Pre-school Games and Toys Market

Pre-school Games and Toys Market Outlook (2023 to 2033)

The global pre-school games and toys market is valued at US$ 12.98 billion in 2023 and is estimated to reach US$ 25.5 billion by the end of 2033, expanding at a noteworthy CAGR of 7% over the projected period (2023 to 2033).

The pre-school games and toys market, a segment of the toy industry, produces toys and games specifically designed for children aged 0–5 years. This market includes a wide range of toys and games such as building blocks, puzzles, dolls, stuffed toys, musical toys, and educational toys. The market is an important segment of the toy industry as it provides products that are essential for the overall development of young children and helps them to learn in a fun and interactive manner.

The market is driven by several factors, including increasing disposable incomes, growing awareness about the importance of early childhood education, and the availability of a wide range of innovative and interactive toys and games.

Games and toys have a big impact on the social life of children. Dolls, rattles, toy cars, board games, skipping ropes, and jigsaw puzzles are just a few of the many items of the category-toys and games. Toys play a significant part in brain development as they help children develop their logical and reasoning abilities as well as their spatial reasoning abilities. They have intrinsic value that affects a child's overall development.

Children can express themselves creatively and emotionally through toys. On the other hand, playing games enhances social, physical, and cognitive abilities. Children learn when communicating and interacting with others while playing with toys and board games.

• A product agreement between LEGO and companies such as IKEA, Levi's, Universal Pictures, and Universal Music Group was announced in August 2020. Together with Universal Pictures and Universal Music Group, LEGO is involved in telling tales and creating a distinctive experience.

Report Attributes	Details
Pre-school Games and Toys Market Size (2022)	US$ 12.13 Billion
Estimated Market Value (2023)	US$ 12.98 Billion
Projected Market Value (2033)	US$ 25.54 Billion
Global Market Growth Rate (2023 to 2033)	7% CAGR
Japan Market Growth Rate (2023 to 2023)	6.8% CAGR
Germany Market Growth Rate (2023 to 2033)	8.5% CAGR
South Korea Market Growth Rate (2023 to 2033)	5.2% CAGR
Key Companies Profiled	Mattel Inc. Alpha Group Playmates Toys Ltd. LEGO A/S LEGO A/S Sanrio Company Dream International Ltd. Bandai Namco Holdings Inc. Konami Holdings Corp. JAKKS Pacific, Inc.

Why is the Popularity of Pre-school Games and Toys Increasing Rapidly?

“Rising Demand for Interactive Toys for Play-cased Learning"

There is a growing demand for pre-school games and toys as many parents and caregivers are recognizing the importance of play-based learning for the development of their young children. The introduction of new technologies such as augmented reality and interactive toys is driving innovation and growth in the market. Many parents are increasingly opting for eco-friendly and sustainable toys, which is leading to the development of new products in the target market.

Partnerships between toy companies and popular children's brands such as Disney or Sesame Street are anticipated to drive the demand for pre-school games and toys featuring respective characters. The market is expanding globally with increasing demand from emerging economies and the availability of online marketplaces is enabling easier access to a wider range of products.

"Growing Preference for Environment-friendly & Sustainable Toys"

Customers are increasingly concerned about the environmental impact of toys and are looking for sustainable options. Toys made from recycled or renewable materials, or that are biodegradable or compostable, are becoming more popular. There is a growing demand for educational toys that help pre-school children learn while playing.

Toys that promote early literacy and numeracy skills, STEM learning, and problem-solving skills are especially popular. Interactive toys that engage children through lights, sounds, and movements are becoming more popular. These toys help develop children's sensory skills and provide an immersive play experience. Pre-school children are often drawn to toys featuring their favorite characters from TV shows and movies.

Licensing and branding partnerships between toy manufacturers and entertainment companies are driving this trend. With the rise of e-Commerce channels, more pre-school toys are being sold online. Online retailers offer a wider range of products and online shopping is a convenient process. Social media marketing and influencer partnerships are crucial aspects for market players to reach their target audience.

• In 2019, there was a rising trend of educational and STEM-focused toys for pre-schoolers, aimed at fostering early learning and development of problem-solving and critical thinking skills and thus new licensing agreements with popular children's franchises to develop pre-school games and toys based on different characters and themes were introduced.

What are the Potential Restraints for the Sales Growth of Pre-school Games and Toys?

“Stiff Competition from Digital Games and Safety Concerns”

Increasing competition from digital games and apps using innovative technologies and concerns about the safety and quality of toys are expected to restrict the market growth. Moreover, economic instability or recession may cause parents to cut back on discretionary spending, including toys and games.

Changing demographic trends such as declining birth rates are expected to reduce the overall size of the pre-school games and toys market. Increased regulations or restrictions on certain types of toys or materials are also forecasted to limit product innovation and development.

Country-wise Analysis

What’s Driving Demand for Kid’s Games and Toys in China?

“Growing Emphasis on Early Childhood Education”

Sales of pre-school games and toys in China are projected to reach US$ 5.31 billion by the end of the forecast period. The market in China is projected to grow at a healthy CAGR of 7.7% over the forecast period.

