Market Overview
United States Toys Market has valued at USD 24.34 billion
in 2022 and is anticipated to project robust growth in the forecast period with
a CAGR of 4.5% through 2028. The United States Toys Market is a vast and
diverse industry, catering to the entertainment, education, and development of
children and enthusiasts of all ages.
The United States Toys Market encompasses an
extensive range of categories, from traditional dolls, action figures, and
board games to high-tech gadgets, educational toys, and arts and crafts
supplies. This diversity allows consumers to choose toys that align with their
interests, age groups, and developmental stages. Toy manufacturers continually
introduce new products and capitalize on licensing agreements with popular
media franchises, movies, and television shows to keep the market fresh and
appealing.
The integration of technology has significantly
impacted the toy industry. High-tech toys, such as robotics kits,
app-controlled vehicles, and interactive learning gadgets, have gained
popularity. These toys not only entertain but also provide educational value,
promoting skills related to coding, problem-solving, and digital literacy.
There is a growing emphasis on educational toys
within the market. Parents and educators are increasingly seeking toys that
foster learning through play. STEM (Science, Technology, Engineering, and
Mathematics) and STEAM (Science, Technology, Engineering, Arts, and
Mathematics) toys have gained prominence, offering hands-on experiences that
encourage critical thinking and creativity. Toy manufacturers are making
efforts to ensure inclusivity and diversity in their products, reflecting the
changing demographics and values of society. This includes dolls and action
figures that represent various ethnicities, genders, and abilities.
Eco-consciousness has influenced the market,
leading to an increase in eco-friendly and sustainable toy options. Many
manufacturers are now using recycled materials, reducing packaging waste, and
producing toys with a focus on longevity and reusability. The rise of
e-commerce has revolutionized the way toys are bought and sold. Online
marketplaces and dedicated toy retailers' websites have become essential
channels for purchasing toys. This shift has allowed consumers to access a
wider variety of toys and compare prices more easily.
The toy industry also faces challenges, including
safety regulations, product recalls, and competition from digital
entertainment. Strict safety standards are in place to ensure the well-being of
children, but adherence to these standards can sometimes be costly and pose
challenges to smaller manufacturers.
In conclusion, the United States Toys Market is a
dynamic and diverse industry that continually adapts to changing consumer
preferences and technological advancements. With a wide array of toy
categories, a growing focus on education and inclusivity, and a strong presence
in the digital space, the market remains a key contributor to the country's
economy while providing enjoyment and learning opportunities for people of all
ages.
Key Market Drivers
Technological Advancements and Innovation
One of the most influential drivers in the United
States Toys Market is the continuous influx of technological advancements and
innovation. As technology becomes more integrated into daily life, it also
permeates the toy industry, leading to the creation of a wide range of
tech-infused toys. These innovations have a profound impact on the market in
several ways.
Educational Tech Toys: Parents and educators
increasingly seek toys that offer educational value. Consequently, there's a
surge in the development of educational tech toys that combine fun with
learning. These toys often leverage augmented reality (AR), virtual reality
(VR), artificial intelligence (AI), and interactive apps to teach children
subjects such as mathematics, science, and language skills.
Connected Toys: The concept of interconnected
playthings, often referred to as the "Internet of Toys," has gained
significant momentum. These toys can interact with other toys, devices, or
platforms, offering immersive and collaborative play experiences. They can be
controlled via smartphones, tablets, or voice commands.
STEM and Coding Toys: The emphasis on STEM
(Science, Technology, Engineering, and Mathematics) education has driven the
development of toys that teach coding, programming, and robotics. These toys
nurture problem-solving skills, creativity, and a deep understanding of
technology from an early age.
Sensory and Haptic Feedback Toys: Technological
advancements have also led to the creation of toys that provide sensory and
haptic feedback, enhancing the tactile and immersive aspects of play.
Vibrations, lights, and sound effects are integrated into toys to create a more
engaging and sensory-rich experience.
Personalization and Customization: Technology
allows for personalized and customizable experiences in toys. Children can
often tailor their toys to their preferences through apps or online interfaces,
fostering a sense of ownership and attachment to the toy.
These technological advancements not only attract
children but also appeal to tech-savvy parents who recognize the potential
benefits of introducing their children to technology in a controlled and
educational manner. The integration of technology in toys has significantly
expanded the United States Toys Market, providing a broad spectrum of options
for consumers.
Changing Consumer Demographics
Another driving force in the United States Toys
Market is the shifting demographics of the country. Demographic changes have
led to new demands, preferences, and purchasing behaviors among consumers.
