|
Forecast Period
|
2026-2030
|
|
Market Size (2024)
|
USD 823.46 Million
|
|
CAGR (2025-2030)
|
15.3%
|
|
Fastest Growing
Segment
|
Online
|
|
Largest Market
|
North
|
|
Market Size (2030)
|
USD 1934.72 Million
|
Market Overview
India Toys Market was valued
at USD 823.46 Million in 2024 and is expected to reach USD 1934.72 Million by 2030
with a CAGR of 15.3% during the forecast period. The Indian toys market is currently
undergoing a significant transformation, driven by a combination of economic,
cultural, and technological factors. Historically, the market was dominated by
traditional toys, often produced by small, unorganized sectors, catering
primarily to local needs. However, with the advent of globalization and the
subsequent influx of international brands, the landscape of the Indian toys
market has expanded and diversified.
In Indian society, toys hold a cultural
significance that extends beyond mere entertainment. They are viewed as
essential tools in a child's development, influencing their cognitive,
emotional, and social growth. Parents increasingly recognize the role of toys
in early childhood development, especially as educational tools that can
stimulate learning, creativity, and problem-solving skills. This awareness has
led to a growing demand for toys that are not only engaging but also
educational. Economic factors also play a crucial role in shaping the market.
India’s growing middle class, coupled with rising disposable incomes, has led
to increased spending on children’s products, including toys. As families have
more disposable income, they are more inclined to invest in quality toys that
contribute to their children’s development. This has resulted in a shift from
low-cost, locally produced toys to higher-priced, branded products that are
perceived to offer better quality and safety.
The rise in dual-income households,
particularly in urban areas, has further contributed to this trend. As more
parents are working and have less time to spend with their children, there is a
greater reliance on toys as tools for both education and entertainment. This
has increased the demand for toys that can engage children for longer periods
and aid in their overall development. India's toy exports have seen a significant increase, reaching USD 325.72 million in 2022-23, compared to 96.17 million in 2014-15. However, the sector still needs more support, according to Rajesh Kumar Singh, Secretary of the Department for Promotion of Industry and Internal Trade. The government has implemented measures to position India as a global hub for toy manufacturing, including mandatory quality control orders and increased customs duties. Singh also emphasized the need for continued efforts to foster a conducive manufacturing ecosystem.
Urbanization is another critical factor
driving the transformation of the Indian toys market. Urban consumers are
generally more aware of global trends and have access to a wider range of
products. They are also more likely to prioritize quality and safety, which has
led to an increased demand for branded toys that meet international safety standards.
The rise in consumer awareness about the
importance of early childhood development has further fueled this demand.
Parents are now more informed about the benefits of educational toys and are
actively seeking out products that can aid in their child’s development. This
has led to the growing popularity of STEM (Science, Technology, Engineering,
and Mathematics) toys, which are designed to promote learning in these critical
areas.
The penetration of e-commerce has
revolutionized the distribution channels for toys in India. Online platforms
like Amazon, Flipkart, and specialized toy stores have made it easier for
consumers to access a wide variety of toys from the comfort of their homes.
This has not only increased the accessibility of toys but has also allowed
consumers to explore a broader range of products, including those from
international brands that may not be available in physical stores.
E-commerce has also enabled toy
manufacturers and retailers to reach consumers in tier II and tier III cities,
where physical stores may be limited. The convenience of online shopping,
combined with the availability of detailed product information and customer
reviews, has led to a shift in consumer behavior towards online purchases. This
trend has been further accelerated by the COVID-19 pandemic, which saw a surge
in online shopping due to lockdowns and social distancing measures.
Despite the positive trends, the Indian
toys market faces several challenges. One of the most significant is the
competition from the unorganized sector, which continues to dominate a large
portion of the market. These unbranded, low-cost toys, often made with
substandard materials, pose a significant challenge to organized players who
invest in quality and safety.
Concerns about the safety standards of
toys have been a longstanding issue in India. The recent implementation of the
mandatory BIS (Bureau of Indian Standards) certification for toys aims to
address this, but it has also created challenges for small manufacturers who
may struggle to meet these stringent requirements. The impact of digitalization
on traditional toys cannot be overlooked. As children increasingly turn to
digital devices for entertainment, the demand for traditional toys has been
affected. This trend poses a challenge for toy manufacturers who must innovate
and adapt to changing consumer preferences.
Key Market Drivers
Rising
Disposable Income and Changing Consumer Preferences
India's growing middle class and increasing disposable
income are among the primary drivers of the toys market. With more financial
resources at their disposal, Indian parents are increasingly willing to spend
on high-quality, branded toys that offer safety and educational value. This
shift in consumer behaviour is also influenced by the rise of nuclear families
in urban areas, where parents focus more on the individual development of their
children.