The market is experiencing significant growth due to several factors. One of the primary drivers of the market is the country's large population, which includes a significant number of young children. Additionally, the increasing disposable incomes of Chinese families have led to an increase in spending on pre-school games and toys. Another factor driving the market is the growing emphasis on early childhood education and the use of toys and games as educational tools.

There is also a growing trend toward purchasing higher quality and more innovative pre-school games and toys, leading to an increase in demand for premium products.

Why are Pre-school Games and Toys Highly Popular in the United States?

“Toy Manufacturers Focusing on Creating Innovative & Engaging Products”

The market in the United States is expected to reach US$ 6.97 billion by the end of 2033, expanding at a healthy CAGR of 6.4% over the forecast period. The market is booming with high demand for educational and interactive toys for young children.

The United States market is driven by several factors, including increasing disposable income, changing lifestyles and preferences of parents, and a growing emphasis on early childhood education. However, the market also faces some challenges such as the rising cost of raw materials, safety concerns related to the use of certain materials in toys, and the impact of digital media on traditional toy sales.

The market in the country is expected to continue to grow over the coming years with a focus on innovative and engaging products to meet changing needs and preferences of young children and their parents.

Category-wise Analysis

How are Puzzle Games Enhancing Children's Development?

"Puzzle & Board Games with Wide Variety of Themes, Designs, and Skill Levels Developing Children’s Cognitive & Critical Thinking Abilities"

The market for puzzles and board games is expected to increase at a CAGR of 7.6% over the forecast period.

Puzzles and board games for kids come in a wide variety of themes, designs, and skill levels. Some popular puzzle games for kids include jigsaw puzzles, magnetic puzzles, and matching puzzles. Jigsaw puzzles are available in various sizes and numbers of pieces and often feature animal images, nature scenes, popular characters, or famous landmarks.

Magnetic puzzles are great for young children as pieces stick together and are less likely to get lost. Matching puzzles involve matching pairs of objects or pictures and are great for developing memory and concentration skills.

Classic board games such as Chutes and Ladders, Candy Land, and Snakes and Ladders are popular among young children as they are easy to learn and promote social interaction. Cooperative board games such as Hoot Owl Hoot and Race to the Treasure encourage teamwork and collaboration. Strategy games such as Blokus and Connect Four help develop critical thinking and problem-solving skills.

Why are Pre-school Games and Toys Made of Plastic More Sought After?

“Durability & Affordability of Plastic-made Toys”

Demand for toys made of plastic material is anticipated to rise at a prolific CAGR of 8% over the projected period.

Plastic materials are widely used in the manufacture of pre-school games and toys due to their durability, affordability, and versatility. However, there have been concerns about the safety of certain types of plastic materials, particularly those that contain harmful chemicals such as BPA (bisphenol A) and phthalates.

As a result, there has been a growing trend toward using safer and more eco-friendly materials in the production of pre-school games and toys such as wood, bamboo, and recycled materials. Additionally, some manufacturers are using biodegradable plastics and developing new materials that are both safe and environmentally friendly.

Over the coming years, pre-school games and toys made of plastic are expected to be high in demand. Their consumer-friendliness and safer durability features are primarily driving the target market. Polypropylene (PP), a major type of plastic-based material, is widely utilized in soft toys. The popularity of polypropylene is expected to grow because of its advantages in terms of bright color, light weight, and high strength, which is forecasted to boost the sales of toys for young children.

Competitive Landscape

The competitive landscape in the pre-school games and toys market is highly fragmented and consists of a large number of players, ranging from small and medium-sized enterprises to multinational corporations. The market is highly competitive and players are continuously trying to gain a larger market share by launching new products and improving their existing ones.

Leading manufacturers of pre-school games and toys include Mattel, Hasbro, LEGO Group, Fisher-Price, VTech Holdings Limited, Ravensburger AG, LeapFrog Enterprises Inc., Spin Master Corp, Bandai Co., Ltd, and TOMY Company, Ltd. These companies are focusing on product innovation, expansion of distribution channels, and strategic partnerships to gain a competitive advantage in the market.

The market is witnessing the entry of new players, especially in emerging economies, who are offering low-cost products to gain a foothold in the market. These new players are often able to offer products at a lower price point due to their lower operating costs and streamlined supply chains.

The market is expected to continue to grow over the coming years, driven by increasing demand for educational and interactive toys and games for young children.

• A Celia Cruz doll was released in November 2021 to honor Hispanic Heritage Month by Mattel Inc., a leading manufacturer of children's toys and games that also includes various sub-brands of toys, with Barbie dolls being one of the well-known brands. Celia Cruz, also referred to as the Queen of Salsa, was one of the well-known Latin performers of the 20th century.
• The Ultimate Collector Series Star Wars AT-AT, which consists of 6,785 pieces in total, was introduced by Lego A/S in November 2021. The new collectible is for both kids and millennials who are interested in purchasing uncommon games and toys.

Key Segments of Pre-school Games and Toys Industry Research

• By Product :

  • Puzzles & Board Games
  • Arts & Crafts
  • Construction Toys
  • Others

• By Material :

  • Plastic
  • Metal
  • Wood
  • Others

• By Distribution Channel :

  • Specialty Stores
  • Supermarkets
  • Online Stores

• By Age Group :

  • 2–3 Years
  • 3–4 Years
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific & China
  • Middle East & Africa