• In June 2023, Mattel launched a new line of Barbie dolls inspired by the blockbuster Barbie movie, capturing the film’s iconic fashion looks and celebrating the vibrant Barbiecore and Ken-ergy aesthetics portrayed on screen.

• In January 2023, Buffalo Games partnered with Big Potato to distribute each other’s products across the UK and U.S., bringing Chuckle & Roar toys to UK retailers and Amazon for the first time.

In this report, the Toys and Games Market has been segmented by Product Type, Material, Distribution Channel, Applications, and Geography.

Toys and Games Market, Segmentation by Product Type

The Toys and Games Market has been segmented by Product Type into Games & Puzzles, Infant & Pre-School Toys, Construction Toys, Dolls & Accessories, Outdoor & Sports Toys, Video Games, and Others

Games & Puzzles
This segment appeals to both children and adults with a wide range of options including board games and brain teasers. It holds around 15% of the market, driven by increasing interest in educational and family-oriented entertainment.

Infant & Pre-School Toys
Designed to support early childhood development, this category covers toys focused on sensory and motor skills. With a 12% share, it remains essential for parents and caregivers prioritizing learning through play.

Construction Toys
Favored for promoting creativity and problem-solving, construction toys make up about 14% of the market. Their popularity continues due to their STEM-aligned educational value.

Dolls & Accessories
This segment, accounting for nearly 11% of the market, benefits from both classic brand appeal and new trends in character-based play. It strongly influences imaginative and role-play behaviors in children.

Outdoor & Sports Toys
Encouraging physical activity and outdoor engagement, these toys represent about 13% of the market. Demand rises with growing awareness of healthy lifestyles and screen-free play.

Video Games
Video games dominate with the largest share of over 25%, fueled by the rise in digital gaming platforms and interactive content. The segment also benefits from subscription models and online multiplayer ecosystems.

Others
This category, comprising miscellaneous and emerging toy types, holds about 10% of the market. It includes tech-based toys, collectibles, and innovative hybrids that don’t fall into standard categories.

Toys and Games Market, Segmentation by Material

The Toys and Games Market has been segmented by Material into Plastic, Wood, Metal, Fabric, and Electronic Components

Plastic
Plastic remains the most dominant material, accounting for over 60% of the toys and games market. Its versatility, cost-efficiency, and ability to be molded into various shapes make it ideal for mass production across all toy categories.

Wood
Wooden toys, holding around 12% of the market, are valued for their sustainability and durability. Often used in educational and Montessori toys, they appeal to eco-conscious consumers seeking natural alternatives.

Metal
With a 9% share, metal is commonly found in mechanical or collectible toys. Though less prevalent, it is favored for its sturdiness and premium feel in construction sets and model kits.

Fabric
Fabric-based toys such as plush animals and soft dolls represent about 10% of the market. They are essential for toddlers and young children due to their safety and tactile comfort.

Electronic Components
This material category supports interactive and tech-enhanced toys, contributing to 9% of the market. As demand for smart and AI-integrated toys grows, so does the use of electronic parts in modern toy design.

Toys and Games Market, Segmentation by Distribution Channel

The Toys and Games Market has been segmented by Distribution Channel into Online Channel, and Offline Channel.

The segmentation of the Global Toys and Games Market by Distribution Channel highlights the two primary avenues through which consumers access these products: the Online Channel and the Offline Channel. The Online Channel has witnessed remarkable growth in recent years, fueled by the proliferation of e-commerce platforms and the convenience they offer to shoppers worldwide. Online retailers leverage advanced digital marketing strategies and personalized recommendations to reach a vast audience, providing a seamless and often immersive shopping experience. With just a few clicks, consumers can explore a vast array of toys and games, compare prices, read reviews, and make purchases from the comfort of their homes. This channel has become particularly appealing for busy parents and tech-savvy consumers seeking convenience and a wide selection of products.

The Offline Channel encompasses traditional brick-and-mortar stores, which remain an integral part of the toys and games market landscape. While online shopping provides convenience, physical stores offer unique advantages, especially for tactile products like toys where customers prefer hands-on interaction before making a purchase. These stores provide immersive experiences, allowing customers to see, touch, and interact with products firsthand. Knowledgeable staff members are often available to offer personalized assistance, recommendations, and insights, enhancing the overall shopping journey. Additionally, physical stores serve as social hubs, where families can enjoy outings and children can explore and engage with toys in a sensory-rich environment.

Both distribution channels are expected to continue playing significant roles in the Global Toys and Games Market. As technology continues to evolve and consumer preferences shift, industry players will need to adopt omnichannel strategies that seamlessly integrate online and offline experiences. By leveraging the strengths of each channel and embracing innovative approaches to engage consumers, manufacturers and retailers can enhance customer satisfaction and drive growth in this dynamic and competitive market. Whether shopping online for convenience or visiting physical stores for immersive experiences, consumers will continue to seek out toys and games that inspire creativity, promote learning, and foster joyful moments of play.

Toys and Games Market, Segmentation by Application

The Toys and Games Market has been segmented by Application into Up to 8 years, 9 - 15 years, and 15 years and above.

Up to 8 Years
This segment holds the largest share at over 45%, driven by demand for educational, interactive, and developmental toys. Parents prioritize safety, learning value, and engagement in toys for early childhood.