The trend towards premiumization, where consumers are
opting for higher-priced, better-quality toys, is gaining momentum. Parents are
increasingly choosing toys that are not only entertaining but also aid in the
cognitive and motor skill development of their children. This shift is also
reflected in the rising demand for international brands, which are perceived to
offer better quality and safety standards compared to locally produced toys.
Government
Initiatives and Regulations
The Indian government has implemented several
initiatives to boost the domestic toys industry. One of the significant steps
is the introduction of the mandatory BIS (Bureau of Indian Standards)
certification for toys, ensuring that all toys sold in the Indian market adhere
to specific safety standards. This move is aimed at protecting children from
hazardous materials and substandard products, thus increasing consumer
confidence in locally manufactured toys.
The government’s push towards 'Atmanirbhar Bharat'
(self-reliant India) and 'Make in India' initiatives have encouraged local
manufacturing of toys. These initiatives have led to the establishment of toy
clusters in various parts of the country, providing infrastructure and
financial support to toy manufacturers. The focus on reducing imports,
particularly from China, and promoting indigenous production has also
contributed to the growth of the local toys market.
Growth
of E-commerce and Digital Platforms
The proliferation of e-commerce platforms in India has
significantly impacted the toys market, making it easier for consumers to
access a wide variety of toys from the comfort of their homes. The convenience
of online shopping, combined with the availability of detailed product
information and reviews, has led to a shift in consumer behaviour towards
online purchases. E-commerce giants like Amazon, Flipkart, and dedicated toy
stores like Hamleys have expanded their online presence, offering exclusive
products and discounts that attract many buyers. Furthermore, digital platforms
have enabled toy manufacturers and retailers to reach a broader audience,
including those in tier II and tier III cities, where physical toy stores may
be limited. India has seen a significant increase in internet and smartphone penetration, with 895 million internet connections as of June 2023. This growth, largely in urban areas, has bolstered the digital sector, which is projected to reach USD 1 trillion by 2030. India's e-commerce platforms reached a Gross Merchandise Value (GMV) of USD 60 billion in 2023, a 22% increase from the previous year, with a 205% surge in service procurement accounting for nearly 50% of the total GMV.
The growth of digital marketing, including targeted
advertisements on social media platforms and collaborations with influencers,
has also played a crucial role in boosting sales. These platforms allow brands
to connect directly with their target audience, creating personalized marketing
campaigns that resonate with consumers, particularly young parents.
Increasing
Awareness of Educational and STEM Toys
There is a growing awareness among Indian parents
about the importance of educational toys in early childhood development. This
has led to a surge in demand for toys that not only entertain but also educate.
STEM (Science, Technology, Engineering, and Mathematics) toys are becoming
increasingly popular as parents look for ways to encourage their children’s
interest in these fields from a young age. The rising emphasis on early
education, coupled with the increased availability of these toys, has driven
their popularity. Additionally, schools and educational institutions are
increasingly incorporating these toys into their teaching methods, further boosting
demand.
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Key Market Challenges
Competition
from Unorganized Sector
One of the major challenges facing the Indian toys
market is the intense competition from the unorganized sector. A significant
portion of the toys market in India is dominated by unbranded, low-cost
products that are manufactured in the informal sector. These toys, often made
with cheap materials and lacking proper safety standards, are sold at much
lower prices than branded toys, making them accessible to a large segment of
the population.
The presence of these low-cost alternatives poses a
challenge for organized players who invest in quality, branding, and marketing.
The price-sensitive nature of the Indian market further exacerbates this issue,
as many consumers, especially in rural and semi-urban areas, prioritize
affordability over quality and safety. This challenge is compounded by the fact
that the unorganized sector often operates outside the regulatory framework,
making it difficult for authorities to enforce safety standards and intellectual
property rights.
Stringent
Regulatory Environment
While the introduction of the BIS certification for
toys is a positive step towards ensuring safety, it also presents a challenge
for manufacturers, especially small and medium-sized enterprises (SMEs). The
process of obtaining BIS certification is time-consuming and requires
compliance with stringent safety standards, which can be costly for smaller
players. This has led to concerns about the financial burden on SMEs, many of
which may struggle to meet the regulatory requirements.
The regulatory landscape is continuously evolving,
with new standards and regulations being introduced regularly. Keeping up with
these changes can be challenging for manufacturers, particularly those who
operate on a smaller scale or rely on imports. The need to constantly update
products to comply with new regulations can also lead to delays in production
and increased costs, further affecting the profitability of the business.
Impact
of Digitalization on Traditional Toys
The rapid digitalization in India has led to a
significant shift in children's play patterns, with a growing preference for
digital entertainment over traditional toys. The proliferation of smartphones,
tablets, and gaming consoles has resulted in children spending more time on
digital devices, reducing their interest in physical toys. This trend poses a
challenge for the traditional toys market, as manufacturers must compete with a
wide range of digital entertainment options.