Millennial Parents: The rise of millennial parents
is reshaping the market. This generation prioritizes educational and
environmentally friendly toys, driving the demand for toys with a strong
educational component and a focus on sustainability. Millennial parents are
also more likely to seek out tech-savvy toys.
Gender-Neutral Toys: There's a growing awareness
and acceptance of gender neutrality in toy choices. Consumers are increasingly
seeking toys that do not conform to traditional gender stereotypes, promoting
inclusivity and diversity in the market.
Aging Population: As the U.S. population ages,
there is a growing segment of senior citizens who have become active consumers
in the toy market. These consumers often buy toys for their grandchildren,
leading to the demand for nostalgic toys, puzzles, and intergenerational play
products.
Diverse Cultural Influences: The United States is
becoming more culturally diverse, and this diversity is reflected in toy
preferences. Toys that represent a wide range of cultural backgrounds and
traditions are increasingly popular, catering to the tastes of a diverse
consumer base.
Demographic changes have not only broadened the
spectrum of available toys but also influenced how these products are marketed,
leading to a more inclusive and diverse toy market.
E-commerce and Omni-channel Retailing
The rapid expansion of e-commerce has significantly
impacted the United States Toys Market, transforming how consumers browse, purchase,
and receive toys. E-commerce has given rise to various trends that are driving
the market's growth.
Omni-channel Retailing: Many toy retailers have
embraced omni-channel retailing, seamlessly integrating their physical stores
with their online presence. This allows consumers to have a unified shopping
experience across various channels, including brick-and-mortar stores,
websites, and mobile apps.
Personalization and Recommendations: E-commerce
platforms utilize data analytics to personalize recommendations and promotions
based on a consumer's browsing and purchasing history. This enhances the
shopping experience and encourages consumers to explore a broader range of
toys.
Direct-to-Consumer (DTC) Brands: The rise of DTC
toy brands has disrupted the market by allowing manufacturers to sell directly
to consumers online. These brands often focus on unique, high-quality, and
niche products, catering to specific consumer preferences.
Convenience and Accessibility: E-commerce provides
a convenient and accessible way for consumers to shop for toys, especially in
light of the COVID-19 pandemic, which accelerated the shift towards online
shopping. Consumers can access a vast array of products and have them delivered
to their doorstep, which has further expanded the market.
Online Marketplaces: Popular online marketplaces
like Amazon and eBay serve as key platforms for toy sales. They provide a vast
marketplace for both established toy manufacturers and independent toy sellers.
The growth of e-commerce has not only expanded the
reach of the United States Toys Market but also fostered an environment of
competition, encouraging innovation in product offerings and shopping
experiences.
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Key Market Challenges
Competition and Market Saturation
One of the significant challenges in the U.S. toy
market is the intense competition and market saturation. The market is flooded
with a wide range of toy products, from traditional toys and action figures to
digital and electronic toys. This high level of competition is driven by both
established toy giants and smaller, innovative companies. With countless
products vying for consumer attention, companies must constantly invest in
marketing, research, and development to stand out in a crowded field.
Furthermore, the proliferation of online
marketplaces and e-commerce platforms has made it easier for new players to
enter the market, further intensifying competition. The surge of
direct-to-consumer (DTC) models has allowed smaller companies and startups to
reach consumers directly, bypassing traditional retail channels.
While competition can foster innovation and product
diversity, it also poses challenges for manufacturers in terms of pricing,
differentiation, and maintaining profitability. It's essential for toy
companies to constantly adapt and innovate to remain competitive and relevant
in a market that is continuously evolving.
Safety and Regulatory Compliance
Ensuring the safety of toys is a critical concern
for the U.S. toy market. The Consumer Product Safety Commission (CPSC) sets
strict regulations and standards to protect children from hazards associated
with toys. While these regulations are essential for child safety, they can be
a significant challenge for toy manufacturers.
Toy manufacturers must rigorously test their
products to ensure they meet safety standards, including restrictions on
materials, small parts, lead content, flammability, and other potential
hazards. Non-compliance can result in product recalls, legal issues, and damage
to a company's reputation.
Moreover, keeping up with evolving safety
regulations and staying informed about potential hazards, such as emerging
concerns related to digital toys and data privacy, requires continuous
diligence and investment. Compliance is costly and can sometimes lead to
increased production costs, which, in turn, affect pricing and profitability.
Digitalization and Changing Play Patterns
The digital revolution has transformed the way
children play and interact with toys, presenting both opportunities and
challenges to the U.S. toy market. As technology becomes increasingly
integrated into children's lives, traditional toy manufacturers must adapt to
changing play patterns.
