Australia Toy Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2025-2034)

Australia Toy Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Australia toy market size witnessed a healthy growth in 2024. Aided by the rising demand for educational and STEM toys and the growing popularity of eco-friendly, sustainable toys, the market is projected to grow at a CAGR of 2.80% between 2025 and 2034.

The Australia toy market growth is being driven by evolving consumer preferences, increasing demand for educational and interactive toys, and a growing emphasis on child development. Toys play a central role in children’s learning, creativity, and emotional growth, making them an essential part of early development. The market includes a wide array of products such as action figures, dolls, construction sets, board games, puzzles, electronic toys, and outdoor play equipment. As both parents and educators recognise the value of play in cognitive and social development, the market is seeing rising demand for toys that are not only entertaining but also enriching and safe.

As per the Australia toy market analysis, consumer spending on toys in Australia remains resilient, even in the face of economic fluctuations. Seasonal peaks around Christmas, birthdays, and school holidays continue to drive significant retail activity, with gift-giving remaining a strong cultural tradition. Parents and caregivers are increasingly seeking value for money while also prioritising quality, safety, and educational content. This has encouraged manufacturers to focus on durable, well-designed products that meet safety standards and offer long-term play value. The importance of storytelling, emotional connection, and character branding is also influencing purchasing decisions, particularly among younger children who are drawn to characters from popular films, cartoons, and online content.

One of the major trends aiding the Australia toy market expansion is the rising demand for educational and STEM-based toys. These products are designed to promote learning in science, technology, engineering, and mathematics through hands-on play and problem-solving activities. Toys that teach coding, robotics, and critical thinking skills are gaining popularity among parents and educators who want to support early exposure to complex concepts in a fun and engaging way. Many schools and learning centres are integrating such toys into their teaching frameworks, reinforcing the importance of experiential learning. This educational focus is also extending into preschool toys that support early literacy, numeracy, and motor skills development.

Digital transformation has significantly influenced the Australia toy market landscape, with interactive and tech-enhanced toys growing in popularity. Augmented reality games, app-connected toys, and voice-controlled devices are capturing the interest of tech-savvy children who are familiar with smart devices from an early age. These toys often offer immersive play experiences that blend the physical and digital worlds. At the same time, screen-free interactive toys such as talking plush animals, music-making kits, and programmable robots are helping maintain a balance between innovation and traditional play. Manufacturers are investing in research and development to introduce features that enhance engagement without compromising the importance of offline play.

Sustainability is becoming a key concern for both consumers and producers shaping the Australia toy market dynamics. Environmentally conscious parents are increasingly opting for toys made from sustainable materials such as wood, recycled plastic, or biodegradable components. Companies are responding by reducing packaging waste, improving recycling practices, and offering eco-friendly product lines. Ethical manufacturing practices and transparent supply chains are also becoming important to customers who prioritise socially responsible brands. As awareness of environmental issues grows, toys that align with values of sustainability and minimal environmental impact are expected to gain a larger market share.

Licensed merchandise continues to hold a significant portion of the Australia toy market share. Collaborations with popular entertainment franchises, children’s shows, and digital content creators drive strong demand for branded toys and collectibles. The influence of global media, streaming platforms, and social media trends contributes to the quick rise and fall of toy fads, requiring manufacturers to be agile and responsive. Collectibles, blind-box toys, and surprise packs also maintain their appeal, particularly among younger consumers who enjoy the unboxing experience and the excitement of discovery. These trends are supported by marketing strategies that leverage digital platforms, influencer endorsements, and interactive content.

Retail distribution in the Australia toy market is diverse, encompassing major toy chains, department stores, online platforms, and independent toy retailers. E-commerce has grown rapidly, providing consumers with convenience, variety, and the ability to compare prices and read reviews before purchasing. Online-only brands and subscription-based toy boxes are emerging as alternative channels, catering to parents seeking curated, age-appropriate selections delivered to their doorsteps. Physical stores continue to offer value through interactive displays, in-store events, and personalised service, particularly during peak shopping seasons. Retailers are increasingly blending physical and digital experiences to enhance customer engagement and brand loyalty.

Despite its positive trajectory, the Australia toy market faces challenges such as import cost fluctuations, intense competition, and changing regulatory standards. Global supply chain disruptions can affect product availability and pricing, while compliance with safety regulations and labelling requirements remains critical for market entry. Consumer preferences can shift rapidly, requiring constant innovation and adaptation. Manufacturers and retailers are focusing on data-driven insights, customer feedback, and trend monitoring to stay ahead in a highly dynamic market landscape.

Looking forward, the Australia toy market is expected to continue its growth, supported by innovation, educational value, and evolving consumer expectations. With a focus on quality, sustainability, and meaningful play, the market is well-positioned to meet the needs of both children and parents. As play continues to be recognised as a fundamental part of childhood, the market will remain an important and vibrant component of Australia’s retail and cultural environment.

Market Segmentation

The market can be divided based on type, age group, distribution channel, and region.

Market Breakup by Type

• Dolls
• Sports and Outdoor Toys
• Action Figures
• Plush
• Games and Puzzles
• Infant and Preschool Toy
• Others

Market Breakup by Age Group

• Up to 5 Years
• Between 5 to 10 Years
• Above 10 Years

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Toy Stores
• Online Stores
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australia Capital
• Western Australia
• Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia toy market. Some of the major players explored in the report by Expert Market Research are as follows:

• LEGO System A/S
• Country Toys Australia
• Village Toys
• Hasbro Australia Limited
• RPG Toms Pty Ltd
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report. Show more