Global Toys and Games Market By Distribution Channel, By Product Type, By End User, By Regional Outlook, COVID-19 Impact Analysis Report and Forecast, 2021 - 2027
- August 2021 •
- 227 pages •
- Report ID: 6155878 •
- Format: PDF
The Global Toys and Games Market size is expected to reach $469 billion by 2027, rising at a market growth of 6.2% CAGR during the forecast period. Toys and games are considered as amusement things that are available on market in various forms, designs, and qualities such as, dolls, toy cars, skipping ropes, jigsaw puzzles, board games, and rattles. These toys help in the overall development of children as they offer essential values. In addition, toys are also beneficial for the children in boosting their creativity and expressing their emotions. Additionally, it plays a role in stress remover and enhances physical, social, and cognitive skills. In the past few years, the growing popularity of multi-functional and interactive toys and games has surged the growth of the toys and games market.
There is an uplift in the sales of toys and games that are designed on popular characters of cartoons, movies, and TV shows, which is also contributing to the growth of the toys and games market. Rapidly growing personnel disposable income levels and rising number of the population are some of the factors that are anticipated to augment the growth of the market. Moreover, besides children, older consumers are also anticipated to increase the sale of toys and games particularly in segments like action figures and accessories. Further, other factors like the growing popularity of educational and scientific toys, rising demand for eco-friendly toys, and massive adoption of free-to-play gaming are fueling the demand for toys and games.
The COVID-19 pandemic had a negative impact on almost all industries across the world. The government imposed strict regulations to prevent people from the effect of the COVID-19. Lockdown and social distancing norms imposed by several nations led to the decline of the economies of several countries. These factors are also contributing to hampering the growth of the toys and games market. In addition, the manufacturing and supply of products have also witnessed a slowdown, owing to strict restrictions on traveling.
Although, the high-income groups coupled with middle-income customers are anticipated to increase the growth of the toys and games market. These are offering favorable opportunities for the leading players to introduce various home product ranges. During the period of the pandemic, the online retail segment surged the sales of toys and games. Whereas, delay in the numerous child-centered movie release also led to a significant decline in the growth of the toys and games market.
Market Growth Factors:
Rise in popularity of video games due to the influence of technology
The latest technology has evolved the world, people are now totally dependent on smartphones, several high-tech gadgets, and the internet. As a large number of people are engaged in playing video games, the vendors have introduced a recurring revenue model in the past few years. In addition, virtual reality products, video game tournaments, and consumer spending on video content are experiencing huge growth due to the expansion in technology.
Improves problem-solving skills & development of senses
The development of specific senses is connected to the numerous types of educational toys. The sense of hearing, sight, and touch are the most common senses that educational toys seek to develop. For instance, the sense of sight can be enhanced by using bright toys with various colors. Similarly, toys producing different sounds may help in enhancing the sense of hearing. While playing with these educational toys, kids observe those materials, colors, and sounds of toys.
Market Restraining Factor:
Spending more time with toys could hamper the concentration level of children
Children like to spend their leisure time playing games. Playing with lots of toys and games helps kids in reducing their stress and boredom. But excessive time spends on games and toys may hamper their studies along with reducing their interest in studies. This can also become a barrier between kids and their life skills, social interactions, mental health, team spirit, and creativity. In addition, kids nowadays like to play online games on electronic gadgets and devices.
Distribution Channel Outlook
Based on Distribution Channel, the market is segmented into Offline and Online. Due to the outbreak of the COVID-19 pandemic, schools are closed and customers are compelled to stay at home due to which, customers have started purchasing from e-commerce across the globe. In addition, during the pandemic, children were used to pass their time at home by playing with the latest toys and games.
Product Type Outlook
Based on Product Type, the market is segmented into Electronic Games, Outdoor & Sports, Games and Puzzles, Dolls, Preschool Toys and Others. Several toymakers are increasingly investing in content production of their leading products so that the content can be further utilized as lead generators, which will help in creating interactive experiences to offer value to their physical products. For instance, Magic: The Gathering is a trading card game, which was transformed by Hasbro into an esports game by staging tournaments and live-streaming the matches on Twitch, the world’s leading live streaming platform for gamers.
End User Outlook
Based on End User, the market is segmented into 0-8 Age, 9-15 Age and 15 Age & above. The 15 age & above segment acquired the maximum market share in 2020. Based on the research by CNBC, sports toys like scooters and skateboards left behind toys like fashion dolls & accessories and building sets like Lego. Average growth is witnessed in the selling prices of all products associated with toys and games. In addition, the developed nations comprise families with good disposable income, owing to which there is a surge in the purchasing rate of multi-functional, educational, and interactive toys as these toys are playing a significant role in the development of the child.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America exhibited a prominent market share in 2020. As an impact of COVID-19 in march 2020, the people were compelled to stay at home due to which, there is a surge in the downloads across the top genres like lifestyle, puzzle, simulation, and hyper-casual.
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporation is the major forerunners in the Toys and Games Market. Companies such as VTech Holdings Limited, NetEase, Inc., Dream International Limited are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Microsoft Corporation, Sony Corporation (Sony Interactive Entertainment LLC), VTech Holdings Limited, NetEase, Inc., LEGO Group (KIRKBI A/S), Dream International Limited, Nintendo Co., Ltd., Mattel, Inc., JAKKS Pacific, Inc. and Playmates Toys Limited (Playmates Holdings Ltd.).
Recent Strategies Deployed in Toys and Games Market
Partnerships, Collaborations, and Agreements:
Aug-2021: JAKKS Pacific teamed up with Disney, an American diversified multinational mass media and entertainment conglomerate. Both the companies focused on launching the latest Disney ily 4EVER 18-inch fashion doll portfolio inspired by Disney stories & characters. This collection includes trendy fashions, five dolls, and aspirational accessory packs, which provide kids a fun method to display their sense of Disney style.