The COVID-19 pandemic has accelerated this shift, with
children spending more time at home and turning to digital devices for
entertainment and education. The increasing availability of educational apps
and online games has further diverted attention from traditional toys, making
it difficult for manufacturers to maintain their market share. To address this
challenge, toy manufacturers are exploring ways to integrate technology into
their products, such as creating smart toys that combine physical play with digital
features.
Supply
Chain Disruptions and Dependence on Imports
The Indian toys market has historically been dependent
on imports, particularly from China, for a significant portion of its supply.
This dependence on imports poses a challenge in the face of global supply chain
disruptions, which can lead to delays in product availability and increased
costs. The COVID-19 pandemic highlighted the vulnerabilities in the global
supply chain, with disruptions leading to shortages of raw materials and
finished products in the Indian market.
The Indian government's push towards reducing imports
and promoting local manufacturing has led to increased scrutiny on imported
toys. This has resulted in longer customs clearance times and higher import
duties, further affecting the availability and pricing of imported toys.
Manufacturers who rely on imported raw materials and components also face
challenges in sourcing alternatives locally, which can impact production
timelines and costs.
Key Market Trends
Increasing
Demand for Sustainable and Eco-Friendly Toys
One of the most significant trends in
the Indian toys market is the growing demand for sustainable and eco-friendly
toys. As awareness of environmental issues continues to rise, consumers are
increasingly looking for products that are not only safe for their children but
also environmentally responsible. This shift is being driven by a combination
of factors, including the influence of global sustainability movements,
increased awareness of the impact of plastic waste, and a growing preference
for natural and organic products. Eco-friendly toys are typically made from
sustainable materials such as wood, bamboo, organic cotton, and recycled
plastic. These toys are designed to be biodegradable, non-toxic, and durable,
offering a safer alternative to conventional plastic toys.
Growing
Awareness of Child Development
There is a growing awareness among
Indian parents about the importance of early childhood development. Educational
toys that promote cognitive, motor, and social skills are becoming increasingly
popular. This shift in consumer preference is driven by a better understanding
of how toys can aid in a child’s development. The demand for STEM (Science,
Technology, Engineering, and Mathematics) toys, puzzles, and building sets is
particularly strong, reflecting a desire to equip children with skills for the
future.
Rise
of Edutainment Toys
The demand for educational toys, also
known as edutainment toys, is on the rise in India. These toys, which combine
education and entertainment, are designed to promote cognitive development,
problem-solving skills, and creativity in children. The growing emphasis on
early childhood education and the increasing awareness of the benefits of
play-based learning are driving this trend. Parents want products that can
stimulate their children’s minds and contribute to their overall development.
As a result, there is a growing market for toys that incorporate elements of
science, technology, engineering, and mathematics (STEM). Products such as building
blocks, coding kits, and science experiment sets are becoming popular as
parents seek to equip their children with the skills needed for the future. The
rise of edutainment toys is also being supported by the expansion of the
organized retail sector and the growth of e-commerce.
Increasing
Nuclear Families
As more people move to urban areas, the
lifestyle changes associated with city living, such as smaller family sizes and
higher disposable incomes, are leading to increased spending on children’s
products, including toys. The trend towards nuclear families also means that
parents are more likely to invest in quality toys to engage and educate their
children at home. This shift is particularly evident in tier 1 and tier 2
cities, where the demand for educational and interactive toys is on the rise.
Segmental Insights
Toy
Type Insights
Plush toys hold a significant place in
the Indian toy market, cherished by children of all ages. Traditionally, plush
toys were seen as comforting companions for infants and toddlers, but their
appeal has broadened to include older children and even collectors. The market
for plush toys in India is driven by emotional appeal, brand collaborations,
and the increasing popularity of characters from movies, cartoons, and video
games. The demand for licensed plush toys featuring popular characters like
Mickey Mouse, Hello Kitty, and Pokémon has surged, driven by the influence of
global media. Additionally, Indian characters from Bollywood and regional
cinema are gaining traction, reflecting the cultural relevance and expanding
the plush toy market. Plush toys also serve as a popular gift item, especially
during festivals and birthdays, further boosting sales.
The plush toy segment faces challenges
related to quality and safety. As consumers become more aware of product
safety, especially for infants and toddlers, there is an increasing demand for
toys made from non-toxic, hypoallergenic materials. The rise of eco-friendly
plush toys made from organic cotton and recycled materials is also a notable
trend, aligning with the growing environmental consciousness among consumers. E-commerce
websites offer a vast selection of plush toys, including exclusive and imported
items, making it easier for consumers to access a wide range of products. This
trend is expected to continue, with online sales projected to account for a
significant share of the plush toy market in the coming years.
