Competitor Strategies in Toys and Games

November 2024

Sales of toys and games, buoyed by recent recovery, are poised for continued growth over the next five years. The rising influence of pop culture, the growing kidult market, and the increasingfuture digitalisation of play are shaping the of the industry.

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Key findings

Emerging markets to drive future growth for top brands

The middle-class boom in emerging markets will create opportunities for brands to reach new consumers. Brands are expected to endeavour to educate consumers on product quality.

Strengthening “core” brands through partnerships

Top brands are strengthening their biggest franchises by entering partnerships to reach a wider audience who are not currently customers. Brands are also outsourcing the development of video games and films to focus on their core capabilities, which is manufacturing and selling toys.

Pop culture influence goes beyond the box office

Pop culture goes beyond the cinema box office, with companies now leveraging sports, music and video games to drive awareness of toys and games products.

Digitalisation will leverage AI in products and processes

Toys and games companies are already adopting AI to enhance product development and create more engaging offerings in the market.

Creating new “experiences” for kidults

Targeting new consumer group, such as the elderly, will be crucial, and brands are expected to release more age-inclusive products that cater to different demands.

 

Scope
Key findings
Companies at a glance
Toys and games growth to be driven by new consumers in emerging markets
Capitalising on market momentum amidst competition
Lego extends its presence in emerging markets
Market size expansion of existing categories will be key for growth
Strengthening core brands through partnerships
Video games manufacturers will continue to benefit from increased screen time
Barbie’s downfall in 2024 emphasises pop culture influence in driving toys sales
Expanding toys and games’ reach beyond box offices
Traditional toys companies are going digital
Companies leveraging online platforms to drive engagement
Kidults are becoming more crucial in driving growth
Targeting high-income kidults is crucial to maintain growth
Jumping into the blind collectables hype
Blind collectables global expansion can take shares from other toys format

Toys and Games

This is the aggregation of traditional toys and games and video games.

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