Digital toys and interactive experiences are more
prevalent, blurring the lines between physical and digital play. Smart toys,
augmented reality (AR), and virtual reality (VR) experiences have gained
popularity, requiring traditional toy companies to invest in technology and
innovation to remain competitive.
However, this digitalization also poses challenges.
It can be difficult to strike the right balance between screen time and
physical play for children's development. Concerns related to data privacy and
the security of connected toys have also emerged, necessitating more stringent
regulatory oversight and secure design practices.
Furthermore, children's preferences for digital
entertainment and video games have been cutting into the time spent playing
with traditional toys. Toy companies must find ways to engage children in
meaningful and imaginative play experiences to compete with digital
distractions.
Key Market Trends
Tech-Infused Play
In recent years, technology
has become deeply integrated into the toy market, giving rise to a trend known
as "tech-infused play." This trend is driven by the increasing
ubiquity of smartphones, tablets, and other digital devices. Toy manufacturers
are leveraging technology to create interactive, engaging, and educational
experiences for children.
One of the significant
aspects of tech-infused play is the use of augmented reality (AR) and virtual
reality (VR) in toys. These technologies bring toys to life, allowing children
to interact with digital elements that merge seamlessly with the physical world.
For example, AR-enabled coloring books can animate drawings, and VR headsets
can transport children to immersive virtual environments.
Additionally, smart toys
equipped with sensors and Wi-Fi connectivity have become popular. These toys
can respond to voice commands, adapt to a child's preferences, and even offer
educational content. The integration of technology also provides a platform for
enhancing STEM (Science, Technology, Engineering, and Mathematics) learning
through interactive games and coding-related toys.
The tech-infused play trend
extends beyond just the toys themselves. Toy companies have developed apps and
online communities that complement physical toys, fostering social engagement
and learning. These apps often include features such as online games, virtual
worlds, and content creation tools that encourage creativity and collaboration.
However, the trend comes
with its share of concerns, primarily related to privacy and screen time. As
the market continues to evolve, it will be essential for toy manufacturers and
parents to strike a balance between technology-based play and traditional,
hands-on experiences.
Sustainability and
Eco-Friendly Toys
Sustainability is a
powerful force shaping the U.S. toys market. Consumers are increasingly mindful
of the environmental impact of their purchases, and this has led to a growing
demand for eco-friendly and sustainable toys. Toy manufacturers are responding
by incorporating green practices into their production processes and materials.
Wooden toys have gained
popularity as an eco-friendly alternative to plastic. These toys are often made
from sustainably sourced wood and finished with non-toxic paints or dyes. They
are durable, biodegradable, and have a timeless appeal. Additionally, toys made
from recycled or upcycled materials, such as plastic bottles or rubber tires,
have become prevalent.
Another aspect of
sustainability is packaging. Many toy companies are adopting eco-friendly
packaging materials, reducing plastic use, and promoting recycling. Some even
encourage customers to return used toys for refurbishing or recycling, reducing
overall waste.
Furthermore, sustainability
goes beyond materials and packaging. Toys designed to teach children about
environmental conservation, recycling, and ecology are gaining traction. These
toys aim to instill eco-consciousness from an early age.
As the sustainability trend
continues to grow, consumers are willing to pay a premium for toys that align
with their eco-friendly values. Manufacturers are likely to further innovate in
this space, providing sustainable options that cater to the increasing demand.
Inclusivity and Diversity
Inclusivity and diversity
have become prominent themes in the U.S. toys market, reflecting the broader
societal movements advocating for representation and equality. This trend
encompasses several aspects:
Diverse Representation: Toy
companies are increasingly incorporating diverse characters and representations
in their products. This includes dolls of different ethnicities, abilities,
genders, and body types. Such inclusive representation helps children see
themselves and others in their toys, fostering a sense of belonging and
understanding.
Gender-Neutral Toys: The
market is moving away from traditional gender roles and stereotypes. Many toys
are designed to be gender-neutral, promoting open-ended play and creativity.
This allows children to choose toys based on their interests rather than societal
expectations.
Inclusive Design: Toys
designed for children with disabilities are on the rise. These toys often
feature accessibility features, such as larger buttons or tactile components,
making play more accessible to all children.
Educational Inclusivity:
Educational toys are incorporating content that reflects diverse perspectives,
histories, and cultures. This helps children develop a broader understanding of
the world and its people.
