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Toys Industry Report Overview
The global toys market attained a value of USD 112.73 Billion in 2025 and is projected to expand at a CAGR of 4.10% through 2035. The market is further expected to achieve USD 168.48 Billion by 2035. Rising demands for education, technology, and licensed toys are spurring manufacturers to innovate premium toys, establish ecosystems, utilize sustainable materials, and implement direct distribution channels.
Latest News on the Toys Market (2026)
April 2026: Mattel Announces Commercial Leadership Shakeup
According to Yahoo Finance, Mattel, on April 7, 2026, announced the departure of President and Chief Commercial Officer Steve Totzke and promoted Sanjay Luthra to lead its global commercial organisation. The reshuffle precedes Mattel's Q1 2026 earnings release scheduled for April 29, and follows a 24% stock drop tied to weaker 2026 guidance, Barbie hangover effects, and heavy investment in the Mattel163 mobile-gaming buyout.
March 2026: US Toy Industry Posts 6% Rebound in 2025
According to Retail Dive, Circana data released in late February and March 2026 showed US toy industry dollar sales rose 6% in 2025 after two years of stagnation, with premium toys priced $30–$69.99 up 18%. Pokémon alone hit $2.5 billion in US sales, growing 87%, although Circana warned that unresolved China tariff exposure could cloud the category's momentum through the 2026 holiday season.
Key Market Trends and Insights
- STEM and educational toys are gaining popularity as parents prioritize skill development, creativity, problem-solving, and learning outcomes.
- Licensed character toys linked to movies, gaming franchises, and digital content are driving stronger consumer engagement.
- AI-enabled, interactive, and screen-free toys are reshaping play experiences through personalization, connectivity, and immersive learning.
Market Size & Forecast
- Market Size in 2025: USD 112.73 Billion
- Projected Market Size in 2035: USD 168.48 Billion
- CAGR from 2026 to 2035: 4.10%
- Fastest-Growing Regional Market: Asia Pacific
One significant trend impacting the global toys market is Mattel's introduction of its partnership with OpenAI, announced in June 2025, to design age-appropriate artificial intelligence-driven play for selected toy brands. Such trends reflect a shift towards innovative products with enhanced interconnectivity and interactivity to meet emerging customer needs. In this regard, industry data by prominent toy associations suggests that the sales growth of science, technology, engineering, and mathematics-related toys continues to outpace numerous traditionally popular toy types in developed nations. The implication is that leading manufacturers need to embrace innovation and focus less on volume expansion.
Moreover, the global toys market continues to undergo a shift towards premiumization and digital integration. In addition, toy makers' efforts to promote sustainability are growing as well. Leading firms in the industry are increasingly investing in toys designed to be collectibles and products that enhance immersion during play. In essence, major companies are shifting towards premiumization in order to promote retention among customers and maximize product lifetime value. Another approach being embraced by toy makers is leveraging entertainment studio franchises and digital content to generate interest among consumers. For example, in June 2026, Tonies launched the Bluey collection featuring audio figures, starter sets, interactive games, and accessories.
In addition, two more trends are positively affecting the toys market dynamics. First, the growth in the number of franchises for movies, video games, and other forms of entertainment is providing new possibilities for toy companies to capitalize on intellectual property in terms of collectible characters, action figures, and toys based around the themes of entertainment franchises. Companies increasingly align product launches with movie premieres or game releases. Second, developments in sustainable manufacturing practices are leading to a greater willingness by retailers to adopt environmentally friendly lines of toys.
