ID: MRFR/CR/1030-CR | 99 Pages | Author: Pradeep Nandi | September 2021
The global baby toys market is projected to register a CAGR of 3.97% and reach a value of USD 17,194.1 million by 2028. Infants and toddlers usually prefer certain types of toys based on their stage of development. Baby toys help stimulate a sense of shape, color, texture, taste, and sound in babies as a part of their overall development. Child development applies to several areas such as language, social-emotional, fine motor, gross motor, and cognitive development. Guardians choose toy materials and plan to learn activities for babies based on the experience that toys provide to the babies that further help in their development. Babies also require construction toys and building blocks, which help build motor skills and hand-eye coordination in babies.
The outbreak of COVID-19 has resulted in lockdown across regions, border restrictions, and breakdown of transportation networks. The economic uncertainty due to the COVID-19 outbreak is much higher than past outbreaks such as severe acute respiratory syndrome (SARS), avian flu, swine flu, bird flu, and Ebola, owing to the escalating number of infected people and the uncertainty about the end of the crisis.
With the outbreak, there was a spike in essential goods such as sanitizers and masks, and customers stocked up household essentials like toilet paper and bread. Most of the customer's budget was shifted to essential goods, and a major downfall in non-essential businesses was observed. As more cities went into lockdown, non-essential businesses were ordered to remain closed during the first half of the pandemic. Baby toys being a non-essential product, the demand for the same was affected noticeably during the early stages. The COVID-19 pandemic has severely impacted the tourism industry with border restrictions and government orders for lockdown, forcing people to stay home. Schools, colleges, and institutions were shut, and corporates across the globe observed work from home. The COVID-19 pandemic has also impacted the purchasing power of the consumers and led to a shift of purchases from wants to need. These factors negatively impacted the sales of baby toys during the early stages of the pandemic. However, with the situation getting back to normal, the demand for baby toys is expected to increase gradually.
Market Dynamics
The global baby toys market is expected to register a notable growth rate during the forecast period. Increasing per capita disposable income is mainly driving the market growth. Rising demand for skill developmental baby toys is also expected to aid the market growth during the review period. However, the prevalence of an unorganized market for baby toys is considerably hampering the market growth. Also, the rising threat of counterfeit products poses a challenge for the growth of the market. Nevertheless, Strategic mergers and acquisitions are creating a huge scope for market growth. Moreover, the growth of the organized retail sector in Asia-Pacific is projected to propel market growth in the coming years.
Drivers:
An increase in per capita disposable income has led to a change in consumer spending behavior. Disposable income includes the personal income of households left after income taxes and available for spending and saving. The rising per capita disposable income of people across the globe, especially in the emerging economies, is boosting the growth of the baby toys market. Also, the growing number of dual-income households with an increasing working women population is further assisting in the growth of per capita disposable income. Thus, changing lifestyles and increasing per capita disposable incomes have led to rising spending on baby toys. An increase in annual disposable incomes of households in highly populated countries such as India and China and increased spending on baby products in the rising middle-class population are driving the growth of the baby toys market worldwide.
The key players in the market are highly focused on R&D activities for product innovations to grab a larger customer base. The market players are inclined towards product developments as per the changing trends in the market. For instance, manufacturers are focusing on education to be incorporated in baby toys. Parents are looking for innovative ways to help infants develop skills and spend more on educational toys designed specifically for learning purposes. Musical instruments, connecting toys, easy jigsaw puzzles, crafty toys, boxes, blocks, and dress-up toys are some of the developmental toys that instill creativity and problem-solving skills in babies. Playing with toys such as blocks and puzzles can support fine motor skills, cognitive and language development, and early spatial skills and math. Also, a musical toy is a great way to stimulate a baby’s senses. Similarly, toddlers learn about colors through ring stacks and learn to count. Thus, the demand for these products is high among the parents, resulting in overall sales growth of the global baby toys market.
Restraint:
The baby toys market is highly fragmented, with a huge number of players across the globe. There is stiff competition among the players in terms of design, raw materials, price points, technology, and supply chain. However, the major factor affecting their growth is the prevalence of the unorganized sector. It has been observed that the sales of the key players are majorly hampered by the local vendors, owing to their easy availability, lower price, and ease of customization. A major share of the population is price sensitive, making it difficult for organized brands to establish their dominance over the unorganized sector.
Opportunities:
Asia-Pacific is considered to be the key market in the world as it offers excellent growth prospects for the sales of baby toys. Rapid economic growth, rising mid-income population, and high migration rates from rural to urban areas have led to an influx of international retailers in Asia-Pacific. This has encouraged the expansion of existing retail outlets in countries such as India and China, driving the growth of the regional baby toys market. Online retailing is also trending across the region. With instant access to catalogs and price lists, customers have a clear idea of the products available, which simplifies purchasing decisions. Online retailers are capturing a large portion of the market share from brick-and-mortar retailers as consumers are increasingly inclined towards online shopping to minimize shopping time.
