Logo
Middle East and Africa toy market to grew at a CAGR of 10.17% in last half decade. Bonafide Research tries to decode how the Covid-19 pandemic weighs in MEA Toy Market.
Apr, 20
2021

790 view

Middle East and Africa toy market to grew at a CAGR of 10.17% in last half decade. Bonafide Research tries to decode how the Covid-19 pandemic weighs in MEA Toy Market.

 

210419926_Middle_East_and_Africa_Toy_Market_Outlook_2025.png

As per the data gathered and compiled in the research conducted by Bonafide Research in its research report – the Middle East and Africa Toy Market Outlook 2025, the data suggests that the Middle East and Africa is one of the fastest growing regions in the world. The toy market in the Middle East and Africa was valued at USD 4.71 Billion in the year 2014. In the period between 2014 and 2019, the regional market grew to USD 7.65 Billion. Bonafide Research has further forecasted that the region is further expected to grow to USD 10.80 Billion in 2025.

The region of the Middle East and Africa is rich with human and natural resources. However, countries that are part of the Middle East and Africa regions account for a substantially varying amount of resources, economic size, geographic size, demographics, and standard of living. Also, the intra-regional activity is weak, principally restricted to labor flows with limited trade in goods and services. The population size of the Middle East and Africa and Europe are very similar to each other. However, Middles East and Africa toy market is an emerging market fuelled by a growing population, average standard of living, higher disposable income with households. According to the World Bank data, the proportion of the population using the internet in 2015 was 47.92% where in 6 years, the proportion of the population using the internet in 2021 has grown to 65%. Because of this heavy penetration of the internet in the region, it is expected that the Middle East and African countries can show strong growth rates in demand for licensed and branded products as the kids in the region will be more aware of the ongoing trends going on the internet. As the toy companies are already shifting to online modes of marketing their products as well as selling their products, the toy companies are eyeing great opportunities in the region as far as the toy industry is concerned. The greater penetration of the internet in the region is also expected to boost the e-commerce network in the region and in turn expected to develop new online sales and distribution channels for the toy market in the region. However as per Bonafide Research’s study, despite e-commerce opportunities, the offline sales and distribution channels which include physical retail stores, specialized stores supermarkets will play a significantly crucial role in the future development and growth of the market.

However, the economic landscape in the Middle Eastern and African regions looks shaky due to the outbreak of novel coronavirus. This might drag the growth in the toy market of the region at least in the short term as consumers are going to shift to purchasing more essentials rather than leisure and entertainment goods which include toys. The data released by IMF suggests that a strong economic rebound is to be expected but the Middle Eastern and African region numbers suggest sluggish growth and slow recovery. The IMF report also notes that in the Middle East, the countries that started vaccination early on, such as affluent Gulf Cooperation Council countries, face relatively better prospects, while fragile and conflict-affected countries may see a gloomy picture of recovery. As the toy market in the region is highly spread across many smaller countries, the toy market in the region and their supply chain is expected to be highly disrupted. However, if the larger macro-economic patterns become favorable post the pandemic slippage, we can expect strong growth in the toy market in the region due to innovative capabilities of relatively developed countries, expanding middle class, and favorable demographics in the region.