys. Further, a growing middle class and a high birth rate in Asia Pacific contribute to this dominance in toy demand due to increased disposable income. Moreover, the affordability of a wide range of toys due to the production capabilities of the region contributes to its accessibility by consumers across the globe. Strong local brands, coupled with the growing international presence, play an important role in this course. Market dynamics are influenced by a variety of cultures and preferences found in Asia Pacific. Educational toys adopted for region-specific preferences, amidst the growing traction towards high-tech and interactive toys, support the continuous extension of the market.

• North America

North America remains a potential market because of high disposable income and consumer tendency toward premium and educational toys. The region also proves to have a strong penetration of e-commerce. The United States toy and games market accounted for almost 74% of the North America's revenue in 2023 and is projected to move toward growth during the forecast period due to the increasing preference for educational toys and STEM-focused games that parents tend to give children for entertainment opportunities along with learning.

• Europe

Europe's focus is sustainability demand for eco-friendly toys and other kinds of stuff. The region is also traditionally very high on quality manufacturing in manufacturing and innovative designs in toys. Also, the propagation of popular media and entertainment franchises through licensed toys and games based on movies, TV shows, and video games grows in acceptance by consumers.

KEY INDUSTRY PLAYERS

Major Market Players Embrace Procurement Techniques to Remain Competitive

Market players are locked in in intense competition utilizing procedures such as item development, quality upgrade, competitive estimating, and successful branding. With shoppers progressively favoring economical items, these players are emphasizing the utilize of common and eco-friendly materials such as cotton and bamboo. They are particularly centering on propelling modern items custom fitted for unmistakable applications, tending to the different requests within the market. Moreover, there's a solid accentuation on improving delicateness and generally item quality.

A few market players are endeavoring to convey a sumptuous encounter through predominant plans and quality. Competitive techniques incorporate cost wars, advancements, and collaborations with retailers, all of which play significant parts in their market situating. Online nearness and client surveys hold expanding impact over customer choices. The market competition is multi-faceted, including item separation and key market situating. 

 LIST OF COMPANIES PROFILED

• Hasbro (U.S.)
• Mattel (U.S.)
• The LEGO Group (Denmark)
• TOMY (Japan)
• JAKKS Pacific (U.S.)
• MGA Entertainment (U.S.)
• Playmates Toys (China)
• Vivid Imaginations (U.K.).

KEY INDUSTRY DEVELOPMENTS

• June 2023: Victoria’s Secret and Amazon Fashion collaborated to move forward the shopping encounter for clients. The collaboration will incorporate over 4,000 fashion things from Victoria's Secret and PINK, including panties, bras, swimwear, loungewear, and sleepwear. Particular bra and attire styles will too be accessible on Amazon Prime’s Try Before You Buy program.

REPORT COVERAGE

The market is characterized by seriously competition, with various players competing for showcase share. The competitive scene incorporates a blend of built-up companies and rising new companies, each advertising a run of instruments with shifting highlights and capabilities. The showcase is driven by development, with companies ceaselessly improving their items to supply way better client involvement, more precise approval, and integration with other advancement apparatuses. The competitive competition is assisted escalates by the presence of both free and paid apparatuses, catering to distinctive fragments of clients.