Asia Pacific Toy Market Outlook, 2029

The Asia and Pacific region is home to 4.3 Billion people, accounting for almost 60% of the world population. With its rising population and income levels, Asia-Pacific contributes significantly to the global toy market. Asia-Pacific is the second largest market for traditional toys and games, and remains one of the fastest growing regions. While Asia-Pacific has a falling birth rate and had the second lowest per household expenditure on traditional toys and games in 2018, the region is still expected to enjoy good value growth due to rising disposable incomes, smaller average household sizes, the premiumization trend and product innovation. China also happens to be the world’s largest exporter of toys. However, the data gathered during the study indicates that about 1/3rd of the Asia-Pacific toy market revenue are generated by countries other than China, Japan, India, and Australia. This also reflects the extent of influence and unstructured markets in developing markets play in the regional toy landscape. Some of the biggest exporters of toys in the Asian Pacific markets include Hong Kong and Taiwan. Many children like to play video games during their leisure time. Technological innovations such as AR/VR headsets have led to an increase in the adoption of video games by children. The launch of educational gaming has encouraged adults and parents, thereby having a positive impact on market growth. Sony has launched the pre-station classic, which comes with a preloaded version of the original Play Station that has increased the growth of the video games market. The Asia-Pacific region is also home to some of the fastest growing economies in the world. The constantly expanding middle class means that consumers in the middleclass strata are shifting to higher living standards. This in turn increases the expenditure that households make on toys. This also drives the demand for licensed and branded products from top toy majors.

According to the research report "Asia Pacific Toy Market Overview, 2029," published by Bonafide Research, the Asia Pacific Toy market is anticipated to grow with more than 8.94% CAGR from 2024–2029. The Asia and Pacific toy markets have been studied in the context of major markets in the region, including China, Japan, India, and Australia. Crucial aspects of the markets such as categorization based on age, product, and sales and distribution channels have been discussed to clearly present the scenario of the toy market in the region. The major toy categories considered in the study report are action figures, arts and crafts, building sets, dolls, games and puzzles, infant and toddler toys, youth electronics, outdoor and sports toys, plush, vehicles, and explorative and other toys. The rise in the licensed toy category is also fuelled by easier access to the internet and media content in the region. The internet penetration in the region is about 62% and is expected to grow at a higher rate due to the competitive telecom industry in the region. However, even though the internet penetration is strong, it is also expected to create new channels for marketing and communication for toy companies, which will find a new avenue to reach their potential customers via social media and other platforms. However, the region faces challenges because it is a major source of counterfeit toys. Consumers who are looking for cheaper options for toys sustain the market, and such toys are highly demanded due to their elastic demand and price sensitivity. The major companies operating in the Asia-Pacific region are LEGO, Mattel Inc., Bandai Namco, Hasbro, Jakks Pacific, and Toy Quest. The e-commerce marketplace for third-party sellers has bred an extensive ecosystem of counterfeiters and knockoffs that pose a threat to existing players, competing for their share of the market.

Meanwhile, blind collectibles are also spurring growth as they are popular amongst girls, and this trend is expected to continue over the forecast period. Furthermore, major manufacturers are located in Thailand and Japan, where cheap and easy-to-use products are made and exported to different countries. These toys have been in high demand. For instance, among the pre-school toys, Fisher-Price and CADE-A pillar, a developmental toy, which was launched in 2016 in China, allows children to do domestic computer programming and solve problems. China and India are the two most prominent economies in the world, owing to which many vendors are entering this market. Furthermore, the demand for toys and games is expected to increase over the forecast period due to an increasing number of retail outlets coupled with growing middle-class groups. In China, pre-school toys are gaining popularity due to the increasing sales of math, art-based gadgets, and science and technology interests among parents as well as children. Growing usage of smart-phones that contain video games has fueled the market growth in the upcoming years. According to the survey, in 2018, PUBG had become one of the largest video gaming apps that had produced the highest revenue all over the globe. The increasing usage of tablets and laptops has also increased the growth of the market.

The increasing demand for interactive and educational entertainment in the Asia Pacific region has propelled games and puzzles to the forefront of the toy industry. The Asia Pacific toy industry has seen a remarkable shift in consumer preferences, with games and puzzles emerging as the leading category. This trend is largely driven by a growing awareness among parents and educators about the importance of interactive and educational play for child development. As families increasingly seek out toys that provide not only entertainment but also cognitive benefits, games and puzzles fit the bill perfectly. Unlike traditional toys that may primarily focus on physical play, puzzles and games engage children in critical thinking, problem-solving, and social interaction, essential skills for their overall development. The rise of dual-income households and urban living in many Asia Pacific countries has led to a more competitive and academically focused environment for children. Parents are looking for products that can supplement their children’s learning experiences, especially in a landscape where early childhood education is highly emphasized. Puzzles and games offer a fun way to learn concepts such as mathematics, language, and spatial awareness while also promoting fine motor skills. This educational angle resonates well with parents, making these products highly sought after. From traditional board games to innovative 3D puzzles and digital gaming options that can be played on smartphones and tablets, the variety caters to a wide age range and different interests. This diversification helps to engage not just children but also their families, fostering bonding moments that are cherished in many cultures across the region.

