Toys Market is predicted to reach USD 223.74 Billion at a CAGR of 6.62% during the forecast period 2025-2035

Market Research Future (MRFR) has published a cooked research report on the “toys Market ” that contains information from 2019 to 2035.

Toys market

The toys market is projected to witness significant growth during the review period, exhibiting a CAGR of 6.62%. The market was estimated to be USD 112.34 Billion in 2024 and is expected to reach a value of USD 223.74 Billion by the end of the forecast period (2025-2035).

Toys are products that are mainly designed to play, learn, and entertain children of various ages and stages of development. They encompass a huge collection of products including dolls, action toys, games, puzzles, construction kits, educational toys, electronic toys and outdoor play equipments. The materials used to produce toys include plastic, wood, metal, and fabric and more sustainable and recycled materials. Other than entertainment, toys are also significant in cognitive development, improvement of motor skills, creativity, and socialization. The worldwide toys market of the traditional physical toys is expanded with technologically enabled goods, which has digital features that are integrated into them due to the changing consumer demands and preferences as well as the design, safety, and functionality.

The supply and demand of the toys is directly associated with the demographics, dispensational behavior and the cultural disposition regarding the development of children. Parents and caregivers are increasingly considering toys as not just a leisure product, but also as learning and emotional developmental tools. Educational toys, inventive playsets, and skill based games are on the rise as families are increasingly inclined towards early learning and formalized play performances. The consumer-driven events like holidays and birthdays, which occur seasonally, have remained a major part of the toy purchase behavior, and the emergence of structured retail and online shopping has not only increased product availability and selection but also provided more options to consumers in developed and developing markets.

The toys market is characterised by innovation with new concepts, characters, and interactive features being introduced every day by manufacturers in the market in order to attract consumer attention. Popular movies, television series, and digital-related toys are also a major segment, as they have the advantage of being licensed and well-known by the audience. Meanwhile, the improvement of electronics and connectivity has made it possible to create smart toys that not only play physically but also digitally. The ability to meet safety standards, product quality, and age suitable design continue to be central points of consideration, and they have shaped product development and the purchasing behavior of parents and institutions.

The concept of sustainability and responsible manufacturing is gaining momentum in the toys market. Increasing environmental consciousness has prompted businesses to consider environmentally friendly materials, recyclable packaging, and ethical supply chain. Market activities are also affected by regulatory measures regarding child protection, the use of chemicals, and labeling of products across the world. With the changing consumer reactions, Toy makers are striking a balance between innovation, safety, affordability, and sustainability to keep up with the competition. All these contribute to the fact that the toy industry in the world is a dynamic and adaptive market, which is influenced by the changing lifestyles, technological advancements, and the changing role of play in the development of a child.

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Market Synopsis

The world toys industry is encouraged by the changing tastes and preferences of the consumers, which are focused on taking into consideration not only entertainment but also cognitive development and emotional growth of both children and adults. There is rising awareness regarding the role of play in early childhood education and lifelong learning with parents and caregivers focusing more and more on toys that help children in developing skills, solving problems, being creative, and socializing. Educational authorities believe that games and toys are very important in primary learning as they promote exploration, imagination and early concepts in science and technology that give a background to the academic success in the future. The available evidence supports the fact that play is an essential part of physical, emotional, and cognitive development in both young and young adult age groups and confirms the necessity of well-designed toys that can facilitate structured and unstructured learning processes. Such changes in perception have expanded the conceptual understanding of the toys market where the demand is made towards products of entertainment value as well as developmental value.

Technology integration has become a key growth driver making traditional toys to be hybrid products, where physical play is supplemented with a digital experience. The use of smart and connected toys, which brings together artificial intelligence, augmented reality, and interactive learning, is becoming popular as parents are looking to more engage and active options to standard screen-based entertainment. Recent industry trends have revealed that some toys with AI-based learning progress tracking are offered in approximately half of novelties, and almost a third of novelties have augmented reality functionality which combines digital interaction with real play. These inventions are more engaging and offer customizable learning options that are attractive to both children and adults seeking advanced playing opportunities. According to the regional statistics, North America has a rather large portion of smart connected toys uptake because of the high-technology infrastructure and great rates of disposable income, whereas Europe and other markets are becoming more accepting of interactive and STEM-based products.

The market is also changing in terms of consumer demands of sustainability and safety. Many parents are showing an inclination toward toys that are created with green materials and products that are eco-friendly, that can be recycled, or are biodegradable and manufacturers are starting to innovate in their designs and sourcing choices. The information provided by the global surveys showed that a significant proportion of the consumers are ready to spend a lot of money to purchase non-toxic and safe toys, and the safety is a basic factor of buying them. This tendency conforms to regulatory measures in the largest markets like the United States and the European Union where the test on the safety of the products and their certification is severe to save children against harmful substances and mechanical exposure. The manufacturers are answering this call by embracing the concept of eco-design, lessening plastic use, and enhancing transparency on material safety, which, in addition to satisfying the demand, is also a step towards brand loyalty over the long term.