Challenges:
With the increasing demand for baby toys, manufacturers are finding it difficult to ban counterfeit products. The counterfeit products of baby toy brands affect the actual brands in terms of revenue and dampen the brand goodwill. It is difficult to identify the differences between a fake product and a genuine one. Counterfeiters keep the prices lower than genuine products to attract a large price-sensitive population. The growing sales of baby toys through online channel makes it even more difficult for the baby toys brands to overcome this concern. Therefore, counterfeit products are expected to hinder the growth of the global baby toys market.
Based on product type, the global baby toys market has been divided into board games, soft toys & dolls, action toys, arts & craft toys, construction toys, vehicles, musical toys & rattles, and others. The soft toys & dolls segment accounted for the largest market share in 2021.Dolls are one of the oldest and most common forms of toysthat have witnessed tremendous advancements in the past years, such as electronic dolls that can speak and walk.
By end user, the global baby toys market has been segmented as infants and toddlers. Between the two, the toddlers segment is projected to exhibit a higher CAGR of 4.00% during the forecast period.Toddlers are children aged between 13 and 48 months. Popular games among toddlers are dolls, play vehicles, kitchen equipment and gadgets, playhouse items, art and craft toys, building blocks, stuffed animals, and musical toys.
Based on distribution channel, the global baby toys market has been segmented into store-based and non-store-based. The store-based sub-segment is further classified as supermarkets & hypermarkets, specialty stores, and others. The store-based segment accounted for a larger market share in 2021. The convenience of immediate delivery of the product through offline stores is further aiding the segmental growth.
Global Baby Toys market Share, by Region, 2020 (%)Source: MRFR Analysis
The global baby toys market has been divided into North America, Europe, Asia-Pacific, and the rest of the World. North America accounted for the largest market share of 34.57% in 2020. Europe was the second-largest market in 2020 and is projected to exhibit a CAGR of 3.97% during the review period. However, the market in Asia-Pacific is expected to register the fastest growth rate from 2021 to 2028.
The North America baby toys market accounted for the highest shareof the global market in 2020. The rising demand for toys among children and the young population is driving the growth of the North American baby toys market. Moreover, several manufacturers in the region are focusing on launching innovative toys, which is further expected to boost the growth of the North American baby toys market during the forecast period.
Asia-Pacific is anticipated to be a lucrative region for manufacturers of baby toys owing to the rising organized retail sector in the region.This growth can be further attributed to the rising demand for skill development baby toys among children in the region, which is expected to further support the growth of the Asia-Pacific baby toys market during the forecast period. The demand for baby toys is rising rapidly in emerging countries such as China and India. Key manufacturers of baby toys in Asia-Pacific finds massive opportunities in Asia-Pacific baby toys market. The growth of the organized retail sector in Asia-Pacific finds lucrative opportunities for the manufacturers of baby toys.
Competitive Landscape
The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a global reach along with diverse product portfolios. Companies such as Bandai Namco Entertainment Inc, Hasbro, Mattel, LEGO System A/S, and Tomy Company, Ltd dominate the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence.
The players are focused on investing in research and development and adopting strategic growth initiatives such as expansion, product launches, agreement, partnership, acquisition, and merger to strengthen their market position and capture a large customer base.
Prominent players in the global baby toys market include LEGO System A/S(Denmark), Mattel, Inc.(US), Hasbro, Inc.(US), Bandai Namco Holdings Inc.(Japan), Spin Master (Canada), Kids II, Inc. (US), Nintendo Co., Ltd.(Japan), Brandstätter Group(Germany), Tomy Company, Ltd(Japan), and Basic Fun! (US).
Recent Developments
Few developments that occurred in recent times, influencing the market growth of baby toys are listed below:
Intended Audience
Report Attribute/Metric | Details |
---|---|
Market Size | USD 17,194.1 Million |
CAGR | 3.97% (2021-2028) |
Base Year | 2020 |
Forecast Period | 2021-2028 |
Historical Data | 2019 |
Forecast Units | Value (USD Million) |
Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
Segments Covered | By Product Type, By End User, By Distribution Channel and By Region |
Geographies Covered | North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
Key Vendors | LEGO System A/S(Denmark), Mattel Inc.(US), Hasbro Inc.(US), Bandai Namco Holdings Inc.(Japan), Spin Master (Canada), Kids II Inc. (US), Nintendo Co. Ltd.(Japan), Brandstätter Group(Germany), Tomy Company Ltd(Japan), Basic Fun! (US) |
Key Market Opportunities | Growth of the Organized Retail Sector in Asia-Pacific |
Key Market Drivers | Rising Demand for Skill Developmental Baby Toys |
baby toys market is expected to reach USD 17,194.1 million by 2028.
baby toys market is expected to exhibit a strong 3.97% CAGR over the forecast period till 2028.
The growing disposable income of new parents in urban areas is the major driver for the baby toys market.
Europe dominates the global baby toys market.
Leading players in the baby toys market include Funskool, Me n Moms, and The Walt Disney Company, among others.
Key Questions Answered
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