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| Global Toys Market Report Summary | Description | Value |
| Base Year | USD Billion | 2025 |
| Historical Period | USD Billion | 2019-2025 |
| Forecast Period | USD Billion | 2026-2035 |
| Market Size 2025 | USD Billion | 112.73 |
| Market Size 2035 | USD Billion | 168.48 |
| CAGR 2019-2025 | Percentage | 4.1% |
| CAGR 2026-2035 | Percentage | 4.10% |
| CAGR 2026-2035 - Market by Region | Asia Pacific | 4.9% |
| CAGR 2026-2035 - Market by Country | India | 5.8% |
| CAGR 2026-2035 - Market by Country | Brazil | 4.7% |
| CAGR 2026-2035 - Market by Age Group | Up to 5 Years | 5.0% |
| CAGR 2026-2035 - Market by End Use | Online Channel | 7.1% |
| Market Share by Country | USA | 36.1% |
Key Trends and Recent Developments
KV Toys India invested in STEM toy brand Play Panda by acquiring a 50% equity stake, thereby improving its educational toys’ innovation abilities. Manufacturers of toys can grow by purchasing toy brands that specialize in producing STEM toys due to increased demand for educational toys.
Moose Toys, Illumination, and Universal Products introduced Minions & Monsters line of toys to leverage entertainment franchises to gain consumer interest. Leveraging such developments in the toys market, companies can work with entertainment franchises to develop character-themed toys.
The collaboration between Hasbro and Amazon MGM Studios resulted in the development of Voltron movie toys. Manufacturers can utilize film releases to create more demand for their products through strategic partnerships, accelerating growth in the toys market.
Steelbird Baby Toys made an investment of INR 10 crore for launching new infant toys. Manufacturers can make investments in specialized products according to specific age groups, addressing developmental needs, enhancing safety standards, and capturing growing parental demand.
AI-Integrated and Interactive Toy Experiences
Artificial Intelligence is set to become a critical growth catalyst in the global toys market as manufacturers try to combine physical play with digital interaction. Some of the leading firms are looking into conversational, adaptive, and personal play options that allow extending product use from traditional toys' functions. The authorities in the jurisdictions of concern are concurrently developing digital safety standards for kids' products, which promote innovation responsibly. Aligning with this trend, in June 2026, Hasbro launched Sixth Wall AI studio, enabling licensed interactive characters through AI-powered experiences and behavioral licensing.
STEM and Educational Toy Product Line Growth
As an increasing number of parents are paying attention to the skills-based learning through educational toys, manufacturers continue to roll out such toys in their portfolios. These include coding kits, robotic toys, engineering models, and augmented reality education platforms. Governmental backing for STEM education is another factor contributing to the growth of the toys market. Thus, the American government's push towards STEM for school-age children is leading to increased sales of educational learning toys. In June 2026, Haivivi launched BubblePal AI companion toy, transforming plush toys into interactive, screen-free educational play experiences.
Sustainability-Led Product Development
Environmental sustainability is emerging as an essential competitive advantage for players in the global toys market. More toy producers are gradually shifting from traditional plastic materials to recycled, renewable, and bio-materials through innovative packaging designs aimed at minimizing environmental damage. For instance, companies like LEGO are investing in sustainable material development that goes beyond traditional plastics used to manufacture toys. Regulatory frameworks in favor of circular economy initiatives in the European Union member countries are encouraging such innovations. Meanwhile, retail organizations are incorporating sustainability measures for toy manufacturing into the supplier criteria to encourage environmentally friendly practices by suppliers. In June 2024, NESTA Toys expanded its eco-friendly educational toy portfolio, promoting early learning, sustainability, and child development.
Entertainment Franchise and Licensing
Entertainment franchising is influencing the toys market growth dynamics through increased investment in franchise expansion. Toy makers are increasingly working together with film studios, gaming firms, and other media outlets for the purpose of creating franchise toys. Collectible characters, action figures, building toy kits, and interactive gaming toys remain popular items. In fact, partnerships associated with major film and game franchises are leading to season-based sales increases in major markets such as North America, Europe, and the Asia Pacific region. In May 2026, Spin Master and Supercell partnered to launch a global toy line spanning Clash franchises, expanding gaming-based merchandise opportunities.
Digital Commerce and Direct-to-Consumer Strategies
The increase in digital commerce channels is changing the way toy manufacturers interact with their customers and the retail industry. Manufacturers are focusing on developing digital channels for their sales and even subscription models in order to attract consumers more effectively. The use of analytics is helping toy manufacturers identify consumer buying patterns and plan for stock optimization. Governments around the world are continuously working on providing better digital infrastructure and support for developing e-commerce activities. Governments in the Asia Pacific region are developing digital economy programs that facilitate e-commerce activities. In December 2025, Funskool launched its electronic toys segment, expanding interactive play offerings and strengthening innovation-led toys market growth.
