Despite a slowdown in US sales and rising competition from the likes of video games, worldwide toy market sales topped $71.96 billion in 2007, a five per cent increase over the $68.5 billion generated in 2006, according to Global Toy Trends and Forecasts by NPD.
At the current pace, NPD expects worldwide toy sales to top $86.3 billion in 2010.
According to the report, North America represents 33 per cent of worldwide sales, followed by Europe at 30 per cent and Asia at 24 per cent. However, according to NPD prediction models, Asia is expected to mirror European sales with both representing 27 per cent of worldwide sales by the end of 2008, and grow by 18 per cent by 2010.
Sales in Brazil, Russia, India and China are outpacing total market sales, and are becoming increasingly important to the overall growth of the global toy market. In 2004, BRIC countries made up 8.8 per cent of world toy market sales, increasing to 11.2 per cent in 2007.
The only country is show negative dollar sales growth in 2007 was the US, with all other major countries showing positive dollar sales gains.
However, NPD estimates that the US market will return to growth, and should deliver an increase by 8.8 per cent by 2010 of the average spending on toys for kids. Next to the US, Japan and the UK produced the most revenue in 2007, generating $5.95 billion and $4.38 billion respectively.
"Growth in markets outside of the US provides toy manufacturers with alternative opportunities for business expansion," said Anita Frazier, industry analyst at NPD Group. "Understanding this potential in greater depth will be key to capitalising on those opportunities."