Customization and
Personalization: Some toy companies allow customers to customize their toys,
including selecting features like skin tone, hair type, and clothing. This
personalization trend extends to creating toys that can be designed and built
by the children themselves, fostering a sense of ownership and creativity.
The inclusivity and
diversity trend is not only a response to societal demands for representation
but also a recognition that the market's consumer base is diverse and seeking
products that reflect their values. As this trend continues to evolve, toy manufacturers
are likely to be increasingly committed to promoting inclusivity and diversity
in their products.
Segmental Insights
Product Type Insights
In the United States Toys
Market, vehicle toys have emerged as a significant and enduring category,
capturing the imaginations of children and collectors alike. These toys, often
mimicking various modes of transportation such as cars, trucks, planes, trains,
and more, have a broad and dedicated consumer base. Their enduring popularity
can be attributed to several key factors.
Universal Appeal: Vehicle
toys hold a universal appeal. Whether a child's fascination with the movement
and sounds of a roaring engine or an adult's passion for collecting intricately
detailed model cars, the charm of vehicles transcends age boundaries. This
broad demographic appeal contributes to the enduring presence of vehicle toys
in the market.
Educational Value: Vehicle
toys offer more than just entertainment; they also have educational value. They
can introduce children to basic principles of engineering, mechanics, and even
geography. Building model vehicles can enhance problem-solving skills, foster
an understanding of how things work, and stimulate curiosity about the world of
transportation.
Collectibility: The world
of collectible vehicle toys is a thriving subculture. For many enthusiasts,
collecting model cars, planes, or trains is a passionate hobby. The attention
to detail in these collectibles, along with limited edition releases and a
strong resale market, drives the demand for high-quality, meticulously crafted
vehicle toys.
Iconic Brands and
Licensing: Many iconic vehicle brands, both in the automotive and aviation
industries, have translated their real-world success into the toy market. This
includes models and replicas from companies like Hot Wheels, Matchbox, LEGO,
and iconic licenses like Star Wars, which produce vehicle-related toys. These
established brands and franchises further bolster the market for vehicle toys.
Role-Play and Imagination:
Vehicle toys often serve as catalysts for imaginative play. Children can create
elaborate scenarios, from thrilling car races to daring rescue missions with
fire trucks. These toys allow kids to develop narratives and engage in
role-play, nurturing creativity and storytelling abilities.
Technological Advancements:
Vehicle toys have evolved with the times. Today's models often feature advanced
technology such as remote control, realistic sound effects, and even app
integration. These enhancements keep vehicle toys fresh and captivating, appealing
to modern tech-savvy consumers.
Parent-Child Bonding: For
parents, vehicle toys provide an opportunity to bond with their children.
Playing together with toy vehicles can create memorable moments, fostering
relationships and shared interests within families.
Sales Channel Insights
In the ever-evolving
landscape of the United States Toys Market, the online sector has emerged as a
dominant and transformative force, commanding a significant share of the
market. This growth is driven by a multitude of factors, reflecting changes in
consumer behavior, technological advancements, and the convenience of
e-commerce platforms. Here, we delve into the reasons why the online segment
has become a powerhouse in the United States Toys Market.
Convenience and
Accessibility: One of the primary reasons for the online sector's dominance is
the unparalleled convenience it offers. Consumers can explore and purchase a
vast array of toys from the comfort of their homes, eliminating the need for
physical store visits. The accessibility to a wide selection of products at any
time of day or night has been a game-changer, making online toy shopping an
attractive option for busy parents and gift shoppers.
Diverse Product Range:
Online retailers and marketplaces boast extensive catalogs that span across all
age groups and toy categories. From educational toys and collectibles to action
figures and board games, online platforms cater to the varied interests and
preferences of consumers. This wide product range allows shoppers to find the
perfect toys for their needs with ease.
Competitive Pricing: Online
retailers often offer competitive pricing, and consumers can easily compare
prices and find the best deals through price-comparison tools and websites.
This transparency encourages cost-conscious shoppers to search for the best
value, leading to an increase in online purchases.
Reviews and
Recommendations: Online shopping platforms provide access to a wealth of
customer reviews and recommendations. These reviews offer valuable insights
into the quality and suitability of toys, helping consumers make informed
decisions. Positive reviews can significantly influence purchasing choices,
contributing to the online market's success.
Personalization and
Recommendations: E-commerce websites often use algorithms to suggest products
tailored to individual preferences based on browsing and purchase history.
These personalized recommendations enhance the shopping experience, exposing
customers to a wider range of toy options and encouraging additional purchases.