Global Toys Industry Segmentation
The Expert Market Research's report titled “Global Toys Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Product
- Action Figures
- Building Sets
- Dolls
- Games and Puzzles
- Sports and Outdoor Toys
- Plush
- Vehicle
- Others
Key Insight: The toys market exhibits varying consumer demands in each product category. The demand for action figures is driven by the franchise and collectors' interest, while that of building sets can be attributed to education and creativity. The demand for dolls continues to exist due to their ability to allow customization and storytelling. Games and puzzles are gaining traction because of their entertaining nature and brain developmental benefits. In October 2024, Spin Master and The Tetris Company partnered to launch Tetris-inspired games and toys. Sports and outdoor toys are popular due to their association with active living. Plush toys remain relevant because of their emotional significance and ability to be used for gifting purposes.
Market Breakup by Age Group
- Up to 5 years
- Between 5-10 Years
- Above 10 Years
Key Insight: Every age category records its unique contribution towards the toys market development. Products for ages up to 5 years rely mainly on sensory development, safety, and early learning advantages. The age group between 5-10 years take over because they include an extensive array of preferences concerning recreation, education, and licensing. On the other hand, people above 10 years prefer products like collectibles, sophisticated building kits, games requiring strategies, and products based on franchises. Therefore, manufacturers have to widen their products range as a result of varied demands in terms of development, leisure, and hobby interests.
Market Breakup by Distribution Channel
- Hypermarkets and Supermarkets
- Toys Stores/Speciality
- Online Channel
- Others
Key Insight: The distribution channels also keep on changing in response to shifting consumer tastes. The hypermarket and supermarket chains continue dominating owing to their convenience, product range, and excellent promotion programs. The toy specialty shops are able to sustain their position by virtue of the professional help and superior products that they offer. On-line channels ae becoming more popular due to convenience, wider range of products offered, and opportunity for direct interaction with consumers. In May 2026, Legend of Toys raised INR 21 crore to expand product categories, strengthen distribution, and accelerate growth.
Market Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Key Insight: Trends in the global toys market are significantly different for each region of the world. North America enjoys robust licensing deals, premium product penetration, and solid retailing networks. Education, sustainability, and quality-driven purchasing behavior characterize the European market. Asia Pacific observes considerable market expansion on account of its expanding customer base, increasing income levels, and e-commerce developments. Latin American markets are fueled by increased urbanization trends and brand preference among consumers. On the other hand, the Middle East and Africa region is capitalizing on expanded retail channels, young populations, and increased access to foreign toys brands.
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Global Toys Market Share
By product, building sets register the largest share of the market due to educational value
Building sets constitute a major share of the toys market because of their high appeal in various age groups and the possibility of combining fun with mental development. There is a trend among manufacturers to incorporate aspects like robots, coding, and different kinds of construction experiences in toys. Licensing deals that allow manufacturers to create themes around movies, video games, or even educational institutions are gaining importance as they help in better consumer engagement. Repeat sales and their compatibility with STEM objectives are making them popular among retailers, schools, and parents. In May 2026, Mattel Brick Shop expanded its portfolio with seven new building sets targeting young and adult builders.
The market observes a rise in demand for action figures because of consumers' increased interest in entertainment franchises, collectibles, and rare editions of such toys. Major toys market players are introducing advanced versions of products through the creation of a higher range of action figures, which include enhanced movement and other such features. This trend can be attributed to a high number of fan clubs related to movies, streaming shows, anime, and video games. Companies are also coming up with exclusive collections and subscription-based services to maintain customers. In July 2025, Hasbro unveiled Marvel SNAP Savage Land 3-Pack figures, expanding collectible gaming-inspired action figure offerings.