Jul-2021: Playmates Toys entered into a licensing agreement with ViacomCBS Consumer Products. This agreement aimed to coincide with the launch of the CG animated Star Trek: Prodigy which would be the first Star Trek series made for younger viewers.
May-2021: Microsoft’s Xbox Game Studios came into partnership with Tencent’s TiMi. Under this partnership, TiMi Studio Group would bring multi-dimensional and in-depth cooperation & communication with Xbox Game Studios, where they would jointly develop excellent game content and give brand-new game sensory experience to players.
Apr-2021: Microsoft entered into a partnership with Rainway, a video game streaming service. In this partnership, Rainway’s browser solution would combine effortlessly into the Xbox Cloud Gaming streaming stack, which would make it possible to take Xbox content to gamers via a multitude of devices operating Google Chrome, Microsoft Edge, and Safari.
Apr-2021: Mattel collaborated with 9 Story Media Group and Karma’s World Entertainment. Under this collaboration, the companies would sign a multi-year global licensing deal for the latest CG animated series made by Chris Ludacris Bridges, called Karma’s World.
Apr-2021: JAKKS Pacific renewed its agreement with SEGA of America, a Japanese multinational video game developer, and publisher. This renewal included rights to create action figures, vehicles, play sets, plush and other collectibles.
Mar-2021: VTech teamed up with Save the Children, a leading humanitarian organization for children. This collaboration aimed to organize numerous events across various nations to support vulnerable children in need. Through the collaboration, VTech would not only allow children to continue to learn by playing.
Mar-2021: Nintendo came into partnership with Niantic, an American software development company. This partnership aimed to develop augmented reality (AR) titles, with a Pikmin-themed app.
Feb-2021: Mattel entered into a partnership with Milestone, the global racing game developer. Together, the companies aimed to introduce Hot Wheels Unleashed, an arcade-style racing game scheduled to release across Nintendo Switch, Xbox, PlayStation, and PC.
Dec-2020: JAKKS Pacific extended its partnership with Nintendo of America, a Japanese multinational consumer electronics and video game company. This expanded partnership aimed to enable JAKKS to manufacture, develop, market, and sell numerous Nintendo and Super Mario branded toys across the world.
Oct-2020: Microsoft signed a multi-year partnership with GameStop, an American video game, consumer electronics, and gaming merchandise retailer. This partnership aimed to enable GameStop to expand its physical & digital video game portfolio and build up its retail infrastructure.
Sep-2020: Nintendo partnered with Velan Studios, an American video game developer. This partnership aimed to introduce a new Mario Kart mixed reality experience, which would turn a player’s home into a Mario Kart racecourse to be traversed in physical & virtual worlds.
Acquisitions and Mergers:
Jul-2021: Sony acquired Nixxes, a group of highly experienced game technology programmers. Following the acquisition, Nixxes would be a strong asset for everyone in the PlayStation Studios, enabling Sony’s teams to focus on their most crucial objective of developing unique PlayStation content with the best quality.
Jun-2021: Sony took over Housemarque, a Finnish video game developer. Through this acquisition, Housemarque would get the financial backing to push boundaries with their innovative games and Sony would get another solid studio to add to their expanding portfolio of excellent first-party games.
Mar-2021: Microsoft took over ZeniMax Media, the parent company of Bethesda Softworks. Through this acquisition, Microsoft aimed to expand from 15 to 23 creative studio teams and would be adding Bethesda’s iconic franchises to Xbox Game Pass.
Dec-2020: Microsoft acquired Smash.gg, an esports tournament platform. Following this acquisition, the Smash.gg community & tournament organizers would get benefit from the Smash.gg platform, along with Microsoft’s team and also support within the Microsoft Content Services team.
Feb-2020: Sony Interactive Entertainment completed the acquisition of Insomniac Games, a leading game developer and long-time partner of SIE. This acquisition aimed to improve the creative force under SIE WWS and formally add a studio to the PlayStation family.
Product Launches and Product Expansions:
Aug-2021: Nintendo unveiled the Game of Life: Super Mario Edition board game. In addition, Nintendo released a special version of the Super Mario series, which doesn’t involve staring at the screen. This game can be played by two to four-person at a time of ages 8 and above that is a perfect game for families.
Feb-2021: Sony unveiled the PlayStation 5 in India. The standard edition involves the UHD Blu-ray drive for games and media. In addition, the PS5 India launch would also ditch the HD camera, Dual Sense charging station, and PS Headset.
Jan-2021: VTech introduced a variety of green electronic learning products in 2021. This launch is a step towards sustainability commitment towards substituting fossil-based plastics with sustainable options by 2030. VTech developed four latest vehicles in the popular Go! Go! Smart Wheels range developed from plant-based plastic, and the Sort & Recycle Ride-on Truck is developed from reclaimed plastic.
Scope of the Study
Market Segments covered in the Report:
By Distribution Channel
By Product Type
• Electronic Games
• Outdoor & Sports
• Games and Puzzles
• Preschool Toys
By End User
• 0 - 8 age
• 9 - 15 age
• 15 age & above
• North America
o Rest of North America
o Rest of Europe
• Asia Pacific
o South Korea
o Rest of Asia Pacific
o Saudi Arabia
o South Africa
o Rest of LAMEA
• Microsoft Corporation
• Sony Corporation (Sony Interactive Entertainment LLC)
• VTech Holdings Limited
• NetEase, Inc.
• LEGO Group (KIRKBI A/S)
• Dream International Limited
• Nintendo Co., Ltd.
• Mattel, Inc.
• JAKKS Pacific, Inc.
• Playmates Toys Limited (Playmates Holdings Ltd.)
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