Adult consumers or as they are sometimes called, kidults, have emerged as a strong force in the growth of the toy markets around the world. The adult purchases contributed to a significant rise in the amount of toys sold in markets like France and the United Kingdom in 2025, where nostalgic and collectible toys like high-end building sets and franchise products did well. This movement in the demographic has expanded the consumer base of toys to include more than the conventional kids segments and companies are now seeking to improve product lines with high-end and adult-focused products. The demand of licensed toys associated with well-known media franchises is especially important and makes a large part of impulse purchase as children and adult fans interact with brand experiences connected to entertainment and culture. These are coupled with extended retailing, access to omnichannels, and further drive the resilient improvement of the market after the hitches of the pandemic.

Although the global toys market has positive drivers, the market also experiences significant threats in terms of safety compliance and regulatory expenses. Manufacturers of toys worldwide have to fight through tough safety regulations in diverse regions and legal organizations such as the U.S. Consumer Product Safety Commission have reported high rates of toy-related injuries in their emergency departments each year. In 2023, an estimated 154,700 children under the age of 12 visited the emergency rooms of the U.S. with toy-related injuries, and ten reported deaths related to toys, highlighting the primary significance of strong safety design and compliance with requirements during the design of toys. Adherence to the international safety standards adds complexity and cost in production particularly to the companies that intend to strike the balance between innovation and affordability. Also, the fact that non-compliant and possibly dangerous products are often sold on the web marketplace shows that there is still a necessity to educate consumers and impose quality control. The reinforcement of safety rules and the unification of international standards are also crucial to making play enjoyable but free of any danger as the market is growing on a global scale.

Competitive Landscape

The global toys market features intense competition among multinational manufacturers, regional brands, and niche innovators striving to capture diverse consumer segments. The large international players use their broad design resources, licensing deals with big entertainment brands and their wide networks of distributors to ensure a wide market coverage. The product innovation, especially interactive, educational, and technologically-enabled toys is one of the primary areas of focus since the companies strive to make differences in their offerings and make the consumer more involved. Meanwhile, the focus on strict safety compliance and quality assurance has induced the major companies to invest in strong testing facilities and material traceability that will improve brand confidence in the major markets.

The local and regional toy makers are also relevant in competition as they are fast in responding to cultural inclinations, sensitivity to prices and seasonal demand fluctuations. Some of these players are already segment specific (e.g. traditional puzzles, wooden toys, and low cost educational sets) so that they can remain relevant in price sensitive markets and rural areas. Sustainability has also been one of the defining characteristics, where businesses have resorted to eco-friendly products and other recyclable packages to attract  consumers. All these forces define an ecosystem in which innovative development, responsiveness, and brand positioning are major factors in determining competitive success in the dynamic global toy environment.

Key Developments & Growth Strategies

Partnerships

1. Mattel Inc. announced a collaboration with OpenAI to develop a new line of AI-powered connected toys that blend physical play with intelligent digital interactions, marking a move into interactive smart play experiences.


2. Playmobil introduced its Playmobil Education line focused on modular STEM kits designed for classroom and home-school use, expanding its educational toy portfolio.


3. 49 toy manufacturers from China showcased products at the 2025 New York Toy Fair, expanding global exposure and enabling cross-border partnerships and distribution opportunities.

Acquisitions

1. Spin Master Corp. finalized its approximately $950 million acquisition of Melissa & Doug, strengthening its global position in classic and educational toy segments.


2. Moose Toys expanded its product portfolio with the acquisition of the Bananagrams brand, enhancing presence in interactive and word-based toys worldwide.

Product Launches

1. LEGO unveiled its SMART Play platform that integrates custom technology into physical bricks to enhance play without screens, representing a major innovation in blended physical-digital play.


2. Gazillion Bubbles won recognition as the top bubble toy in the U.S. and launched its VorTech Wand and additional products for 2025, strengthening its branded toy range.

By Region

1. North America: The toys market in North America is characterized by high consumer expenditure, popularity of licensed and educational toys as well as well-developed retail infrastructure. Demand in the region is dominated by the United States which is boosted by the innovation in interactive and smart toys. Strong safety regulations, e-commerce, and omnichannel retail strategies have a considerable impact on the product development and purchasing behavior.


2. Europe: Europe industry is defined by a variety of consumer tastes and a number of strict safety and environmental requirements. Germany, France, and the United Kingdom are among the main contributors, and increasing demand is made on the sustainable, educational, and creative toys. Licensed goods and luxury toys are the most popular, and the ideas of the circular economy impact product creation and packaging.


3. Asia-Pacific: Asia-Pacific is one of the key growth markets of the toys market because of the high population of children, increased disposable income, and the growth of middle classes. China, Japan, India and South Korea are the major markets with good manufacturing capacities, local brands and rising demand of educational, digital and character toys.


4. South America: The South American toy market has been growing on the basis of rising economic status, urbanization and rising access to organized retail. The primary markets are Brazil and Argentina, where people are interested in cost-effective, durable, and educative toys. The influence of seasonal sales and the preferences of local culture on the offerings and demand patterns is a significant factor.


5. Middle East & Africa (MEA): The MEA toys are experiencing a steady growth because of the population growth, urbanization and increasing awareness of the consumers to early childhood education. The Gulf countries and South Africa are the most active demand regions, which are backed by the growth in retail, entry of international brands, as well as, growing popularity of educational and creative toys.