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By age group, the category between 5-10 years registers the largest share of the market due to broad engagement
The range of children aged 5 to 10 years constitutes the key segment in the global toys market since children in this category use a wide variety of toys. Manufacturers are targeting this category through toys meant for education, construction toys, figurines, games, and even toys for outdoor play. Children at this age are already developing their cognitive, creative, and social capabilities, which motivates parents to purchase toys with educational value without compromising entertainment. Manufacturers also recognize the importance of this category since they manufacture various kinds of licensed merchandise for kids in this age range. In May 2025, Moose Toys and CrunchLabs launched a STEM toy line, combining engineering concepts with hands-on learning.
The above 10 years segment is observing exponential growth in the toys market revenue since an increasing number of companies are manufacturing toys for pre-teens, teens, and adults as well. There is increased demand for collectible toys, high-quality action figures, highly complex construction toys, strategy games, and toys that have themes of popular franchises. Toys appeal to collectors and enthusiasts by offering immersive experiences while also serving as valuable and display-worthy collectibles.
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Hypermarkets and supermarkets account for a substantial share of the market due to accessibility
Hypermarkets and supermarkets continue to be the key channels for selling toys due to extensive product assortments, promotions, and availability. In most cases, people choose to buy toys at those locations when there are certain holidays, special occasions, or other events. Retailers can provide manufacturers with great product visibility and access to a wide variety of customers. Additionally, comparing several goods before making a choice is one more factor in favor of such retail outlets. That is why many toy brands work closely with retailers to launch new products. In May 2025, Toys“R”Us Asia launched Live Toyful, creating immersive play experiences and expanding multi-generational engagement.
Currently, the digital channel observes the fastest rate of development in the toys market since online commerce significantly impacts consumer behavior and preferences. It becomes increasingly popular among toy brands to leverage direct-to-consumer services, online marketplaces, and social media to reach the widest possible audience. With this channel, it is possible to get detailed information about the products and see how they are evaluated by existing customers. Digital commerce allows companies to launch new products quickly and efficiently reach target customers.
Global Toys Market Regional Analysis
North America registered the largest share due to strong licensing ecosystems
The dominance of North America in the global toys market can be attributed to its robust retail industry, active consumer expenditure, and established entertainment licensing industry. High demand for collectibles, educational toys, high-end building blocks, and licensed merchandise helps propel growth in the region. The prominent toy companies keep North America as their focal area when launching new products and promoting their merchandise. Strong collaboration among toy manufacturers, entertainment companies, and retailers further supports innovation, product visibility, and sustained growth in the category. In February 2026, Nintendo launched the My Mario product line, expanding character-themed merchandise and enhancing fan engagement.
Asia Pacific is expected to remain the fastest-growing regional toys market because of the increasing number of people within the middle class, higher disposable income levels, and consumer preference towards education and licensed toys. The manufacturing firms are establishing more production facilities locally and designing their merchandise to meet the local consumer demands. Rapid growth in digital commerce, along with rising demand for STEM-oriented toys, also contributes to regional growth. Countries like China, India, Japan, and South Korea are emerging as important destinations in terms of consumption and innovation. In May 2026, Mattel launched KPop Demon Hunters toys, bringing popular Netflix characters to retail stores worldwide.
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Competitive Landscape
Innovation is now becoming an integral feature of the global industry, which is witnessing competition among toy companies by way of technology adoption, sustainable business practices, entertainment licenses, and consumer interactions. The leading companies in this market are concentrating on artificial intelligence toys, interactive play systems, collectible product lines, and STEM-based learning tools. Collaborations with video game makers, film producers, and streaming services are enabling manufacturers to broaden their appeal to consumers.
Recycling, online retail platforms, and advanced data analytics are among the innovations that toys market players are adopting in order to drive better profits. The education toys segment, premium collectibles, toy subscription schemes, and interactive play are some areas presenting opportunities for manufacturers. Moreover, growing customer demand among older customers and collectors is prompting manufacturers to design toys with more sophisticated features and profitable price tags.
Tomy Company Ltd.
