Kids Toys

Global Kids Toys Market to Reach US$165.8 Billion by 2030

The global market for Kids Toys estimated at US$136.0 Billion in the year 2024, is expected to reach US$165.8 Billion by 2030, growing at a CAGR of 3.4% over the analysis period 2024-2030. Kids Action Figures & Playsets Toys, one of the segments analyzed in the report, is expected to record a 2.3% CAGR and reach US$35.1 Billion by the end of the analysis period. Growth in the Kids Dolls & Stuffed Toys segment is estimated at 4.1% CAGR over the analysis period.

The U.S. Market is Estimated at US$37.0 Billion While China is Forecast to Grow at 6.0% CAGR

The Kids Toys market in the U.S. is estimated at US$37.0 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$32.5 Billion by the year 2030 trailing a CAGR of 6.0% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.4% and 2.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.9% CAGR.

Global Kids Toys Market – Key Trends & Drivers Summarized

How Are Innovation and Licensing Transforming the Face of Kids’ Toys?

The global kids toys market has evolved into a dynamic and multi-billion-dollar industry, shaped by relentless innovation and strategic licensing. Once dominated by traditional dolls, action figures, and board games, the sector has transformed through the integration of tech-driven products and brand collaborations. The emergence of interactive, AI-powered, and app-connected toys has captivated digital-native children, offering immersive experiences that bridge the physical and digital divide. Simultaneously, popular franchises from film, television, and gaming—such as Marvel, Frozen, and Super Mario—have become licensing goldmines, allowing toy manufacturers to capitalize on the fan base of these brands. Licensing is no longer just a marketing tactic; it’s a foundational strategy influencing toy design, storytelling, and cross-platform engagement. Toy manufacturers are now working closely with content creators to launch toy lines in tandem with media releases, driving massive sales surges. In tandem, educational toys rooted in STEM (science, technology, engineering, and math) learning have seen heightened demand, as parents increasingly value both entertainment and developmental utility in products. The result is a sophisticated market where innovation and intellectual property drive consumer choices and market competitiveness.

Is Sustainability the Next Frontier in Toy Manufacturing?

Sustainability has emerged as a compelling focus for the kids toys market, driven by both regulatory frameworks and shifting consumer values. Environmental awareness among millennial and Gen Z parents has prompted demand for eco-friendly alternatives in a market traditionally reliant on plastic and battery-powered goods. Companies are responding with initiatives like biodegradable packaging, toys made from recycled or plant-based materials, and take-back programs that promote responsible disposal. LEGO, for instance, has pioneered the development of plant-based bricks and aims to become carbon neutral by 2032. Meanwhile, smaller boutique brands are entering the scene with handcrafted, zero-waste toy lines that cater to niche markets. Retailers are also playing a role, with many establishing dedicated sections for “green toys” and mandating sustainable sourcing practices from vendors. Regulatory pressure is reinforcing this trend—particularly in the EU and North America—where eco-compliance is becoming a prerequisite for market entry. The confluence of environmental consciousness and product innovation is not only reshaping material choices but also compelling companies to rethink entire supply chains, packaging methods, and product lifecycles. This growing prioritization of sustainability marks a significant, long-term shift that will likely continue to define product development and consumer preference in the coming decade.

What Role Does Digitalization Play in Reshaping Playtime?

Digital transformation is redefining the play patterns of children and reshaping the strategies of toy manufacturers globally. The fusion of physical toys with digital platforms—also known as “phygital” play—is rapidly gaining traction. This includes toys integrated with augmented reality (AR), virtual reality (VR), and AI-driven features that enhance interactivity and engagement. For example, toys that connect to mobile apps to unlock games, storytelling modes, and learning modules are gaining immense popularity. Additionally, the metaverse concept is now making inroads into the toy industry, where brands are exploring virtual worlds and NFTs to create hybrid digital-physical experiences. Social media, especially platforms like YouTube and TikTok, has become a major channel for toy discovery and marketing, with unboxing videos, influencer reviews, and interactive challenges influencing purchase behavior. The rise of smart speakers and home assistants has also encouraged the development of voice-activated educational and entertainment toys. Moreover, subscription-based models and online toy rental platforms are making it easier for consumers to access a wide variety of toys without long-term commitments, thereby transforming toy ownership patterns. These shifts in how toys are developed, marketed, and consumed underscore the transformative impact of digitalization in creating more personalized, interactive, and tech-forward play experiences for children worldwide.

Why Is the Kids Toys Market Expanding So Rapidly Across the Globe?

The growth in the kids toys market is driven by several factors that reflect deep shifts in demographics, consumer behavior, and end-use innovation. Firstly, rising disposable incomes in emerging economies like India, Brazil, and Southeast Asia are expanding access to premium and branded toys, fueling global demand. Urbanization and smaller family structures are also leading parents to invest more in fewer children, often opting for high-value toys with educational or developmental benefits. Secondly, the pandemic years intensified at-home entertainment needs, boosting online toy sales and accelerating e-commerce adoption—a trend that continues post-COVID. Thirdly, the increasing awareness and demand for STEM-based toys have created a lucrative segment appealing to both parents and educators aiming to supplement academic growth through play. Additionally, the inclusion of adaptive toys designed for children with special needs is widening the scope of the market, creating inclusive play opportunities and addressing previously underserved segments. The cultural rise of “kidults”—adults purchasing toys for nostalgia or as collectibles—has further expanded the market beyond traditional age brackets. Furthermore, seasonal trends, influencer culture, and product personalization have led to rapid product turnover, compelling manufacturers to innovate at unprecedented speeds. Collectively, these diverse growth drivers are making the kids toys market one of the most dynamic and fast-evolving consumer goods sectors globally.

SCOPE OF STUDY:

The report analyzes the Kids Toys market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Product (Kids Action Figures & Playsets Toys, Kids Dolls & Stuffed Toys, Kids Building & Construction Toys, Kids Educational Toys, Kids Board Games & Puzzles, Kids Outdoor Sports Toys, Kids Electronic Toys, Kids Play & Dress-Up Toys, Other Kids Toys); Material (Plastic Material, Wood Material, Fabric Material, Metal Material, Bamboo Material, Other Materials); Age Group (Infants Age Group, Toddlers Age Group, Preschool Age Group, Early School Age Group, Middle Childhood Age Group); Category (Smart Category, Conventional Category); Distribution Channel (Online Distribution Channel, Offline Distribution Channel)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 32 Featured) -

• Bandai Namco Holdings Inc.
• Build-A-Bear Workshop
• Fisher-Price (a subsidiary of Mattel Inc.)
• Funko Inc.
• Green Toys Inc.
• Hasbro Inc.
• Jakks Pacific Inc.
• LeapFrog Enterprises Inc.
• Little Tikes (a subsidiary of MGA Entertainment)
• Mattel Inc.
• Melissa & Doug
• MGA Entertainment
• Playmobil (Brandstätter Group)
• Ravensburger AG
• Schleich GmbH
• Spin Master Corp.
• The Lego Group
• Tomy Company Ltd.
• Ty Inc.
• VTech Holdings Limited

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
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EU
JAPAN
INDIA
176 OTHER COUNTRIES.

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