A significant boost in toy and game sales in China, India and Brazil is to propel the global market to a tremendous $138.61 billion by the year 2025.
This is the projected revenue for the international traditional toys and games market according to the market research firm Coherent Market Insights who, in its latest report, forecasts and increase of 4.84 per cent in global revenue from 2016’s $91.54 billion.
Outdoor and sport toys, puzzles, educational toys, construction sets and model vehicles have ben cited as primary drivers of the projected growth for the market that has seen ‘significant boost from emerging regions.’
The report has attributed this to increasing purchasing power and per capita spend on toys by consumers in China, India, ASEAN and Brazil where growth is outpacing the likes of North America and Europe.
The traditional toys and games market in North America was valued at $28.73 billion in 2016 but is reportedly easing up owing to a growing audience for digital gaming.
The same report has highlighted that thin profit margins in the market are preventing major players from making large investments, allowing domestic companies in these emerging economies to capture market share.
‘For instance, In India, Mattel relies on imports from Malaysia and Indonesia to cater to the market,’ the report read. ‘The lack of local manufacturing base coupled with brand value has rendered the company’s toys unaffordable to many consumers in the country.
‘This has supplemented the rise of domestic players such as Funskool which is also a licensed manufacturer for LEGO, Hasbro, Takara Tomy and LeapFrog.’
Meanwhile, online sales of toys has increased rapidly over the recent past, resulting in manufacturers seeking partnerships with online stores. Mattel entered a partnership with Alibaba to allow the platform to sell Mattel products online.
Outdoor toys and sports toys is projected to be the largest segment over the forcast period. It was valued at $13.85 billion in 2016 and is expected to grow by 5.98 per cent to reach $23.18 billion by 2025.