Tomy Company Ltd was founded in 1924 and has its headquarters in Tokyo, Japan. It serves the global market for toys using its diverse range of products such as educational toys, collectible toys, infant products, and hobby goods. Tomy Company Limited is placing emphasis on digital entertainment, interactive toys, and licensing products. The company uses its powerful brand portfolio and efficient distribution system to cater to changes in consumer preference while remaining competitive in Asia, North America, and Europe.
Simba Dickie Group
Simba Dickie Group was founded in 1982 and operates from Fürth, Germany. Simba Dickie provides services to the global toys market using a comprehensive product portfolio that includes dolls, action toys, outdoors, vehicles, and creative play items. The company places emphasis on diversification and regional brand positioning. Simba Dickie offers its services through many specialty toy brands to cater to various consumer age groups.
Moose Toys Ltd
Moose Toys Ltd was established in 1985, and the corporation is based in Melbourne, Australia. The company's success is attributed to highly innovative toys including collectibles, surprise toys, interactive toys, and licensed products. The corporation has been known to focus on developing unique play ideas and product designs that align with trends in the market and change according to consumer needs. Moose Toys Ltd has been consistently expanding its business around the globe through collaborations, innovative marketing campaigns, and the launch of innovative products.
Spin Master Corporation
Founded in 1994, Spin Master Corporation is based in Toronto, Canada. The company addresses the global demand for toys by manufacturing products with an entertainment dimension, educational toys, gaming software, and innovative play ideas. Spin Master Corporation continues to focus on innovation in connected toys, learning toys, and franchises.
Other key players in the market include Hasbro, Inc., Mattel, Inc., Funko, Inc., and LEGO System A/S, among others.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Key Highlights of the Global Toys Market Report
- Analysis of AI-powered toys, connected play ecosystems, and interactive learning innovations.
- Detailed evaluation of franchise licensing strategies and collectible toy developments.
- Regional opportunity mapping highlighting evolving consumer purchasing behaviors.
- Strategic assessment of sustainability initiatives, recycled materials, and circular product design trends.
Why Rely on Expert Market Research?
- Dedicated analysts tracking toy innovation, licensing ecosystems, and consumer behavior shifts.
- Industry-focused intelligence supporting product development and expansion decisions.
- Comprehensive research framework combining company tracking, expert insights, and market monitoring.
- Forward-looking analysis identifying emerging opportunities in connected play, collectibles, and educational toy categories.
Call to Action
Unlock the latest insights with our toys market trends 2026 report. Discover regional growth patterns, consumer preferences, and key industry players. Stay ahead of competition with trusted data and expert analysis. Download your free sample report today and drive informed decisions in the market.
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Sports and Outdoor Toys Market
United Kingdom Toys Market
Asia Pacific Toys Market
Spain Toys Market
Toys Market Report Snapshots
Licensed Merchandise Industry Outlook
Educational Toys Industry Opportunities
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
Key Questions Answered in the Report
The market was valued at USD 112.73 Billion in 2025.
The market of the global toys is supposed to expand at a CAGR of 4.10% within the projection period of 2026-2035.
Revenue generated from the toy market is supposed to reach USD 168.48 Billion in 2035.
Some of the major trends that impact the growth of the industry include: integration of technology, sustainability, educational toys, and inclusivity and diversity.
Based on product, categorization of market includes action figures, building sets, dolls, games and puzzles, sports and outdoor toys, plush, vehicles, and others.
The market key players are Tomy Company Ltd., Simba Dickie Group, Moose Toys Ltd., Spin Master Corporation, Hasbro, Inc., Mattel, Inc., Funko, Inc. and LEGO System A/S among others.
The market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa.
The Asia-Pacific region is the most growing region in the global toys market due to rising demand involving toys, games, as well as television and digital entertainment ventures.
The key players in the toys market are Tomy Company Ltd., Simba Dickie Group, Moose Toys Ltd., Spin Master Corporation, and Hasbro, Inc.
Report Summary
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Product |
|
| Breakup by Age Group |
|
| Breakup by Distribution Channel |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Trade Data Analysis |
|
| Competitive Landscape |
|
| Companies Covered |
|
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