9 - 15 Years
Accounting for nearly 35% of the market, this group is attracted to strategy games, construction sets, and tech-driven toys. As cognitive skills grow, toys in this range focus on creativity, logic, and entertainment.

15 Years and Above
Representing around 20% of the market, this category includes collectibles, complex puzzles, and video games. It caters to adult hobbyists and teen gamers who seek both recreational and nostalgic experiences.

Toys and Games Market, Segmentation by Geography

In this report, the Toys and Games Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Toys and Games Market Share (%), by Geographical Region

North America
North America commands a market share of around 28%, driven by high consumer spending, brand loyalty, and the widespread presence of major toy manufacturers. Seasonal sales and tech-based toys are strong contributors to growth in this region.

Europe
Europe holds approximately 22% of the market, influenced by eco-friendly toys, educational products, and a strong regulatory focus on safety standards. Demand for sustainable and premium-quality toys is steadily rising here.

Asia Pacific
Leading with over 30% share, Asia Pacific benefits from a large child population, urbanization, and rapid growth in e-commerce and domestic manufacturing. Countries like China, India, and Japan are major contributors.

Middle East and Africa
This region contributes nearly 10% of the market, with demand fueled by urban development and rising birth rates. Growth potential is strong, especially in educational and affordable toy categories.

Latin America
Latin America represents about 10% of the global share, driven by an expanding middle-class population and rising interest in licensed and interactive toys. Brazil and Mexico are key regional markets.

This report provides an in depth analysis of various factors that impact the dynamics of Toys and Games Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Rising demand for educational and STEM toys
• Expanding influence of pop culture franchises
• Growth in online toy retailing platforms

• Increasing consumer spending on children's products - Rising disposable incomes and evolving family dynamics are fueling a surge in demand for premium toys that provide both entertainment and developmental benefits. Parents are more willing than ever to invest in quality, branded, and educational toys that enhance children's skills and well-being.

  This shift is also influenced by the growing awareness of early childhood development, where toys play a vital role in motor, cognitive, and emotional growth. As consumers seek to provide their children with the best resources, the emphasis on toys that combine fun with learning continues to intensify. Educational, STEM-based, and sensory-enhancing products are especially benefiting from this trend.

  Seasonal trends such as birthdays, festivals, and holidays have contributed to the steady rise in purchases, especially in developed economies. Gift-giving traditions and retail promotions during these occasions have pushed parents to allocate more budget toward toys, driving overall category sales. The industry also benefits from aggressive marketing campaigns by major brands.

  As economies stabilize and inflation concerns ease, spending behavior is expected to remain strong. The influence of social media, influencer recommendations, and celebrity-endorsed toy lines is also amplifying demand. Overall, the willingness to spend more on enriching, fun, and tech-integrated toys positions this factor as a major growth catalyst for the market.

Restraints

• High competition from counterfeit toy products
• Rising concerns over toy safety standards
• Seasonal fluctuations impacting overall sales

• Shifting preferences toward digital entertainment - The shifting preferences toward digital entertainment represent a significant restraint on the Toys and Games Market. With the rapid rise of tablets, smartphones, and gaming consoles, children's attention has increasingly turned toward digital screens rather than traditional physical toys. This has disrupted demand patterns and weakened the dominance of conventional play products.

  Children now spend substantial time engaging with interactive mobile applications, video games, and streaming content, often reducing their engagement with traditional toys. This shift not only affects sales volume but also challenges innovation within physical toy categories. Parents, too, are purchasing fewer physical toys as digital alternatives offer convenience and endless entertainment options.

  The challenge is particularly severe in urban households, where space constraints and digital literacy promote screen-based engagement. Additionally, younger generations are now growing up in tech-saturated environments, where digital gratification often supersedes tactile experiences. This has placed immense pressure on manufacturers to either adapt or lose market share.

  Unless toy makers effectively bridge the gap between physical and digital experiences, the industry may continue to experience erosion in consumer interest. Traditional segments such as board games, dolls, and action figures could see further decline, making this shift one of the most pressing constraints on future growth.

Opportunities

• Expansion in eco-friendly toy innovations
• Integration of AR & AI in toys
• Growing licensing deals with entertainment brands

• Emerging demand from adult collector segments - Adults, driven by nostalgia and a desire for exclusivity, are increasingly investing in collectible toys, action figures, retro games, and limited-edition releases. This demographic has transformed toys into aspirational lifestyle products.

  With disposable incomes and purchasing power, adult consumers are fueling demand for premium, high-detail, and franchise-based toys. Many brands are now curating product lines specifically for grown-up audiences, such as movie memorabilia, comic-themed collectibles, and anniversary reissues of classic games. The trend is particularly strong in pop culture and entertainment-driven segments.

  Social media and online communities have further amplified the appeal of collecting. Platforms like YouTube and Instagram showcase unboxings, reviews, and collection tours, adding to the cultural relevance of toys among adults. The rise of e-commerce and exclusive online drops has made it easier than ever for enthusiasts to access and acquire coveted items.

  As manufacturers increasingly embrace this consumer base, the toy industry is seeing diversification in its target audiences. This demand offers not only revenue growth but also brand loyalty and long-term engagement. Tapping into the adult market could reshape product strategies and expand the market far beyond children.