Toys aren’t time-wasting tools for kids. Besides entertaining and keeping children busy, they nurture their cognitive abilities during their most important years. Toys enhance a child’s memory, attention span, and concentration levels, improving their overall ability to learn. When properly chosen, toys aid a child’s mental, physical, emotional, and social development.
Most parents understand this all too well, which is why the toy industry is a multibillion-dollar industry today. What’s the state of the toy industry in 2022, and what does the future hold? Keep reading below to find out.
Top Toy Industry Statistics as of 2022
Before focusing on in-depth statistics, here are the top toy industry statistics and insights as of 2022.
· The global toy industry revenue stands at $104 billion, representing a 13% growth since 2018. [1]
· America accounts for 25% of the total global toy market industry at $25.5 billion. North America and Europe represent the largest markets in the global toys industry. High expendable incomes, the presence of major toy players, and increasing awareness of the benefits of toys are among the driving factors for the regional growth of toy markets in North America and Europe.
· China is the largest toy maker and exporter in the world. The toy sales statistics indicate China exported $78.7 billion worth of toys of 2022. [2] China has dominated toy manufacturing for decades. While some of the largest toy manufacturers globally aren’t Chinese companies, most have established manufacturing bases in China due to the rapid industrialization of the country and low production costs.
· Toys have a direct economic impact of approximately $39.3 billion annually in the U.S. and approximately $100+ billion in total annual economic impact. [3] The industry is responsible for 623,000+ direct jobs in the U.S. [4]
· America is the top importer of toys globally. In 2020 alone, the U.S. imported toys and sports requisites amounting to $36.3 billion, accounting for the largest toy import value ever since 2011. [5] 80% of all toy imports to the U.S. come from China. Canada is also a significant recipient of China-made toys.
· For simplified global toy market size statistics per home, American households spend $150+ per year on toys and related products. European households spend slightly more – $212 per child. [6]
Toy Segmentation Insights
There are many types of toys with segments based on many factors ranging from type of toy to targeted age, use, and more. Here are some key toy industry segmentation insights to note;
· Dolls represent the largest toy segment accounting for approximately 29%. [7]The success of this segment can be attributed to the introduction and evolution of dolls and action figures representing many different characters in popular cartoon films and popular culture. Barbie dolls are arguably the world’s top-selling dolls of all time. The Barbie (Barbara Millicent Roberts) doll is among Mattel’s flagship products. The global toy giant decided to introduce Barbie dolls inspired by many different women, including Rosa Parks, which created a broader market for their best-selling product. Barbie dolls continue to evolve to date with a focus on famous figures.
· Games and puzzles are in 2nd place, followed by toys targeting infants and pre-school kids. The games and puzzles segment happens to be the fastest growing thanks to innovation. It includes jigsaw puzzles, cubes, and board games popular among parents looking for educational or mind-training-related games.
· Outdoor and sports-related toys follow closely in 3rd place. They include but aren’t limited to play tents, airplanes, pools, and other toys that support outdoor activities like camping, hiking, touring, etc. Building/construction set toys are 4th in toy segmentation.
Toy Companies Statistics Globally
There are many toy companies globally. However, only a few dominate the market. Here are interesting insights about the top companies, their revenue figures, location, and other interesting insights;
· Lego – a Danish toy company renowned for making interlocking plastic bricks (Legos), is the world’s largest toy company globally in terms of revenue. In 2021, Lego made over $8.06 billion. [8] Lego sales soared in 2020 during the Coronavirus lockdown as consumers shifted towards home-based toy-building sets for indoor entertainment. Lego’s diverse toy selection appealing across generations also accounted for the sales surge.
· Lego is followed closely by Tokyo-based toy company – Bandai Namco, which made $7.36 billion in revenues in 2021. [9] Other top toy companies in the world include Mattel, Hasbro, and Jakks Pacific.
· America is home to 75% of all major players in the toy industry. 3 out of 5 leading players are American companies. North America is the most important regional market. The top players in the industry have managed to cement their position by keeping up with the changing world and offering their customers toys that are correspondingly appropriate and creative/imaginative.
