The potential growth difference for the toys and games market between 2020 and 2025 is USD 50.73 billion, according to a report by global technology research and advisory company Technavio. The growth will mainly be driven by a rising middle class population with greater personal disposable income.
“Toys And Games Market by Product (Activity and ride-on toys, Infant and pre-school toys, Games and puzzles, Plush toys, and Others), Distribution Channel (Offline distribution channel and Online distribution channel), and Geography (North America, Europe, APAC, South America, and MEA) – Forecast and Analysis 2021-2025” outlines the key market dynamics that will impact the toy sector over the next few years.
31% of the market’s growth will originate from North America during the forecast period. The US, Mexico and Canada are the key markets for toys and games in North America. Market growth in this region will be slower than the growth of the market in the European, APAC, and MEA regions. The increasing demand for premium toys, rising spending capacity of consumers, and the presence of several prominent vendors will facilitate the toys and games market growth in North America over the forecast period
Key Market Dynamics:
- Market Driver – The key factor driving growth in the toys and games market is the increasing personal disposable income and rising middle-class population. In recent years, the lifestyle in both developed countries and emerging countries such as Russia, China, and India has changed dramatically, owing to rapid urbanisation and an increase in purchasing power. This is leading to a rise in the demand for toys and games from organised multi-brand retail stores, which, in turn, is helping the market vendors to earn higher revenue. The growth in the middle-class population is expected to aid the growth of the global toys and games market.
- Market Challenges – The seasonal demand and short life of merchandise and collectibles will be a major challenge for the toys and games market vendors during the forecast period. Efficient merchandise management is critical for toys and games retailers. Merchandise procurement needs to be planned based on demand forecasts. This is because the demand for these products is not fixed. With the demand in the market being highly susceptible to changing consumer needs, toys and game manufacturers may regularly need to extend or drop entire product categories or lines. As a result, merchandise purchasing can become very challenging. The merchandise manufacturing industry is highly fragmented, and retailers can have a wide range of vendors, which can make merchandise procurement even more difficult.
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