The 9-15 age group has emerged as a dominant force in the Asia Pacific toy industry, reflecting a significant shift in how children in this demographic engage with play. This age range represents a critical developmental stage where children transition from simple toys to more sophisticated forms of entertainment that challenge their cognitive skills and encourage social interaction. Unlike younger children who may gravitate toward basic toys, those in the 9-15 age bracket seek out products that offer depth, complexity, and the potential for collaborative play with peers. This desire for engagement is a crucial driver behind the popularity of board games, strategy games, and puzzles, which not only stimulate critical thinking but also foster teamwork and communication skills. the increasing influence of technology on play patterns cannot be overstated. This age group is particularly receptive to games that incorporate digital elements, such as mobile apps and online platforms. Many traditional games and puzzles are now being enhanced with augmented reality (AR) features or companion apps that deepen the gaming experience. These technological advancements resonate with today's digitally-native youth, making traditional play more appealing. The integration of technology also enables a more dynamic interaction, allowing for updates, expansions, and social features that maintain ongoing engagement.



The distribution channel for the toy market in the Asia Pacific region is characterized by a robust mix of online and offline strategies that cater to diverse consumer preferences. Offline, traditional retail outlets such as toy specialty stores, department stores, and mass retailers play a significant role in the distribution landscape. These physical stores provide an interactive shopping experience where customers can see and touch products, making it easier for parents and children to make purchasing decisions. Seasonal promotions and in-store events further enhance customer engagement, driving foot traffic and sales. On the online front, e-commerce has seen explosive growth, especially post-pandemic, with platforms like Alibaba, JD.com, and local marketplaces gaining prominence. These digital channels offer convenience and a vast selection of toys, often at competitive prices. Online retailers also utilize advanced data analytics to personalize marketing efforts, ensuring that consumers receive tailored recommendations. Additionally, social media platforms play a crucial role in influencing purchasing decisions, with brands leveraging influencer marketing and targeted ads to reach younger audiences. The synergy between online and offline channels allows for a comprehensive distribution strategy, enabling toy manufacturers to maximize reach and cater to the evolving shopping habits of consumers in the Asia Pacific region.

China's leadership in the Asia Pacific toy industry is primarily driven by its robust manufacturing capabilities, extensive supply chain infrastructure, and rising domestic consumer demand for innovative and quality toys. China has firmly established itself as a powerhouse in the Asia Pacific toy industry, and this leadership can be attributed to several interrelated factors. Firstly, China's unparalleled manufacturing capabilities have made it the world's largest toy producer. The country boasts a vast network of factories equipped with advanced technology and skilled labor, enabling the mass production of a diverse range of toys at competitive prices. This capability allows for quick turnaround times and the ability to meet the fluctuating demands of global markets. As a result, many international toy brands have chosen to outsource production to China, benefiting from its cost-effective manufacturing while ensuring high standards of quality. In addition to manufacturing prowess, China's extensive supply chain infrastructure plays a critical role in its dominance. The country has developed an intricate web of suppliers, logistics networks, and distribution channels that facilitate the efficient movement of goods. This seamless supply chain allows manufacturers to source materials locally and reduce lead times, ensuring that toys can be delivered to market swiftly and efficiently. Furthermore, China's strategic investments in transportation, such as ports and railways, have enhanced its ability to export toys worldwide, solidifying its position as the primary supplier in the global toy market.

Major companies present in the market
Bandai Namco Entertainment Inc., Dream International Limited , Hasbro Inc., Jakks Pacific, Inc., The LEGO Group, Mattel, Brandstatter Group (Playmobil), Ravensburger, VTech, Kids II, Inc., Clementoni, Goliath Games

Considered in this report
• Geography: Asia-Pacific
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Asia-Pacific toy market with its value and forecast along with its segments
• Country-wise toy market analysis
• Various divers and challenges
• Ongoing trends and developments
• Five force models
• Top profiled companies
• Strategic recommendation

Countries covered in the report
• Japan
•Australia
•China
•India

By Product
• Action Figures & ACC
•Arts & Crafts
•Building Sets
•Dolls
•Games/Puzzles
•Infant/Toddler/Preschool
•Youth Electronics
•Outdoor & Sports Toys
•Plush
•Vehicles
•Explorative & Other Toys

By Age Group
•0-8 years
•9-15 years
•15 years and above

By Distribution Channel
•Online
•Offline

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering, the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started, verifying the details obtained from secondary sources.

Intended audience
This report can be useful to Industry consultants, manufacturers, suppliers, associations & organizations related to pet care products industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.