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Kids Toys Market was valued at over USD 60 billion in 2022 and is expected to grow at a CAGR of over 3% during the forecast period. The shifting preference from conventional toys toward modern and hi-tech electronic toys is propelling market growth. The growing demand for sensory toys for children with special needs is driving the market. The adoption of smart toys is boosting market growth. Smart toys use various technologies, such as the IoT, artificial intelligence, and smart devices, to enhance kids’ learning experience and fun.
For instance, Fisher Price Company offers smart teddy bears that can be operated & controlled by smart gadgets including smartphones and tablets. Such innovations by manufacturers are driving the market. Moreover, the emergence of mass digitalization & social networks has opened new opportunities for the market.
The growing parental interest in Science, Technology, Engineering, and Mathematics (STEM) educational toys for children and the increasing application of artificial intelligence owing to digital advancements in toys are driving the kids toys market expansion. Toys that promote intellectual development and skills, such as challenging puzzles, fun board games, and complex building block sets, are also boosting the demand. The rising sales of smartphones, laptops, and Personal Computers (PCs) along with the growing social media presence are driving market growth.
Tariffs imposed by various governments on Chinese products are expected to increase prices for consumers, hampering market growth to some extent. Plastic toys are painted with toxic materials that can be harmful to kids, especially toddlers. These health risks are further restraining the market.
The electronics segment holds a significant share in the kids toys market. Consumer spending on video content, Virtual Reality (VR) items, and video game tournaments has increased significantly with technological advancements. The market is witnessing exponential growth due to multiple reasons, such as the proliferation of mobile & online gaming, as well as the move from physical to digital software distribution.
Based on gender, unisex toys will hold a significant share during the forecast period. Educational toys suitable for all kids despite gender are gaining popularity in the market. These toys include learning toys, puzzles, tossing games, and puppets. These games entertain children while improving their cognitive abilities.
Asia Pacific is expected to hold a significant share of the kids toys market. The large regional population is a major factor driving the market. According to the UN's World Population Prospects 2019, by 2030, excluding Western Asia, the population of Asia will increase from 4.326 million to 4.654 million. Considering these factors, the Asia Pacific region is a promising market for toy & game manufacturers.
Some major players in the industry are Takara Tomy Co. Ltd., Lego Group Bandai Namco Holdings Inc., and Simba-Dickie Group. The major players are focusing on launching new products in the market to benefit consumers. New product development is the preferred strategy for the kids toys market. These players are engaging in mergers & acquisitions as the key strategy to achieve product integration and optimization. Another effective strategy is the merger of major players with local players to dominate the local market.
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