Toys Market Companies

Why Toys Market Are Expanding?

The global Toys Market is experiencing sustained structural demand acceleration driven by converging forces: rising parental investment in developmental play, rapid digital-physical product convergence, and surging middle-class growth across Asia-Pacific and Latin America. Market Research Future (MRFR) analysis values the Toys Market at USD 112.34 billion in 2024, with the market projected to grow from USD 117.83 billion in 2025 to USD 223.74 billion by 2035, registering a CAGR of 6.62% during the 2025–2035 forecast period. This expansion is underpinned by persistent end-user growth — over 2.3 billion children globally under the age of 15 — combined with increasing disposable incomes in emerging economies where toy penetration remains below global norms.

The Electronic Smart Toys sub-segment is seeing the fastest-growing product category, fueled by AI integration, app connection and augmented-reality experiences that have fundamentally changed interactive play for children aged 6–14. Traditional Toys account for the biggest revenue share, almost 30% of the worldwide market, indicating that they have a timeless cross-generational appeal and are appropriate for all age groups and price points. In 2025, the EU updated its Toy Safety Directive to incorporate specific migration limits for chemicals, as well as connectivity requirements for toys with embedded AI and app connectivity, requiring all electronic smart toy products to be re-tested for compliance. This has been an inflection point, accelerating product reformulation cycles across the industry and strengthening the competitive advantage of global manufacturers already poised for compliance.

Why These Companies Are Leading the Market?

MRFR highlights four structural differentiators that set apart category leaders in the global Toys Market: breadth of end-to-end platform & IP, technical differentiation via digital-physical product integration, global geographic coverage, and disciplined M&A and licensing strategy. The firms that command the biggest revenue shares blend proprietary or deeply licensed IP with multichannel retail clout and purpose-driven product design that satisfies parents’ desire for developmental and educational value.

Market leaders are defined by breadth of platform and IP. The LEGO Group combines construction play, STEM education, digital gaming, and 30+ licensed entertainment themes into a single brick-compatible System in Play platform, generating $9.97 billion in FY2024 revenue—more than twice its nearest competitor, and sustaining industry-leading margins thru design-to-retail efficiency. A great example of technology differentiator using AI-powered speech recognition and adaptive learning modules in its Barbie ecosystem directly addressing the fastest growing Electronic Smart Toys category is Mattel, Inc. Geographic coverage protects Hasbro, Inc.’s competitive position by selling products in more than 160 countries thru licensed production and retail relationships, buffering the company from single-market demand instability. M&A strategy helped Goliath Games, which bought Lucky Duck Games in Nov. 2024, to speed its entry into digital hybrid board games and the high-growth “kidult” market sector (adults 18-45 buying valuable and nostalgic toy products for themselves).

Top 10 Global Toys Companies — MRFR Rankings (2026)

MRFR has identified and profiled the following leading toys companies globally, evaluated on the basis of revenue performance, market capitalization, geographic presence, product breadth, innovation strategy, and client base.

*Rankings based on MRFR analysis. Revenue figures sourced from official company filings and investor relations disclosures. CAGR reflects company-reported or guided revenue growth rates, not the market CAGR.*

Detailed Company Profiles

1. LEGO Group | Private  |  Billund, Denmark

The LEGO Group is the world's leading toy manufacturer by revenue, operating a vertically integrated System in Play platform that spans construction sets, robotics (LEGO Education), licensed entertainment themes, and digital gaming. The company serves children aged 18 months through adult (18+) via its LEGO Icons and LEGO Art premium lines, with products distributed across 130,000+ retail locations and its own direct-to-consumer digital stores globally. In the Toys Market, LEGO occupies the highest brand equity position across all consumer research indices, underpinned by its proprietary brick-compatibility system that now covers 30+ licensed and owned IP families — from Star Wars and Harry Potter to Wicked.

The LEGO Group reported revenues of DKK 74.3 billion (about USD 9.97 billion) for FY2024, rising 13% year-on-year, or six percentage points ahead of the global toy industry average. In July 2025, The LEGO Group announced a cooperation with Universal Products & Experiences based on Wicked: For Good — the sequel to the 2024 movie — with seven sets to be released on September 1, 2025. This launch builds off the success of the four set cooperation for the original Wicked film, and serves as another example of LEGO’s ability to deliver large scale licensed product development cycles within 18-24 months after IP activation. MRFR views this co-licensing strategy as a key structural advantage for LEGO over competitors with less nimble design-to-retail pipelines, further cementing LEGO’s dominance in licensed building activity.

2. Mattel, Inc. | NASDAQ: MAT  |  El Segundo, CA, USA

Mattel, Inc. is one of the world’s largest toy manufacturers, and the owner of iconic consumer brands, such as Barbie®, Hot Wheels®, Fisher-Price®, American Girl® and Masters of the Universe® – made famous in the hands of children throughout the world. Mattel’s primary competitive advantage in the Toys Market is based on the richness of its owned IP, covering dolls, cars, action figures, baby development and games, allowing cross-category merchandising and licensing revenue to supplement direct product sales.

