Toys And Games - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Toys And Games Market Analysis

The global toys and games market size, valued at USD 290.31 billion in 2025, is expected to reach USD 324.76 billion by 2030, growing at a CAGR of 2.27%. Millennials and Generation Z, with their substantial purchasing power, are propelling the market's growth. The action figures and accessories segment thrives, buoyed by a consistent influx of captivating movie and cartoon releases. As children immerse themselves in social media and online gaming, the market witnesses further expansion. Adult collectors and premium product categories continue to enjoy steadfast demand. Today's parents prioritize toys that entertain and bolster cognitive skills, creativity, and learning. There's a pronounced global appetite for educational toys and games, emphasizing problem-solving and skill development. Given these diverse growth drivers, the toys and games market is set for sustained expansion, bridging both traditional and digital domains. Digital connectivity has redefined play, turning it into a communal experience. Online multiplayer games and interactive digital toys are cultivating global communities. Moreover, a rising trend sees adult consumers, often motivated by nostalgia and stress relief, further broadening the market. Manufacturers are keenly responding, crafting products tailored to this expanding demographic.

Global Toys And Games Market Trends and Insights

Hardware Innovation and Advanced Video Gaming Devices

The convergence of sophisticated hardware with immersive gaming experiences is transforming the smart toys and gaming market. The integration of Wi-Fi, Bluetooth, and AI technologies enables manufacturers to implement premium pricing strategies while generating recurring revenue through content updates and subscription services. The market benefits from cross-platform compatibility and cloud gaming integration, with hardware serving as an entry point to digital engagement and monetization. This trend is further strengthened by evolving family dynamics, as evidenced by the Entertainment Software Association's 2024 data showing 83% of parents engaging in video games with their children . The combination of advanced technology, digital connectivity, and family-oriented entertainment creates a robust foundation for market expansion.

Rising Popularity of Construction Toys

Construction toys are gaining popularity due to their appeal across age groups and integration of technology. Building blocks and Lego sets help develop cognitive abilities, improve fine motor skills, and enhance creativity while developing problem-solving and engineering capabilities. Social media platforms contribute to market growth by featuring complex construction projects, generating organic marketing reach. Advances in manufacturing processes enable complex product designs while meeting safety requirements. In May 2025, Mattel entered the market with its Brick Shop brand, increasing competition in the building set segment. These developments indicate sustained growth potential in the construction toys market, driven by educational value and technological advancement.

Intense Competition from Digital and Screen-Based Entertainment

Digital entertainment platforms, including streaming content and social media, present a significant market restraint. The increasing time children spend on these platforms affects traditional toy engagement due to their instant gratification and social connectivity features. Digital platforms offer advantages through continuous content updates, personalized experiences, and social features that physical toys cannot easily replicate. This challenge intensifies as children develop digital literacy at younger ages, with game-based learning applications showing moderate to large effects on cognitive and social development. These factors position digital entertainment and educational apps as direct substitutes for traditional toys, limiting market growth potential.

Other drivers and restraints analyzed in the detailed report include:

1. Health and Outdoor Play Awareness
2. Technological Integration with Traditional Toys
3. Supply Chain Disruptions and Raw Material Shortages

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Video games dominate the toys and games market with a 66.58% share in 2024, showcasing the industry's digital transformation. This supremacy is driven by video games' capacity to deliver continuous content updates, social connectivity, and personalized experiences, while generating recurring revenue through downloadable content and subscription services. The segment is expected to grow at a CAGR of 2.77% through 2030, supported by cloud gaming adoption, cross-platform compatibility, and integration with virtual and augmented reality technologies.

Traditional toys and games continue to thrive in the market. Limited-edition die-cast cars, for instance, highlight their intricate craftsmanship, drawing in adult collectors and hobbyists. Meanwhile, games and puzzles, bolstered by social media and family involvement, see rising popularity. This is evident in construction sets like LEGO and timeless classics such as Hasbro’s Jenga, both of which promote creativity and social bonding. The traditional segment's enduring strength is largely attributed to its premium positioning and the allure of the adult collector market, fueled by nostalgia and a growing trend towards collectibles.

Electric and battery-operated toys dominate the market with a 76.47% share in 2024 and are expected to grow at a 3.04% CAGR through 2030, driven by consumer demand for interactive play experiences. These toys effectively integrate sensors, connectivity features, and artificial intelligence to adapt to user behavior and deliver personalized interactions. The integration of IoT connectivity and voice recognition enables premium pricing, while creating opportunities for continuous engagement through software updates and content expansion. This technological advancement has expanded beyond traditional electronic toys to include motorized construction sets, interactive dolls, and autonomous vehicles.

While manual toys hold a smaller market share, they maintain their significance through premium craftsmanship, educational value, and sustainability appeals. These products achieve higher margins through artisanal manufacturing, organic materials, and limited production runs, creating exclusivity and collectible value. The manual segment benefits from increasing concerns about screen time and parents' preference for tactile, imaginative play experiences that develop motor skills without digital dependency. Manufacturers focus on sustainable materials and traditional craftsmanship, positioning manual toys as premium alternatives to electronic products for consumers seeking authentic and environmentally responsible options.

The Toys and Games Market Report Segments the Industry by Product Type (Traditional Toys and Games and Video Games), by Mode of Operation (Manual and Electric/Battery Operated), by Age Group (Infant and Toddler, and More), by Category (Mass and Premium), by Distribution Channel (Offline Stores and Online Stores), and by Geography (North America, Europe, and More). The Market Forecasts are Provided in Terms of Value (USD).

Geography Analysis

Asia-Pacific dominates the global toy market with a 34.24% share in 2024 and is expected to grow at the highest CAGR of 4.65% through 2030. This growth is primarily driven by rapid urbanization, technological innovation, and supportive government policies promoting domestic manufacturing capabilities. China's dual role as the world's largest toy manufacturer and a significant consumer market creates unique market dynamics, while Southeast Asia emerges as a vital growth engine for the industry.

North America maintains its position as the world's largest toy consumer market, with Los Angeles established as the global hub for toy design and corporate headquarters. The region's market strength is underpinned by robust intellectual property protection, advanced retail infrastructure, and high consumer spending power, enabling the growth of premium product categories and the rapid adoption of technological innovations.

The European toy market exhibits moderate growth characterized by premiumization trends and the integration of artificial intelligence in products. The region's stringent safety regulations and sustainability initiatives create competitive advantages for compliant manufacturers while establishing higher entry barriers. European consumers show a marked preference for educational and STEM toys, reflecting the region's focus on learning-oriented products.

List of Companies Covered in this Report:

1. Mattel Inc.
2. Hasbro Inc.
3. Funskool India Ltd.
4. TOMY Company, Ltd.
5. Spin Master Corp.
6. Bandai Namco Holdings Inc.
7. MGA Entertainment Inc.
8. Funko Inc.
9. VTech Holdings Ltd.
10. Ravensburger AG
11. Simba-Dickie Group
12. Playmobil (Geobra Brandstatter)
13. Moose Toys
14. Jazwares LLC
15. Jakks Pacific Inc.
16. Clementoni S.p.A.
17. Melissa & Doug LLC
18. LeapFrog Enterprises Inc.
19. ZURU Ltd.
20. Basic Fun! Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support