ABOUT INDIAN TOYS INDUSTRY
The invention of toys in India took place during the Indus Valley Civilization, approximately 8,000 years ago. The original toys comprised whistle-shaped parrots, toy monkeys with long hands to slide down a rope or stick and miniature farm carts. All these toys were made from natural materials such as bamboo sticks, hay, and natural clay like soil, rocks, and fibre cloth. However, today, the advent of progressive technology and mechanism has stimulated companies to produce fresh and inventive toys. Soon, owing to the new revolution of ‘Local se Vocal’, India is anticipated to become the global hub by 2025-2030.
The Indian toy sector is expanding on the shoulder of a growing young population, rising disposable incomes, and a slew of innovations for the junior population base. The industry stands on the cusp of significant opportunities in every toy segment such as electronic toys, puzzles, construction and building toys, dolls, ride-Ons, sports and outdoor play toys, infant/pre-school toys, and activity toys.
Toys have been an integral part of childhood, and in India, there is a diverse and culturally rich history of traditional toys. With the growth of Indian economy, the toy retail industry in India has witnessed significant growth over the years. India’s toy market reached a value of $ 1.5 Billion in 2022 and it is projected to reach UDS 3 billion by 2028, growing at a CAGR of 12.2% during the forecast period of 2023-2028. The growth is being led by factors such as rising incomes, increase in number of children, a growing middle class, and increased awareness of the importance of play in child development.
The industry has evolved with changes in technology, culture, and economic conditions, and children in India now have access to a wide variety of toys that reflect both local and global influences. Historically, traditional toys made of natural material such as clay, wood, or cloth, by artisans and craftspeople in India were sold locally and at fairs. In the 20th century, with the growth of international trade and globalisation, imported toys such as plastic toys, action figures and board games became more widely available. Fast forward to the early 2000s, with the growth of the Indian economy, local retailers such as Funs Kool developed and produced a range of toys.
Now with the advent of technology, electronic toys such as robots, interactive games, and remote-controlled toys have been in popular demand. More recently, there has been a growing interest in educational toys in India. The creation of toys like science kits and coding games are being designed to facilitate children learn skills, such as problem solving, creativity, and critical thinking.
This transformation in the country’s toy retail industry has involved new players entering the market, traditional retailers expanding their offerings, and online sales channels gaining traction. While there are various artisans, craftsmen, and small businesses involved in this transformation, the toy retail market is presently dominated by both global and domestic players. Some of the major global players include Mattel, Hasbro, Lego, and Bandai Namco. Domestic players include Funs Kool, Hamleys, and Playgroup Toys India. These companies are expanding their reach by increasing their product offerings, opening more stores, and exploring online sales channels.
Toys are essential tools to foster a child’s development. Historically, toys have been a part of a child’s life to develop various skills, cognitive thinking, logical reasoning and other hands-on motor skills. However, as technology and science advanced, toys also progressed. From the introduction of the concept of ‘meaningful playtime’ and ‘conscious parenting’, the demand for toys that serve as a medium to learn problem-solving skills, STEM education and concept development saw an upward trajectory.
Witnessing the rise in demand for promotional toys, the marketing teams of children’s brands saw this as an opportunity to create a better business. Be it an MNC like McDonald’s which introduced promotional toys as a part of their kid meal box or Pepsi Lay’s which gave free TAZOs in their packet of chips, these companies captured the target market effectively.
Indian Toys Market Trends:
The increasing population of India represents one of the key factors catalysing the demand for toys. In addition, inflating income levels and the rising awareness among individuals about the benefits of toys in improving the cognitive capabilities of children are positively influencing the market in the country. Apart from this, a shifting preference from conventional toys towards modern and hi-tech electronic toys is strengthening the market growth. In line with this, the escalating demand for sensory toys for kids with special needs is driving the market in India. Furthermore, the advent of advanced technology and machinery is encouraging manufacturers to produce innovative toys, which, in turn, is creating a positive market outlook. Moreover, the expansion of organized distribution channels, along with the proliferation of the e-commerce industry that provides doorstep delivery, exciting offers, and secured payment methods, is offering a favourable market outlook in the country. Additionally, the rising sales of smartphones, laptops, and personal computers (PCs), along with the increasing influence of social media, are propelling market growth.
Key Market Segmentation:
IMARC Group provides an analysis of the key trends in each sub-segment of the Indian toys market report, along with forecasts at the country and state level from 2023-2028. Our report has categorized the market based on toy type, gender and distribution channel.
Breakup by Toy Type:
- 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
- OtherToys
Infant/pre-school toys currently dominate the market as they help develop problem-solving and motor skills and hand-eye coordination among children.
- Unisex Toys
- Toys for Boys
- Toys for Girls
Unisex toys account for the majority of the market share as they can be enjoyed by siblings, playmates, and family members.
Breakup by Distribution Channel:
- Specialty Stores
- Supermarkets and Hypermarkets
- Online
- Others
On the basis of the distribution channel, the market has been segmented into specialty stores, supermarkets and hypermarkets, online, and others.
Regional Insights:
- Maharashtra
- Tamil Nadu
- Karnataka
- Gujarat
- Delhi
- Others
Maharashtra enjoys the leading position in the market due to the presence of various toy manufacturers in the state.
Competitive Landscape:
Some of the leading key players in the Indian toys industry are:
- Funs Kool
- Lego
- Mattel
- Hasbro
This report provides a deep insight into the Indian toys market covering all its essential aspects. This ranges from macro over view of the market to micro details of the industry performance, recent trends, key market drivers and challenges, SWOT analysis, Porter’s five forces analysis, value chain analysis, etc. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the toys market in any manner.
