The Attack of Coronavirus on Toys Market: Good or Bad? – Arizton

16 October 2020

The COVID-19 outbreak has completely disrupted the supply chain in the global toys market growth. Q1 of 2020 witnessed an unexpected growth in certain categories like games and puzzles, board games, outdoor toys especially in matured markets of the US, Canada Australia, the UK, and other European countries. Lockdown and mandated social distancing have greatly impacted the sales across mass retailers and specialty stores. However, the impact of COVID-19 has also played a crucial role in transforming the digital reliance on toys where e-commerce sales gained momentum.

Did you know? The Asian gaming giants namely Nintendo and Tencent witnessed a huge surge in sales during the Q1 2020. While the former increased its profits by over 42%, Tencent’s profits were increased by 31% that highly challenged the traditional toys and games market.

Key Market Insights:

  1. APAC was the largest market for toys with over 30% market share and countries like India and Thailand are expected to grow.
  2. The online segment is expected to record an incremental revenue of around $11 billion by 2025.
  3. The launch of subscription models and internet penetration is transforming the toy market landscape.
  4. Sustainable toys and STEM toys are regarded as the next big opportunities for the vendors in the global toy market.

Read: Toys Market Global Outlook and Forecast 2020-2025

Focus on Creating an Omnichannel Opportunity

Various leading vendors are focusing on capitalizing the emerging trends and the transformation of retail distribution network to creating an omnichannel experience in the global toys market. The subscription strategy is more effective and crucial in toys market growth as well. This transformation comprises several aspects, including the way that vendors organize themselves across brands and re-shape their future strategies to remain relevant to the market demands. The toy box subscription works by catering to the needs of children and contain toys that are specially selected for users (children). The model is on the path of becoming an accepted way of getting toys and games for kids.

How are Vendors Operating in the Toys Market?

The market for toys and games is slowly shifting from being concentrated with LEGO, Hasbro and Mattel enjoying a larger chunk of the overall share to becoming a fragmented one with several independent vendors barging in. However, the market still comprises some of the key vendors, namely Ravensburger, Spin Master, MGA Entertainment and Asmodee Group, among others. It is one among the industries where the multinational and global vendors compete with niche start-ups and domestic vendors. The key markets for vendors are North America, APAC, and Europe. However, in the coming years, the markets in Latin America and MEA are also expected to witness considerable toys market growth.

Read: Board Games Market Global Outlook and Forecast 2019-2024

FAQs in the Global Toys Market

Q) What is the market size of toys?

A) The global toys market size to reach around $131 billion by 2025.

Q) What is the market share of toys?

A) The global toys market is expected to witness 1.3 times the growth during the forecast period.

Q) What is the market growth of toys?

A) The global toys market is projected to grow at a CAGR of over 4% during 2019-2025.

Q) What is the market insight of toys?

A) There are several reasons for the significant growth in the global toys market, including the emergence of board game conventions, gaming cafes, nerd culture, and a rise in millennial spending for nostalgia, among others.

Q) Who are the top vendors in the toys market?

A) The leading vendors in the toys market are LEGO, Mattel, Hasbro, BANDAI NAMCO, and Spin Master.

Q) What is the global toys market segmentation?

A) The global toys market segmentation includes age group, category, distribution, and geography.

Explore our consumer goods & retail technology profile to know.

CONTENT FOR VIDEO- FOR REFERENCE PURPOSE ONLY

The COVID-19 outbreak has completely disrupted the supply chain in the global toys market growth.

Q1 of 2020 witnessed an unexpected growth in certain categories like games and puzzles, board games, outdoor toys especially in matured markets of the US, Canada Australia, the UK, and other European countries

The impact of COVID-19 has also played a crucial role in transforming the digital reliance on toys where e-commerce sales gained momentum.

The global toy market growth is expected to witness 1.3 times during the 2020 2O25

Toys market growth size is expected reach revenue of over $131 billion by 2025, growing at a CAGR of close to 4%

The 5–12 years segment is projected to grow at the highest CAGR during the forecast period as it is a major end-user of games and puzzles, building blocks, construction, outdoor and sports toys.

The online segment is expected to record an incremental revenue of around $11 billion by 2025.

The outdoor and sports segment is likely to observe an incremental growth of over $8.5 billion by 2025 on account of the advent and dominance of online and digital gaming platforms.

The lockdown has enforced the sales to surge in categories like games and puzzles, which showed over 225% higher sales in March and arts & crafts supplies that resulted in 70% U.S. toys market growth.

The APAC toys market growth is expected to reach over $43 billion by 2025

The Middle East and Africa are expected to generate $1.15 billion by the end of 2025.

Latin America is expected to be one of the fastest-growing regions generating revenues of over $11 billion by 2025.

The toys market in India is expected to grow at a CAGR of over 7% during the period 2019–2025.

The launch of subscription models and internet penetration is transforming the toys market growth.

Sustainable toys and STEM toys are regarded as the next big opportunities for the vendors in the global toy market

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