The Asia and Pacific markets were the biggest toy markets in the world during the historic time period. One very important pattern observed in the Asian and Pacific markets was that China's toy market had no intense competition from any other major economies operating in the toy market of the region. After China, the major share of the regional toy market is occupied by the rest of the Asia-Pacific region other than India, Japan, and Australia. So much of the emergence of the Asian Pacific toy market can be attributed to the tremendous growth of the toy market in China.
The Asia-Pacific toy market was the biggest exporter of toys in the world for the last few years, but due to the demographic shift in many emerging countries, the toy market also witnessed strong domestic demand. One such crucial demographic shift was triggered when China relaxed the one-child policy in 2013 and shifted towards a two-child policy. This new policy was implemented under the 13th Five-Year Plan (2016–2020). The policy change resulted in an increase in the number of newborns in China to about 2.4 million each year, as cited by the Hong Kong Trade and Development Council. This expanded the overall consumer base for the toy market.
According to the research report, "Asia Pacific Toy Market Outlook, 2029," published by Bonafide Research, the Asia Pacific Toy market is anticipated to grow with more than 8.94% CAGR from 2024–2029.E-commerce continues to play an important role in online toy retailing. Offline retailing by way of physical stores and supermarkets continues to play a significant role in the growth of the Chinese toy market, but the emergence and growth trajectory of e-commerce cannot be overlooked. As of 2017, China had about 750 million internet users and had a penetration rate of about 55%. However, the online space for toy retail also makes the market highly competitive between international brands and local brands struggling to maintain and expand market share. Nevertheless, the Chinese toy market is also facing several challenges. China is one of the major destinations where top toy companies outsource their production. There have been tendencies of increased cost pressure due to rising labor costs over the last few years. Also, not all manufacturers have been able to adapt to the changing market trends, and the companies outsourcing the production have to switch between factories and supplier bases, which causes some level of value loss and uncertainty in the market. One such trend was also observed in 2017 when the currency movement was unfavorable for EU-based companies.
The Asia Pacific toy market offers a diverse range of products catering to different age groups and preferences. Action figures and accessories are popular due to the influence of movies, anime, and comic book franchises. Arts & crafts toys promote creativity, with DIY kits and painting sets seeing increased demand. Building sets such as LEGO and magnetic blocks encourage problem-solving skills and are widely used in educational settings. Dolls remain a classic category, with both traditional and interactive AI-powered dolls gaining popularity. Games and puzzles are a major segment, with board games, jigsaw puzzles, and brain-teasing games enjoying steady sales, especially with the rise of indoor entertainment. Infant, toddler, and preschool toys emphasize early childhood learning, with interactive and sensory-stimulating toys driving demand. Youth electronics, such as smartwatches and coding kits, are becoming increasingly popular as digital literacy becomes essential. Outdoor & sports toys, including bicycles, trampolines, and playsets, are witnessing strong demand as parents encourage outdoor activities. Plush toys are a beloved segment, driven by licensed character-based designs. Vehicles, including remote-controlled cars and model sets, continue to attract young consumers. Explorative and other toys, such as STEM-focused kits and educational robotics, are growing rapidly due to the focus on early science education.
The Asia Pacific toy market caters to a wide range of age groups, each with unique preferences. The 0-8 years category is dominated by educational and sensory-stimulating toys, such as soft plush toys, musical toys, and beginner building sets. Interactive learning toys are particularly popular, with parents prioritizing cognitive development. The 9-15 years segment includes a mix of physical and digital toys, including action figures, robotics kits, video games, and construction sets. This group is influenced by pop culture, with branded merchandise from movies, anime, and video games driving sales. The 15 years and above category is growing due to the rising popularity of collectibles, hobby toys, and gaming accessories. Many adults are engaging in board games, card games, and high-end model kits, which are increasingly being marketed toward older age groups.
The Asia Pacific toy market is split between online and offline distribution channels, with both playing a crucial role. The online segment has experienced tremendous growth, driven by the convenience of e-commerce platforms such as Amazon, Alibaba, and regional players like Flipkart and Rakuten. The availability of discounts, wider product variety, and exclusive launches attract consumers to online shopping. Many brands also leverage social media marketing and influencer promotions to boost sales. The offline segment, including specialty toy stores, department stores, and supermarkets, remains strong, especially for parents who prefer in-store shopping experiences. Physical stores allow children to test products before purchase, providing an engaging shopping experience. The integration of omnichannel strategies, where physical stores complement online platforms through click-and-collect options and in-store experiences, is becoming a dominant trend in the region.
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