The growth was helped largely by a surge in sales in Asia, which increased at nearly double the average rate of 9.2 per cent.
The US market is still the biggest with sales of almost $22 billion, followed by Japan, China, UK and France. Sales are largely concentrated into these five territories, which accounted for over half of the sales.
Emerging markets also saw strong growth throughout the year, with Brazil, Russia, India and China showing a 13 per cent increase in sales.
Sales in Europe were down slightly in 2010, largely due to changes in the exchange rate. European revenues accounted for 28 per cent of the global market, compared to 32 per cent in 2007.
Jane Zimmy, global senior vice president, The NPD Group, commented: "The NPD Group is optimistic that the 2011 global toy market will continue to show growth.
"We expect the positive trends to continue in the emerging markets, though it's likely that they will not be as robust as we have seen over the past two years. We also expect continued growth in North America and a rebound in Europe."