Toy Industry Consumer Behavior and Toy Industry Trends 2022
Toy consumers exhibit some unique behaviors. The industry also has unique trends. The most notable have been discussed below;
· 60% of all toys bought by American parents are bought online, with the rest being bought in supermarkets, hypermarkets, specialty, and department stores. [10] The thriving e-commerce market today is responsible for overreliance on smartphones and increasing internet penetration. Tech-savvy children and adults are also contributing to online toy purchase trends. The importance of toy manufacturers and industry players having concrete online marketing strategies can’t, therefore, be overlooked.
· Online distribution channels are expected to grow the fastest. Toy manufacturers globally have begun recognizing the potential of online channels in selling toys. This has prompted a trend of hosting shopping websites to serve customers better and increase profits in the process. [11] Leading toy manufacturers have taken notable steps in this regard. For instance, Mattel and Hasbro have direct-to-consumer businesses. Many other players are taking similar steps, with companies like London-based Hamley’s offering a variety of toys online to 28 million+ UK customers.
· Many toy industry players have established partnerships with marketing agencies and influencers to develop kid-related content for building strong brands.
· The most popular brands among toy consumers in the U.S. include LEGO, Fisher-Price, and Hot Wheels. [12]
· The toy industry benefits from adult consumer bases. A greater interest in puzzles, games linked to popular leisure pursuits like computer games and gaming consoles are fueling market growth. The focus is shifting from children to older kids and adults as the main target demographic.
· Traditional toys are losing popularity in favor of intelligent and interactive toys as parents become more focused on toys that enhance their children’s social skills, imagination, and senses. What’s more, playschools have increasingly began offering STEM toys (toys focused on science, technology engineering & mathematics. They include blocks, boxes, jigsaw puzzles, and musical instruments. Tech-savvy electronic toys are also increasingly popular among children and adults attributable to action figure depictions like Captain America, Superman, Iron man, and Batman.
· Governments of many countries are also responsible for a rising toy market trend. Many governments are encouraging design and production of toys that are based on ethos, culture, local heroes/folklore, which is bound to drive the market in the future.
Toy Safety Insights
The toy industry has had its fair share of safety issues. Out of the 3 billion+ toy units sold every year globally, there are some that have defects or pose risks to children.
· In 2021, 62 toys were recalled in the U.S. alone. The number of recalls has dropped significantly when compared to 2007 and 2008, which recorded the highest every toy recall (200+). This represented 44 million product units. 2004 saw the largest number of recalled toy units (155+ million). Last year (2021), 19 million toy units were recalled in America, with reasons ranging from poor quality standards to reported injuries deeming toys unsafe for use. In 2021, most toy recalls were in response to reported falling and choking incidents. [13]
· 82,500 HALO projector flashlights were recalled in 2021. Other leading children toy product recalls in the U.S. include13,600 Janod kids shaving kits, 13,000 Anker Play invention science kits, 7,600 Wee Gallery wooden tray puzzles, and 3,000 Parker Squared plush toys. [14]
Conclusion
The toy industry has enjoyed tremendous growth and changes over the years. An increasing realization of the importance of toys to children’s development and a new emerging market base composed of youth and adults shows that the market will continue to thrive.
The toys market globally is expected to enjoy a CAGR of 7.50% over the next five years (2022 to 2027). The main factor driving growth will be the growing demand for educational toys that enhance the academic, social, and emotional development of children.
The post Covid-19 impact will continue to increase preference for online toy retail platforms. Since consumers are still more comfortable with indoor environments and online shopping, which possess less risk, online toy shopping trends are expected to continue.
While older persons are expected to continue entering the toys and games market, the 5-12 years will remain the dominant consumer age-group. Toy manufacturers and other players should focus on this segment while catering to emerging market segments.
References
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[8] http://tny.im/txX
[9] http://tny.im/txY
[10] http://tny.im/txZ
[11] http://tny.im/tx-
[12] http://tny.im/ty0
[13] http://tny.im/ty2
[14] http://tny.im/ty3