Australia Toys and Games Market Report and Forecast 2025-2034

Australia Toys and Games Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Australia toys and games market size reached around USD 1.56 million in 2024. Aided by the growing demand for interactive, tech-driven products and the increasing popularity of eco-friendly, sustainable toys among environmentally conscious consumers, the market is projected to grow at a CAGR of 2.90% between 2025 and 2034 to attain nearly USD 2.08 million by 2034.

The Australia toys and games market expansion is being driven by a combination of rising disposable incomes, evolving consumer preferences, and growing awareness of the developmental benefits of play. The market covers a wide range of product categories, including traditional toys, electronic games, board games, puzzles, outdoor play equipment, and digital entertainment products. As children’s play habits continue to evolve alongside technological advancements and social trends, the demand for innovative, educational, and interactive toys and games remains robust. The market is further bolstered by cultural traditions of gifting during festive seasons, birthdays, and school holidays, which contribute significantly to annual sales and consumer spending patterns.

As per the Australia toys and games market analysis, educational value has become a significant factor in purchase decisions among parents and educators in Australia. Toys and games that promote learning, critical thinking, creativity, and problem-solving are increasingly preferred over purely recreational items. Products that incorporate science, technology, engineering, and mathematics concepts, commonly referred to as STEM toys, have gained popularity in homes and classrooms alike. These toys are designed to develop key cognitive and motor skills while making learning enjoyable and engaging. Additionally, the integration of age-appropriate learning objectives into games and toys has made them a preferred choice for parents seeking holistic child development through play.

Technological integration in toys and games is playing a transformative role in reshaping the Australia toys and games market landscape. Smart toys that incorporate artificial intelligence, augmented reality, or mobile app connectivity are gaining traction among digitally inclined consumers. These products offer immersive experiences that blend physical interaction with digital engagement, appealing to tech-savvy children and teenagers. Video game consoles, virtual reality headsets, and interactive gaming platforms have also become mainstream forms of entertainment, attracting a wide range of users. While screen time remains a concern for many parents, a balanced approach that combines traditional and digital play is becoming the norm in many households across the country.

The trend towards sustainable and environmentally friendly toys is aiding the Australia toys and games market expansion. Conscious consumerism is driving demand for toys and games made from recycled materials, sustainably sourced wood, and biodegradable packaging. Brands that prioritise ethical manufacturing, safety certifications, and minimal environmental impact are gaining favour among environmentally aware families. This shift towards sustainable play is not only influencing product design but also prompting manufacturers to adopt greener supply chain practices and promote transparency in their sourcing and production processes. As sustainability becomes a key purchasing criterion, the market is adapting to meet these expectations through responsible innovation.

Licensed toys and games based on popular media franchises remain a strong driver boosting the Australia toys and games market revenue. Characters from television shows, movies, video games, and social media platforms continue to influence children’s preferences and purchasing choices. From action figures and dolls to board games and costumes, the demand for merchandise tied to trending content remains high. This synergy between entertainment and merchandise is reinforced by targeted marketing, online promotions, and influencer endorsements. As media consumption patterns evolve, toy manufacturers are leveraging strategic partnerships with content creators to maintain brand relevance and attract new customer segments.

Board games and puzzles are enjoying a resurgence in popularity, particularly among families and adults seeking offline entertainment. The rise of tabletop gaming culture, fuelled by social media communities and local gaming events, has shaped the Australia toys and games market dynamics. Cooperative games, strategy-based puzzles, and educational board games are particularly popular for their ability to foster social interaction, teamwork, and critical thinking. Retailers are capitalising on this trend by offering themed game nights, curated game bundles, and exclusive releases to build engagement and customer loyalty within this growing niche.

E-commerce is playing an increasingly important role in driving the Australia toys and games market development. Online retail platforms offer consumers access to a broader selection of products, price comparisons, user reviews, and convenient delivery options. Subscription boxes, direct-to-consumer brands, and flash sales are gaining popularity as new ways to shop for toys and games. Brick-and-mortar retailers continue to adapt by enhancing in-store experiences, offering product demonstrations, and integrating digital tools to assist with product discovery. The coexistence of online and offline channels is creating a more dynamic and competitive retail environment that benefits consumers through choice and accessibility.

Despite the positive outlook, the Australia toys and games market faces challenges such as global supply chain disruptions, rising production costs, and intense competition. Fluctuations in the availability of raw materials, shipping delays, and currency variations can affect pricing and inventory levels. Additionally, rapid changes in consumer preferences and trends require constant innovation and agile marketing strategies. Manufacturers and retailers are responding by diversifying their sourcing strategies, investing in market research, and accelerating product development cycles to remain competitive in a dynamic marketplace.

Looking ahead, the Australia toys and games market is expected to maintain its growth momentum, supported by strong consumer demand, ongoing innovation, and greater emphasis on learning and sustainability. As the market continues to evolve in response to cultural, technological, and economic shifts, toys and games will remain a vital part of childhood development and family entertainment. By focusing on quality, inclusivity, and meaningful play experiences, the sector is well-positioned to meet the diverse and changing needs of Australian consumers in the coming years.

Market Segmentation

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

Market Breakup by Age

• Infants and Toddlers
• Pre-schoolers
• School-Age Children
• Adolescents
• Adults

Market Breakup by Product

• Board Games
• Outdoor Games
• Electronic Games
• Educational Toys
• Action Figures and Dolls
• Others

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Speciality Stores
• Online Channels
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Western Australia
• Australian Capital Territory
• 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 toys and games market. Some of the major players explored in the report by Expert Market Research are as follows:

• LEGO Group
• Hasbro Australia Limited
• RPG Toms Pty Ltd.
• Funtastic Limited (Toys”R”Us ANZ) Limited
• Child Education Pty Ltd.
• LeapFrog Enterprises, Inc.
• 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.