Mattel’s FY2024 net revenues hit USD 5.08 billion, with AI-enabled interactive features introduced across the Barbie product ecosystem at CES 2025, incorporating voice recognition and adaptive learning features into the Dream House platform – positioning Mattel in the fastest-growing Electronic Smart Toys sub-segment as per MRFR. The company has forecast for margin improvement in FY2025 with normalization of license revenue from the Barbie film cycle. MRFR notes that Mattel’s IP monetization plan (licensing revenues from fashion, gaming, food and lifestyle verticals) adds an additional layer of revenue diversification not seen among most pure-play toy manufacturers, which bodes well for long-term margin stability.

3. Hasbro, Inc. | NASDAQ: HAS  |  Pawtucket, RI, USA

Hasbro, Inc. is one of the world’s most varied toy and game companies, with brands such as Monopoly, Transformers, Play-Doh, Nerf, Magic: The Gathering and Dungeons & Dragons. It has a global consumer base in more than 160 countries with a particular strength in games for teens and adult collectors. The Toys Market competitive distinction is Hasbro's physical toy manufacture, tabletop and trading card game supremacy and licensed character content.

Hasbro reported FY2024 revenues of USD 4.17 billion, after a substantial strategic restructuring that included the divestiture of its eOne film and television production assets to Lionsgate Entertainment for about USD 500 million. This portfolio rationalization has sharpened Hasbro’s emphasis on core toy, gaming and license operations. Hasbro pointed to digital integration of its Wizards of the Coast game platforms and development of its Nerf product line into new foreign markets in 2025.

4. Bandai Namco Holdings Inc. | TYO: 7832  |  Tokyo, Japan

Bandai Namco Holdings Inc., Japan’s largest toy and entertainment conglomerate, has a toys sector that includes Gundam model kits and anime-licensed action figures, Tamagotchi and the Kamen Rider and Super Sentai properties. The company is a leading player in the collectible and precision hobby sub-segments globally, supplying consumers in 60+ countries thru specialist hobby and anime retail channels. Its style of vertical integration from IP development to retail, with toy lines co-developed with animated programs, provides demand pull that is structurally immune to the seasonal instability that affects mainstream toy producers.

The toys and hobby business of Bandai Namco contributed about USD 3.85 billion to the group’s revenues in FY2024. In 2025, the firm opened the first two of its flagship retail shops in Singapore and London, continuing its plan of expanding its physical retail footprint into high-density regions for anime consumers beyond Japan. The company has expanded its original IP development program for new anime-integrated robotic and mechatronic collectible formats tailored to the premium adult hobby collector niche.

5. Spin Master Corp. | TSX: TOY  |  Toronto, Ontario, Canada

Spin Master Corp. is a leading global children’s entertainment company with a portfolio that includes toys, entertainment content and digital gaming. Its major properties include PAW Patrol, the world’s #1 preschool property by retail sales, and Bakugan, Hatchimals, Rubik’s Cube and Air Hogs, with items accessible in 100+ countries. Spin Master’s differentiator in the Toys Market is their integrated entertainment approach. Toys are co-launched with animated series, feature films and mobile apps, generating multi-channel demand amplification beyond original product launch cycles.

Spin Master reported FY2024 revenues of CAD 2.16 billion (about USD 1.57 billion), up 3% YoY on the back of excellent PAW Patrol success. Spin Master teamed up with Nickelodeon Animation to release a brand-new DORA toy line in June 2025, ahead of the Dora the Explorer franchise’s 25th anniversary. “This launch is a great example of how Spin Master can activate legacy IP with multi-platform entertainment partnerships.”

6. Funko Inc. | NASDAQ: FNKO  |  Everett, WA, USA

Funko Inc. is the world’s leading pop culture collectible figure and licensed merchandise company with their signature Pop! Vinyl format being the leading format in the ‘kidult’ consumer segment – adults aged 18-45 years who buy licensed collectibles based on film, television, music, sports and gaming franchises. Funko sells goods in over 75 countries thru mainstream retail, niche hobby, e-commerce and direct-to-fan channels, with over 1,500 active license arrangements.

Net sales for FY2024 were USD 956 million with management suggesting a stabilization of the revenue base following two years of inventory normalization. In November 2024, Funko announced a worldwide distribution deal with Goliath Games for its tabletop games business, Funko Games, to increase the retail footprint of its goods like the Funkoverse Strategy Game and licensed board games.

7. Goliath Games | Private  |  Alphen aan den Rijn, Netherlands

Goliath Games is a global family and children's games company with operations across 50+ countries, producing board games, card games, outdoor games, and digital hybrid games. Its portfolio includes Sequence, Floor Is Lava, Pop the Pig, Gooey Louis, and the Endless Games adult games label — making it one of the few toy companies with meaningful commercial presence across both children's play and adult social gaming categories.