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Regional Insights
The Indian toys market is geographically
segmented into several regions, including North India, West India, South India,
East India. North
India, encompassing states like Delhi, Uttar Pradesh, Punjab, Haryana, and
Rajasthan, holds a dominant position in the Indian toy market. This region's
supremacy can be attributed to several factors, including its economic profile,
urbanization, consumer demographics, and evolving retail landscape.
North India is one of the most densely
populated regions in the country, with several large urban centers such as
Delhi, Lucknow, and Jaipur. The high population density, coupled with rapid
urbanization, has created a substantial consumer base for toys. The
urbanization trend has also led to a shift in consumer preferences towards
modern, educational, and electronic toys, which are readily available in
organized retail outlets across the region. The rise in dual-income households
has further boosted the demand for toys that can keep children engaged and aid
in their cognitive development.
The organized retail sector in North
India has played a pivotal role in making high-quality toys accessible to a
broader audience. Major retail players like Hamleys, Toy World, and FirstCry
have established a strong presence in the region, offering consumers a wide
selection of toys across various categories. Additionally, the rise of
e-commerce platforms like Amazon, Flipkart, and local players has further
expanded the reach of toys to even the most remote areas in North India,
contributing to the region's dominance in the market. North India's proximity to major
manufacturing hubs, particularly in cities like Noida, Ghaziabad, and Ludhiana,
has given the region a competitive advantage in the toy market. These
manufacturing hubs are known for producing a wide range of toys, from
traditional and handmade toys to modern electronic and plastic toys. The local
production of toys not only meets the demand within North India but also
contributes to the supply of toys across other regions in the country. The
presence of manufacturing units in North India has also led to the growth of
small and medium-sized enterprises (SMEs) that produce affordable toys catering
to the mass market. These locally produced toys are often more affordable than
imported ones, making them accessible to a broader consumer base. Additionally,
the region's robust supply chain infrastructure ensures that toys produced in
North India can be efficiently distributed across the country, further
solidifying its dominance in the market.
Recent Developments
- In 2024, ace
turtle, India's leading technology-native retail company, has launched a new
Toys"R"Us® store in Bengaluru's Bhartiya Mall, marking a significant
step in the brand's expansion plan to open 12 stores across India in 2024. The
new store offers an extensive collection of top international and Indian toy
brands, as well as interactive experiences for children and families.
- In 2024, Kinder
Joy, the popular confectionery brand from Ferrero, has launched a new limited
edition collection featuring iconic Hot Wheels and Barbie toys. The new
packaging will include the corresponding toy inside each Kinder Joy, providing
an exciting unboxing experience for consumers, including avid collectors. The
brand has also released a digital film highlighting the happiness and surprise
these new toy collections bring to kids.
- In 2024, Funskool,
a subsidiary of the MRF Group, has launched a new range of toys and games for
children up to 14 years old. The products are designed to entertain and educate
children. Funskool's in-house design team has developed these 18 products to
provide a holistic experience for children.
Key Market Players
- All Things Baby India Private Limited
- Aditi Toys Pvt Ltd.
- Plastech International Pvt. Ltd.
- Funcorp Business Private Limited
- Ariro Private Limited
- Varnam Craft Collective Private Limited
- WinMagic Toys Pvt. Ltd.
- Sunlord Apparels Manufacturing Company
Private Limited
- Funskool (India) ltd.
- Stone Sapphire India Pvt. Ltd.
|
By Toy Type
|
By Gender
|
By Distribution
Channel
|
By Region
|
- Plush Toys
- Electronic Toys
- Games and Puzzles
- Construction and Building Toys
- Dolls
- Ride-Ons
- Sports and Outdoor Play Toys
- Infant/Pre-school Toys
- Activity Toys
- Others
|
|
- Specialty Stores
- Supermarkets and Hypermarkets
- Online
- Others
|
|
Report Scope:
In this report, the India Toys market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
- India Toys Market, By Toy Type:
o Plush Toys
o Electronic Toys
o Games and Puzzles
o Construction and Building Toys
o Dolls
o Ride-Ons
o Sports and Outdoor Play Toys
o Infant/Pre-school Toys
o Activity Toys
o Others
- India Toys Market, By Gender:
o Unisex
o Boys
o Girls
- India Toys Market, By Distribution
Channel:
o Specialty Stores
o Supermarkets and Hypermarkets
o Online
o Others
- India Toys Market, By Region:
o North
o South
o East
o West
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the India Toys Market.
Available Customizations:
India Toys Market report with the given market
data, TechSci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
India Toys Market is
an upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at [email protected]