Ease of Research: Online
shoppers have the advantage of researching products in-depth before making a
decision. They can read product descriptions, check for safety information, and
explore educational benefits, all at their own pace. This comprehensive
research process aids in selecting toys that align with developmental
milestones and learning objectives.
Specialized Retailers:
Online retail has allowed specialized toy stores to thrive. These niche
retailers focus on unique and hard-to-find toys, appealing to collectors and
enthusiasts looking for exclusive items. This specialization has created a
dedicated customer base and driven the growth of online toy markets further.
Shipping and Delivery
Options: E-commerce platforms have improved shipping and delivery services,
offering options like same-day delivery and expedited shipping. This
convenience, especially during holiday seasons, ensures that consumers receive
their purchases in a timely manner, eliminating the need to visit physical
stores.
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Regional Insights
The Southern region of the United States plays a
pivotal role in the broader U.S. toys market, contributing significantly to its
diversity and economic impact. This influence is a result of a combination of
cultural richness, economic factors, and a deep connection to the toy industry.
The South has a rich history of toy manufacturing,
dating back to the early 20th century. Iconic brands such as Mattel, Hasbro,
and many others have established production facilities in the region. This
history, coupled with a skilled labor force, has made the South a hub for toy
manufacturing in the United States.
The Southern states offer economic advantages,
including lower production costs, favorable business environments, and access
to transportation networks. These factors have attracted both established toy
companies and startups to set up manufacturing, distribution, and logistics
centers in the region, contributing significantly to the growth of the
industry.
The Southern states manufacture a wide variety of
toys across different categories, including action figures, dolls, board games,
and electronic toys. This diverse production capability ensures that the region
has a stake in almost every aspect of the toys market, appealing to a broad
spectrum of consumer preferences.
The South's rich cultural diversity provides a
unique perspective in toy design and development. Traditional southern values
and customs often find their way into toy designs, making products more
relatable and appealing to a wider audience. This cultural influence has led to
the creation of toys that celebrate southern heritage, history, and
storytelling.
The South is home to some of the most popular theme
parks and family attractions in the United States, such as Disney World in
Florida, Dollywood in Tennessee, and LEGOLAND in Georgia. These attractions
often have associated merchandise and toy lines, further boosting the Southern
states' contribution to the overall toy market.
The South is also a critical hub for toy
distribution and retail. Major cities in the region serve as distribution
centers for toy manufacturers, ensuring efficient supply chains to meet
nationwide demand. Additionally, the South boasts a thriving retail landscape,
from toy stores to big-box retailers, providing ample shelf space for toy
products.
The South hosts several prominent toy conventions
and trade shows, where manufacturers, retailers, and enthusiasts come together
to showcase and discover the latest trends and innovations in the toy industry.
These events foster industry networking and play a significant role in
advancing the market.
Recent Developments
- In 2023, Macy's and Toys
"R" Us have joined forces to unveil a "Hot Toy List" for
the upcoming holiday season. Named after the iconic Toys "R" Us
mascot, Geoffrey, Geoffrey's Hot Toy List for 2023 showcases a mix of beloved
classics and the latest trending toys and games. This collaboration between
Toys "R" Us and Macy's is a seamless match, particularly considering
that Toys "R" Us now operates year-round within every Macy's-branded
store.
- In 2023, WHP Global, the
parent company of Toys "R" Us, has announced plans to open up to 24
new stores in the United States as early as next year. This strategic move
follows the successful launch of a flagship store at the American Dream mall in
New Jersey in 2021, marking an exciting return to the retail landscape.
Key Market Players
- Hasbro Inc.
- Mattel Inc.
- Spin Master
- MGA Entertainment Inc.
- Radio Flyer
- K’Nex Industries Inc.
- Funko Inc.
- LEGO Group
- Vtech
- Ravensburger
|
By Product
Type
|
By Sales
Channel
|
By Region
|
- Outdoor and
Sports Toys
- Dolls
- Vehicles
Toys
- Plush Toys
- Others
|
- Supermarkets/Hypermarkets
- Specialty
Stores
- Online
- Others
|
- South
- West
- Mid-West
- North-East
|
Report Scope:
In this report, the United States
toys market has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
- United
States Toys Market, By Product Type:
o Outdoor and Sports Toys
o Dolls
o Vehicles Toys
o Plush Toys
o Others
- United States Toys Market, By Sales Channel:
o Supermarkets/Hypermarkets
o Specialty Stores
o Online
o Others
- United States Toys Market, By Region:
o South
o
West
o
Mid-West
o
North-East
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the United
States toys market.
Available Customizations:
United States Toys market report with the
given market data, Tech Sci 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).
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