In November 2024, Goliath Games acquired Lucky Duck Games, which includes its award-winning Chronicles of Crime and Destinies digital hybrid board game systems that blend physical game pieces with mobile app material for ongoing narrative experiences. The acquisition follows Goliath’s announcement in the same month of a global distribution arrangement with Funko Games and is a clear strategic move into premium adult games and digital-physical hybrid formats.

8. Clementoni S.p.A | Private  |  Recanati, Italy

Clementoni S.p.A is a leading European manufacturer of educational toys, puzzles, STEM kits, and infant development products, distributing across 60+ countries with particular market strength in Southern and Eastern Europe, the Middle East, and Latin America. Founded in 1963, the company's product philosophy centres on developmental play across the 0–12 years age range, with its Science & Play line representing its fastest-growing product family — offering chemistry sets, electronics kits, robotics, and coding tools for children aged 6–14.

In 2025, Clementoni launched the Science & Play STEM product portfolio into Middle East, North Africa and Southeast Asian regions thru partnerships with regional distributors connected to national STEM education investment programs in UAE, Saudi Arabia and Indonesia. In 2025, the company also worked with the Italian Ministry of Education to introduce educational play into the basic school curricula.

9. Funskool (India) Ltd. | BSE: 531531  |  Chennai, Tamil Nadu, India

Funskool (India) Ltd. is India’s largest toy producer and distributor. It has its own manufacturing plant in Goa and Ranipet and distributes in over 20 countries, including India, the SAARC markets and certain African territories. Its products include conventional toys, board games, newborn development tools and licensed action figures. It is a prominent recipient of the Indian government’s Make in India industrial policy for toy manufacturing, which has gradually raised domestic content requirements for toys sold in the Indian market.

In 2025, the toy maker increased its domestic production capacity under the Indian government’s Production Linked Incentive (PLI) scheme for toys, with a capital expenditure program aiming for a 30% increase in injection-moulding and assembly capacity by FY2026. This investment is in sync with India’s national toy market that has had a CAGR of 10%+ since 2022, propelled by urbanization, import substitution policy and growing parental spend on safety-certified, domestically manufactured toys.

10. Tamiya Incorporated | Private  |  Shizuoka, Japan

Tamiya Incorporated is a precision hobby toy manufacturer specialising in scale model kits, radio-controlled vehicles, and model-making accessories, distributed across 55+ countries through specialty hobby retailers, model shops, and e-commerce channels. Tamiya's competitive differentiation lies in the extreme precision and assembly quality of its products — earning the company its reputation as the premium benchmark in scale modelling — combined with a dedicated global hobbyist community that drives sustained demand through competition events and digital content. Tamiya primarily serves the 12+ and adult hobbyist demographic.

Tamiya launched an expanded 1/35 scale armour series in 2025 targeting the global military modelling segment — one of the company's highest-margin product categories — alongside new additions to its RC off-road and touring car lines. The company also expanded its presence in North American and European online hobby retail channels in 2025, capitalising on continued growth in adult hobby toy spending.

R&D Investment & Innovation Signals

R&D investment across the global Toys Market has accelerated materially in 2025–2026, primarily directed at AI integration, sustainable material substitution, and digital-physical product convergence — addressing both the Electronic Smart Toys growth opportunity and the regulatory pressure to eliminate legacy plastic compounds from product formulations. Market Research Future tracks the following verified 2025–2026 R&D and technology programmes from official company sources:

• The LEGO Group has invested in its LEGO Education platform expansion, deploying new coding robotics kits aligned with K-12 STEM curricula in 40+ countries as part of its 2025 product development programme, extending learning-play integration beyond the classroom into home education environments.
• Mattel, Inc. has implemented AI-powered voice recognition and adaptive learning capabilities in its Barbie Dream House interactive product line, deploying proprietary language model integration across the toy's companion app platform — announced at CES January 2025.
• Hasbro, Inc. has directed R&D resources toward digital integration of its Wizards of the Coast gaming platforms, with particular investment in the Magic: The Gathering Arena digital-physical hybrid play ecosystem for the global trading card game segment.
• Bandai Namco Holdings Inc. has expanded its proprietary IP development programme for original anime-integrated toy lines, including new robotic and mechatronic collectible formats in the premium USD 50–500 price tier designed for the adult hobby collector segment globally.
• Spin Master Corp. has invested in app-connected toy development for its Hatchimals and Rubik's Connected product lines, integrating Bluetooth sensor technology and companion mobile experiences that extend product engagement lifetime beyond initial unboxing and play cycles.
• Clementoni S.p.A has expanded its Science & Play STEM innovation pipeline with new robotics programming kits and chemistry lab sets designed to align with European and MENA national STEM curriculum frameworks — reducing product localisation cost for institutional sales channels.
• Funskool (India) Ltd. has invested in domestic tooling and mould development capabilities under India's PLI scheme, enabling the company to manufacture technically complex toy components domestically that were previously sourced from China, reducing cost of goods and lead times for the Indian market.
• Goliath Games has deployed development resources into digital hybrid board game formats following its Lucky Duck Games acquisition, integrating app-driven narrative engines with physical game components to serve the kidult and premium family game segments.